The science of getting rich - acting in a certain way

"You must give every man more in use value than he gives you in cash value."

We continue in our journey to look at the timeless advice contained in the book "Science of Getting Rich"  by Wallace D. Wattles.

This article is based on the chapter of the book where Mr Wattles teaches us to act in a certain way that will take us closer to our financial objectives.

Mr Wattles says that if your dreams are firmly impressed upon your mind, if you use your will power in the right way, if you have an attitude of gratitude, if you give to every person more than you take from them and you act in a certain way you will attract your dreams and the what you want to achieve will come to you.

You must not interpret his words as mere dreaming without no action. What he means is that you need your mind set in a way that will continually motivate you. The road to riches, financial independence or whatever it si that you want to achieve is not easy so you need to remain positive.

Those advices are followed by some concrete actions that you can take today that will take you further in your road to wealth. The first one is giving everyone more in use value than he gives you in cash value. This means that you are doing your very best to serve your customers and to deliver value to them. Your customers, which can be your employer, needs to have the impression of more use value than in cash value that he gives you.

I have used this advice and it worked wonders in my life and it continues to work. To find out more how this advice has literally changed my life  click here.

The nest advice is to act in a certain way that will take you closer to achieving your dreams. But exactly are you meant to act?

Do not bother as to whether yesterday’s work was well done or ill done, do today’s work well. Do not try to do tomorrow’s work now, there will be plenty of time to do that when you get to it.

Do not wait for a change of environment, before you act, get a change of environment by action. Cause your environment to change. You can so act upon the environment in which you are now, as to cause yourself to be transferred to a better environment.

Hold the vision of yourself in the right business, with the purpose to get into it and the faith that

you will get into it and are getting into it, but ACT in your present business. Use your present business

as the means of getting a better one, and use your present environment as the means of getting into a

better one. Your action, if performed in the certain way, will cause you to move toward the business.

Hold the vision of yourself in the job you want while you ACT with faith and purpose on the job

you have, and you will certainly move into a better job.

Do the best that you can do today, don't wait for tomorrow.

If you want to start investing in shares, do so today. If you to learn how to manage your finances, start today. If you in debt and want to get out of it, start today. Don't stay where you are, use your mind and will power to motivate you to move towards your dreams and act today in a way that will take you closer to your financial dreams.

Buying and selling shares

Buying and selling shares

The share market can be thought of in terms of its two main functions: The primary market where companies raise money by floating their company and selling shares to investors. Following this Initial Public Offering, the shares are then able to be traded on the share market (the secondary market).

So as an investor there are two distinct points at which you can purchase shares:

1. From the company itself in the very first instance of the shares being offered in the float.

2. Following the float, shares are bought from other investors via the share market. Shares can only be sold on the secondary market.

Buying shares in a float or Initial Public Offering

The word float is used when a company seeks to raise money by offering its shares to the public for the first time. The company must first submit details of its business and the proposed share issue to the Australian Securities and Investment Commission (ASIC) in a document called a prospectus.

Once the prospectus is lodged with ASIC, it is then available to potential investors for consideration. If you wish to buy shares in a float, you must first review the prospectus, fill in the attached application form, specifying the number of shares you want to buy, and send it with your payment to the company or lodge it with your adviser.

Lodging and/or registering a prospectus with ASIC and listing on the ASX does not guarantee the company will be successful once share trading begins.

Among other things, a prospectus is required to contain all the information that investors and their professional advisers would reasonably require to make an informed assessment.

When assessing a prospectus it may be useful to answer the following questions:

• Who – who is involved? (stockbrokers, underwriters, management, board, others)

• What - what is on offer? (growth, income-yielding, tax-effective or speculative shares)

• When - when does the issue take place? (bull/bear market)

• Why - why are they raising funds? (expansion, retire debt, sell down, takeover)

• How - how to participate in the issue? (public pool, firm share, entitlement, demutualisation)

If there is a great deal of investor interest in a new float, you may be allocated fewer shares than the number you applied for or none at all. With some floats, the initial share price (issue price) is not set until just prior to the first day of trading. You should obtain independent advice from a licensed professional adviser prior to making any final decision.

Following the float the shares are now listed on the share market. From this point shares can only be bought and sold on market through a stockbroker.

Buying and selling shares through a stockbroker

Establishing a relationship with a broker is easy. Each broker will have a slightly different process, but most require you to establish a client account. They may also need bank account details for the lodgement or receipt of trading proceeds.

When you place an order to buy or sell shares, you have a choice of two ways to tell your broker what price you will accept. You can place your order 'at market', meaning you will accept a price at or about the market price of the shares at the time you are placing your order.

Alternatively, you can place your order 'at limit', and inform your broker of the highest price you are prepared to pay or the lowest price at which you will sell. Orders where you set a 'trigger' point are known as conditional orders.

Determining entry and exit prices for shares is important. Investors are very capable of buying shares, however many fail to consider when to sell. Setting a target price to sell is an often overlooked skill.

When placing an order with your adviser, make sure you are fully informed and that your order is confirmed. Ask the current market price and write it down. Then tell your broker the details of your order (i.e. the amount of shares to be bought or sold and the price at limit or at market). They should then repeat the order back to you.

Internet based stockbroking websites provide confirmation screens for you to double check your order before it is processed.

Following a transaction on the share market you will be sent a contract note (confirmation). This outlines the details of your trade, including the number of shares and the amount paid or received for them.

Happy trading!

Real riches

I am right now on my way to work on a Monday morning. It seems to be a normal Monday morning, however, I have this empty feeling inside of me. This is unusual, as far as I can remember this has never happened to me.

I fell that I don't really want to go to work right now. I miss my wife and kids. Again, this is unusual because they are at home as they always are.

We had a good weekend this last weekend. I wasn't think too much about work and we pretty much spent time together. Yesterday afternoon we took a walk to the beach, my son on his bike and my daughter on her scooter. My wife and I were just watching the kids having fun. It was very nice.

I must confess that since I have taken control of my finances and started to focus on learning about how to manage our money and pay off our debt, it has been hard to think of other things. This can be a little stressful and addictive.

On the way to the train station I was listening to the radio and they were talking about relationships with other people, at a professional or personal levels. Real riches don't come from the things we have, our assets, the money in the bank or the expense bar or boat. It comes from our relationship with others.

I need to slow down a little bit, and this can be hard to me, and spend a little more quality time with my family. There is nothing better than watching those children playing and having fun.

Even as I type this my mind is drawn to the topic of passive income. One way that I could spend more time with them is by having enough passive income to be able to quit my day job. I guess this is everyone's dream. This can be a double-edged knife though. The drive towards financial independence cannot take priority of what is really important in our lives. Having enough assets and cash to be able to provide to the ones around me and to help other people is really a wonderful thing but the most important thing is to spend quality time with the ones around me and make sure that they are ok.

Financial health is important, but so is mind and soul. I will not be able to get my time back. I will always cherish the memories of the time I have spent with my family. So I better spend more quality time with them right now.

Writing on my own website and learning about how to manage finances can be addictive. Marrying this with a full time day job can be really stressful and frustrating, especially if I cannot achieve what I have planned. The challenge is to continue to be productive, to learn about money and finances and make sure that I have plenty of time to spend with family and friends.

I guess it is hard to define what real riches are, in my case, real riches mean spending more quality time with my family and friends and creating memories that will last forever. I will be a dad that the kids will remember me by being there  with them whenever they needed me. Not the guy that was always in the office working.

Financial independence will enable me to spend more quality time with them and will also enable me to provide them with everything they need. We just cannot forget that money is a means and not the end.

Consider what is important for you and make sure your finances are working to help you to spend more time with your family and friends.

Best of luck.

Financial Independence Compilation

Welcome to the August 2, 2010 edition of financial independence.

This week we have been very busy here at "Your Financial Independence". We have added a new section which discusses how the timeless book the Science of Getting Rich has helped me on my path to financial independence. In there, I tell you a bit of my story and how the book has provided me with an extra $42,000. Click here to read more...

Your Financial Independence Articles

Evaluating Investment Opportunities - Evaluating investment opportunities (e.g. shares, property, bonds) is easier if you use a standard set of criteria to measure and compare them. While each investment must be evaluated in the context of your personal goals and objectives, in most cases the following characteristics may be considered. Click here to read more...

A few strategies to make some extra money - It is always a good idea to make some extra money. It can help you to pay off a debt, save or just buy something that you want. Click here to read more...

Debt Consolidation - means taking out one loan to pay off others. One of the main benefits of taking out a debt consolidation loan is sometimes lower interest rate and the convenience of paying off only one loan. Click here to read more...

The science of getting rich - how riches come to you - Wattles makes a very good point in this chapter: "...give to every person more than you take from him". This is simply the best advice anyone could give me. Click here to read more...

The science of getting rich - gratitude - This articles looks at the chapter regarding gratitude. The bottom line about this article is simple: "what comes around goes around". Click here to read more...

The science of getting rich - the will power -When you know what to think and do, then you must use your will to compel yourself to think and do the right things. That is the legitimate use of the will in getting what you want — to use it in holding yourself to the right course. Click here to read more...

Your free gift - We are offering you a free gift that we are sure that it will inspire you on your road to success. The book the Science of getting rich has inspired me and started me on my road to financial independence. I encourage you to download the book and join the SOGR network. You have nothing to lose. Click here to download your free book.

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