This is the hard part for me to talk about.
Had I done everything I am about to tell you, I would be a multi-millionaire. So as you learn by reading this I am re-teaching it to myself.
When starting out, the whole thing looks so easy you may want to jump right in and trade and make your fortune. It is easy and as I said before the simpler you keep it, the easier and more profitable it becomes. The reason it is easy is that the market or any one stock is either going to go up or it’s going to go down on any given day.
You could flip a coin and be right 50% of the time. Baseball players make millions by being right (getting hits) less than 30% of the time. The challenge is not what the market will do, the challenge is “how will you react to what the market does”.
Follow my trades in the weekly email if you choose. Do this until you feel comfortable and at ease with the adrenaline rush you get, before you ever put any money in the game. Yes, money is a game. A $10,000.00 bill is worth no more than a $1 bill except for the value we put on it. Once we start to think in abundance, the possibilities for playing the game are endless.
Who set the rules that say the only way to play is to work hard for someone else, 40 hr. per week for 40 years? Just a thought, the Israelites disobeyed God and didn’t trust him to take them to the Promised Land. There were 12 spies sent ahead to check out the land. Ten were thinking from a lack mentality and 2 from abundance. The 10 won out and as a punishment the whole Nation of Israel wandered in the desert for 40 years. Could the punishment for not thinking from a position of abundance and contribution, be living a life of financial mediocrity? Spending 40 years in a job we really don’t like, looking forward only to the day we retire. According to some data, we live an average of only 2.7 years after that “magical day”?
I get sidetracked so easily!!!!
Most brokerages firms allow you to set alert that will go as a text message to your cell phone. If you think XYZ is going up and you have put on a BUPS of the 50/49, you would want to set an alert if XYZ stock goes below $50. On your trading platform under the alerts tab you can set this. Then you go play golf. If your alert doesn’t go off, you can golf in peace. If it does go off you simply go into the maintenance steps of our trading plan. You make a decision as to whether you stay in the trade or get out. You can have a life and still make money by managing your trades with alerts.
Plugging the Leaks
I used to think everything was a fixed sum. In other words there is only so much available so if you got a little more than what I thought was your fair share it left a little less for me. Unfortunately that is the way most of the world thinks. Public officials in some far off land think that corn on the relief ship is limited so they hoard it till it rots in storage or dole it out just enough to keep some of the people from starving. Some think the world’s oil supply is limited so they create rationing as they did in the 70’s. Some guy in a sweater goes on TV and tells us we have to keep our houses cold in winter and hot in summer because we are about out of energy. Some think we are running out of space to live, running out of trees, the earth is melting and we are running out of water. The wind will always blow, the waves will always crash the shore and someone will figure out how to desalinate ocean water. It took me years to realize, NO I mean really embrace the fact that God’s abundance is limitless.
Forget the Limits
When I was a kid working for my Granddad and uncle, I would disc or plow the fields. At $.25 per hour I could only make so much in an 8-10 hour day. Driving a truck at $.35 per mile I could legally only drive so many miles in a week. Working in an office you can only work 168 hours in a week. How can I think limitless supply from God when all we hear is that everything is limited? I had to change my thinking. I had learned all worthy work in not by the sweat of my brow and that I could create money with the push of a computer key. Guess what, you can do the same thing. However it will do you no good in my opinion, to learn how to create money if you still have a poverty mentality and fixed sum thinking. The Bible, from start to finish, is about God’s love relationship with mankind. It is all about His desire to spend eternity with us humans. It is all about the sacrifice He made by sending His Son Jesus to earth to die for my sins so that I could be made perfect in God’s sight because of Jesus’s shed blood. However the Bible says more about our relationship with money than it does about salvation. I cannot serve two masters. I will either love one and hate the other or vise versa. God knew that so He gave me a manual on how to handle money. The Bible says to not conform to the thinking of the world but to be transformed by the renewing of the mind. I recommend reading Proverbs. There are 31 so you could read 1 per day. I have done this for a year and it defiantly made a difference in my thinking. I recommend the Crown Financial course through a church near you or online at www.crown.org. Also Rich Dad Poor Dad by Robert Kiyosaki and More than enough by Dave Ramsey.
Change in Attitude
As my attitudes began to shift and I wanted to become more responsible with our family finances, the mess I had created seemed overwhelming. I was given wise council on how to get a handle on the mess. First I needed to know where I was. I needed to write down ALL my debts, bills, expenses, assets and incomes. I realized I had far more expense than income and I was digging in deeper and deeper each month. I had a negative cash flow. We sat down and wrote letters to credit card companies and others we owed money to, telling them we were working on a “get out of debt plan” and asked for grace periods, reduction of interest and understanding. Some responded favorably. Then I applied for a small loan and my boss at the time was gracious enough to work out details with his banker. My boss would take a certain amount out of my check and pay towards the loan each payday. In return the bank would give me a favorable credit marking. We did this several different times and slowly rebuilt my credit rating.
We tore up our credit card and got a debit card. We listed all our debts on paper, smallest first, paying all we could afford on it while paying the minimum or negotiated amounts to all the others each month. When we paid that one off we added that money we were paying to the one we just paid off to the next one on the list. Eventually we had our debt under control. This method is described with varying twists in the resources mentioned above.
I have come to realize that if I am broke at $20,000.00 per year I will be broke at $200,000.00 per year. I must change my thinking by renewing my mind. Attitudes create actions and actions create habits. Habits good or bad, will affect generations to come. I didn’t know what I didn’t know because I didn’t know that I didn’t know it.
Wow! were my eyes open at a workshop put on by www.klemmer.com. After having learned about the sunglasses I was viewing my world through, things became clearer. I could now see how my attitudes affected everything from money to relationships. Let’s be honest, doesn’t money affect EVERY relationship we have in some way? So maybe if we can change our thinking towards money we can change our life.
If I dropped you off in a foreign country where you knew no one, where you couldn’t speak the language and had no cell phone or means of outside contact and then gave you $1 million in one hundred dollar bills, would the money be a blessing or a curse. My guess is it would be a curse. You can’t take it to the bank; you can’t communicate with the banker. He’ll think it is drug money. You can’t go to the police they also think you are a drug runner. You can’t stay on the street with all that money, you’ll get mugged. What will you do?
What has happened to the majority of lottery winners? Almost all of them are broke once again and in a lot of cases their lives went downhill since they won. Yet every week the lines get bigger. Why doesn’t the money bless most of these people? I believe it is because of their attitudes around money. Also they are not prepared. Guaranteed if I win 10 million I will have every shark in the water trying to get at the money. If I do not know my purpose in life, if I don’t have my advisors already in place, if I don’t have accounts already set up, I might as well be that person in the foreign country. I’m gonna get mugged!!
I believe everyone, that’s everyone, needs a corporation in order to take advantage of the tax laws. I also believe everyone needs a living trust with everything you own including your corporation, within that living trust. I believe everyone needs an attorney they have trust in, a financial planner that is not just out to sell them his products. Also I need a good accountant. I believe it is also important to have people on your power team that are ethical, law abiding but aggressive. Personally I found those under one umbrella at Anderson Law Group.
There are thousands of websites, books and articles available regarding finances and financial wisdom. Very few inform people of the dangers of debt. Our government sure can’t with its trillions of dollars of debt and unbalanced budgets. Our banks sure aren’t going to tell us since they have built the finest buildings in every major city around the world by selling the virtues of debt. There is one source that I know of that warns of the devastation debt will bring and that is the Bible. There are programs that are addressing debt, but in my opinion none of them are worth anything unless the Biblical principles are adhered to. I have taken and recommend Dave Ramsey’s Financial Peace University, Financial Foundations International and Crown Financial.
All three of these programs take a very conservative approach to investing as well they should. They all 3 propose building up a cash reserve before doing any sophisticated investing. And all 3 recommend paying off the credit card that is charging you 10-22% interest on underwear you threw away last year simply because you have always kept a balance on your card.
Once your credit cards are paid off and you have enough set aside to cover several months of bills should an emergency occur, then investing for the future should be addressed. Your future, your family’s future and others future.
We are commanded to be good stewards of what God has given us, so how can we best accomplish this. There are a lot of financial vehicles available. There are lots of people that are willing to relieve you of your money also; some of them even have fish on their business cards. However I have found that the best thing I can do is to educate myself. One man said to never invest in something you couldn’t explain in detail to someone else.
Too many people just turn their money over to someone else to manage without knowing that person or their abilities. I know I have. While listening to the radio driving through Little Rock AR, I heard that the Arkansas Teacher Retirement fund was heavily invested in Enron. This is all too often the case when people just allow their retirement funds to be taken out of their paycheck and invested without them knowing where, when or how that money is being invested.
I know of no responsible financial advisor who will tell you to expect more than a 10-20% return on investment. However I know people who make that kind of return every month and on occasion, in a day. Why haven’t I heard of this before? Here again, education is the key. Many people, me for one, have seen these types of returns and jumped into the investments before understanding the risks. In other words I ignored the caution sign and just ran out into the street.
As time go on, I intend to post various trades that can produce these types of returns with limited risk. I will also make available some investments for the more passive (not uninformed) investor.