1. They never have worked out the amount of money they actually need each week to exceed just paying their bills. They don't have a budget set up.

The correct 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 don't pay yourself first into a savings plan, you will make other people wealthy and you will stay poor. Each supplier that you pay is in business to make a profit. You should run 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 currently need, and then be willing to do whatever is required to execute the plan.

By UNDER estimating the amount of income needed to exceed breaking even, they almost always set their income target too low and lose money existing on credit instead of getting busy raising their income. Anyone can discover different ways to increase their income; it is usually the 'willingness to do whatever it takes' that is 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 refer to this breed 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 worry about money and makes for lots of sleepless nights. Money does not buy happiness. But, doing something worthwhile and productive and being appreciated for it will make you feel like you are on top of the world.

4. They don't work out what they need to buy in the future and set aside a bit of cash each week in order to pay cash for the purchase later.

Purchasing something with a credit card because you don't have the money 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 method to buy things, especially high dollar items, is to put away a little each week until you have the cash to pay for the item, and then go out and negotiate a big cash discount. The guy with the CASH IS KING!

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

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

6. They don't contribute to a long-term savings plan so they have money 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 stay even. Why does our government say it is only 3 - 3.5%? Unfortunately, it's because the government has to increase Social Security payments each year by the percentage they report. Our Social Security system is already bankrupt and those living on Social Security alone are going in the same direction.

7. They don't build up multiple sources of income. If one source dries up they are in trouble financially.

The expression 'don't put all your eggs into one basket' holds true today, especially when it comes to income sources. Look for profitable services or products 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 the low interest banks pay on savings accounts while they are being murdered with substantially 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 pay off your debt, you should also keep sufficient cash on hand to cover a few months of living expenses. Once the debt is gone, or close to it, then begin investing any excess money in investments that return real growth.

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

I'm amazed that most people are actually more worried about 'the economy' than about their business or household failing financially. They stress over what the media is reporting about 'the economy' which is something they can't control, while never looking at how they can affect the economy of their own business or household, which is something 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 failing bank is no reason to panic. Banks get bailouts from the FDIC and other investors. No one is waiting in the wings 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 bad news about 'the economy' rages around you.