Secret of the Millionaire Mind: Wealth File #13 Rich People Focus on Their Net Worth

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 #13:

Rich People Focus on Their Net Worth.

Poor People* Focus on Their Working Income.

“The true measure of wealth is net worth, not working income,” said Harv Eker, “Always has been, always will be. Net worth is the financial value of everything you own. This may sound a well-off or only for the rich - but it’s valid.” Eker explains that there are four net worth factors: #1 Income; #2 Savings; #3 Investments; and #4 Simplification.

#1 Income. Income comes in two forms: Working Income and Passive Income. You all know what the working income is, you go to work and you earn money for your work (or time, as discussed in previous posts earlier). You’ve probably also heard of passive income. This is money you earn without actively working (We’ll discuss that in more detail in Wealth File #15). Working and passive income together make your income (for most people it’s just working income).

#2 Savings. You can earn massive amounts of money, but when you spend it all, you have zero savings. Many people have a financial blueprint that is wired for spending (I’m guilty). These people spend everything they have no matter how much they earn. That’s what Eker called the Parkinson’s Law: Expenses will always rise in direct proportion of income. “That’s why income alone will never create wealth.” That certainly makes sense. We need to make savings.

#3 Investments. Because of savings, we can make investments, another piece of the net worth puzzle. Rich people take time and energy to learn about investing and investments. Poor people* think investing is only for the rich people, so they never learn about it and stay broke.

#4 Simplification. The fourth net worth factor is simplification. This is about saving money by leading a ‘cheaper’ lifestyle. By decreasing your cost of living, you increase your savings and the amount of funds available for investing.

For more details about each factors of net worth, please refer to the book. In short, Eker explains that “rich people understand that buildings a high net worth is an equation that contains all four elements: Income, savings, investments and simplification.” We can raise our income either through promotions and/or by increasing our value. We all also can save more money. Follow the 50:30:20 Rule, spending 50% on needs, 30% on wants, and allocating 20% to savings (find out other Rules from the internet. Choose what’s suitable for you). We too can learn about investments and spend less money on our lifestyle. As Eker said, “To increase your wealth, you either have to earn more or live on less.”

[*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!

Secret of the Millionaire Mind: Wealth File #11 Rich People Choose to Get Paid Based on Results

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 #11:

Rich People Choose to Get Paid Based on Results.

Poor People* Choose to Get Paid Based on Time.

Harv Eker writes, “There’s nothing wrong with getting a steady paycheck unless it interferes with your ability to earn what you’re worth. There’s the rub. It usually does.” Wealth Rule #1: Never have a ceiling on your income. If you choose to get paid for your time, you are pretty much killing your chances for wealth, says the author. A steady paycheck is safe. A steady paycheck is also a ceiling on your income. A steady paycheck is killing your chances for wealth…

If you want to become rich, work for yourself or at least work on commission or percentage. That’s the only way you can get paid based on results write Eker. Maybe it seems less safe but it’s certainly how you can earn more money. And it’s the only way to get rich. It’s how you can earn what you’re worth. And living based on security (like a safe, steady paycheck) is living based on fear. What you’re actually saying is, “I’m afraid I won’t be able to earn enough based on my performance, so I’ll settle for earning just enough to survive or to be comfortable.”

Eker asks his readers: Who should get paid more, a good or a bad lawyer? I guess we’re all clear on that – the more you deliver, the more you should get paid. In a 9 to 5 job though, everybody is paid the same. Everybody is paid based on the time they “work.” He puts work in quotation mark became he thought it’s less about the work and more about the time… Again. Harv Eker is completely clear on that: If you want to get rich, you work for yourself!

[*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 #10 Rich People are Excellent Receivers

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 #10:

Rich People are Excellent Receivers.

Poor People* are Poor Receivers.

Harv Eker says, “If I had to nail down the number one reason most people do not reach their full financial potential, it would be this: most people are poor ‘receivers.’” What does he mean? First, what the heck are poor receivers? A poor receiver, according to Harv, is a person that cannot receive well. So far so good. What do we receive? We receive praise, affection, money, gifts, etc. Many of us have trouble receiving such things. The author told a story from himself: “It’s funny, when I was broke and I saw a penny on the ground, I would never stoop so low as to pick up a lowly penny. Now that I’m rich, however, I pick up anything that even looks like money. Then I give it a kiss for good luck and declare out loud, ‘I am a money magnet. Thank you, thank you, thank you.’”

So obvious, T. Harv Eker has developed into a money magnet, a great receiver. Most of us though, have trouble receiving. Where does that come from? Why are we poor receivers? The author simply states that we are conditioned that way. Many (yes, including me) grew up and heard things like “That’s wrong”; “You’re not making it right”; “What did you do?” These sentences all strengthen the feeling of not being good enough. And not feeling good enough is one reason why we are poor receivers. “If you say you’re worthy, you are. If you say you’re not worthy, you are not,” reasoned Eker, “Either way you will live into your story.” No wonder we are poor receivers if we don’t feel worthy… Here some sage advice: Stop buying into that ‘worthiness’ or ‘unworthiness’ crap and start taking the actions you need to take to get rich!

The second major reason most people have a problem with receiving is that they have bought into the adage: “It’s better to give than to receive.” I don’t believe in that statement. The whole idea is pious but pitiful. I believe that giving and receiving are two sides of the same coin. Eker said, “For every giver, there must be a receiver, and for every receiver, there must be a giver.” Giving and receiving are equally important – if you are not willing to receive, then you are ‘ripping off’ those who want to give to you. That’s the main difference between rich and poor people*: Rich people are willing to receive while most poor people are not. It’s not that there would not be enough for everybody, there is. Money is definitely in abundance… it only goes to whoever will take it. So, you and I must be willing to open and be receivers.

Many poor people actually believe they are better people because they are poor. Somehow they think they’re more pious or spiritual or good. Not so! Eker puts it this way, “Money will only make you more of what you already are. If you’re mean, money will afford you the opportunity to be meaner. If you’re kind, money will afford you the opportunity to be kinder… If you’re generous, more money will simply allow you to be more generous.” From now on, take everything (good) someone offers to you (use your mind wisely, of course). If someone tells you you’re looking good then say, “Thank you” instead of “What? No… I look horrible today.” It’s simple as that: Just say “Thank you” and receive your blessings. Let’s say you take time to comment me below and appreciate what I’m doing here, I will definitely say, “Thank you.”

[*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 #9 Rich People are Bigger than Their Problems

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 #9:

Rich People are Bigger than Their Problems.

Poor People* are Smaller than Their Problems.

The size of the problem is never the issue, what matters is the size of you! Harv Eker said, “If you have a big problem in your life, all that means is that you are being a small person!” Either you are whining about the problem or you are working on the solution. This is straight to the point: It’s all about you! Whatever happens in your life, be it good or bad, interesting or boring, tough or easy, what matters is how you get affected by it. What matters is you! There are no problems, there are only situations. We then make them a problem. Respectively, some people make it a problem, others don’t even get affected or realize it. How can that be?

Good question, right? How can it be that the exact same situation is a problem for one but not for another? It depends on the person, you may say – and you’re right. It depends on you. I remember when I went to work from KL Central to Times Square. Monorail KL would take people every five minutes or so. At times, these trains were crazily crowded (especially on weekends). You see in the faces of people how they felt about the situation. And interestingly, some people got negatively affected by the crowded train EVERY SINGLE DAY. Why? Are you that small of a person that a crowded train is a problem for you? And even if it is (e.g. due to claustrophobia, fear of being in closed/crowded places), you do have other options such as go earlier, go by bus or bike, use a taxi or Grab, or walk…

Do you see my point? You can either whine about the situation (make it a problem) or work on the solution. Eker says it over and over again, “What matters is the size of you.” The more you work on yourself, the fewer the problems there will be – you’ll be bigger than any problem. So, don’t be the person whining about the crowded train… that’s NOT a problem! “It’s not what happens to you,” said the wise Epictetus, “but how you react to it that matters.” Say this to yourself…

[*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!