Sunday, October 6, 2013

Secrets of a Millionaire Mind

Sometime back I happened upon a book by T.Harv Eker called Secrets of the Millionaire Mind.  The book is basically about how your thoughts can affect the amount of money or abundance you receive in your life, and in my personal opinion, it is an excellent read. He was here in Singapore in March 2013 for Millionaire Mind Intensive seminar and is coming again in November 2013.

I know there are a lot of skeptics who debunk the idea that we create our own world by our thoughts, but I am interested enough in what Harv Eker wrote to want to attend the Millionaire Mind Intensive this coming November. This is one of those free seminars where they teach you a heap of stuff but they probably will also promote the hell out of their products….so it’s almost like attending a 3 day infomercial. But if you can put the promotional stuff aside, the stuff he teaches is really worth taking in and the book is excellent.
Apart from wanting to hear just what Harv Eker had to say, I am really interested in finding out more about his 7 jars money system. Financial freedom is so important and when you start receiving large amounts of money it is very easy to just blow it, and this is something we don’t want to do.

Below are some points I’ve learnt from reading the book:

  • ·         Pay yourself 10% first.
This is a fundamental concept and is also mentioned in “The Richest Man in Babylon”.     Unfortunately, most folks never put this into actions.  The worse of the kind are those who already know it but never put any concrete actions into the doing. Personally, I have been putting 10% of my active income every month into my company’s stock purchase plan. I also planned to participate in a regular investment plan, POSB Invest-Saver where it buys into Nikko AM Singapore STI ETF. This simple and fool-proof strategy allows me to average up and down regardless of market conditions.

  • ·         Clarity Is Power. Thoughts  –> Emotions –> Actions = Results
There are many people who dreams of being a millionaire one day but all these dreams can only come true with action. With a clear mindset and goal, it will empower one with the ability to act. By simply knowing absolutely how much is enough and by when, your financial path is all set once clarity is formed.  The rest is finding your way towards that clear goal.  For example, “$120,000 pa residual income in 10 years’ time”.

  • ·     Financial jars – a consistent and proven money management system. It forms the basis of your financial success.
Personally, I think the jars are very useful principles that can be easily applied by just about anyone regardless of their income. Here’s how it works:
(Note: The percentages shown are purely suggestive figures.  You are free to adjust them to your needs.)
Financial freedom jar 15% –.  You never ever spend this money until you’re financially free. Preferably, the money is invested, either by participating in a passive investment plan such as POSB Invest-Saver or active stock picking by purchasing undervalued stocks
Education jar 5% – Pay for your continuous financial education such as reading investment books, attending seminars etc.
Long term savings jar 10% - Typically for buying large ticket items such as car
Necessity jars 55% – Used for paying all your bills and living expenses.
PLAY jar 10% – For treating yourself well, such as going on a holiday
GIVE jar 5% – Excellent money receivers are also excellent giver.  If you cannot afford $, then give your time.

  • ·         Financial Freedom formula
1.         Income
2.         Savings
3.         Investments
4.         Passive Income
5.         Simplify

The book itself is well worth reading if you want to change your thoughts about money. Eker uses lots of comparisons between the rich and the poor. For example:
·         Rich people associate with positive people, poor people associate with negative people.
·         Rich people are excellent receivers, poor people are poor receivers.
·         Rich people believe ‘I create my life’. Poor people believe, ‘Life happens to me’.
·         Rich people act in spite of fear. Poor people let fear stop them.
·         Rich people focus on opportunities, poor people focus on obstacles.

I do recommend that you read “The Secrets of a Millionaire Mind” or attend the Millionaire Mind Intensive (I know I will try to attend by registering for the free tickets). However knowing that some people might get swept up in the hype of the seminar and sign up for courses, I would recommend leaving your checkbook at home so that you don’t rush into signing up for something you may not need. Reflect on the usefulness of the courses before deciding to sign up

Recommended Reading

§  Secrets of the Millionaire Mind – this is a must read if you want to change your money mindset. However, don’t be put off by the promotional stuff in the book. Just look past that because this book is invaluable for changing your money blueprint. 

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