If you are looking for motivational personal finances, Jean Chatzky’s recent book, The Difference provides just that. Chatzky is a well-known financial journalist who offers helpful insights into what you need to do in order to change your financial situation. Her book previous to The Difference was Make Money, Not Excuses — and a bestseller. In Chatzky’s latest offering, she looks at what makes the financially comfortable and the wealthy tick, and describes what you can do to benefit from what she refers to as The Difference. Even during times of economic uncertainty.

The Difference focuses on the finding from the 2008 Merrill Lynch New Retirement Study, which looked at a number of behaviors and attitudes amongst people with varying degrees of wealth. These four degrees of wealth are classified as Wealthy, Financially Comfortable, Paycheck to Paycheck and Further in Debtors. Chatzky explains that there are some fundamentally differences in the ways these four groups think and behave with regard to financial practices, goals, personality and other nonfinancial behaviors. If you want to be wealthy (or at least financially comfortable), you need to analyze what those groups have, and then try to develop those characteristics.

Chatzky uses anecdotes from interviews to illustrate the characteristics of some “ordinary” wealthy people. She also includes helpful sections on bad financial habits, common mistakes and tips for improving your situation. And she uses motivational language throughout, encouraging you to feel empowered in a way that allows you to take charge of your financial life. There are also a number of quizzes that can help you determine where you are at in terms of developing the qualities that define The Difference between those that are in a good place, and those that still need work.

Overall, the book is a fairly easy read. I found it more interesting than I did directly practicable. I’m more of an analytic numbers person, and I like being able to develop a plan. Understanding the psychology of the wealthy doesn’t really translate into direct action for me, even though the charts and images that showed comparisons between the four degrees of financial security offered some fascinating insight into the mind-sets of these groups. But for those with more motivational sensibilities, this book is probably right on the money. And, ultimately, that is what this book is about: Changing your mind-set so that you can begin to develop the qualities that can ultimately lead you wealth.

Have you read The Difference? Did you like it?

The best case is a person who has wealth (assets) and income (cash inflows) and uses his income to generate assets that earn income which generates more assets which earn more income which generates more assets which generate more income . . .

A truly rich person is one who does not have to earn income, but has assets which earn income for him.

Behind all the jargon, what accounting really does is track the process or cycle of assets generating income which generates assets which generate income which generates assets . . .

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Consider a person who owns a huge mansion, an expensive car and designer clothes, but has no job.

He has wealth, but no income. He has assets which do not earn and are expensive to maintain. (The case with many an actor past his heyday). Of course, these assets can always be sold and generate temporary cash inflows. However, when they have all been sold and there is still no job . . .

Consider a person who earns an annual salary in 5 or 6 figures, but who spends all of it in consumables. He will end up not owning any asset. When he loses his job and has no assets . . .

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If you want your $$$$ to have the maximum & optimum effect on poor people, donations are accepted at www.accion.org/b5media. Donations are tax deductible.

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One day, the father of a very wealthy family took his son on a trip to the country with the express purpose of showing him how poor people live.

They spent a couple of days and nights on the farm of what would be considered a very poor family. On their return from their trip, the father asked his son, “How was the trip?”

“It was great, Dad.”

“Did you see how poor people live?” the father asked.

“Oh yeah,” said the son.

“So, tell me, what did you learn from the trip?” asked the father.

The son answered: “I saw that we have one dog and they had four. We have a pool that reaches to the middle of our garden and they have a creek that has no end. We have imported lanterns in our garden and they have the stars at night. Our patio reaches to the front yard and they have the whole horizon. We have a small piece of land to live on and they have fields that go beyond our sight. We have servants who serve us, but they serve others. We buy our food, but they grow theirs. We have walls around our property to protect us, they have friends to protect them.”

The boy’s father was speechless.

Then his son added, “Thanks Dad for showing me how poor we are.”

Isn’t perspective a wonderful thing? Makes you wonder what would happen if we all gave thanks for everything we have, instead of worrying about what we don’t have.

Appreciate every single thing you have!

from a forwarded email from Estrella Andrada Vasquez of Quezon City, Philippines

photo by Magnus Rosendahl at www.freephotos.se

thanks to Miki Saxon of http://www.rampupsolutions.com//

A HAPPY NEW PERSPECTIVE FOR A HAPPY NEW YEAR !!!!