Secrets of the Millionaire Mind Money Management Method

"Secrets of the Millionaire Mind" MONEY MANAGEMENT METHOD by T. Harv Eker

Wealth Principle 1: The habit of managing your money is more important than the amount
Wealth Principle 2: Either you control money or it will control you.
Wealth Principle 3: Until you can handle what you have got, you won't get any more!

Financial Freedom Account 10%
Open a separate bank account designated your Financial Freedom Account.
Put 10% of every dollar you receive (after taxes) into this fund.
This is for investments and buying / creating passive income streams
The job of this account is to build a golden goose that lays golden eggs called passive income.
It is NEVER, NEVER, NEVER spent, only invested.
When you retire, you get to spend the income(eggs), never the principal(goose).
In this way, it keeps growing and you will never go broke!
Create a Financial freedom Jar at home & deposit money into it everyday (create a savings habit)

Play Account 10%
One of the biggest secrets to managing money is balance.
On one side you need to save as much money as possible so that you can invest it & make more money.
On the other side, you need to put another 10% into a play account, because we are holistic in nature.
You will not feel guilty when you spend and not feel fulfilled when you save.
This play account is to nurture or pamper yourself with luxury.
It rewards you and makes managing money a lot more fun and strengthens your "receiving" muscle.

Long Term Savings for Spending Account Account 10%
Impulsive buying is one of our weaknesses that many of us have experienced with regret.
Whenever we see a great advertisement of a great holiday getaway, we are tempted to go for it.
The problem is that we did not set a budget for it in the first place.
You need to put aside another 10% into this LTSS account just for you to spend in future.
This account is for you to buy a big ticket item like a new kitchen, wardrobe, a new car, a family holiday.

Education Account 10%
Education is often neglected even though we know deep down inside that we must grow all the time.
Upgrading our skills and knowledge should not be left to employers sending their employees for courses.
We must take responsibility for our own personal development by setting aside funds just for it.
Save 10% of your income into this Education Fund to pay for self improvement programs.
This is for your personal development account for buying books, CDs, DVDs, attend seminars

Give Account 10%
"Givers gain" philosophy
You will feel much better when you give money away to those who need it most.
Giving 10% or more shows you trust God for his providence and is a barometer of your faith.
This is for you to give away for charity, the poor in your area, your tithes and offerings.


Necessities Account 50%
Most people spend all the income on necessities and luxuries. Leaving little for the other 5 accounts.
Capping our necessities to 50% will create a balanced money management habit.
This account is to pay for mortgage, insurance policies, family expenses

Poor people think it is all about income, they believe you have to earn a fortune to get rich but the fact is if you manage your money following this program, you can become financially free on a relatively small income. If you mis-manage your money, you won't become financially free, even on a huge income.