There is only one thing that separates you from the people who have the money you wish you had. It is not talent, skill, the things you own or the connections you have. It is the MINDSET.

What do I mean about mindset? The way you use money immediately tells me if you are a Gratification Groupie or a Genius. Here is how I define those terms.

Gratification Groupie – Overspending is a habit and money runs through your hands as fast as it arrives buying ‘stuff’ that you want but do not actually need. You think it is important to impress others with the material things you own. You follow the crowd and do what they do – shop, shop, shop, spend, spend, spend. You may give the appearance of having money, but you are drowning in debt that you cannot pay off. You look for ways to spend money, and spend time thinking about things you want to buy instead of taking action to get out of debt and invest in your long-term financial survival. You are constantly worried about money.

Genius – Paying yourself first by investing a portion of every dime that comes in the door for your long-term financial security is your top priority. You spend the rest in ways that can help you produce more income for your financial survival. You set money aside over time to buy the things you need, and you pay cash. Credit cards are seldom used, and are paid off as soon as the statement arrives. You do not use your money to buy things to impress others or win popularity. You are never worried about money.

What separates millionaires from normal people? Not much. The only real difference is what they do with money when it comes in.

You see, It is not how much money you make, it is what you do with it that determines your financial condition. There is a simple science to managing your finances the right way. Very rich people know this science.

If you really want to convert from being a Gratification Groupie to a wealthy Genius and get on the road to winning your financial freedom, here is the formula the Genius uses to manage the money when they receive it:

1 – Put a minimum of 10% into a retirement savings plan for long-term financial survival. Increase this percentage over time.

2 – Pay cash for everything, starting today. Stop buying on credit.

3 – Use a minimum of 15% of your income to pay off debt and past due bills.

4 – Pay your current bills for necessary operating expenses like rent, utilities, and telephone.

5 – Make your spending decisions based on NEED rather than WANT. Buy the things you need that contribute to your ability to produce more income. Buy used instead of new. Most items lose 25% to 80% of their value the instant you pay for them.

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Sandra Simmons, President of Money Management Solutions, Inc. specializes in helping people manage their money to achieve financial freedom. Claim your FREE Debt Reduction Solutions Guide

© 2008 Sandra S. Simmons. All Rights Reserved.

More than likely you are already getting excited about the big money check you are probably going to get from the government. You may even be mentally shopping for some gizmo or gadget you have had you eye on. That can be a fatal money management mistake.

Now, I’m not trying to be a party pooper, but to be honest, I don’t really like this government plan to try to stimulate the economy and pull us away from a possible recession by having you hurry out and spend the money at some store. President Bush said, “Letting Americans keep more of their own money should increase consumer spending, and lift our economy at a time when people otherwise might spend less.” Did you actually get that statement? He said allowing us to keep more of our money. That’s the money we worked hard to earn that the governmnet confiscated in taxes. The President needs to read The Fair Tax Book by Neal Boortz.

The Wall Street Journal recently reported that in December 2007, Americans had $944 BILLION in total revolving debt, most of it on credit cards. Spending with plastic has sneaked into every corner of American life. Consumers used to put only discretionary expenses on credit cards. Now, many are so strapped for cash that they use revolving credit cards to pay for necessities like groceries and gas just to survive. That is economic slavery.

The government’s idea may sound like it will work, but I don’t think it is the best idea. I believe a better idea is to use that rebate to reduce your debt. If you have less debt, you will eventually have more money to spend on things like groceries and gas. We are talking about basic survival for many families. No economy can flourish when the public is buried under a mountain of unbearable debt.

Do you already have a plan for what you are going to do with your rebate? I’m encouraging the idea of using your stimulus tax rebate towards financial freedom! Here is  my best advice.

Do NOT mentally go shopping and spend the money before it arrives in your mailbox. Instead, figure out how you can use the money to improve your financial condition.

Use the money to pay off debt. There is no good reason to go out and spend the money on stuff when you cannot pay for the stuff that is already sitting on your credit cards as debt. When you are DEBT FREE, you can start saving to buy that gizmo you have had your eye on.

If you have no debt, then invest the money so it will make more money for you. It doesn’t take but a few years before that $600 or $1,200 dollars can double or triple in value at an 8 – 12% return.

Okay, okay. If you just HAVE TO spend some of the money on a splurge item, limit the amount you use by going out for a nice dinner or buying that book or music CD you’ve been wanting. Then use the rest to pay off debt or put into an investment. The faster you get out of debt, the more often you can do fun things with your income instead of spending sleepless nights worrying about how you are going to pay off those credit cards and get out of debt.

Sandra Simmons, President of Money Management Solutions, Inc. specializes in helping people manage their money to achieve money management goals, so be sure to claim your FREE Debt Reduction Solutions Guide

How do you guarantee you’ll have social security income for retirement? There are two things you have to do in order to do this, but first you need to understand this one simple concept about money.

The one concept you need to know is what the word economics really means in relation to what you are trying to achieve financially. Now don’t get all nervous about this word economics. The fact is, the definition used by the media, banks, governments and even educational institutions, is the incorrect definition for what an individual is doing with their money when I talk about economics.

Economics originally meant the art or science of managing a business or household. Social security, meaning financial security, can be guaranteed by practicing good economics with your own money.

To practice the real art of economics in your household or company there are 2 basic principles you have to understand in order to create your own social security program:

1) Make more money than you spend, and

2) don’t waste the money that you make. Let’s look at how you accomplish #2.

We all shop and spend money. Where is it written in stone that you have to pay full retail price? Is there a way to shop that makes you wealthier? Try to buy items from a wholesale store—or better yet, buy the item direct from the manufacturer. This takes some scouting and time, but it is a breeze on the Internet. You save rather than wasting your money. In the end, it becomes a fun game!

So here is how to play the game. Decide what you want to buy. Next, check out the retail price, the distributor price, and the manufacturer’s wholesale price for the item. To get wealthier, use your most imaginative investigative skills to find where to buy that item at the most acceptable quality and at the lowest possible price.

Take the money that you saved and invest it toward your own financial freedom. As this money accumulates over the years, by doing this on just a few of the following items in this article, you will pay yourself a retirement sum more assured and larger than the government program social security checks!

Don’t be fooled by the sale signs at the full retail price stores. A friend remembers when he worked in a men’s clothing department store. This retail store set a “sale” price by doubling the cost of the item and then marking it off by 40%. By doing this, they could mark the items “on sale” and charge 60% more for the items.

As another example, why shop for a new refrigerator costing $900 at a major appliance store? Why not go to an appliance outlet store and buy a similar one with a full warranty for $450? That leaves an extra $450 in your bank account.

A friend of mine, who is a business consultant, lives by the motto, “Never pay retail.” He tells the story of shopping for bedroom furniture costing $2,000 “on sale” at a modern furniture store that has poor quality veneer over fiberboard. Instead, he bought a beautiful 40-year-old, solid hardwood, finely crafted set for $600 at a consignment store. That saved him $1,400 on something that is used for a few hours each day. He also got quality furniture that will last more than another 40 years.

Another friend of mine recently bought a $25,000 car, 2 years old, in pristine condition, with very low miles on it for $13,000. She purchased it through someone who buys for private individuals straight from the used car auctions. Rather than buying a new car, if you do this a few times and invest the difference, do you see how your Social Security savings plan grows?

In the coming months, using smart money management, some will have security and others will not.

Sandra Simmons, President of Money Mangement Solutions, specializes in helping business owners and idividuals manage their money to achieve financial freedom. Claim your FREE Debt Reduction Solutions Guide

© 2007 Sandra S. Simmons. All Rights Reserved.