Home
>
Wealth Building
>
Building Wealth: Its An Inside Job ? Part 2

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/

one time home cleaning Highland Park ..

In The News:

Privacy risks are hiding in plain sight, as your personal data is likely being collected, tracked, and sold without your knowledge.

VenHub, a fully autonomous, AI-powered smart store just opened at the LAX/Metro Transit Center in Los Angeles.

A woman's Facebook account takeover reveals dangerous social engineering tactics and provides lessons on recovery, avoiding scams and enacting stronger security measures.

Shanghai engineers are using 432 walking robots to relocate a complex, preserving Shikumen architecture while creating space for a modern underground hub and cultural center.

Major healthcare data analytics firm Episource had a cybersecurity incident exposing 5 million patients' medical records and personal information in recent breach.

A new sophisticated PayPal scam sends legitimate-looking emails from official PayPal addresses, using phone numbers instead of links to convince victims to download remote access tools.

Fox News' AI Newsletter brings you the latest on this rapidly evolving technology.

The innovative Kara Pod device extracts moisture from air to create mineral-rich water and brew coffee, featuring UV sterilization and compatibility with Nespresso pods.

Gov. Hochul unveiled New York's nuclear power plant project to power a million homes, which faces permit challenges while promising jobs and a cleaner energy future.

SAFE introduces Aerie, an underground luxury bunker combining high-end living with advanced security, wellness amenities and interactive walls simulating panoramic views.

A Facebook scammer posing as Elon Musk tricked a victim with promises of a Tesla and $250,000, requesting gift cards that become untraceable once the codes are shared.

Experience hands-free golfing with the Robera Neo smart caddie that uses AI to follow you, navigate obstacles and carry your clubs with GPS course mapping.

Cybersecurity alert: 16 billion passwords exposed in massive credential database affecting major platforms. Protect your accounts with password managers

The innovative BeBot robot uses electric power to remove pollution from shorelines, covering 20-30 times more area than manual collection while preserving wildlife.

A new ClickFix campaign targets macOS users with fake Spectrum support sites, tricking victims with CAPTCHA failures to paste commands that install information-stealing malware.

AI-powered autonomous trucks from Plus Automation are being tested across the U.S., Europe and Asia to solve logistics challenges while facing regulatory hurdles and labor concerns.

Your health information might feel private and secure with your doctor, but the reality is far more complicated. Data brokers collect a wide range of sensitive health data, from diagnoses and prescription details to personal identifiers, and sell this data to marketers, insurers, and other third parties.

Kepler Robotics has officially introduced its Forerunner K2 "Bumblebee" humanoid robot at the SAIC-GM automotive plant in Shanghai, marking a significant moment in the real-world deployment of advanced robotics.

Scammers never seem to be running out of new ways to try and get their hands on your money – and lately, they've been getting sophisticated.

Thirty people were injured and killed, though the exact number remains currently unknown, when a suicide bomber blew himself up in a Damascus church.

Unexpected password reset alerts signal potential hacking attempts or phishing scams. Learn how to respond and establish stronger security measures for your accounts.

A historic electric airplane flight landed at JFK with passengers, marking a milestone as Beta Technologies demonstrates the practicality and efficiency of electric air travel.

The Chaos ransomware group breached Optima Tax Relief in a double-extortion attack, stealing sensitive customer case files and corporate documents with personal information.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

The first human brain-computer interface by Paradromics was completed in 20 minutes, featuring microelectrodes to help paralyzed individuals control computers with thoughts.