Tag: Wisdom (page 1 of 2)

Ponzi Schemes: Use This Checklist to Avoid Financial Ruin

Ponzi schemes keep leading people to financial ruin.

In April 2025, CryptoBridge Exchange, a fraudulent investment scheme known as CBEX, was believed to have bankrupted its believers and subscribers by 1.3 trillion naira.

Most people who did not join this scheme believed its participants were gullible and not street smart.

It reminded me of the previous Ponzi schemes I have been involved in, both the successful and the failed ones.

There are lessons to learn here. Please read to the end.

My First and Successful Experiences with Ponzi Schemes

In 2016, I invested money in MMM Nigeria.

I was still an undergraduate then. MMM Nigeria promised each investor a monthly return of 30% on their money. Their model was simple. You became a member of their forum by investing as little as 15,000 Naira. That money gets paid directly to another member. At the end of your 30-day cycle, you get paid by other members who recently registered.

On 13 December of that same yearthe scheme was frozen. Accounts blocked. And the founders disappeared without a trace.

This was my first experience with a Ponzi Scheme. But it was not my last. Other schemes (like Twinkas, Givers Forum and a few others) replicated this business model:

Invest and tell other people to invest on their platform. Get your returns on the same platform. Then the platform ‘crashes’ a few months later.

It was not one of my proudest moments participating in those Schemes. It was a ‘Rob Peter to Pay Peter’ type of investment. But the profits paid my bills and food while in the university.

The Ponzi Clock

The Ponzi Clock

What are Ponzi Schemes, and how do they work?

Imagine you have a Shop that sells Plantain chips.

People give you money to buy plantain to make more chips, so you can eventually give them back more money than they gave you.

That’s how a real business works!

Now, imagine a fake plantain chips shop run by a tricky person. This person tells people, “If you give me some money, I promise to give you back even MORE money very soon!”

But here’s the secret: this tricky person doesn’t sell any plantain chips or do any real work to make more money.

Instead, when the first people want their extra money back, the tricky person uses the money that NEW people give them to pay the first people.

It looks like everyone is making money, right?

The first people are happy because they got more money back, and they tell their friends to join in! So, more and more people give their money to the tricky person.

This is called a Ponzi Scheme.

It’s a big money game where the early players get paid with money from the later players.

A Ponzi scheme is a tricky scam where someone promises to give people a lot of money if they invest with them. But instead of really earning money, the scammer just uses new investors’ money to pay the old investors.

But here’s the problem: eventually, the tricky person runs out of new people to give money.

When that happens, there’s no more money to pay anyone, and the whole thing falls apart.

The tricky person often disappears with all the money, and most people lose everything they put in.

So, a Ponzi scheme is a fake way to make money that relies on tricking new people into giving money to pay off the old people. It’s not a real business, and it always ends with most people losing their money.

My Last Experience with Ponzi Schemes

In 2020, A friend introduced me to a Customs officer who was into “forex trading”.

The customs officer offered a 100% return in 90 Days with monthly payouts. I cannot remember the full details, but my friend was in his third month of investment and was about to withdraw his principal and reinvest only the profit earned.

My plan was simple.

I did not ask questions. I did not ask which trading strategies this customs officer/forex trader employed. All I wanted to do to earn a profit, recover my principal and keep “cashing out”

Long story short, I lost one-third of my money because the business stopped paying me in the third month.

I eventually discovered that the forex trading business was simply money invested in MBA Forex. This was a Ponzi Scheme that crashed in 2020, just like MMM in 2016. Same Script, different actors.

This was my last experience losing money to any Ponzi scheme, and I will tell you why.

The Risk is not in the investment. The Risk is in the investor

Two people invest in the same thing. This could be a stock, a business, crypto or even a Ponzi scheme.

One person learns first, stays calm, and invests wisely. The other just guesses, follows the crowd, and panics when things go down. The investment didn’t change — the people did.

Here is a breakdown of what happens.

Person number 1 does their homework. They learn about the company, understand what it does, and don’t put all their savings into just that one company. They’re careful and think long-term.

Person number 2 hears from a friend that this company is offering a profitable investment. They don’t know anything about the company, but they put all their money into it, hoping to get rich quickly. When the investment goes bust, this money is gone for good.

This was never about Ponzi Schemes.

The Risk is in the Investor

The Risk is in the Investor

Now, look at these other examples and their key lessons:

Example 1: The “Money Doubling” WhatsApp Group

Someone adds you to a group chat that promises to double your money in 48 hours. You see payment screenshots flying everywhere.

People are hyped. You send ₦50k, hoping to get ₦100k back.

In this scenario, Scammers create FOMO (Fear of Missing Out) to cloud your judgment. If it’s real, it will still be real tomorrow.

Key lesson: Never invest money based on urgency or pressure.

Example 2: The Pastor’s Investment Club

A trusted church leader promotes a “divinely inspired” investment opportunity. Because he’s respected, no one questions it.

People sell land, borrow money, and throw in their savings.

In this scenario, respect does not equal financial expertise. Always verify, not just believe.

Key lesson: Separate trust in people from trust in their financial recommendations.

Example 3: The Crypto Pump Group

You join a Telegram group where admins tell everyone to buy a certain coin. The price shoots up. You join in.

3 days later, the coin crashes. Admins vanish.

Key lesson: run away if you’re getting investment advice in emojis and hype language.

Stop ignoring the red flags of Ponzi schemes because you want ‘free money’

The Red Flags of Ponzi Schemes

The Red Flags of Ponzi Schemes

Risk comes from not knowing what you are doing – Warren Buffett.

The real risk isn’t the thing you put your money in. It’s how smart, prepared, and patient you are with it. A smart investor can do well even with a normal investment, while a risky investor can lose money even with something that seems safe.

The return of money is more important than the return on money.

When it comes to money, getting your original money back safely is the most important thing.

If you focus only on trying to make a lot of extra money (the return on money) very quickly, you will take bigger risks. These risks could lead to you losing all your original money (the return of money).

Think of it like this:

Getting your money back (return of money) is like making sure your house is safe and sound. Making extra money (return on money) is like adding cool decorations to your house.

Decorations are nice, but having a safe house to live in is way more important!

So, while making extra money is good, the first and most important thing when you invest or lend money is to make sure you’re going to get your original money back.

If you don’t get your original money back, then any potential extra money doesn’t even matter!

Smart Investing

Smart Investing

How to Avoid Financial Ruin with Ponzi Schemes (Or any Investment Opportunity)

After my lessons in 2016 and 2020, there are six questions I now ask before investing.

Before putting money into any opportunity, I now run through this checklist:

  1. Transparency Test: Can I easily understand how exactly this investment makes money?
  2. Expertise Verification: Do the people running this have verifiable credentials and experience?
  3. Regulation Check: Is this investment registered with and overseen by appropriate financial authorities?
  4. History Analysis: What is the track record of this investment or company beyond testimonials?
  5. Independent Verification: Can I find information about this opportunity from sources not connected to the people selling it?
  6. Withdrawal Clarity: How exactly can I get my money out, and are there any restrictions?

If I can’t get clear, satisfactory answers to ALL these questions, I don’t invest.

It’s as simple as that.

These principles extend far beyond just avoiding Ponzi schemes. The same critical thinking protects me from “Get rich quick” business opportunities, dubious crypto projects and even everyday purchasing decisions.

The Too Good to Be True Test

The Too Good to Be True Test

The discipline of questioning what seems too good to be true has become a valuable life skill, not just a financial one.

This is very important.

What if you’re currently in what might be a Ponzi scheme?

Don’t panic, but act quickly.

Stop adding any new money immediately. Try to withdraw your principal investment as soon as possible. Document everything too, from communications, promises, to payment histories.

Don’t let loyalty or hope delay your exit. Also, be prepared for the possibility that you may not recover everything.

What if you’re considering a new investment?

Apply the Questions Checklist above rigorously.

Then set a maximum amount you’re willing to risk. Ideally, this should be no more than 5% of your investment capital. Establish clear exit criteria before you enter and verify through multiple independent sources.

In the world of investment, boring is often beautiful. Consistent, modest returns from legitimate activities will build wealth far more reliably than chasing spectacular promises.

“Don’t be the fool who ‘cashes out’ others. Be the one who walks away with your dignity and your money.”

The most successful investors don’t need excitement – they need results.

I hope this helps.

Godspeed and Cheers.

 

Why the 10,000 Hour Rule is Outdated (And What to Do Instead)

“Put in your 10,000 hours and you’ll become a master”

You’ve probably heard this advice if you’ve ever pursued excellence in any field. It’s been repeated in bestselling books, TED talks, and countless motivational speeches. But what if this widely accepted “truth” about mastery is fundamentally wrong?

For years, people have clung to the idea that 10,000 hours of practice is the magic ticket to expertise.

What is the 10,000 Hours Rule? (And Why It’s Misunderstood)

Gladwell’s “Outliers” popularized that 10,000 hours of deliberate practice leads to expertise.

The concept is simple: dedicate time, and you’ll achieve mastery.

But here’s the problem: time alone doesn’t make you great — iterations do.

Time Spent does not Equal Mastery

Time Spent does not Equal Mastery

Think about it.

If you spend 10,000 hours lifting weights with bad form, will you become an elite powerlifter? No.

If you practice the wrong technique in business, will you become a millionaire? Highly unlikely.

If you drive a car for 10,000 hours, do you become a Formula 1 racer? Not at all.

Why?

Because mastery isn’t about counting hours — it’s about counting iterations, refining each attempt, and learning from every mistake.

I fear not the man who has practised 10,000 kicks once, but I fear the man who has practised one kick 10,000 times. – Bruce Lee

This reminds me of Zenitsu, one of the characters in Demon Slayer: Kimetsu no Yaiba.

Zenitsu mastered a single sword-fighting technique (Thunderclap and Flash), so he could utilize it even while asleep. His swordsmanship skill drastically evolved to match that of the Hashira, the highest-ranked and most powerful swordsmen in the story.

All I am saying you can spend 10,000 hours doing something wrong and remain mediocre.

Many people focus on the quantity of hours, not the quality of practice.

The Problem with the 10,000-Hour Rule

Most people misinterpret it.

The 10,000-hour rule misses a crucial point: two people can spend identical amounts of time practising something yet achieve dramatically different results.

Why? Because most people have misinterpreted the research, focusing on the quantity of practice rather than quality.

The problem with the 10,000 Hours Rule is that it focuses too much on time spent rather than the quality and structure of practice.

Many people have put in 10,000 hours at their jobs without becoming exceptional at them.

They focus on the sheer quantity of practice, ignoring the quality. It’s not about mindless repetition — it’s about strategic, intentional iteration.

It’s 10,000 Iterations, not 10,000 Hours

“It isn’t 10,000 hours that creates outliers, it’s 10,000 iterations.” – Naval Ravikant

Top performers don’t just put in time—they test, tweak, and refine.

They aren’t afraid to break things, fix them, and push the limits of what’s possible.

It’s about 10,000 focused attempts at perfecting that one sword technique, with feedback and correction each time.

Do this to Replace the 10,000 Hour Rule

Do this to Replace the 10,000 Hour Rule

Iteration is Already a Part of Life

Look around you—iteration is the fundamental building block of progress in nearly everything:

  • Children learn to walk through thousands of tiny adjustments after falling.
  • Startups use “build-measure-learn” loops to develop products.
  • Evolution works through iterations of genetic variation and natural selection.

Also, look at how technology evolves.

Mobile phones started as bulky bricks that did little more than make calls. Now, they’re pocket-sized supercomputers. From Nokia 3310s to iPhones and Samsung Galaxy smartphones.

Every major advancement in technology, art, science, and human skill came through repeated iterations — not just hours of effort.

The same applies to your personal growth and skill development.

You’re already iterating every day

You just don’t realize it.

  • Ever adjusted a recipe after tasting it? Iteration.
  • Ever tweaked your workout after feeling sore? Iteration.
  • Ever adjusted your playing style after failing at a game? Iteration.

The problem? Most people stop refining too soon. They settle for “good enough” instead of pushing for “what’s next?”

What is Iteration

Iteration is not repetition. Iteration is error correction.

This distinction is crucial. Repetition without adjustment is just going through the motions. True iteration involves these 4 Steps:

  1. Try something.
  2. Break it.
  3. Fix it.
  4. Repeat.

Each iteration should teach you something new about your craft. Without this learning component, you’re just spinning your wheels—even if you’re logging hours.

How to Iterate Your Way to Mastery (Progressive Overload)

The secret? Add weight to your practice.

  • Lifters add more plates.
  • Learners add more challenges.
  • Gamers add more combos.

The key to real growth is progressive overload.

This is the principle that small, consistent improvements over time lead to massive gains. Just like lifting weights, you don’t jump to the heaviest load on day one. You progressively challenge yourself, increasing complexity and intensity with each rep.

Imagine learning a new language.

You don’t just cram vocabulary for 10,000 hours. You practice speaking, make mistakes, correct them, and repeat. That’s iteration.

It’s not necessarily all about the volume of time, but the number of reps you put into a specific task. The magic happens when you complete enough quality iterations — whether it takes 1,000 hours or 20,000.

Because it’s the meaningful repetitions that matter, not the clock.

Make Every Iteration Count

Want to master anything? Make every repetition count.

  1. Start small. Focus on one variable at a time.
  2. Measure. Track what changes.
  3. Adjust. Improve one thing each time.

This is progressive overload—the same way athletes build strength by gradually increasing resistance.

But instead of weights, you’re adding challenge, precision, and refinement.

Mastery isn’t about sitting in one place for 10,000 hours — it’s about pushing through 10,000 iterations, each one sharper and more refined than the last.

It’s not the hours put in at work, it’s the work put in during the hours.

If you want to accelerate your success, stop worrying about the clock. Instead, focus on how many quality reps you’re putting in.

Your highest self will thank you.

People Magnet: Four Quick Ways to be Liked by Others

To be a people magnet is to acknowledge that your happiness and success at work can be strongly influenced by how well-liked you are by others.

People that are likable are regularly better at influencing others—whether it’s convincing coworkers, winning over ideas, or boosting team spirit. Stronger, deeper connections with others can also be nurtured by your likability, and this results in sustaining friendships and partnerships.

Be a People Magnet

Be a People Magnet

Here are the four quick ways to make people like you:

1. Smile to make a great first impression

First impression matters.

And the quickest way to make a great first impression is to give a wide smile. Smiling makes you look friendly and approachable.

A smile says to the other person, ‘I am glad to see you. You make me happy. I always enjoy your company.”

The clothes you wear is not nearly as important as the expression on your face.

WHAT ABOUT THE DAYS YOU DON’T FEEL LIKE SMILING?

Force yourself to smile when you are first alone. Act as if you are already happy, and this will make you happy as well. You are only happy when you choose to be happy.

Then smile afterwards. Your smile is a way of expressing your kindness. Everyone who sees your smile will feel happier around you too.

2. Remember people’s names to make them feel important.

Do you know the average person is more interested in his or her own name than all other names combined?

Former U.S. President, Franklin D. Roosevelt confirms that remembering names is one of the easiest, most evident, and most significant ways to win people over. When you remember that name and call it easily, you have paid a subtle and impactful compliment to that person.

The ability to recall names is nearly as crucial in social and professional interactions as it is in politics.

HOW TO REMEMBER THE NAMES OF PEOPLE

If you are hearing a person’s name clearly for the first time, ask – “I am sorry, I did not hear your name clearly, can you say it again?”  If the name is not common, ask the person to spell it out. Then write the name on your phone or a piece of paper.

Make the effort to repeat the name multiple times during the conversation and try to mentally connect it to the person’s features, expression, and overall look. This technique was successfully used by Napoleon the Third.

And it works till now!

 SAYING THEIR NAME MAKES YOU A BETTER PEOPLE MAGNET

The person’s name distinguishes them from others and makes them special.

This means that when we address situations with the person’s name, the information we are providing or the request we are making assumes a special significance. It puts you at a sharp advantage for them to like you. This is what makes you a people magnet.

Recognize the power of a name and understand that the only owner of this particular asset is the person we are interacting with. No one else.

3. Listen deeply and encourage people to talk about themselves.

This is a simple method to improve your conversation skills.

Many people don’t listen deeply, which prevents them from leaving a positive impression. They don’t keep their ears open because they are too worried about what they will say next. Studies show that the most influential people value attentive listeners more than talkers. However, listening skills appear to be more uncommon than nearly any other positive quality.

It is essential that you give the person speaking to you your whole attention. Nothing else is so pleasing as that.

A person’s toothache means more to that person than a famine in China which kills a million people. A boil on one’s neck interests one more than forty earthquakes in Africa. Think of that the next time you start a conversation – Dale Carnegie

HOW TO BE A GOOD CONVERSATIONALIST

Be a focused listener if you want to be a good conversationalist. Be interested to be interesting.

Ask questions that other persons will enjoy answering. Invite them to share about their experiences and achievements.

Even the most violent critic will often become gentler and quiet when they are around a patient, understanding listener.

4. Develop a sincere interest in other people.

By showing genuine interest in other people, you can make more friends in one month than you can by trying to pique their interest in you over the course of a year.

If you want to make friends, you must put yourself out there to do things for other people – things that require time: energy, unselfishness, and thoughtfulness. Being genuinely interested in other people not only makes you friends but also fosters a sense of loyalty if you run a business or building a professional career.

This is also the only means for the other ways to work fine for you in the long run.

HOW TO DEVELOP SINCERE INTEREST IN OTHER PEOPLE

Speaking with someone about the things they value most is the best way to winning their heart.

Mention the interests of the other person when you speak. Look for things you both have in common, like hobbies or life experiences.  Ask follow-up questions, nod in agreement, and express enthusiasm in the topics they are talking about.

Always bring the focus of the conversation back to the other person.

Talk to people about themselves and they will listen for hours.” – Benjamin Disraeli.

Greet people with enthusiasm and energy as well.

Also use the same mentality when someone calls you on the phone. Say “Hello” in a tone that conveys your happiness that they have called.

This is a fantastic way to build rapport, make them feel valued, and create a more engaging conversation.

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