Posted on June 11th, 2010 by Rapid Forex12 Comments »
Wealthy people are wealthy because they’re good at managing their money. By learning what to do with your money, you can become wealthy too
A few years ago I went to a 3 day seminar called the Millionaire Mind Intensive & learned a powerful personal money management technique that I’d like to share with you today. If you ever get an opportunity to go to the MMI seminar, you’ll be glad you did (plus it’s free).
I also read a more spiritually based plan called The Bible Prosperity Plan, that shows you a system based on the Bible that’s very similar to the MMI plan. What was cool about this was that I learned things about prosperity in the Bible that I never knew existed. I also recommend you get a copy of this plan, as it goes into far more depth than I will below. Even if you don’t follow the Bible, the plan still works the same
Getting Rich Automatically
“Rich” is a relative term. The amount of money we need is fairly irrelevant. We simply need enough money to do what we want to do in life without having to spend every waking moment working for money.
It’s important to first understand what you want in life, and then you seek to find a way to finance it.
You Have More Money if You Manage it Properly
Once you form a habit of managing your personal finances properly, everything you want will magically fall into place. This involves two steps:
Figuring out what you want that’s important to you (prioritized)
Setting funds aside for it until you can do it.
The Millionaire Money Management Formula
Here’s the personal money management formula that’s helped me achieve my financial goals in record breaking time.
First you’ll need 6 envelopes (or Jars if you like):
FFA (10%) – Financial Freedom Account
LTSS (10%) – Long Term Savings for Spending
RELIEF (10%) – When unexpected expenses arise (like fixing your car, repairing the roof, etc..)
PLAY (10%) – Your play fund
GIFT (10%) – money you give to people/causes you believe in.
Necessities (50%) – Your basic living expenses.
These are the accounts that you’ll use to manage your personal finances. I’ve changed them slightly from the ones Harv recommends at MMI & Brad recommends in the Bible Prosperity Plan, because I’ve found that this system works better for me & the people I recommend it to.
Every time you earn money, funnel it into the 6 accounts above. Here’s a short description of what each account is for:
FFA (10%) – Financial Freedom Account. Thisis your golden goose where you only eat the Golden Eggs. If you’re trading forex, your forex trading account capital is your forex golden goose. You never spend this sum, you allow it to grow by adding 10% of ALL income to it.
LTSS (10%) – Long Term Savings for Spending -This is where you get to buy bigger stuff that you want. A new car, a nice vacation, anything that costs more than a months salary. This fund diverts money so you can have the things you want. If you do this, you’ll eventually start to notice that you’ve got money here & you’ve already bought everything you want
RELIEF (10%) - Relief Fund - It was tempting to call this the emergency fund, but relief sounds more empowering. This is money that’s there when an “emergency” comes up. Instead of having to put something on a credit card, you’ve got a stash to hit when unexpected expenses arise.
PLAY (10%) – Play fund - This will be your favorite account. Your play fund is for extravagant treats. This is where you splurge and just “blow it.” This is where you go to the $500 dinner, get the 90 minute massage, or take a hot air balloon ride. The only rule with this fund is that you MUST spend ALL of your play fund at least ONCE a month! This is money for you to enjoy the stuff that you’d normally hold back on. This is guilt free fun
GIFT (10%) – Gift fund – The world becomes a better place as you prosper. This is money you can use to buy groceries for a family in need, give to your church, synagogue, mosque or temple. You can give this to your favorite charity, or a homeless person on the street. If you have a family member who’s struggling, leave an envelope of cash anonymously on their doorstep. John D. Rockefeller taught his kids this principle & they became one of the wealthiest families in world history. Most major religions teach giving as a prosperity secret. This also alleviates personal guilt as you’re “sharing the wealth” with others as you become wealthier. You’ll also feel good about this
Necessities (50%) – Necessities – This is your basic bills. This includes rent or mortgage, car payment and/or insurance, food, clothing, haircuts, etc… This is stuff you need to live, this isn’t what you want it’s what you need.
Practical Tips to Get Started
If you’re like most people in America today, you can’t live on 50% of your income. If you’re not able to follow the money management plan above perfectly, there is a way to ease into it & still get the benefits.
Step 1: Expenses < Income
Your expenses MUST be lower than your income or you’ll be POOR & BROKE forever. If you can’t afford it now, how could you possibly afford it PLUS interest later? If you’re expenses are greater than your income, you are living a lie. Get real & downsize. If you can’t live on what you make, you’re not being honest with yourself. Get a cheaper house, a cheaper car, or cut your expenses so they are at least less than your income.
Step 2: Manage the Surplus
Once you get your expenses less than your income, write down ALL of your expenses. This is your “BASE Cost of Living.”
Since you need your “BASE Cost of Living” to live, you’ll want to manage your personal money with the 6 accounts above with all of the extra money you receive. This includes a pay raise, forex trading profits, or any extra income you receive. Eventually you’ll realize that you can manage all of your income with the 6 accounts above.
Get Started Now
This personal money management formula will give you everything you want in a shorter amount of time than you ever thought possible. It uses your money efficiently for the things that are important to you. It allows you to have fun & still take care of life. It takes a little while to kick in, but when it does you’ll learn that you have a lot more money than you ever did before!
Posted on June 7th, 2010 by Rapid Forex9 Comments »
Now that you know about the forex golden goose, you need a way to start building your forex trading account.
The fatter your Golden Goose gets, the fatter the Golden Eggs get! And since you want to live off of the Golden Eggs, you need to start fattening your Goose immediately.
The Secret to Wealth – Pay Yourself First
You’ve probably heard this before. To be wealthy you need to pay yourself first. If you read a couple hundred books on how to be rich, they’ll all give you this one GOLDEN strategy.
ANY time you get paid, KEEP 10% & invest it!
This could perhaps be the best, most time tested, most reliable secret to creating wealth ever created.
I like to call this principle “The Golden Rule of Financial Freedom,“ but since we’re talking about forex trading, I’ll call this “The Golden Rule of Forex Freedom.”
This rule allows you to benefit from compound interest, which Einstein even thought was one of the most interesting concepts. Compound interest is also the same reason why people get trapped in debt. It’s time you now reap the benefits of compound interest!
Living the Golden Rule of Forex Freedom
For you to get the benefits of The Golden Rule of Forex Freedom, you have to do it. If you don’t invest 10% of your income, it’s going to be virtually impossible to become financially free.
It doesn’t matter what your bills are. It doesn’t matter how much you make. If you follow this one simple rule, you’ll be financially free with Forex Freedom within the next 5 years. It can even happen in just a few months.
This involves discipline & a commitment. From this day forward you can make a decision to invest 10% of every dollar you receive.
Write a Check When You Get a Check
Open a new savings account. We’ll call it our Forex Freedom Account (FFA). From now on, every single time you get money, you’ll want to IMMEDIATELY write a check for 10% of the amount & deposit it in your Forex Freedom Account (FFA).
Examples:
If you get a $1,200 paycheck, you’ll write a $120 check to your FFA acct.
If you get a $5,000 tax refund, you’ll write a $500 check to your FFA acct.
If you find $20 on the street, you’ll deposit $2 to your FFA acct.
If you make $100 from a garage sale, you’ll deposit $10 to your FFA acct.
Forex Freedom Account Growth with Trading
Since this is a plan for building wealth through online forex trading, you’ll want to transfer the funds from your FFA account into your online forex trading account once a month.
How fast can your money grow?
As you become a better trader, you’ll earn a higher percentage of profit in your forex account. I’ve created a table below that shows you how much monthly income you’ll generate if you take 10% of your monthly income and trade with it 5%, 10%, 20% and 30% monthly profits.
This happens automatically with the Rapid Forex Hedge Report as you compound your gains and generate an income with very little effort on your part.
In the table below, I’ve highlighted in yellow when the monthly income reaches 100%. This is the point at which Forex Freedom is achieved. In other words, when you can make 100% of your monthly income through forex trading online, you’ve reached Forex Freedom.
You can also see where your income would double highlighted in green (200%). Can you see where it triples?
Month
5%/mo return
10%/mo return
20%/mo return
30%/mo return
1
0.50%
1.00%
2.00%
3.00%
2
1.03%
2.10%
4.40%
6.90%
3
1.58%
3.31%
7.28%
11.97%
4
2.16%
4.64%
10.74%
18.56%
5
2.76%
6.11%
14.88%
27.13%
6
3.40%
7.72%
19.86%
38.27%
7
4.07%
9.49%
25.83%
52.75%
8
4.77%
11.44%
33.00%
71.57%
9
5.51%
13.58%
41.60%
96.04%
10
6.29%
15.94%
51.92%
127.86%
11
7.10%
18.53%
64.30%
169.22%
12
7.96%
21.38%
79.16%
222.98%
13
8.86%
24.52%
96.99%
292.88%
14
9.80%
27.97%
118.39%
383.74%
15
10.79%
31.77%
144.07%
501.86%
16
11.83%
35.95%
174.88%
655.42%
17
12.92%
40.54%
211.86%
855.04%
18
14.07%
45.60%
256.23%
1,114.55%
19
15.27%
51.16%
309.48%
1,451.92%
20
16.53%
57.27%
373.38%
1,890.50%
21
17.86%
64.00%
450.05%
2,460.65%
22
19.25%
71.40%
542.06%
3,201.84%
23
20.72%
79.54%
652.47%
4,165.39%
24
22.25%
88.50%
784.97%
5,418.01%
25
23.86%
98.35%
943.96%
7,046.41%
26
25.56%
109.18%
1,134.75%
9,163.33%
27
27.33%
121.10%
1,363.71%
11,915.33%
28
29.20%
134.21%
1,638.45%
15,492.93%
29
31.16%
148.63%
1,968.14%
20,143.81%
30
33.22%
164.49%
2,363.76%
26,189.96%
31
35.38%
181.94%
2,838.52%
34,049.94%
32
37.65%
201.14%
3,408.22%
44,267.93%
33
40.03%
222.25%
4,091.86%
57,551.30%
34
42.53%
245.48%
4,912.24%
74,819.70%
35
45.16%
271.02%
5,896.68%
97,268.60%
36
47.92%
299.13%
7,078.02%
126,452.19%
37
50.81%
330.04%
8,495.62%
164,390.84%
38
53.85%
364.04%
10,196.75%
213,711.09%
39
57.05%
401.45%
12,238.10%
277,827.42%
40
60.40%
442.59%
14,687.72%
361,178.65%
41
63.92%
487.85%
17,627.26%
469,535.24%
42
67.62%
537.64%
21,154.71%
610,398.82%
43
71.50%
592.40%
25,387.65%
793,521.46%
44
75.57%
652.64%
30,467.18%
1,031,580.90%
45
79.85%
718.90%
36,562.62%
1,341,058.17%
46
84.34%
791.80%
43,877.14%
1,743,378.62%
47
89.06%
871.97%
52,654.57%
2,266,395.20%
48
94.01%
960.17%
63,187.49%
2,946,316.76%
49
99.21%
1,057.19%
75,826.98%
3,830,214.79%
50
104.67%
1,163.91%
90,994.38%
4,979,282.23%
In the chart above, you can see that you’ll reach Forex Freedom in 50 months at 5%/mo, in 26 months at 10%/mo, in 14 months at 20% and 10 months at 30%.
Your income would double in 64 months at 5% (not shown), in 32 months at 10%, in 17 months at 20% and in 12 months at 30%.
Of course you won’t make exactly 5%, 10%, 20% or 30%.
So the real answer lies somewhere in between 11 and 50 months to achieve Forex Freedom. 5% is a reasonable expectation for a forex trader, 30% is for a really good forex trader. Some months are better than others, but as long as your money grows & compounds you’ll become wealthier over time.
What if You Can’t Invest 10% in Forex Trading?
If you follow the Forex Golden Goose concept, you’ll eventually get there. It’s better to invest something than nothing. If you can’t (or aren’t ready) to invest 10% of your income, then decide to invest something.
I’ve provided the table above to show you what’s possible with just a measly 10% of your income. Within the next 1-5 years, you could be totally financially free with forex trading.
You could invest 20% of your income & get there twice as fast!
You could choose 5% of your income and it would just take twice as long.
You can change what you’re doing over time, but it’s important to just get started. When you start pulling in pips, you’ll want to invest more.
10% of your income isn’t much. In fact, you probably let 10% of your income slip by without noticing it already. If you’re maxed out on your bills, you need to reduce them somehow.
It’s completely IMPOSSIBLE to become wealthy if you spend more than you make. Get your bills down to 90% of your income. Move to a cheaper place, eliminate cable, eat out less, plead bankruptcy if you have to, change something.
You’ll never be wealthy without a Golden Goose, it’s a permanent recipe for working just to survive, not to live.
Personal Money Management
Wealthy people are all excellent at managing their money. You don’t only need to manage your money when you’re trading forex online, you also need a good system for managing your personal finances.
In my next Forex Freedom blog post, I’ll share a personal money management system that will allow you to eliminate your debt, have money for things you want to buy, have money to spend freely & live the life you desire.
Posted on May 25th, 2010 by Rapid Forex12 Comments »
Money Management Made Simple
Proper forex money management is criticalto your success with Forex Sailing, or any type of online forex trading.
Even if you’re a great trader, you need to use money management to methodically grow your online forex trading account. Awhile ago I posted how you could lose money on a profitable series of trades!
Before sharing the video, you may want to check out these links:
Related Forex Sailing (Part 5) Posts:
1. Forex Money Management for Forex Sailing – this is the written version of the video below. You can read this instead of the video, or use it as a supplemental guide to go with the video.
2. Forex Sailing Fibonacci Calculator Download – let this little spreadsheet tell you all the critical numbers for the trade on a picture of how your trade is unfolding. This calculator will also show you at a glance how to determine if the trade fits your forex money management criteria based on your online forex trading account balance.
3. Forex Gambling Mentality Kills Profits – This post gives you a great example of why the money management system taught in the video below is important for you to follow. See how a profitable series of trades can lose money without a money management plan…
Forex Sailing Video #5
Money management for online forex trading doesn’t sound like fun. In fact, any time you tell people to use discipline they cringe (myself included). In the video below I show you how to reduce your trading decision to a simple glance so you protect your trading capital and methodically grow your forex trading account.
What’s Next?
In Forex Sailing video #6, I’ll share another recent trade example for the AUD/USD that moved over 400 pips in less than a week. There’s only one more video left in the FREE Forex Sailing Course. If you want to learn online forex trading in LIVE market conditions, register for the Hedge Report today and take advantage of a very special promotion.
!
Rapid Forex on 
Philile on 
Gary Cooper on