The Book I Read From Start to Finish on the Plane

Is called Secrets of the Millionaire Mind by T. Harv Eker and was recommended to me by my friend Maya (at JT homestead). A few weeks ago, while cooking, Maya had explained just one of Eker’s wealth principles, which intrigued me enough to get the book:

“The habit of managing your wealth is more important than the amount.”

I believe this to be absolutely true in many respects – even in parenting. Often people have asked me why I didn’t wait until Bella was older to start traveling with her. Well, to begin with, I didn’t want to wait until Bella grew up to travel AND I was helping Bella develop a habit and familiarity with international travel (and hence culture). I think that the habit of traveling is more important than the number of trips or exotic-appeal quotient of the destination.

In any case, back to the money; Eker recommends managing your monthly paycheck by dividing it into five separate bank accounts:

1. 50% Necessities Account (rent/mortgage and bills)
2. 10% into the Financial Freedom Account (this money is never spent – only used for investments and creating passive income streams)
3. 10% Play Account (this mad money must be used for by the end of each month – and for nurturing fun things you wouldn’t normally spend money on)
4. 10% Long-Term Savings for Spending Account
5. 10% Education Account (includes books, seminars, classes, etc.)
6. 10% Give Account

Eker’s main point is that no matter how much income you are bringing in, you need to be in the habit of managing your income. It’s actually even better to start with a small income and get practice. With Chad and I getting married soon (in two months!), we will need to adjust out financial mindsets to accommodate each other. I am thinking that this system might provide a structural base to start with.

The first section of the book is all about becoming aware of your own “money blueprint”: how you think about money today is result of what you heard, saw, and lived as a child. And then in the rest of the book Eker delineates seventeen “Wealth Files,” which are observations on how the rich think, especially compared to the poor and middle-class.

Despite his sometimes overly-caffeinated and bombastic style, Eker makes lots of excellent points. Here are a few quotes I liked:

“The purpose of our lives is to add value to the people of this generation and those that follow.” – Buckminster Fuller

“Research shows that the happiest people are those who use their natural talents to the utmost. Part of your mission in life must be to share your gifts and value with as many people as possible.”

“Where attention goes, energy flows and results show…By tracking your [net] worth, you are focusing on it, and because what you focus on expands, your net worth will expand. By the way, this law goes for every other part of your life: what you track increases.”

This last point is interesting, considering that Chad and I both lost weight tracking our Weight Watcher’s points – and also I trained for both of my marathons by tracking my daily running time.

I am ready to start focusing attention on my finances. And it’s serendipitous that my friends are in the same place. Another friend of mine is taking off with an idea we came up with together: a monthly woman’s finance group. The first meeting is next week and will probably start with calculating net worth, tracking monthly expenses, and reading Suzie Orman’s new book.