The Millionaire Mind Money Management Plan
One of the most important books I have read in the past year is T. Harv Eker. Secrets of the millionaire mind. I want to review and share a savings plan that Eker shares in Chapter 14 called the Millionaire Mind Money Management Plan. Eker begins his chapter with these words:
The rich manage their money well, the poor manage their money well.
It’s an excellent chapter and I’m going to share with you a summary of the financial management plan that will put you on the right path to building wealth. It is important in all things that lead to success that you take action. So no matter what you can start with, even if it’s a dollar a month, you need to take action and start managing your money.
Some people say, “Well, when I get ahead financially, I’ll manage my money.” That’s a poor man’s mentality! The millionaire mind starts managing now, because if it can manage a little, then it will start managing a lot. I was SO into this mindset in the past. When I turned it around and started managing money, I started getting rich!
Before I share the money management plan, here are some wealth principles from the chapter and that Eker teaches in his Millionaire Mind Intensives.
- Until you can handle what you have, you will not get more!
- The habit of managing your money is more important than the amount.
- Either you control the money, or it will control you.
So how exactly do you manage your money? Here is a great plan of the book. Remember, it is important to start, not the amount. Start with $1 if necessary; just start! Get in the habit!
Prepare 6 jars (“Jars” can be literals, bank accounts, or categories in a spreadsheet).
Put the following amounts in each of the jars each month after taxes.
- Financial Freedom Account (10%) – Used only for investments and to purchase or create passive income streams. Money is never spent, it is only invested. Also, have a Financial Freedom Jar where you deposit money each day ($1, $10, loose change). Do something every day.
- Game Account (10%) – Use this money to feed yourself. Use it for extra special things in your life. The only guideline is that you must spend the money every month. Use it every month in a way that makes you feel rich!
- Education Account (10%) – Set aside money for your education (school, seminars, etc.) or your child’s education.
- Long-Term Savings Account for Expenses (10%)
- Give (10%)
- Needs Account (50%)
Start the plan and let the universe know that you are ready for more money.