4 Tips to Keep Drooling at Bay

1. Decide ahead of time not to spend it. If you later change your mind, ask yourself, "is my *want* important enough to use this lump sum of money?"

2. Tuck it into savings immediately (preferably your emergency account). Or, if that sends you into a cold sweat, put up half of it. Avoid Money Sponge. Don't be tempted to leave it in checkbook! 3. Think of your tax return as *Freedom Money*, not as *extra*. Add bits of money to it for a 'Freedom-To-Be-My-Own-Boss' Account.

This is money you've managed to do without over past year. You didn't miss it then -- no need to miss it once you've tucked it away...

4. Picture yourself debt free... All credit cards are paid off. You have a few thousand dollars in several money accounts. You are contributing to your retirement account on a regular basis. Bill-paying time is stress free. You can go out from time to time, paying cash as you go. Emergencies are covered.

Your money is under control. Your control -- not that of credit card companies or debt collectors.

Will this year's refund bring you a new sofa, Perfect Pecs, or Feel of Freedom? You have *power* in palm of your hand -- to take a huge step forward in your financial life.

Will you DO it?

Salary x (25% Raise) = (Stock Investment) X 15% Return

Conclusion: What! I need a 25% raise to make more than my investment. I need to focus more on more profitable income source.

As you can see, assuming a modest 15% return, it makes sense only to focus on your investment after you have saved an “investment fund” larger than or equal to your current income.

100% Investment Return ... Just A Thought

However, if you can get an above average return then it is reasonable to focus more on your investment even if your investment capital is less than your income. Let’s look at following case:

CASE 3: Salary > Stock Investment

Specific Numbers: Salary = $60,000 Stock Investment = $20,000

Salary x (33% Raise) = (Stock Investment) X 100% Return

Conclusion: Holy Moly! 33% raise will probably take maybe more than a couple promotions. But how can anyone make 100% in a year? Making in excess of 100% per year is not that difficult if you follow with discipline systems that had been proven to work:

Value Investing Insider Trading Analysis Industry Trend Analysis

What we have done is a very crude analysis of a hypothetical situation and it is very enlightening. There are really ONLY two choices before you have a net worth greater than your income:

Work Harder At Your Job Or Attain Superior Return from Stock Market (which can be risky if you don't follow proven systems).

Since we are not investment advisors, we are not allowed to give out individual investment advice. This is as specific we can go.

For more information and advices on investing and finance, please visit: http://www.value-discovery.com

David Teng is the President of Value Discovery, Inc.