Tuesday, July 7, 2009

Secrets of The Millionaire Mind

"Secrets of The Millionaire Mind" by T. Harv Eker
was first recommended to me
by my cooking teacher Glenis Lim 2 years ago.

She insisted that I must read it
and also attend the Millionaire Intensive Workshop,
as they will change my mind template
that dictates my financial wellness.

And indeed, I did as told, and now I couldn't be more grateful
with Glenis and Harv for kicking start my path to financial wellness.

There is one very simple and yet important thing
in the book and the workshop,
that Harv insisted his readers/audience to practise,
that is the Jar System.

A lot of people complain that
they want to be rich,
yet with little capital to start off an investment;
they want to be financially smart,
yet have not much savings to go for financial education.

To get out our financial foundation laid,
Harv repetitively asks to implement this
humble yet effective Jar System
that will change one's financial blueprint:

Every month, sort your income and spend according to
the following Jar System:

> Necessity Account (NEC - 55%):
This account is for managing your everyday expenses and bills.
This would include things like your rent, utilities, bills, taxes, food, clothes, etc.
Basically it includes anything that you need to live, the necessities.

> Financial Freedom Account (FFA - 10%):
This is your golden goose.
This jar is your ticket to financial freedom.
The money that you put into this jar is used for investments
and building your passive income streams.
You never spend this money.
The only time you would spend this money
is once you become financially free.
Even then you would only spend the returns on your investment.
Never spend the principal or else you’ll go broke!

> Education Account (EDU - 10%):
Money in this jar is meant to further your education
and personal growth.
An investment in yourself is a great way to use your money.
You are your most valuable asset.
Never forget this.
Use education money to purchase books, CD’s, courses
or anything else that has educational value.

> Long Term Saving for Spending Account (LTSS - 10%):
The money in this jar is for the bigger nice-to-have purchases.
If you'd like to have some new 'toys' or home improvement equipment,
this is the account that you should be withdrawing from.
A small monthly contribution goes a long way.
-- You may also double the percentage of this account to pay for your debts.
(hence reducing 10% in Necessity Account)

> Play Account (PLAY - 10%):
This is everybody's favorite account.
PLAY money has to be fully spent every month or every 3 months
on purchases you wouldn’t normally make.
The purpose of this jar is to motivate yourself on the wealthy path.
You could purchase an expensive bottle of wine at dinner,
get a massage or go on a weekend getaway.
Play can be anything your heart desires.

> Give Account (GIVE - 5%):
The money in this account is for giving away.
If you don't have money, give time (ie. volunteering).
When you give your money or time,
you’re sending a sign of abundance to the Universe.
You’re telling the Universe
that you have plenty of everything, you’re abundant.
Giving signals of abundance.
This will magnetically attract more abundance to you.

Prosperous Wishes!
Kee Yew


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