Rich people manage their money well
Poor people mismanage their money well.
This Millionaire Mind secret from T Harv Eker on why associating with the right people is so important.
Transcript of Manage Money Well
Hello Craig Lambie here with another life lesson from Craig. At the moment I’m sharing all of the secrets of a millionaire mind that T Harv Eker put in his book by the same title. Today is secret number 14.
Rich people manage their money well; and
Poor people mis-manage their money well
Just think about that for a moment. Do you have a budget? Do you follow that budget? Are you good at managing your money? Do you set money
aside? To save money? To invest money?
Even if it’s a tiny little bit that you’re putting aside every every week, every month when that paycheck comes in, are you doing it? Are you managing your money well?
One of the the key insights that I found from the book was that even if you’re only putting $1.00 aside or a £1.00 (or whatever the currency might be that you’re using) even if you’re putting one unit of currency or aside less than 1% of your income. At least you’re doing something to manage your money. That is the key to this secret is do something now!
I’m going to throw some numbers up, this is Harv’s recommendation for how you could split your money when you get it each time income comes in. I highly recommend doing something like this. You can use the jar method, you can use different bank accounts for this but please go and take this action of doing something towards managing your money when that paycheck comes in. This leads on from the previous secret about net worth. When you manage something, you can measure it. When you measure it you can change.
The numbers:
10% for your long-term freedom fund
10% play fund
10% long term savings
10% education/ personal development fund
10% for giving / being generous
50% for living expenses
Long Term
In Australia we call it super and it’s all about long-term savings for being completely free of being able to work.
Play Fund
It is really important to set aside money to blow. Like you’ve done a great job you have done what you need to do. You’ve set aside that cash, you have put some money against your freedom fund, you’ve put some money in your accounts. Paid all your bills. You are on top of it!
So go and blow some cash on something absolutely ridiculous! Whatever that is for you okay.
Long-term savings
For you know that big holiday that you might want to do once a year.
Personal development and education
Books, webinars, online programs, seminars, trips to see coaches, trainers and other brilliant people trying to help you understand yourself and how to improve the world. I recommend staring with Tim Ferriss, Tony Robbins, Hal Elrod and of course T Harv Eker.
Necessities and expenses
You know those fun bills!
Giving
Giving is part of that receiving. You’ve got to be generous with your money you’ve got to be able to give it to a cause that works for you.
Now we have a millionaire mind. I have a millionaire mind you can too. Let’s do it together I’ll see you on the other side.
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