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

1. They haven't worked out how much income they really need every week to exceed just paying their bills. They haven't worked out a budget.

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 never pay yourself first into a savings plan, you'll stay poor while you make your vendors rich. Every supplier that you pay is in business to make profits. Shouldn't you be running your business to make a profit? The income target needs to include a profit or the enterprise will go broke and fail.

2. They haven't worked out a way to make more income than they currently need, and then be willing to do whatever it takes to execute 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 money by living on credit instead of going into action to raise their income. Anyone can find different 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 purchase the 'appearance' of being wealthy is a deadly activity. I call this type of spender a Gratification Groupie. It can catch up with you fast and eventually can drown you in debt. This situation causes constant stress about money and makes for lots of sleepless nights. Money does not buy happiness. But, doing something productive and worthwhile and knowing you are appreciated for it will make you feel like you are on top of the world.

4. They never work out what they will need in the future and set aside a little money every week so they can pay cash for the purchase later.

Purchasing things with a credit card because you are short on cash 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 high dollar items, is to put away a little every week until 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 purchase products and services based on WANT rather than on NEED.

Buying decisions should be based on how your purchase of the product or service will assist you to produce additional income for you. Let's be honest here, do you want the new cell phone that offers text messaging and email retrieval 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 retirement 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. Even though the 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 make that much more income just to stay even. Why does our government report that it is only 3 - 3.5%? Regrettably, it's because the government has to raise 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 headed in that direction.

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

The old saying 'don't put all your eggs into one basket' is true today, especially when it comes to income sources. Locate profitable products or services that you can add, or business ventures you can participate in that are ethical, and have a really good opportunity to 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 substantial credit card debt, it is more advantageous to use excess cash to pay down the debt and stop the high interest payments instead of trying to earn interest from the bank. As you reduce your debt, it is wise to keep sufficient cash on hand to cover a few months of basic living expenses. Once the debt is gone, or will be soon, then start investing any excess money in investments that return real growth.

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

I'm surprised 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 confronting how they are affecting the economy of their own business or household, which is something they CAN control. A rise in unemployment is no cause to worry. The creation of new jobs by small business greatly exceeded the loss of jobs in major corporations, according to the latest ADP report. A failing bank is no reason to panic. Banks receive 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, put aside 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. Cut expenses, increase your income, and correctly manage the money 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.

Proper money management is something educational institutions don't teach. People receive false information and bad advice about how to handle money. Then they make these silly mistakes, get into worse trouble, attempt to solve the problem by using credit, wind up in more trouble, and then go searching 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 in the future. It is an old-school system that 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 company owners manage their income to reach their financial goals.