Going Long – This means that you’re betting on instrument (stock, future, option, etc) to go up and that you want to buy. You purchase financial instrument, watch it rise and then sell it for a profit. Profit are realized when you buy low and sell high. It’s also known as taking a long position.

As a follow-up to improving way we think about wealth and prosperity, there are some effective money management techniques that will further support our prosperity consciousness. Certainly if we use 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, big question is what is 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 at 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 – worst part is that often times, an event like this will knock us right off 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 with 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.