| Many new over zealous investors will tie up | | | | irregular expenses in the past. Be sure to include |
| almost all their liquid assets into their stock | | | | variable expenses including property taxes, |
| portfolios, leaving little money for those | | | | insurance premiums, vacations, holidays, special |
| unexpected costs of life like car repairs, doctors | | | | dinners out, and medical costs. Keep a calendar |
| bill, or an increase in property taxes. When an | | | | just for those expenses by predicting when these |
| investor over extends himself he has very little | | | | bills will be due. Take into consideration non |
| choice but to do into his portfolio and sell stocks | | | | monthly bills like homeowners association fees you |
| at a financial lost to that he has the funds | | | | may pay twice a year for.Most financial advisors |
| available to afford and pay for immediate items. | | | | suggests that for a family of four it would be a |
| Lack of cash flow can be extremely stressful. | | | | good idea to set aside 6 months of a income into |
| However, over extension is easily avoided by the | | | | a money market account. Six months of income |
| establishment budge and of an emergency cash | | | | may seem like a good deal of money and it is. It |
| fund.When developing an investment plan, budget | | | | may take some penny pinching to do but you and |
| is everything. Only after you know how much | | | | your family will be better protected. Money |
| money you spend each month will you be able to | | | | market accounts are nice because you receive |
| know how much spare money you have to place | | | | more interest then in normal savings account and |
| into investments. Also an honest look into your | | | | you also have the ability to write checks of have |
| finances and debts is always a good thing to do. | | | | a debit card for it. To help with unexpected bills or |
| Ignores financial problems always leads to an | | | | if someone in the family loses their job. Having |
| increase in those problems. It is often the little | | | | this security is very important in how you, as an |
| items which at the end of the month cost us big. | | | | investor, can approach your stock portfolio. |
| Morning coffee and lunch out can run close to $50 | | | | Knowing that you have money stored away may |
| dollars a day, multiple that by 30 and that is a | | | | allow you to take a bit more risk with |
| significant amount of money you may have failed | | | | investments, to try new leads, and turn a profit. |
| to include into your budget.An emergency fund is | | | | Financial security is extremely important to the |
| a way to place money aside just for those | | | | future of our families and there is no greater gift |
| unexpected expenses. That way money is | | | | then the gift of stability. It is never too early to |
| available too you without having to sell stocks. | | | | start saving for retirement or establishing |
| Buy, selling, and trading stocks all have a fee | | | | education account for your future children.Visit the |
| associated with them. Basically an emergency | | | | Global Investment Institute and signup for our |
| fund is the placement part of your monthly | | | | free Investing For Beginners E-Course at |
| income into a saving account or even better a | | | | webmasters or publishers, please feel free to use |
| money market account. To determine the | | | | this article provided this reference is included and |
| amount of money that should be placed in the | | | | all links remain active. |
| account take a look and make a list of any | | | | |