Building Wealth: Its An Inside Job ? Part 2

Let's quickly review the principles discussed in the 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 of the 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, the 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 improving the 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 the 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, the big question is what is the 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 the 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 ? the worst part is that often times, an event like this will knock us right off the 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 the 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 after the Christmas holiday season. Just like the Emergency Fund account, the Purchases account is designed to keep us away from using credit.

3) Wealth Building ? This last account is probably the most important if we manage it properly. There is only one rule for this account ? the funds must never be spent. Never spent?!? Then what good is this account if it's never spent, you ask? Two reasons. The first reason is that we want this account to reach a level where we can eventually spend or even live off the interest it earns. Secondly, this account will be our biggest builder of prosperity consciousness. As this account grows in value, we'll become more and more comfortable with wealth coming into our lives. Have you ever noticed how money just seems to flow naturally to wealthy people? There's a reason for that ? it's not coincidental, it's their attitude that attracts the wealth. So as this account grows and grows, so does our comfort with money and our willingness to receive abundance.

These accounts need not be savings accounts with your bank. In fact, most of them shouldn't be savings accounts. Obviously we want our funds earning as much interest as possible and we all know that savings accounts have probably the poorest yields of all. One approach is to place our more liquid accounts such as Emergency Funds into savings accounts, perhaps keep our Purchases account in short term CD's since we can plan more easily for purchases, and then place our Wealth Building funds in a Mutual Fund. Again, the arrangement will be different for each of us ? the important thing is to start setting them up.

The accounts mentioned here should be in addition to those that may be offered by your employer. Employer sponsored plans such as 401K's are a great way to supplement wealth building, but we still need to manage our wealth on a daily basis to establish a prosperous mindset. Keep in mind that the accounts mentioned here are a minimum. There are countless ways to use this approach. For instance, we may choose to have a Purchases account and then another account for Gifts. Or we may want to add another account called Vacations. Many money management pundits advise setting back 3-6 months worth of living expenses in the event of emergency unemployment. Perhaps when our emergency account gets big enough, we can place these "Emergency Unemployment" funds into a separate interest bearing account. Again, there are countless variations to using this approach.

Finally, one last note about maintaining the accounts. We mentioned earlier that setting aside 10% of your pay is a good minimum and a great level on which to start. Some of us may be able to save more, others may have to save less ? the main thing is that we get started. In addition, a portion of any unexpected windfall should also go into savings. As far as how much of that savings should go into each account is up to each person. The simple approach is to split it equally among all the accounts, but as situations arise, it may be practical to feed one account more than the others at times. This is fine as long as the rules for each account are strictly followed.

Remember ? like it or not ? our current finances are simply a reflection of our current level of prosperity consciousness. So if more wealth is desired, we must alter the way we're presently thinking about prosperity. If these Wealth Building principles and techniques are followed and we're persistent to this cause, it's guaranteed that real wealth will find its way to our lives over time.

Chuck Cox is a Technical Writer and Industrial Scientist by professional with a background in statistics. He has used mathematical and statistical methods to invest and trade in the stock, futures, and options markets. Chuck has owned various businesses and presently operates several websites. To investigate a new business idea, visit his website, http://www.earncashathometoday.com/

limo prices to midway Crystal Lake west of Randal .. Lockport Chicago limo O’Hare

---

How to Have MORE Fun With YOUR Tax Refund in 2005

I counsel a LOT of people about money. I see... Read More

Ben Franklin Didnt Quite Get it Right

When Ben Franklin said "a penny saved is a penny... Read More

16 Mantras for Building Financial Wealth

Everyone wants to be wealthy, but most of us do... Read More

Plan For Wealth

One very important wealth creating habit is to set up... Read More

Use Feng Shui Coins To Increase Your Income

Feng shui coins can allow you, among other things, to... Read More

The Secret Barrier To Wealth - Underearning

Is the ghost of "Money Past" haunting you? Do you... Read More

Investors - What Separates the Good Traders from the Bad Traders?

There are many forms of investing online. While I can... Read More

Can You Be Rich? Part 1

What does becoming rich mean to you? Is it early... Read More

Virtual Millionaire Strategy Exposed

Let's begin this lesson with a definition of the term... Read More

3 Steps To Increasing Your Income

Most accountants, financial planners and wealth-building experts agree that there... Read More

Business After The Iraqi War

The rewarding of high compensation packages to top executives who... Read More

Create Tax Savings And Transfer Wealth To Your Child With A Roth IRA

Parents must give serious thought to protecting their family through... Read More

The Parthenon Principle

Have you seen a picture of the Parthenon in Athens,... Read More

Have You Ever Had That Feeling?

Have you ever had that feeling where you could not... Read More

Turbocharged Financial Planning

Financial planning is an ongoing process individuals and businesses should... Read More

Steps to Financial Freedom

Financial freedom is the power to do what you will... Read More

Wealth And Your Net Worth

Most people know it's important to keep and organize all... Read More

Residual Income - Part Three Finding Leaders

In my last article on Creating Residual Income I mentioned... Read More

Are You Ready For Undesired Events?

Planning for the undesired, accidents and possible unknowns in life.... Read More

10 Ways To Find The Money Hiding In Your Paycheck

No matter how tight things are financially for you; no... Read More

Uncle Sams Snake Oild

Uncle Sam and his band of merry-men, better known as... Read More

The Philosophers Stone

"If you know how to spend less than you get,... Read More

Online Retirement Opportunity: Freelance Copywriting

For most of us, the idea of retiring simply on... Read More

Wealth Creation and Mortgage Planning - Two Great Tastes that Taste Great Together

What if I were to tell you that almost everything... Read More

High Flying Market Makes Good Buys Hard to Find

AS THE MARKET FLIES HIGHER, GOOD BUYS ARE BECOMING HARDER... Read More

taxi o'hare Auburn ..