This is the second post of my book I'm reading series. If you miss the first book, here's the link.
Secrets of the Millionaire Mind by T. Harv Ecker
Coincidentally, the second book also has a secret in its title. A bit ironic to think that I should be rich by now having read and learned the secrets. But i am not. Not just yet! and I am on my way. The book tells us that being successful in something is two part. First is the thinking or the desire of having that goal. Next is the execution. They are the two things that are needed to accomplish something. If we spend our day thinking about good stuff and all the desires that we have, it just ends there. It will not happen. We have to move and do something.
Key points i got from the book are the concept of giving back and measuring net worth.
- Giving back
- Measuring net worth
On Giving Back
Prior to reading the book, I would say I am not a selfish guy. I give back to the Church, occasionally give money to my parents and siblings. Other than that, that's all i can say i do in terms of giving back. I guess there was something in the book that struck a chord in me telling me the importance of giving back. Giving back is showing gratitude for all the blessings that God has given me.
This year, I started working on giving back regularly a portion of my income. It is still a small amount but I am working on giving back higher. The books suggests giving back 10% and i know that was also written in the old testament. I haven't reached that goal yet but I am working on it. Actually, this one is what fuels me to find additional sources of money. If i want to give back higher, then i must earn higher. I've chosen Unicef because i like their cause (If you want to help them, check their site http://www.unicef.org/philippines/). Or you can begin with your family. We all heard the word "Charity begins at home". or give your money to me. hehehe. just kidding. I will never ask money. I want to earn it.
On Measuring Net Worth
After reading about the difference between income and net worth, i started measuring my assets and liabilities last February. A bit awkward for me actually. I took up accountancy in college and worked as an external auditor and general accountant. I spent so many years preparing income statement and balance sheet of companies but I have not really tried working on my personal income statement and balance sheet. I don't know. It feels weird. Or maybe because i don't have much assets to write down.
But thankfully, i have read the book and it motivated me to do it. A bit tedious process actually but doable. I started listing down all my savings account, checking account. Then i worked on my obligations such as credit card dues. My first draft was just that. Then i worked on improving the list by adding on assets i forgot to add such as value of mutual fund and other investment. My wife actually had done it easily as she don't have other investments when she started. It was as simple as writing down the bank accounts their value less the credit card dues.
Income is like a faucet while net worth is the bucket. The exercise reminded me that though i am enjoying the steady flow of income from my job as a faucet, i should also think about how much water i already have in the bucket. Because one day, the faucet might stop giving me water and when that time comes, i should have enough water in my bucket to use while i am looking for a new faucet.
The book is available at Amazon if you want to read it (Note: affiliate link) Secrets of the Millionaire Mind
Quotable Quotes
Just like with my first post, I wanted to share key ideas worth considering
- My income can grow only to the extent that i do!
- If I want to change the fruits, i will first have to change the roots. If i want to change the visible, i must first change the invisible
- Money is a result, wealth is a result, health is a result, illness is a result, my weight is a result. I live in a world of cause and effect
- Give me five minutes and I can predict the financial future for the rest of my life
- Thoughts lead to feelings. Feelings lead to actions. Action lead to results
- When the subconscious mind must choose between deeply rooted emotions and logic, emotions will always win.
- If my motivation for acquiring money or success comes from a non supportive rout such as fear, anger, or the need to "prove" myself, my money will never bring me happiness.
- The only way to permanently change the temperature in the room is to reset the thermostat. In the same way, the only way to change my level of financial success "permanently" is to reset my financial thermostat
- Consciousness is observing my thoughts and actions so that I can live from true choice in the present moment rather than being run by programming from the past.
- I can choose to think in ways that will support me in my happiness and success instead of ways that don't.
- Money is extremely important in the areas in which it works and extremely unimportant in areas in which it doesn't.
- When i complain, i become a living, breathing "crap magnet"
- There is no such thing as a really rich victim
- If my goal is to be comfortable, chances are I'll never get rich. But if my goal is to be rich, chances are I'll end up mighty comfortable.
- The number one reason most people don't get what they want is that they don't know what they want
- If I am not fully, totally and truly committed to creating wealth, changes are I won't
- The law of income; I will be paid in direct proportion to the value I deliver according to the market place
- Bless that which i want
- Leaders earn a heck of a lot more money than followers
- The secret to success is not to try to avoid or get rid of or shrink from your problems. The secret is to grow myself so that I am bigger than any problem
- If i have a big problem in my life, all that means is that I am being a small person
- If I say I am worthy, I am. If I say I'm not worthy, I am not. Either way, I will live into my story.
- If a hundred-foot oak tree had the mind of a human, it would only grow to be ten feet tall.
- For every giver there must be a receiver, and for every receiver there must be a giver
- Money will only make me more of what I already am
- How you do anything is how you do everything
- 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
- Never have a ceiling on your income
- Rich People believe "you can have your cake and eat it too".
- The true measure of wealth is net worth, not working income
- Where attention goes, energy flows and results show
- Until you show you can handle what you've got, you won't get anymore
- The habit of managing your money is more important than the amount
- Either you control money or it will control you
- Action is the bridge between the inner world and the outer world
- A true warrior can tame the cobra of fear
- It is not necessary to try to get rid of fear in order to succeed
- If you are willing to do only what's easy, life will be hard. But if you are willing to do what's hard, life will be easy
- The only time you are actually growing is when you are uncomfortable
- Training and managing your own mind is the most important skill you could ever own in terms of both happiness and success
- You can be right or you can be rich, but you can't be both
- Every master was once a disaster
- To get paid the best, you must be the best
