Building Wealth: It's An Inside Job – Part 2

Written by Chuck Cox

Let’s quickly reviewrepparttar principles discussed inrepparttar 148597 first part of building wealth. We established that prosperity consciousness must first be developed mentally to acquire any real wealth. A person that constantly worries about money most likely is living in scarcity consciousness regardless ofrepparttar 148598 size of his or her bank account. We talked about some methods and daily exercises that can be employed to start developing a stronger level of prosperity consciousness. The first exercise uses written affirmations,repparttar 148599 second utilizes visualization, and finally we need to become more aware of how willing we are to give and receive prosperity on a daily basis. If we start using these methods, we’ll begin to see gradual changes in our lives that will become larger over time.

As a follow-up to improvingrepparttar 148600 way we think about wealth and prosperity, there are some effective money management techniques that will further support our prosperity consciousness. Certainly if we userepparttar 148601 exercises discussed earlier in Part 1, we’ll start to view money differently, but those principles should be fortified by our actions as well. What we want to accomplish with our money is to generate a steady cash flow into our lives that will elevate our feelings of prosperity over time. The first step toward achieving this end is to simply pay ourselves first. Every time we get paid, we should save a portion of what we’ve earned. It’s recommended that at least 10% of our pay be set aside for savings.

So if you already have a savings account,repparttar 148602 big question is what isrepparttar 148603 purpose of this account? Is it for emergencies or a major purchase? Do you have more than one savings account? If we want to establish a consistent flow of prosperity, we must gradually build prosperity in our bank accounts while atrepparttar 148604 same time protecting ourselves against life’s financial emergencies and obligations. It’s very demoralizing to save a significant amount of money only to have to spend it on a costly emergency –repparttar 148605 worst part is that often times, an event like this will knock us right offrepparttar 148606 prosperity track entirely. So we should strive to not only protect ourselves financially from these types of events, but more importantly, we must protect ourselves emotionally from these types of events.

The most effective way to handle our savings is to have more than one savings account with each having a different purpose. Although each of us will have different financial goals, it is recommended that everyone have a minimum of three different savings accounts withrepparttar 148607 following purposes:

1) Emergency Funds – This fund is set aside for those incidents that pop-up unexpectedly. Managing these events is critical to building wealth because they throw us off our budgets and demoralize us mentally. Unfortunately, emergencies are when many of us resort to credit cards, which makes this account even more critical. We MUST manage this aspect of our financial lives, otherwise life’s little emergencies will continue to rob our wealth if we let them.

2) Purchases – This fund is used to save for major purchases such as a piece of furniture or a new car. In addition, we can also use these funds for buying Christmas or birthday gifts. These types of purchases are also occasions where many of us are inclined to use credit. It’s not uncommon for Americans to be loaded with debt right afterrepparttar 148608 Christmas holiday season. Just likerepparttar 148609 Emergency Fund account,repparttar 148610 Purchases account is designed to keep us away from using credit.

Successful Trading – Establish Your Risk Level

Written by Chuck Cox

Before you embark upon a journey of trading stocks or futures, and before you make any trades, you MUST determine and establish your risk level. Traders that fail to do this are usually doomed fromrepparttar start. The fact is that most trading accounts that go bust are because ofrepparttar 148596 failure to determine at what pointrepparttar 148597 trader will cut their losses and move on torepparttar 148598 next trade. Rookie traders are particularly prone to do this. They hang on to losing positions hoping that they will turn around – only to watchrepparttar 148599 price drop even further. Too much thought and effort are expended onrepparttar 148600 buying decision instead ofrepparttar 148601 selling decision. The sad truth is that it’srepparttar 148602 selling decision that will determine your fate as a successful trader. And successful trading is dependent on how long and how well you can protect your account against loss untilrepparttar 148603 big profit comes your way. Setting a risk level for your account and for your trades will provide such protection.

If you’re like everyone else, you’ve got an online trading account and you’re free to move in and out of positions withoutrepparttar 148604 input or interruption of a broker. If you’re not doing this, we recommend that you do. So when you buy a position, have you determined where you would to sell it ifrepparttar 148605 price would fall? Many traders only think aboutrepparttar 148606 price going up – they never think about what they’ll do if it goes down. You MUST determine this limit BEFORE placing a trade.

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