When trying to build wealth, Income is the first step to building...Correct?

Okay, I'm investing in mutual funds, I have an IRA Roth account, and I hardly have any money in my bank account. I'm investing,

I don't agree with much of the above. The idea that you need to have money saved up for an emergency is old-fashioned and most modern investment strategists would not agree. Worst case, if you truly had an emergency, you could use a credit card, and it doesn't make sense to have a couple of thousand dollars just sitting making little interest. Just save at least 10% of your income and have it distributed among cash and stocks and/or mutual funds. You will make more money as you move along in whatever you are doing, but the real key is the consistency of investing so that in about 30 years or so the accumulated money you have starts to take off. It's called "The magic of compounding interest." It's simply the idea that while $3000 might not make much interest in a year, when you get to the point where you have say $80,000 the interest coming off of that is huge and suddenly you are making big money in a relatively short period of time.

You have to follow 3 steps (1) Learn to earn, then (2) Learn to save...and after awhile (3) learn to invest. The best Investment for this Year is the IRAQI Dinnar...you buy to day a bill of 25,000 Dinars for US $65.00 and in 2-3 years from now this bill will be worth US $25,000.00 - Go to WEB SITE: www.nickwwwboard.com Page 5 & 6 For Full INFORMATION.

If you have hardly any money you shouldn't be investing. When investing you should think medium to long term. You can't do this if you haven't got emergency funds. What if you boiler brakes down or a loved one needs an emergency operation. When trying to build wealth you should be looking to do what everyone else will be doing not what they have been doing which is interesting in income shares and bonds and commodities. Get your crystal ball out.

The first step is a plan. Make sure you have 3-6 months of expenses saved up in a savings account. It won't earn much but, you holding that money for rainy days not investing. After that make sure to get rid of credit cards. Earning 8% on a mutual fund while paying 6.9% on a credit card is like a hampster on a wheel. Take advantage of any job related 401k plans at least up to what the company matches. The matching is like free money. Budget. Budget. Budjet. Put yourself on a spending plan. It's a hassle at first but pays off well. Make sure you have adequate life insurance, medical, and car insurance. If you have car payments pay it off fast or dump to the car for something you can pay cash for. With nothing except apt rent or a house payment you can really start to throw some money at investing with much less risk. You'll be set up for the good and bad times.

The first step is to spend less than you make. It's called "paying yourself first". In year 1, try to put 10% away, and then every year, increase that by a couple of percentage points.

You should have money available, because if you're tied up in investments, you might have to take a hit if you need money at a bad time in the market. Rich on paper, but can't buy a loaf of bread.

There are decent places to put that rainy day money - ING, Immigrants Direct, GMAC Demand Notes - they all pay 4 - 6%, which isn't bad.

Sounds to me like you're doing great! Invest as much as you can. It'll pay off! You'll build up a cash reserve eventually. The best time to do anything is right now! Not when you have "enough" money saved. If you have a real emergency you can tap into your investments. Keep it up. You're going to be very comfortable one day!