Options Trading 101 : Check your foundation!

Where are you now? I mean financially...

There are many ways you can describe it...

- I have a high paying job
- I own a house
- I use the latest mobile phone
- I wear branded clothes only

... and by the way... I'm happy ok?

Hmmm...

So, are you "showing" me what you have bought?

Is that what wealth is all about?

I don't think so.

To answer this question, all I wanted to know is whether
you are red or green.

What??? I'm lost. What are you trying to say, Marcus?

Bear with me for a sec.

The equation you need to solve is this

ASSETS - LIABILITIES = ??? [ green or red ]

Basically, I want you to have a reality check on your current
financial status. I don't want you to build your wealth on
a quick sand.

No matter how hard you try to make more money, all your effort
will be down the drain if you are always red. A simple metaphor
is like pouring water to a leaking bottle.

I must warn you upfront that options trading is not for everyone,
and you must have a solid financial base to avoid being burnt.

I want to help you to shortcut the learning process, and you
need to have a clear picture on where you are now.

Let me share with you how I get my numbers by filling up
the following statements:

~ Balance Sheet
List of my assets & liabilities. (Cash, Savings A/c, Stocks)

~ Monthly Income & Expenditure
Fixed expenses (car installments, gas) and
other estimated expenses (food, entertainment & misc)

-- side bar ---
You won't believe the results I got. I was just 2 paychecks
away to financial disaster. I can't support my lifestyle if
I lose my job that time. I thought I have saved enough
(irregular deposits) but the truth was I didn't have a
savings plan at all. I must have been thinking money
will grow by itself. Silly me.
-- side bar ---

Be honest with yourself. It's stupid to cheat yourself.
Stop being a chicken and face the truth. Then, identify what
are the areas that you need to improve on. More assets?
Cut those unnecessary expenses? Get another source of income?

Just do a little brainstorming. It might be a good idea that
you do this with your spouse or someone that has great interest
in your success and will support you in this journey.

I think I will leave you with that small exercise now
... and you tell me whether you are red or green?

p/s: Don't be perfect on this, just an idea on your current situation.

Go for profit$!