Almost all of us want to get ahead – save for our retirement and lead a comfortable life, but we are not all dealt the same hand. Some of us have more disposable income than others. These tips are designed to help everyone reach their financial health, regardless of income.
A common mistake by novices is to ask, “What can I make on this trade?” rather than “What can I lose?” When looking at a trade, you must first ask yourself, “What is my risk?”
You do not need to start big ...go big or go home is the wrong mentality. Instead, start with small steps and over your life it will add up. Begin building your emergency fund with just $10 a month, Start to invest in the market place with just $50. The key is that you need to begin somewhere and beginning small is okay.
When you invest in what is comfortable, you will learn it is seldom profitable. Making money requires a level of risk. The final decision is made based on how much risk you are willing to take.
Individual traders need to manage their trades in the same way they would manage a business. You need to keep your expenses low and stay focused on improving your profit margins by developing more income streams and creating large cash reserves.
Always live under your means. You need to know exactly how much money you make every month and then learn to spend less than that. This takes it one step further than just living within your means. When you live under your means you will find that you have disposable income left to invest to make money for your future.
Success lies in not how much you invest but whether you even start to invest in your financial future.