(03) 9020 2905While we thankfully continue to embrace capitalist democracies and shun the “nirvana” of communism (don’t forget Animal Farm), the wretched will be attracted to your money like the ants chasing sugar in my kitchen.
For mine, there are two types of financial “scams”.
The first is generally illegal and has been covered by Aunt Kerrin (right). Sadly, not enough of those perpetrators ever face jail.
In the second category are actions that are almost more insidious because they are not just legal, but government sanctioned! Call in Mulder and Scully! This has got The X-Files all over it.
They have a similar wealth-destroying impact on your fortunes. Hand over $100 and have $10-$40 zapped before being handed back to you.
I’m talking poker machines, lotto games and scratchies.
If you’re going to play the one-armed bandits or buy a “ticket to dream”, then understand that your odds of winning a decent sum are infinitesimal. For lotto-style games, your chance of winning is one in eight million.
How do you scam proof against this? Don’t play them. But if you can’t resist, play them only occasionally and invest the savings.
For instance … put $20 a week into a share and property managed fund for 30 years. It is likely to grow to nearly $190,000. Sure, it might be far less sexy. But there’s a far better chance you’ll have something worthwhile at the end.
Bruce Brammall is the author of Debt Man Walking (www.debtman.com.au) and a licensed financial adviser.