Before we talk about spotting a good investment, I would like to share that the main reason why a lot of people get duped into bad investments is pure and simple greed. Greed is brought about by the love of money. The Bible tells us the love of money is the root of all evil. Note that money is not evil, because it is neutral – one could use it either for good or evil.
The love of money, which is really greed, afflicts both rich and poor. It is the main cause why a lot of people fall into the trap of bad investments, investment scams, pyramiding scams and all out fraudulent schemes. Thus the first lesson in spotting a good investment is getting rid of the love of money in our hearts. If we recognize this in our lives, then we should repent and ask the Lord for forgiveness. Unless we rid of greed in our lives, we will continually fall into investment traps.
Once we are free of greed, then we are in a good position to spot a good investment. A verse in the Bible that is helpful here is the one in the book of Proverbs that says “those who gather money little by little watch it grow“. We should therefore search for investments that give us a consistent modest return through time.
So how much is a good return? From our experience, an investment that yields an annual return of 10 to 20 percent is already a good investment. This is why investments that promise a return of 100 percent per annum and in certain instances, 5 to 10 percent a month is most likely a scam. The rule of thumb in assessing investment returns is simple: if itis too good to be true, it probably is. So choose an investment that offers you a good, consistent, yet modest return of investment on a regular basis.***
Goshen Land Capital Inc.