Becoming a Millionaire

Many people don’t know about the largest traded market in the world. Currently over 1.2 trillion dollars is traded on a daily basis in the forex market. Forex, or the foreign currency exchange market was a market that only large investors could play in and until just recently has become available to smaller investors.

For those of you that don’t know, here is an example of how the forex market works. If one were to take a vacation to Europe from the United States, you would have to exchange your US dollars into the Euros. When you came back to the United States, you would then have to exchange your Euros back to US dollars. During the time you were on vacation market news may have caused the US dollar to strengthen against the Euro. Therefore, when exchanging your Euros back to US dollars, you may have made a bit of money.

What makes the forex arena so popular is the leverage one can use when trading in this market. Most brokers offer a 100:1 leverage. Traditionally a trader needs 100,000 US dollars or we say 1:1 leverage (trading cash). However, with 100:1 leverage, a currency trader is only required to deposit 1/100th of the amount needed, 1,000 US dollars. Some brokers offer as much as 400:1 leverage.

Learning how to trade forex and using the leverage available, it is very possible to make good money. However at the same time it’s very possible to lose a lot of money. Approximately 95% of forex traders lose when they decide to play in the forex market. There are many reasons for this, your psychology, discipline, greed and fear will have a major impact on your trading success.

When looking at the forex market, the price is constantly changing every second. Forex traders measure the price fluctuation in pips also known as the minimum fluctuation or smallest increment of price movement. One pip could be $1, $5, $50, or $100, whatever you decide to risk on each trade.

Using good money management with a well thought out plan can easily turn into profits in the forex arena. Learning to cut your losses and let your winners run is the key to success. A simple money management system to follow is to always look to win 3 times the amount you plan to lose. Yes, you will lose and it’s important to accept losses when trading. For example, if you set a stop-loss to 10 pips, you need to look to win 30 pips. If you set a stop-loss to 20 pips, then you need to look to win 60 pips. This way you only have to be right 33% of the time to be profitable in this market.

Source : http://www.wonderoffice.com Money matters!

How to Control Your Expenses to Eliminate Debt

This sounds simple, but to control your expenses you first must understand what they are. The only way to be sure you know what you spend is to record everything. This is hard to do. Then you will need to do something even more difficult, Sacrifice and Live on a Budget. Ouch, all people including you and me hate those two words. But it will take sacrifice to get out of debt. The good news is that it will be worth it.

Every time you make a sacrifice and stay on budget you will be investing in your future. Always keep that in mind. Every step you make towards getting out of debt means you are closer to having your money work for you.

The major expenses you can control on a day to day budget are:

General Expenses It could be music equipment, car washes, computer games, anything. Any things you can figure out which are not your needs. Maybe there isn't anything you can think of, but there probably is. Maybe at least once a month, when you go to buy something on impulse, you force yourself not to do it.

Food Expenses Stop going out to eat. This will be a huge sacrifice for most, but you have to stop going out to eat;it's too expensive. You need to bring your lunch to work and, if you have a Starbuck's addiction, stop buying $2 cups of coffee. Many people can save $50 a month just by brewing their own coffee, another $100 by bringing their lunch to work, and another $200 by not going out to eat for dinner.

Clothing Expenses Always decide what you are going to purchase before you go into the store and stick to it. Do all your "shopping" at home. If you truly need a new jacket because the old one has a hole in it and it's really cold outside then you can go get a jacket. But don't start looking around for the skirts and hats while you are there. Get the jacket and run! Entertainment Expenses You like to have fun and you need to have fun. However, if you are in debt then, you need to sacrifice at least one major entertainment expense a month. Whatever it is you like to do (movies, concerts, plays, out to eat, sports, etc.) you need to reduce the frequency by at least once a month.

Gasoline Expenses As everyone is aware,gas prices have grown astronomically in recent times. For many years gas prices had been relatively level and it seems that they are making up ground ina short period of time. At $3 and more per gallon, gasoline has become a major expense for most households and needs to be specially addressed when looking at ways to control expenses. Getting a car with a good gas mileage and reduce your total driving miles can save you some significant amount of money. If you have colleagues leave close to you, then get them to carpool with you and share the gasoline expenses. If you follow some basic rules on each of these tips on reducing debt and budgeting expenses and are willing to sacrifice you can save a good significant amount of money each month. That will put a dent in your credit card debt in no time.

Source : http://www.wonderoffice.com Money Matters!

10 Tips for Saving Money and Earning Interest

10 Tips for Saving Money and Earning Interest
Source of article : http://www.wonderoffice.com

Saving money and paying off debts can be difficult, but cutting back on day to day expenses makes the process easier. Implementing one or two ideas is all that’s needed to get you started on the path to better banking. And you’ll be rewarded with more money in your pocket at the end of the day. Here are a few simple tips that will help you get more of your money in the bank and working for you.

1. Avoid the lottery
Winning millions is a nice dream, but the chances are extremely slim. Instead of attempting to win the jackpot each week, invest that money and earn interest on it. Over 30 years you’ll have built up a sizable jackpot for yourself.

2. Review your vacations
Taking an extravagant vacation more than once a year starts to add up fast. Plan ahead, especially if you have many people going on vacation with you.

3. Old fashioned music
Music is everywhere, and convenient to purchase online. But you can easily spend a lot of money on songs you may not listen to regularly. Try listening to the radio, or if you want to stay digital, look into the multitude of free online radio stations broadcasting all your favorite genres and songs for free.

4. Working out
Gym memberships are expensive, and you must be honest about its worth. If you’re not getting any value out of it, take a walk outside; explore your neighborhood or a local park.

5. Luxury drinks
When winding down in the evening, a glass of wine feels like it helps. But even if you limit the wine to just 2 nights a week, make sure the cost over a year is worth the feeling.

6. Pack a lunch
Eating out is expensive, and your local sandwich deli is charging twice as much as it costs to make a sandwich at home. You’ll also be eating healthier and saving money at the same time.

7. Watch the home improvements
Improving your home is a favorite activity of many home owners, but expenses add up fast. So unless you’re adding considerable value to your home, your time and money may be better spent on gardening or growing your own healthy foods.

8. Credit cards
Credit cards make impulse buying easier. Watch what you spend your money on, especially if there are fees associated with charging big ticket items to your card.

9. Give up coffee
For a cup of coffee every day before work, you could easily spend more than $800 a year. Try a less expensive beverage, or look to alternatives for that morning caffeine rush.

10. Cut back on TV
If you don’t watch TV very much, there’s no need to pay for it. A monthly cable bill for more than what you need is not necessary. Especially with a solid internet connection, there are plenty of other ways to relax, both online and offline.

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