Are You a Gratification Groupie Or A Genius?

There is only one simple thing that makes you different from the people who have the money you always wanted to have. It is not talent, skill, the things you own or the connections you have. It is the MINDSET.

What am I talking about when I say mindset? The way you use your money immediately tells me if you are a Genius or a Gratification Groupie. Here is how I define those terms.

Gratification Groupie: Spending more than you make is habitual and money leaves your hands as fast as it arrives purchasing stuff that you want but do not actually 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 are drowning in debt that you cannot pay off, but try to give the appearance that you have money. You look for ways to spend your money, and spend your time deciding on things you want to purchase instead of taking the steps to get out of debt and investing in your long-term financial survival. You are always worried about money.

Genius: Paying yourself first by stashing away part of every dollar that you make for your long-term financial security is your first priority. You use the rest of your money in ways that helps you make more money for your financial survival. You methodically stash money away over time to purchase the things you need, and you pay cash. Credit cards are seldom used, and the balances are paid off as soon as the statement arrives. You do not use your money to buy things to win popularity or impress others. You are never worried about money.

What differentiates millionaires from the rest of the people? Very little. The only true 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 finances the correct way. Very rich people know this system.

If you really desire 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 use the money when they receive it:

1 - Stash at least 10% into an IRA for your long-term financial security. Raise the percentage over time.

2 - Pay cash for everything, starting today. Knock off buying on credit.

3 - Use at least 15% of your income to pay past due bills and pay off debt.

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

5 - Make your spending decisions based on NEED instead of WANT. Buy the things you need that increase your ability to make more money. Buy used instead of new. The instant you buy something it loses up to 80% of it's value.

At the risk of repeating myself unnecessarily, I am going to make this one very important statement again. It is not how much money you make, it is what you do with it that determines your financial condition.