From 
Del.icio.us
Digg
Reddit
Facebook
StumbleUpon
TwitThis
Use our budgeting tools and savings calculators: Buy Jean Chatzky's book.
You won't catch Jean Chatzky sighing about America's economic woes. "For me, falling markets are a call to action," she says. Whether she's attacking debt on Oprah or extolling the joys of underspending in books like Make Money, Not Excuses, Chatzky, 44, insists prosperity is always an option.
In her new book, The Difference (Crown Business), Chatzky considers why some people are rich and why, well, most of us are not. "The question wasn't why Warren Buffett succeeds as much as why certain people—our boss, the guy next door-seem to tap into money almost effortlessly. What practical lessons can be learned from them?" Chatzky commissioned a study of 5,000 individuals and uncovered four distinct money types: the wealthy, the financially comfortable, the paycheck-to-paychecks, and the further-in-debtors. So what's the difference dividing rich from poor? The wealthy possess traits like optimism, resilience, grit, and curiosity, as well as habits like reading every day and expressing gratitude. "The good news is, everyone can learn to do these things."
Born in Detroit, Chatzky grew up "not wealthy but financially stable" and is now a mom with two kids living in Westchester County, New York. The research was a revelation even to her. "It's opened a world of new possibilities to me," she says. "Perhaps that's why, even in a bad economy, 2008 was my best year financially."
Q. You write that even people who are deeply in debt can become wealthy in ten years or less. What's the first step?
A. Taking control of spending. The single fastest way to fall from financial security is spending more than you earn. So start living on less than you make. Track your spending—every cent—for a month. Then review your notes to see where you can make cuts. It shocked me how much the further-in-debtors are spending on entertainment, which I see as an unnecessary expense. Another way is to locate a mentor, someone who can offer advice and honest feedback. The simple act of taking this initiative is a motivating force.
Q. What are people who understand "the difference" doing right today?
A. They're looking toward tomorrow. Even people happy in their jobs today understand that things are changing in every profession and that they might not be secure tomorrow. They're looking for jobs now—and not just on the Internet. Jobs are still acquired through people, someone who knows someone who knows someone. And just to be clear: There are lots of jobs in health care, energy, the government, and elsewhere. Lastly, these people are saving like crazy. Now is not the time to buy that 42-inch flat-screen TV if you can't afford it.
Q. Is there anything the current financial crisis teaches us?
A. The Bernard Madoff scandal [the Wall Street investor charged with swindling his clients in a large-scale Ponzi scheme] shows that even someone you think is completely trustworthy needs to be watched if he or she is managing your nest egg. It's amazing to me-people who had millions of dollars with Madoff hadn't met him. The lesson is: Go and meet the people dealing with your money.
Develop an ongoing relationship with them; hold them accountable. Ask questions if you don't understand something. If you still don't understand, ask again.
The other thing is: Open your financial statements! I get calls all the time from people on my radio show telling me, "I can't open my statement." You have to. You need to know where your money is. Face up to your finances even if they're ugly.
Advertisement 
