Because these mistakes are so critical, they are nothing to laugh at. Are you making any of these mistakes with your money?

1. They have never worked out the amount of income they actually need each week to do better than just pay their bills. They haven't worked out a budget.

The appropriate definition of a BUDGET is: the calculation of the amount of money necessary for an organization to function and achieve its purpose. If you are happy with just being able to pay your bills, and you don't pay yourself first into some type of savings plan, you'll stay poor while you make your vendors rich. Each vendor that you get a bill from is running their business to make profits. You should run your business to make a profit. Your income target needs to include enough profit or the enterprise will go broke and fail.

2. They haven't worked out a way to make more income than they need, and then be willing to do whatever it takes to carry out their plan.

By incorrectly estimating the amount of income necessary to do better than just break even, they typically set their income target too low and lose more money by living on credit instead of going into action to raise their income. Everyone can discover different ways to make more money; 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 income to buy the 'appearance' of being wealthy is a deadly activity. I call this breed of spender a Gratification Groupie. It can catch up with you quickly and over a short time can drown you in debt. Being in this situation causes constant worry about money and brings on lots of sleepless nights. Money does not buy happiness. However, doing something productive and worthwhile 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 little money each week so they can 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 in economic slavery to the credit company. The correct method to buy things, especially high dollar items, is to set aside a little each week till you have enough cash to purchase 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.

Buying decisions must be based on how your purchase of the service or product can help you produce additional income for you. Honestly, do you want the latest 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 traveling to close the next business deal?

6. They don't put money into a long-term savings plan so they have money 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 the government reports the cost of living is rising 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 report that it is only 3 - 3.5%? Unfortunately, it's because the government has to increase Social Security payments each year by the percentage they quote. The 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 disappears they are in financial trouble.

The old saying 'don't put all your eggs into one basket' is true today, especially in terms of income sources. Research profitable services or products that 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 worry about the low interest banks pay on savings accounts while they are getting killed with much higher interest charges by carrying balances on their credit cards.

If you have high credit card debt, it is more advantageous to use excess cash to reduce the debt and get out from under the high interest payments rather than attempting to earn interest from the bank. As you reduce your debt, you should also keep sufficient cash on hand to cover a few months of basic living expenses. Once the debt is gone, or close to it, then begin investing any excess cash in investments that return real growth.

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

I'm surprised that people actually worry more about 'the economy' than about their business or household failing financially. They stress over what the news tells them about 'the economy' when that is something they can't control, while never confronting how they can affect the economy of their own business or household, which is something they CAN control. An increase in unemployment is no cause to worry. Small business' creation of new jobs greatly exceeded the loss of jobs in big corporations, according to the latest ADP report. A failing bank 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 money, and sleep well at night while the bad news about 'the economy' rages around you.

10. They expect to survive 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 do get. 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 something educational institutions don't teach. People receive false information and bad advice about how to handle money. Then they make silly mistakes, get into worse trouble, attempt to solve the problem using credit, create more trouble, and then go looking for debt relief.

The good news is that there is a proven, inexpensive, money management software system that can reverse 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 your great grandparents used prior to the days of credit cards. Very wealthy people know and use this system today.

Sandra Simmons, President of Money Management Solutions, has years of experience helping business owners manage their income to achieve financial freedom.