Why You Should Invest Your Own Money

Knowledge is the best bullshit detector

My friends, family, and readers often ask whether they should invest money through a third party.

They talk about “agencies” or “investing companies” who advertise online and on social media with the message:

“Just give us your money, and we will give you X% returns every month.”

Here’s a rule of thumb: If third parties make that type of pitch, RUN as fast as you can.

Promising returns on your money is almost always a pyramid scheme. The people who start these schemes are charlatans who prey on your money. The pitch is always as follows:

• There’s a secret method for making money
• It’s such a good opportunity that it’s almost criminal
• We (as in, the agency or company) know how to print money with this opportunity
• If you want to get it, just give us your money and we will do all the work for you
• You don’t need to know anything about investing
• Just count your money!

The reason many people fall for these things is that the pitch is often really good. They present their opportunity in a credible way that you think, “Hmm… interesting.”