Grasshopper... Hey you there - Mr. Tight Pants

Exclude your residence (home with no mortgage), the amount of money you need to fund your children's college education, and one year's survival cash. Work to get past this point. For many, this will seem like an impossible task. You have to pay attention to the ways you accumulate and spend money. I'm certainly not saying it's easy. These milestones are worthy goals themselves. However, it is after you get to this point that you have a chance to "go big".

What's left is what I'll define as "Working Assets". If you are fortunate enough to get here and have something to work with, we can make something happen.

With your "Working Assets":

• Take almost no risk with 1/3 - Low
• Take moderate risk with 1/3 - Medium
• Be willing to take high risk with 1/3 - High
• Become intimately and enthusiastically involved in the care and feeding of the 1/3 that is considered high risk investment.
• When / if using leverage (debt) to fuel positions within the high risk category, limit your exposure such that no more than half of your Medium Risk position and none of your Low Risk position is in play.