Secret of the Millionaire Mind: Wealth File #15 Rich People have Their Money Work Hard for Them

This is a chapter-by-chapter summary of a book by T. Harv Eker’s Secret of the Millionaire Mind: Mastering the Inner Game of Wealth (2005) series. One chapter, one article. Read this summary, buy the book. Enjoy!

Wealth File #15:

Rich People have Their Money Work Hard for Them.

Poor People* Work Hard for Their Money.

“The more your money works, the less you will have to work,” said Harv Eker. The idea that you have to work hard to get rich is “bogus”! Eker suggests that if you want to be rich, let your money works for YOU. The magic word is working smart. That’s what the rich people have mastered, he said. The rich no doubt has to work hard, but only temporary. They work hard like everybody else but they think long-term and what they do with their money is smart – they save it to invest it later. First, they work hard for their money and later, they let their money work hard for them. Why do they do that? Because they want to be financially free!

“My definition of financial freedom is simple,” writes Eker, “It is the ability to live the lifestyle you deserve without having to work or rely on anyone else for money.” How is that possible? He said you need passive income. In short, you become financially free when your passive income exceeds your expenses (Income > Expense). There are two primary sources of passive income outline this wealth file. The first is “money working for you.” This includes investment earnings from financial instruments such as stocks, bonds, or other assets that “appreciate in value and can be liquidated for cash. Assets are the key here. These are investments in things that (hopefully) gain value over time.” Like buying land and selling it at a later point (when it has gained value).

The second major source of passive income is “business working for you.” This entails generating ongoing income from businesses where you do not need to be personally involved for that business to operate and yield an income. An example of this would be buying real estate and rent it out. “The idea of passive income is to generate income without having to actually work. Yes, this is possible!” Eker emphasis this: “Rich people think long-term. They balance their spending on enjoyment today with investing for freedom tomorrow. Poor people* think short-term. They run their lives based on immediate gratification.” You have the power to make choices. It’s a matter of priorities. “Poor people think now, rich people think balance.”

So, make the right choices and save some money today so you can invest tomorrow and be financially free the day after tomorrow. Like what Eker said, “Rich people see every dollar as a ‘seed’ that can be planted to earn a hundred more dollars, which can then be replanted to earn a thousand more dollars.” Awesome! From what I’m reading, that how the rich got rich! Hard work today, smart work tomorrow, and no work the day after tomorrow… pretty cool, right?

[*I need to note that the Harv Eker makes it clear in this book that he does not mean to degrade poor people. He does not think that rich people are better than poor or middle-class people. They’re just richer.]

I Have A Millionaire Mind!

Secret of the Millionaire Mind: Wealth File #12 Rich People Think "Both"; Poor People Think "Either/Or"

This is a chapter-by-chapter summary of a book by T. Harv Eker’s Secret of the Millionaire Mind: Mastering the Inner Game of Wealth (2005) series. One chapter, one article. Read this summary, buy the book. Enjoy!

Wealth File #12:

Rich People Think “Both.”

Poor People Think “Either/Or.”

As Harv Eker puts it, rich people live in a world of abundance, poor people live in a world of limitations. Many believe money and happiness are mutually exclusive, that either you can be rich or you can be happy. Again, this is nothing more than “poor” mentality programming. Do you want a successful career or a close relationship with your family? Seriously, think about it. What do you choose? The poor* will choose one. But why? Why you need to choose between the two? Why not both? The rich – the wise ones, of course – choose both. Be smart and choose both!

Do you want to focus on business or have fun and play? Both! Do you want money or meaning in your life? Both! Do you want to be rich or happy? Both! I choose both! You see, poor people always choose one. Poor people* feel that there is not enough and you can’t have everything. There is truth in that. Rich people, on the other hand, think there is plenty for everybody and you can have everything you truly want. You can’t have everything but you can have what you want. It’s possible. Poor people believe in scarcity; rich people believe in abundance. The difference couldn’t be bigger! Do you have to choose between wealth and happiness? No, of course not! Money is important and happiness is important. You can have both. Eker puts it in proper perspective: “Money enables you to ‘slide’ through life instead of having to ‘scrape’ by. Money brings freedom.” It can’t give or buy you freedom, but it can bring you freedom and make you smile.

Harv Eker writes, “If I can be an example for anything, it would be that you can be a kind, loving, caring, generous, and spiritual person and be really frickin’ rich… My friends, being kind, generous, and loving has nothing to do with what is or isn’t in your wallet. Those attributes come from what is in your heart.” Did you hear (or to be exact, read) that? It’s all about you! There we are again. I already cover this in the previous posts…. Money can’t make you someone you already are. You are who you are no matter what is or isn’t inside your wallet or bank account. So, you can be happy and you can be rich! You can choose both – I choose both. Yes, we can. Life is abundance. Yeah!

[*I need to note that the Harv Eker makes it clear in this book that he does not mean to degrade poor people. He does not think that rich people are better than poor or middle-class people. They’re just richer.]

I Have A Millionaire Mind!

Secrets of the Millionaire Mind: Mastering the Inner Game of Wealth (#0 Introduction)

This is a chapter-by-chapter summary of a book by T. Harv Eker’s Secret of the Millionaire Mind: Mastering the Inner Game of Wealth (2005) series. One chapter, one article. Read this summary, buy the book. Enjoy!

“If your subconscious ‘financial blueprint’ is not ‘set’ for success, nothing you learn, nothing you know, and nothing you do will make much of a difference” (Harv Eker)

Harv Eker used to be a financial disaster. He had ups and downs, yet for the most part, he was broke. Until one day, when a rich friend of his dad told him that rich people think a certain way and poor people think a completely different way, and those ways of thinking determine their actions and therefore determine their results. Then all you have to do is copy how rich people think. That information helped Eker to become who he is today – author, businessman and most importantly, wealth coach.

So, after he learned about the fact that rich people think differently than poor people, he started studying rich people (just like how Napoleon Hill interviewed successful people and came out with the father of self-help book, Think and Grow Rich). “Eventually, I became aware of how my own thoughts were holding me back from wealth.” He learned that is it not about the tools alone, it is mainly about the toolbox. The tools are all the knowledge and information you’ve got, the toolbox is your mind, your way of thinking. He found that when he combined the inner game (toolbox) with the outer game (the tools), everybody can succeed at the game of money.

What the author wants to teach in his book is how to master the inner game of money to win the game of money – how to think rich to get rich! Josh Billings was quoted as saying, “It’s not what we don’t know that prevents us from succeeding; it’s what we know that just ain’t so that is our greatest obstacle.” The lesson is simple: If you want to move to a higher level of life, you have to be willing to let go of some of your old ways of thinking and adopt new ones. The secret to new mindset is unlearning. We are where we are because of the things we do day in, day out. Our old ways of thinking brought us exactly to where we are. If we want something to be different in our lives, we need to do something different. Harv Eker invites us to the journey to financial freedom.

His book is split up into two parts: Part #1 Your Money Blueprint, which is about how we are conditioned concerning money, it’s about why we are who we are, and about our old way of thinking; and Part #2 The Wealth Files, which is about 17 wealth files or about how rich people think/act/live. Basically, it’s about our new way of thinking and how we should think if we want to become rich.

[To read my review of this book, CLICK THE TITLE, Secrets of Millionaire Mind Review]

Are you ready to start learning how to think like rich people? I sure do!

How to Nurture Your Child to Be Creative #4 Don't Help Too Much

It is important to balance the need to teach with the need sometimes to step back and let children simply get on with what they are doing. There are times when they do need to be taught a technical skill so they can broaden their skills and try new things, for example, how to use safety scissors to cut paper. But the key crime of parents in stifling creativity is to step in and interfere when it is not necessary.

You might feel frustrated that your child can’t quite get the hang of painting in separate colours yet and insists on mixing all the paints into the same sludgy brown shade. But aside from the fact that is it their picture and not yours, they learn from mixing up those colours; that blue + yellow = green; green + red = brown, even if the end of the experimental splattering is the inevitable mossy brown smudge all over the page.

Children need to experiment. And sometimes when they do it ‘wrong,’ they come up with things that are surprising, delightful and truly inventive. Do you know? Chips, Frisbees and Post-It notes were created as the result of ‘mistakes.’ Sometimes getting things wrong can lead to brilliant inventions. So, don’t help your child too much.

Lord, Give Us Today Our Daily Idea(s)

How to Nurture Your Child to Be Creative #3 Don't Impose Unnecessary Rules

We all need some rules of course. Rules help to keep children safe and teach them how to behave in a considerate and thoughtful way. Many parents, however, instinctively impose rules on children which aren’t strictly necessary, and when it comes to fostering creativity, it is vital to carefully consider rules before you impose them.

For example, a classic rule which stifles children’s creativity is that they must colour in between the lines. It is a good rule if you’re trying to teach fine motor skills and encourage your child to follow instructions carefully, but when it comes to encouraging them to express themselves and ‘think outside the box,’ it quite literally reins in their natural creativity. Sometimes the rules we set can inadvertently impose our judgments on whether a creative effort is ‘good’ or not. At other times, we impose unnecessary limits which restrict a child from really letting go and experimenting freely with the new materials and inventive techniques. Rules are good (“Don’t play on the road”) but don’t impose unnecessary rules (“The sky must be coloured in blue”).

Lord, Give Us Today Our Daily Idea(s)

How to Nurture Your Child to Be Creative #1 Let Them Lead the Play

Latest research suggests that although it’s good for us to provide interesting objects and materials for children to play with, and to be on hand to help and play with your child, your child will be happier and more creative if you allow time for unstructured play – in other words, you sometimes need to take a step back and let your child decide what they want to do.

Your child will need access to resources to encourage play and so it is a good idea to set out several different toys and materials (paper plates, paints, glitter, Lego, etc.) which they can use as and when they wish during their playtime. Because they have initiated the play, they will be more actively engaged in whatever activity they are doing and as a result, they will learn more from it.

Allowing your child to lead their own play is not the easy option. Painting and crafts can certainly be messy and after all your careful preparation you may find you child is more interested in playing with teddy bears. This can be very frustrating, however, remember that your child is going to be more creative if they are making more choices about how they use the resources they’re provided with.

Lord, Give Us Today Our Daily Idea(s)