If these actions weren't so downright dangerous, they might be humorous. Have you made any of these mistakes with your hard-earned income?

1. They haven't figured out the amount of money they really need each week to do better than just pay their bills. They don't have a budget set up.

The appropriate definition of BUDGET is: the calculation of the amount of money needed for an organization to function and achieve its purpose. If you are satisfied to just pay your bills, and you never pay yourself first into a savings plan, you'll stay poor while you make your vendors rich. Every supplier that you pay is running their business to make profits. You should run your business to make a profit. Your income target must include enough profit or the enterprise will go broke and fail.

2. They don't work out ways to make more income than they need, and then willingly do whatever it takes to carry out their plan.

By UNDER estimating the amount of income needed to do better than just break even, they almost always set their income target too low and lose more money existing on credit instead of going into action to raise their income. Anyone can discover ways to increase their income; it is often the 'willingness to do whatever it takes' that seems to be the problem.

3. They habitually spend more money than they make.

Using your money to buy the 'appearance' of having wealth is a deadly activity. I call this type of spender a Gratification Groupie. It can catch up with you fast and over a short time can drown you in debt. Being in this situation causes constant stress about money and brings on lots of sleepless nights. Money truly cannot buy happiness. However, doing something worthwhile and productive and being appreciated for it can make you feel like you are on top of the world.

4. They never work out what they will need in the future and then set aside a bit of cash each week in order to pay cash for the purchase later.

Buying things with a credit card because you are short on cash is committing your future production to the credit card company. You are then working for the credit card company as an economic slave. The right way to buy things, especially big ticket items, is to put away a small amount each week till you have the cash to pay for the item, and then negotiate a big cash discount. The guy with the CASH IS KING!

5. They buy services and products based on WANT rather than on NEED.

Purchasing decisions should be based on how your buying the service or product can assist you to produce more income for you. Honestly, do you want the new cell phone that features email retrieval and text messaging because your friends have one, or do you need it to increase your work productivity because you are traveling to close the next business deal?

6. They never put money into a long-term savings plan so they have it for use later in life.

Are you counting on the younger workers' future production to supply you with Social Security income when you stop working? Boy, that is a huge gamble! Despite the fact our government reports the cost of living is going up 3 - 3.5% a year, the real figure is 8 - 12% a year. You have to bring in that much more income just to break even. Why does the government say it is only 3 - 3.5%? Unfortunately, it's because the government has to raise Social Security payments each year by the percentage they report. The Social Security system is already bankrupt and those living on Social Security alone are going in that direction.

7. They never build up multiple sources of income. If one source dries up they are in financial trouble.

The expression 'don't put all your eggs into one basket' is true today, especially when it comes to income sources. Research profitable products or services you can add, or business ventures you can participate in that are ethical, and have a really good chance of producing a residual income.

8. They get stressed out about how little interest banks pay on savings accounts while they are being murdered with substantially higher interest charges by carrying balances on their credit cards.

If you have high credit card debt, you are better off using excess cash to reduce the debt and get out from under the high interest payments instead of trying to earn interest from the bank. As you reduce your debt, you should also keep enough cash on hand to cover a few months of basic living expenses. Once the debt is gone, or close to it, then start investing any excess money in investments that return real growth.

9. They worry about 'the economy' in general.

I'm surprised that people actually worry more about 'the economy' than about their household or business failing financially. They stress over what the news tells them about 'the economy' which is something they can't control, while never confronting how they can affect the economy of their own household or business, which is what they CAN control. A rise in unemployment is no reason to worry. Small business' creation of new jobs far outweighed the loss of jobs in major corporations, according to the latest ADP report. A bank failure is no reason to panic. Banks receive funding for bailouts from the FDIC and other investors. Nobody is standing by to bail out your failing business. That is entirely up to you. So keep promoting your business, stash some cash, and sleep well at night while the dire news about 'the economy' rages around you.

10. They anticipate surviving financially without taking full responsibility for controlling their financial future.

Money problems have a simple solution. Cut expenses, increase your income, and correctly manage what income you bring in. It's not only about how much money you make, it's what you do with it that determines your financial condition.

Correct money management is not taught in educational institutions. People receive false information and bad advice about how to handle money. So then they make these silly mistakes, get into trouble, attempt to solve the problem by using credit, create more trouble, and then go looking for debt relief.

The good news is that there is an inexpensive, proven, money management software system that can reverse all the money management mistakes a person has made in the past, and keeps them from making the same mistakes again. It is an old-school system that your great grandparents used prior to the days of credit cards. Very wealthy people understand and use this system today.

Sandra Simmons, President of Money Management Solutions, has years of experience helping professionals manage their money to achieve their financial golas.