T Harv Eker’s Millionaire Mind Takeaways
As I mentioned in my last post, there are many things that best-selling author and coach, T. Harv Eker (“Secrets of the Millionaire Mind”) suggests that differ from mainstream financial advisers that can I relate to. In the short time I’ve started to search, I’ve found that most advisers recommend reducing your debt as the number 1 best way to be financially well off. It’s not that I don’t want less debt, because I do.
But I tend to agree with Eker that its better to focus your energy on creating good financial habits, such as allocating amounts of your income regularly, rather than only focusing negative energy on paying off your debt.
Eker’s Concept of the 6 Investment Jars:
- (FFA) Take 10% of your after tax dollars towards a financial freedom account (You can never, ever, ever touch the money that you invest, only the profits that come from it. Invest it in passive income opportunities)
- (NEC) Take 50% towards paying for your necessary expenses
- (EDU) Take 10% towards education savings (Courses, books, seminars, software, etc invest in your self)
- (LTSS) Take 10% for long term savings funds (ie Travel, Contingency (instead of the negative term, Emergency), Kid’s College, Car expenses, etc)
- (GIFT) Take 10% towards charity and gifts
- (PLAY) Take 10% and put it towards an account that you can do whatever you want with, but you HAVE to spend it! Do something luxurious like rent a limo, order expensive champagne, etc
Note: If you are self employed, its highly recommended that you have another jar or ‘account’ that you put your tax dollars in before you separate it out into the above accounts.
There are other variations of this system out there, but for me, the concept of this one sounds worth a try. Eker’s theory is that you have to actually buy jars, as you will have a visual reminder of what you are saving and working towards.
My husband and I have implemented this system, with clear shoe boxes, and it reallly helps for us to remember what we need to work towards.
As a speaker, Eker has many quotes and pearls of wisdom. Here are just a few.
T Harv Eker Quotes
“You have to believe to see.”
“The number 1 reason most people don’t get what they want is that they don’t know what they want.”
“What you hear, you forget; what you see, you remember; what you do, you understand.”
Has anyone used the jar method successfully?