Wealth Building Tips - Trading-Lab

Iacotel · #1 10-12-2007, 05:10 PM

wanted to share this 6 very simple wealth building strategies everyone of us should keep in the back of his mind. They are more common sense tips rather than strategies, actually.

Building wealth is as simple as saving a little bit here and a little bit there. You need not have great riches in order to accumulate wealth, but you need to have the drive, determination, and discipline to successfully increase your wealth. Let’s look at 6 proven wealth building strategies you can put to use today.

1. Pay Yourself First. If you do not set aside money before you start paying your bills, chances are you will never save any many after you pay these same bills. If your employer has a 401(k) or 403(b) plan, enroll in it and set up a reasonable percentage to invest. The money will come out before you see your paycheck, therefore the “loss” of discretionary income will be less noticeable to you. Maximize your contribution if you are able, especially if your employer matches your contribution.

2. Save Now. The earlier you start to save in your life, the more you will have later in life. Of course, if you aren’t able to save much until after your children are grown, you can step up your savings until you retire and still have a decent nest egg.

3. Get Rid of Debt. Even before you build up your savings it is best to get rid of your debt first before starting a wealth building campaign. If your credit card rate is 14% you will find it difficult to find any investment that gives you a return that exceeds that rate. It would be better for you to pay down your debt first and then implement an investment strategy.

4. Pick The Right Mortgage. If you plan on holding onto your home for a short period of time, select an adjustable rate mortgage as your rate will be lower than a fixed rate mortgage. Use the amount saved to pay down your mortgage quicker; refinance your home if rates begin to climb.

5. Build An Emergency Fund. Nothing wrecks the best laid plan more than an emergency, particularly one that costs you money. Set aside up to six months of your income to live on in case catastrophe hits. Without an emergency fund you will be tempted to take on debt, cash in your retirement accounts, and sell valuable investments. Try recovering quickly from this sort of hit to your wealth without an effective back up plan!

6. Protect Your Assets. You can have a healthy portfolio and see it disappear quickly if you are not properly insured. Make sure that your health/dental, homeowner, life, and disability insurance coverage is adequate to meet your needs. All it takes is one legal judgment against you to wipe out your assets.

Instance riches come to a few, but most riches are realized after careful planning and effective management of your resources. You can properly prepare for the days ahead by implementing these six proven wealth building strategies today.

http://ezinearticles.com/?6-Proven-W...egies&id=58860

ProTrader · #2 10-15-2007, 07:52 PM

thanks iacotel. However, they are very very basic common sense tips. To build real wealth, you need more advanced concepts.

Leth · #3 10-16-2007, 03:23 PM

Great post Iacotel!! These simple strategies are just that..simple; oddly enough, people seem to have a hard time implimenting them for some reason or another. I personally have to agree with you that its because the majority of the population looks for instant gratification instead of preparing for the long term.

I especially like point #6 on your list, Protecting Your Assets. I would add (which i have no right to do being that its your post) making sure you sign a prenup before marriage (long story)...lol. im joking of course...not really.

Alchemist · #4 10-16-2007, 05:20 PM

Quote:

Originally Posted by Leth

I would add (which i have no right to do being that its your post) making sure you sign a prenuptual agreement before you get married (long story)...lol. im joking of course...not really.

lol, very nice Leth. I just got married

(and properly covered my ass ) hey I like what I read so far, when are you going to write your first article for Trading-Lab?

cheers

Leth · #5 10-16-2007, 06:13 PM

hmm...

i may copy what is in my blog for trading articles and use them exclusively for the forum.

even so, i'd be more than happy to write articles. i have no problem sharing with everyone what i've learned up to this point. im a life long student of life.

any suggestions on topics?

Alchemist · #6 10-17-2007, 05:07 PM

what about a detailed article on diversification? just a thought......

Iacotel · #7 10-25-2007, 05:43 PM

Quote:

Originally Posted by ProTrader

thanks iacotel. However, they are very very basic common sense tips. To build real wealth, you need more advanced concepts.

you have to start somewhere, don't you?

breakout · #8 10-29-2007, 12:41 PM

I would say #2,3,6 are the most important

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#1 10-12-2007, 05:10 PM
Iacotel Italian Trader Join Date: May 2007 Location: Roma Posts: 43	Wealth Building Tips wanted to share this 6 very simple wealth building strategies everyone of us should keep in the back of his mind. They are more common sense tips rather than strategies, actually. Building wealth is as simple as saving a little bit here and a little bit there. You need not have great riches in order to accumulate wealth, but you need to have the drive, determination, and discipline to successfully increase your wealth. Let’s look at 6 proven wealth building strategies you can put to use today. 1. Pay Yourself First. If you do not set aside money before you start paying your bills, chances are you will never save any many after you pay these same bills. If your employer has a 401(k) or 403(b) plan, enroll in it and set up a reasonable percentage to invest. The money will come out before you see your paycheck, therefore the “loss” of discretionary income will be less noticeable to you. Maximize your contribution if you are able, especially if your employer matches your contribution. 2. Save Now. The earlier you start to save in your life, the more you will have later in life. Of course, if you aren’t able to save much until after your children are grown, you can step up your savings until you retire and still have a decent nest egg. 3. Get Rid of Debt. Even before you build up your savings it is best to get rid of your debt first before starting a wealth building campaign. If your credit card rate is 14% you will find it difficult to find any investment that gives you a return that exceeds that rate. It would be better for you to pay down your debt first and then implement an investment strategy. 4. Pick The Right Mortgage. If you plan on holding onto your home for a short period of time, select an adjustable rate mortgage as your rate will be lower than a fixed rate mortgage. Use the amount saved to pay down your mortgage quicker; refinance your home if rates begin to climb. 5. Build An Emergency Fund. Nothing wrecks the best laid plan more than an emergency, particularly one that costs you money. Set aside up to six months of your income to live on in case catastrophe hits. Without an emergency fund you will be tempted to take on debt, cash in your retirement accounts, and sell valuable investments. Try recovering quickly from this sort of hit to your wealth without an effective back up plan! 6. Protect Your Assets. You can have a healthy portfolio and see it disappear quickly if you are not properly insured. Make sure that your health/dental, homeowner, life, and disability insurance coverage is adequate to meet your needs. All it takes is one legal judgment against you to wipe out your assets. Instance riches come to a few, but most riches are realized after careful planning and effective management of your resources. You can properly prepare for the days ahead by implementing these six proven wealth building strategies today. http://ezinearticles.com/?6-Proven-W...egies&id=58860

#2 10-15-2007, 07:52 PM
ProTrader Senior Member Join Date: Jun 2007 Posts: 109	thanks iacotel. However, they are very very basic common sense tips. To build real wealth, you need more advanced concepts.

#3 10-16-2007, 03:23 PM
Leth Super Moderator Join Date: Oct 2007 Posts: 621	Great post Iacotel!! These simple strategies are just that..simple; oddly enough, people seem to have a hard time implimenting them for some reason or another. I personally have to agree with you that its because the majority of the population looks for instant gratification instead of preparing for the long term. I especially like point #6 on your list, Protecting Your Assets. I would add (which i have no right to do being that its your post) making sure you sign a prenup before marriage (long story)...lol. im joking of course...not really. Last edited by Leth : 10-16-2007 at 06:47 PM.

#5 10-16-2007, 06:13 PM
Leth Super Moderator Join Date: Oct 2007 Posts: 621	hmm... i may copy what is in my blog for trading articles and use them exclusively for the forum. even so, i'd be more than happy to write articles. i have no problem sharing with everyone what i've learned up to this point. im a life long student of life. any suggestions on topics? Last edited by Leth : 10-16-2007 at 06:46 PM.

#6 10-17-2007, 05:07 PM
Alchemist founder of Trading-Lab Join Date: May 2007 Location: New York, NY Posts: 296	what about a detailed article on diversification? just a thought...... __________________ Happy Trading!

#8 10-29-2007, 12:41 PM
breakout Member Join Date: Jun 2007 Posts: 63	I would say #2,3,6 are the most important