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.

So you want to be broke, have no money,  and stay in the economic trap? Here are the top 7 actions you can take to insure you have NO MONEY and are living in poverty.

1. Spend every dime you make and deny yourself nothing; buy stuff whether you need it or not.

2. If you have any money in the bank or room on your credit cards, go out and spend it. Don’t worry about emergencies that may come up. When they do, borrow more money to handle it.

3. Work to make just enough money to barely pay your bills and be sure to spend your free time out spending money. Don’t stress over the yearly increase in the cost of living.

4. Use your credit cards to pay for essential items like gas and groceries, and to do impulse shopping for things you want but don’t need. Max out those credit cards.

5. Pay only the minimum payment required on your credit cards each month, and don’t worry about the extra charges for paying late or spending over your credit limit.

6. Never put any money in savings, and if you do, feel free to tap into those funds when you can’t pay your bills.

7. Rely on the Government and Social Security to take care of you when you can no longer work.

These actions will guarantee that you are being controlled by the money and are broke and living in poverty.

If you don’t care that you’ll constantly be worried about money and plagued with money problems, then you’ll be able to spend those sleepless nights out spending more money on credit cards or shopping on-line on the computer for entertainment. Heaven forbid that you should be working on ways to take responsibility for your own financial survival instead of relying on someone else to take care of you financially. Isn’t that what friends, family and the Social Security system are for?

Now that I’ve given you all this advice about how to live broke and die penniless, I should also tell you that there is a money management system that you can use to control your income and debts to get on the road to financial freedom. Just in case you change your mind and decide you want to take responsibility for improving your own financial condition, you can read some of my other articles on my Money Management Solutions Blog.

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

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

Do you believe the Republicans when they tell you that the National Debt has grown drastically due to inflation? This surprising chart shows how the Republicans and Democrats have performed in money management and affected the National Debt.

The usual politics of presidential elections are all about the Republicans and Democrats fighting for our votes by blaming the other party for all the bad things, like the growing National Debt that is bankrupting our country. There are only a few candidates this time who are telling it like it is, and who have real solutions like the Fair Tax to offer in the money management area to get the debt down and get us some tax relief. My vote is going to Ron Paul because his strategy aligns with the money management system used by my money management software that helps business owners get out of debt and create wealth. This system can work for our government too.

This chart, based on data from the Bureau of Public Debt up to September 29, 2006, the last day of fiscal 2006, is a graphic illustration of how the actions of our current president is bankrupting America (while cutting every program they can get away with) and passing their debts to your children and grandchildren, and their children and grandchildren.

See this incredible graph here: http://i13.tinypic.com/8a15hlj.gif

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

© 2008 Sandra S. Simmons. All Rights Reserved.