Four rules for managing your money

You already know them, but few do them. From Dave Ramsey, who offers money advice on a nationally syndicated radio show. He is the author of The Total Money Makeover.

About 70 percent of Americans are living paycheck to paycheck, he writes. That means if you count 10 houses on your street, seven of those families have too much month left at the end of the money. They're broke—and stressed out.

The four:

1. Get out of debt.The average American household has a whopping $91,000 in debt. That's like crawling out of bed every morning with a boat anchor around your neck. It's almost impossible to get any financial traction, not to mention build any real wealth, if every dollar you earn has someone else's name on it! Cut up the credit cards, stop borrowing money, and get out of debt—fast!

2. Act your wage.In his fabulous study of millionaires, The Millionaire Next Door, Thomas Stanley concluded, "Being frugal is the cornerstone of wealth-building. ... Most [millionaires] are hardworking, thrifty and not at all glamorous." Translation: Millionaires don't care if you're impressed by what car they drive. Future millionaires don’t, either.

3. Get on a budget.John Maxwell says, "A budget is telling your money where to go instead of wondering where it went." Just write out the month's expected income minus planned expenses on paper, on purpose, before the month begins—and then stick to the plan. Put whatever you want on the paper. Hey, it's your money! I don’t care what you do with it; I just want you to do it on purpose!

4. Save and invest.We save money for three things: an emergency fund (3–6 months of expenses set aside for emergencies), purchases and wealth building. Once you're out of debt and have a full emergency fund, there's no reason why you can't put 15 percent of your income into retirement.