One of the most important books that I’ve read during the past year is T. Harv Eker’s 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:
Rich people manage their money well, Poor people mismanage 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 set you on the right path to building wealth. It’s important in all things resulting in success that you take action. So, no matter what you can start with, even if it’s a dollar a month, you must take action and begin to manage your money.
Some people say, “Well, when I get ahead financially, I’ll manage my money.” That’s a poor person mindset! The millionaire mind begins to manage now, because if you can manage a little, then you’ll begin to manage a lot. I was SO into this way of thinking in the past. When I turned it around and began to manage money, I started to get wealthy!
Before I share the money management plan, here are some wealth principles from the chapter and that Eker teaches at his Millionaire Mind Intensives.
- Until you can handle what you’ve got, you won’t get any more!
- The habit of managing your money is more important than the amount.
- Either you control money, or it will control you.
So, how exactly do you manage your money? Here’s a great plan from the book. Remember, it’s important to start, not the amount. Start with $1 if you must; just start! Get the habit going!
Prepare 6 jars (“Jars” can be literal, or bank accounts, or categories on a spreadsheet).
Place the following amounts in each of the jars every month after taxes.
- Financial Freedom Account (10%)- used only for investments and buying or creating passive income streams. Money is never spent, only invested. Also, have a Financial Freedom Jar where you deposit money each day ($1, $10, loose change). Do something daily.
- Play Account (10%)- Use this money to nurture yourself. Use it for extra-special things in your life. The only guideline is that you must spend the money every month. Use it each 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 for Spending Account (10%)
- Giving (10%)
- Necessities Account (50%)
Start the plan and let the universe know that you are ready for more money.
Contributor: Marc Smith