Money is one thing that every person in this world will need to be involved with. It's not a choice, it's a fact. It doesn't matter if the person is rich or poor. Bills have to be paid, rent or mortages have to be paid, and living a life involves money. Just like death and taxes, it happens.

So, the best way to prepare yourself is to educate yourself. Here are some basic principles that I learned from my mother and she learned from hers. The Simpson women have always been good with money and it is because the handling of money is firmly rooted in common sense.

First Nuggets of Wisdom from the Simpson Women on Handling Money:

Do NOT be afraid. You can do this. Breathe in, and breathe out. You have been handling money for a long time, it's just time to view it and handle it in a different manner.

Handling the money in this way will put you in a place of power. Because YOU will have the comfort of knowing that your money is working harder than you are. You won't be living paycheck to paycheck and if an emergency arises, you can take care of it without the stress.

Steps to Building Wealth, One Dollar At A Time

Write down all of your expenses such as utilities, rent/mortgage, entertainment, groceries, gas, clothing etc.

Write down all of your income such as your weekly/biweekly/monthly paycheck, any part-time jobs, freelance jobs if any etc.

Is there any money left over after subtracting your expenses from your income?

If there is money left over: Where is it going? Instead of spending it, put it in a savings account and let it build interest.

If there isn't money left over: Here is where it may hurt a bit. Take your medicine and you can live through this part and reap the benefits later on. Try limiting or eliminating your entertainment expenses for awhile and put every nickel into a savings account.

Look under the sofa cushions and get all spare change, check your car for change, and convert it to dollars. Put it in a savings account.

Are you Drowning in Debt?

Try the Dave Ramsey method: Write down all your bills and your income. Pay everything ON PAPER for the upcoming month. Then actually do it in real life!

But How do you get out of DEBT?

Get a part-time job. Pick up extra hours at your day job. Take on consulting or freelance work. Mow lawns, clean houses, deliver pizzas do what you need to do. Apply ALL this extra money on your debts. Dave Ramsey suggests sorting your debt from smallest to largest and pay accordingly:

Pay the minimum payments on all the various loans, credit card debt etc. except for the SMALLEST one. Pay as much as you can on that one and get it paid off quickly. Then attack the next to smallest bill after that until you are paid off.

Why pay off the smaller ones? Because it gives you a great sense of accomplishment to pay it off! That's human nature.

Okay, My Debt is Paid Off - Now What do I do?

Now is the fun part! Educate yourself on investing! Save your money and put it in a savings account until you decide what you would like to do with your newfound wealth!

Here are some suggestions, but BE SURE you understand all the risks and responsibilities associated with investing. Seek advice first or read the books mentioned below:

• Build up your savings account to have 3 - 6 months of living expenses
• Open an IRA or increase your 401(k) contribution through your workplace.
• Open a money market account
• Invest in mutual funds
• Invest in stocks
• Purchase life insurance, longterm care, disability insurance etc.
• Pay off your home
• Save for a car so that you can pay cash

Hire a financial counselor, read books and listen to radio programs such as Dave Ramsey's show. He is syndicated all over the country. Or watch Suze Orman on television, she started as a diner waitress and is now a successful financial advisor/stock broker analyst.

If you accomplish these steps and think about money as a way to empower yourself, you will increase your wealth tenfold!