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

1. They haven't figured out the amount of income they actually need every 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 reach its goals. If you are satisfied to just pay your bills, and you don't pay yourself first into some type of savings plan, you will make other people wealthy and you will stay poor. Every vendor that you pay is in business to make a profit. Shouldn't you be running your business to make a profit? Your income target needs to include enough profit or the enterprise will fail financially.

2. They don't work out ways to earn more income than they need, and then be willing to do whatever is required to carry out the plan.

By incorrectly estimating the amount of income needed to do better than just break even, they typically set their income target too low and lose more money existing on credit instead of going into action to raise their income. Everyone 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 income to purchase the 'appearance' of being wealthy is a dangerous activity. I call this type of spender a Gratification Groupie. This can catch up with you fast and eventually can drown you in debt. Being in this situation causes constant stress about money and brings on lots of sleepless nights. Money does not buy happiness. But, doing something productive and worthwhile and being appreciated for it will make you feel like a million bucks.

4. They don't work out what they need to buy in the future and then set aside a little money every week in order to pay cash for the purchase later.

Purchasing things with a credit card because you don't have the money is committing your future earnings to the credit card company. You are then working for the credit card company as an economic slave. The right way to purchase things, especially big ticket items, is to put away a small amount every week until you have enough cash to buy the item, and then go out and negotiate a big cash discount. The guy with the CASH IS KING!

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

Purchasing decisions should be based on how your purchase of the service or product will help you produce more income for you. Let's be honest here, do you want the new cell phone that offers email retrieval and text messaging because your friends have one, or do you need it to increase your work productivity because you are out of the office making more money?

6. They don't contribute to a long-term savings plan so they have it for use later in life.

If you are relying on other peoples' future production to pay you Social Security payments so you can retire, that is really taking a gamble. Despite the fact our government reports the annual cost of living is going up 3 - 3.5% a year, the truth is that it is going up 8 - 12% a year. You have to make that much more income just to break even. Why does our government report that it is only 3 - 3.5%? Regrettably, it's because the government has to increase Social Security payments every 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 don't build up multiple sources of income. If one source disappears they are in financial trouble.

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

8. They get stressed out about how little interest their bank pays on savings accounts while they are being murdered with much higher interest rates 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 stop the high interest payments rather than attempting 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 begin investing the excess cash in investments that return real growth.

9. They get stressed out about 'the economy' in general.

I'm amazed that people actually worry more about 'the economy' than about their business or household failing financially. They stress over what the media is reporting about 'the economy' when that is something they can't control, while never confronting how they are affecting the economy of their own business or household, which is something they CAN control. An increase in unemployment is no cause to worry. The creation of new jobs by small business far outweighed the loss of jobs in big 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. No one is standing by to bail out your failing business. That is entirely up to you. So keep promoting your business, stash some money, 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.

There is a simple solution to money problems. Increase your income, cut expenses, and correctly manage the money 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.

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

Fortunately, 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 in the future. It is an old-school system that your great grandparents used prior to the days of credit cards. Very rich people understand and use this system today.

Sandra Simmons, President of Money Management Solutions, Inc., has years of experience helping company owners and families manage their income to achieve financial freedom. To find out more visit www.moneymgmtsolutions.com