There is one simple thing that differentiates you from those who have the money you wish you had. It is not your skills, talents or your connections. It is your MINDSET.

What do I mean about mindset? The way you use your money tells me if you are a Genius or a Gratification Groupie. Here is how I define those terms.

Gratification Groupie: Overspending is habitual and money leaves your hands as fast as it arrives buying stuff that you want rather than need. You think it is important to impress others with the material things you own. You follow the crowd in the cycle of shop and spend, shop and spend. You may give the appearance of having money, but you are drowning in debt that you cannot pay off. You actively search for ways to spend your money, and spend your time deciding on things you would like to purchase rather than taking the steps to pay off your debt and saving for your future financial survival. You are always worrying about money.

Genius: Paying yourself first by stashing away a portion of every dime that you make for your future financial security is a top priority. You spend the rest of your money in ways that can help you produce more income for your financial survival. You methodically save money over time to purchase the things you really need, and you use cash. Credit cards are very rarely used, and the balances are paid off as soon as the statement arrives. You never use your money to buy things to impress others or win popularity. You never worry about money.

What separates the millionaires from the rest of the people? Not much. The only real difference is how they use their money when it comes in.

You see, It is not how much money you make, it is what you do with it that determines your financial condition. There is a simple method to managing your money the right way. Very rich people know this science.

If you really want to change your ways and convert from being a Gratification Groupie to a rich Genius and reach the goal of being financially free, here is a simple formula the Genius uses to control the money when they make it:

1 - Put a minimum of 10% into an retirement savings plan for your future financial survival. Raise the percentage as often as possible.

2 - Starting today, pay cash for everything. Knock off buying on credit.

3 - Use at least 15% of every dollar you earn to pay past due bills and pay off debt.

4 - Use cash to pay for current necessities like rent, telephone, and utilities.

5 - Base your spending decisisons on NEED instead of WANT. Buy the items you need that contribute to your ability to make more money. Buy used rather than new. Most items lose 25 % to 80% of their value the instant you pay for them.

Just in case you missed the importance of this one fact, I am going to repeat it. It is not how much money you make, it is what you do with it that determines your financial condition.