My monthly saving should get easier with less trading…
Recently with my plan to see how far I can get gains as close to 100% a month on my initial investment of $2000 I should be able to save more money in my checking and savings accounts by not depositing more money into my trading account. So far my $2000 has grown to around $8000 in 3 months.
I was putting every extra couple hundred dollars into my OptionsXpress.com trading account to trade options with, but recently I put an end to that because I was just loosing it all. I feel if I give myself certain amount to trade and that is all I get for a long time psychologically maybe I will trade more disciplined and do more solid trades. So far it has worked and money has been building back up in my bank accounts.
So far I have $2700 saved up in my savings account and $1800 in my checking account. If I do not deposit any bi-weekly paychecks into my trading account I should be able to build an extra $1500 a month into my checking and $725 a month into my savings. A total of around $2225 a month or over $24,000 for 2007.
My car note still has $24,000 on it and I’d like to pay it off first and second my mortgage that I receive a rental income on which is still $58,800. My car note is 8.25% and my home 6.5% so paying off my car note first would be the economical choice to save money. My question is should I apply all my extra money to it monthly or pay it off at the end of the year in one lump sum? I guess psychologically if I see it being paid down each month I’ll keep paying it off while if I just leave a big fat sum of money I might start thinking “spending and buying” or even “this might be the big trade” and loose it all on something dumb materialistic things or a bad trade. So, paying off my car monthly with a larger amount probably would be the smarter choice.
If I trade less and focus on just those few I should have less losses and I’m taught it’s not about having big gains, but having very small losses. Recently I receive a big gain then big loss. If I could just stop the cycle of big loss it would really speed up my money goals in trading.
If anyone has any suggestions on what to pay off first my house or my car please comment.
My car has a 7 year note and my house a 30 year mortgage. I could finish paying off my house in 3 years and then have my car note left for 4 more years. Tell me what you think.