Debt consolidation helps you to reduce your debt load. And if you take out a debt consolidation loan, it will allow you to deal with only one creditor. Debt consolidation and wealth creation are paradoxical. While debt consolidation will require you to make payments to someone else, wealth creation will require that you save for your financial well being.

But if you are in debt how will you concentrate on wealth creation? It is simple. If you have some extra cash at your disposal, keep aside few dollars each month and when you have accumulated enough to make an investment, invest the cash. One of the difficulties debtors face is they don’t have the extra cash to create wealth. In case you don’t have that extra cash to convert your debt into wealth, don’t be disappointed. It is not the end of the world.

The best thing to do under such circumstances is to do away with your debts as fast as you can. Take out a debt consolidation loan. Pay off all your creditors.

Thereafter deal with only one creditor. Once you are done with the debts, the amount you made use of each month to pay off your debts can be used for wealth creation. This is possible because you will have less number of financial obligations to address.

There are few aspects that you need to take into account if you are opting for a debt consolidation loan. You can take out a secured debt consolidation loan when you use collateral. If you are taking out an unsecured debt consolidation loan, you don’t have to use security. However, if you are using your house as security and if you fall behind on payments, you may have to abandon the house as the lenders will foreclose on the property.

In case of unsecured debt consolidation loan, you have to pay higher interest rate which is used as security by creditors since you are not using any collateral. And if you have a bad credit rating, the interest rate you will be entitled to will be higher than what an individual with good credit rating will be required to pay.

So, the faster you can do way with your debts, the better. By doing so you will be able to concentrate on wealth creation.

      

Futures trading can be an appealing wealth creation strategy. It is an investment where investors try to take a profit on the volatility of futures contracts. These are contracts that are agreed upon by producers of a commodity with a dealer which involves the promise of delivering a the agreed volume of a certain commodity at a specified period in the future. The commodities that such futures contracts trade can include grains,lumber, livestock, coffee and even ...<< MORE >>

This has just been released by Planet Wealth and is a great resource. I encourage anyone thinking of getting into E-minis to get this before you spend a dollar on any program out there!

E-minis free E-Book

Investing can be risky, but trading E-minis we can successfully generate substantial profits with small amounts of risk. Here's a few good reasons why you should consider E-mini trading:

• Huge potential returns.


• Very small amount of risk (Max $700) at any one time



• ZERO upfront cost


• You can copy our real-life trades!


• FREE E-Book, and FREE 7 day Trial of our ...<< MORE >>

The name says it all – Futures Trading is a punt on the future direction of value in various commodities. This is a little different to the usual stock market trading although plenty of speculators hope for a certain future value in their shares if they are to make any money. ...<< MORE >>

Futures trading is just another valuable wealth creation strategy for people to invest in. Like any form of investment success will only appear if investors get to know the market and the mechanism of trading. ...<< MORE >>

An option contract is an agreement where the owner has the right to buy or sell a security or particular price on a fixed date in the future. << MORE >>

One of the most spoken of trading strategies today is options trading. The potentials returns are unlimited in one sense but also the losses can be significant if you rush into trading without sufficient training.<< MORE >>

Wealth creation is more than just getting a job and working for 45 years and hoping that in that time you manage to save some money, build a little equity in your home or develop growth in your superannuation.

These can supply you with some long term income but there are risks with them as much as any financial activity. Consider the losses that have been experienced by workers in the last year in the super funds. Some funds have seen losses of up to 50% or more and those retirees relying on their Super for income are feeling the squeeze. Property is not so bad since there is reasonably clear cycle. You can usually get out when the cycle favours you but if you need cash in a hurry then sometimes you have to sell on the back of a downturn.

As for cash in the bank, great when interest rates were 15% (remember the 1980's?) but a disaster if they are 3%!

This is why many Australians have turned to the share market as a means to take control of their financial future.
 
But don't the super funds trade in the share market?

Well yes, but they clearly are not the experts that we have been led to believe!

Most of what they are doing you could learn to do yourself and get involved in the management of your money more actively.

To do this though requires education!

Education

Now when I say education I am not referring to the picture you may have in your mind of a school teacher standing in front of 32 pupils and telling you what to do!(Not many modern classrooms run like that these days anyway!)
What I am talking about here is self-improvement, skill development, understanding, knowing where to go and what to do if....

You would not go out and jump in a 20 tonne truck and expect to drive around town without an incident, now would you?
You would find a reputable driving school with properly equiped vehicles and well trained, licenced instructors.

The same goes for investing. You need to learn the language, terminology and the techniques that lead to successful trading.

“Where do you get that?” I hear you ask.

Well first off here! I will share with you some basic information and strategies to raise your share trading knowledge. I make no claim to be an expert, but I will share with you what I have picked up over the last few years and also point you in the right direction when more in depth knowledge is required.

Homework

Now, before I finish for today let me leave you with a few tasks to take on board.

First thing get yourself a workbook – this can be a simple exercise book or loose leaf file to keep notes in and record questions you may have from time to time. You could of course use a word document to do the same thing but you won't always have access to computer.


Writing something down involves more of your senses and improves learning. Buy some coloured pens and highlighters too – use colour to outline important ideas and points of interest. I often set up a colour key – yellow highlighter is for one topic (eg options)and green for another (puts), green pen for new terms and definitions, red pen for actions that need to be taken!


Next I would encourage you to go to the ASX website and join their site. This is free and will give  you access to charts and data that is freely available about different companies. It will also start exposing you to some of the terminology  that is common in this wealth creation strategy.


Once you are logged in I would ask you to find out all you can about BHP.
Do a search on the site and find out what the companies full name is and what sort of business it is in. This may seem like a simple thing but it is the first step in understanding the more complex relationships between companies and the market as a whole.
Also find the chart for BHP and set yourself up a watch list!

Until next time.

Have a great day

John

      

Psychology?

There is a psychology behind trading.  It is about the perceptions change that you go through once you are actively in the markets trading.  While you are trading on a demo account it seems easy, but once you start handling your first live trade, indecisiveness will close in.  Understanding the trading psychology and how you will have different responses in each situation will help you get on to trading with the right mindset. This is crucial if you are to protect your capital when risk management is needed.  

Trading Psychology.

Trading psychology is the predominant ...<< MORE >>

Understanding the rise a fall of of stocks is much easier than the intricacies of options trading and so people tend to avoid options as an investment vehicle. However, options have several benefits as a part of your share market strategies. ...<< MORE >>