Money Management:- How Rich people manage their Money?

Hello friends, In today’s article, we see how rich people manage their money means money management from wealth file #14 of the book ” the secrets of the millionaire mind. In this wealth file, T. Harv Eker explains well. so let’s see the difference between rich people and poor people regarding money management.

Previous Wealth file #14

Wealth File #14:-Money Management

Rich people manage their money well.

Poor people mismanage their money well.

in this wealth file, the author explains, how rich people manage their money and they become richer and how poor people manage their money and become poorer.

so let’s start,

the author says, ” Thomas Stanly in his best selling book. the millionaire next door surveyed millionaires from across North America and reported who they are and how they attained their wealth. the results can be summarized in one short sentence: ” rich people are good at managing their money.” rich people manage their money well. poor people mismanage their money.

Wealthy people are not any smarter than poor people, they just have different and more supportive money habits. these habits are primarily based on our past conditioning.

so first, if you’re not managing your money properly you were probably programmed not to manage money.

Second, there is a better than good chance you don’t know how to manage your money in a way that’s easy and effective.”

then the author talks about financial success, how rich people acquired them.

the author says, “I don’t know about you, but where I went to school money management 101 wasn’t offered. Instead, we learned about the war of 1982, which of course is something I use every single day.

it may not be the most glamorous of topics, but it comes down to this: the single biggest difference between financial success and financial failure is how well you manage your money.

it’s simple to master money, you must manage money.

Poor people either mismanage their money or they avoid the subject of money altogether.

Many people don’t like to manage their money because, first they say it restricts their freedom, and second they say they don’t have enough money to manage.

As far as the first, excuse managing money does not restrict your freedom- to the contracts it promotes it. managing your money allows you to eventually create financial freedom so that you never have to work again. to me, that’s real freedom.

As fas those who use the ” I don’t have enough money to manage” excuse, the rationale they’re looking through the wrong end of the telescope. rather than say, ” when I have plenty of money I’ll begin to manage it,” the reality is ” when I begin to manage it, I’ll have plenty of money.”

poor people saying, ” I’ll start managing my money as soon as I get caught up.” is like an overweight person saying “I’ll start exercising and dieting as soon as I lose twenty pounds.”

I was also usually saying, the second, excuse,

then the author explains how easy is to manage money with examples.

the author says, ” First, you start properly handling the money you have, then you’ll have more money to handle. in the millionaire mind-intensive seminar, I tell a story, that hits most people might between the eyes.

imagine you’re walking along the street with a five-year-old. you come across an ice cream store and go inside. you get the child a single scoop of ice cream on a cone because they don’t have any cups. (Money Management)

As the two of you walk outside, you notice the cone wobbling in the child’s tiny hands, and all of a sudden, plump, the ice cream falls out of the cone onto the pavement.

the child begins to cry. so back you go into the store, and just as you’re about to order for the second time. the child notices a colorful sign with a picture of the ” triple scooper” cone.

the child points to the picture and excitedly screams, “I want that one! ”

Now here’s the question. being the kind, loving and generous person that you are would you get ahead and get this child the Tripple scooper? your initial response right be “sure”

However, when considering the question a little more deeply, most of our seminar participants respond “No” Because why would you want to set the child up to fail? the child couldn’t even handle a single scoop, how could the child possibly handle a Tripple scoop.

the same holds true when it comes to the Universe and you. we live in a kind, and loving universe, and the rule is ” Until you show you can handle what you’ve got, you won’t get any more.”

then the author talks about handling money.

the author says, ” you must acquire the habits and skills of managing a small amount of money before you can have a large amount.

Remember, we are creatures of habits, and therefore, habits of managing money are more important than the amount.

so how exactly manage your money. for that open, a separate bank account designated your financial freedom Account. Put 10 percent of every dollar you receive ( after-tax) into the fund. this money is only to be used for investments, and buying or creating passive income streams.

the job of this account is to build a golden goose that lays golden eggs called passive income, and when do you get to spend this money? answer is Never

It is never spent – only invested. eventually, when you retire, you get to spend the income from the fund ( the eggs). but never the principle itself. in this way, it always keeps growing and you can never go broke.”

then the author gives the example of his one seminar participants Emma

the author says,” One of our students named Emma recently told me her story. Two years ago Emma was about to claim bankruptcy.

she didn’t want to, however, she felt she had no other option. she was in debt beyond that she could handle, then she attended the millionaire mind intensive seminar and learned about the money management system.

Emma said, ” this is it. this is how I’m going to get out of this mess! Emma, like all the participants, was told to divide her money into several different accounts.

that’s just great, she thought to herself. ” I don’t have any money to divide up!” but since she wanted to try, Emma decided to divide up $1 a month into the accounts, Yes that’s right only $1 month. (Money Management)

Based on the allocation system we teach how that one dollar, she put ten cents into her FFA( financial freedom account)

the first thing she thought to herself was ” how the heck am I supposed to become financially free on ten cents a month? so she committed to doubling that dollar every month.

the second month she divided up $2, the third, month, $4, then $8, $32, $64, and so on until the twelfth month was $4048 that she was dividing up each month.

two years later, she began to call some amazing fruits from her efforts she was able to put $10,000 directly into her financial freedom account! she had developed the habit of managing her money so will that, when a bonus check of $10,000 came her way. she didn’t need the money for anything else!

Emma is now out of debt and on her way to becoming financially free. all because she took action with what she’d learned, even if it was only with $1 a month.”

it doesn’t matter if you have a fortune right now or virtually nothing. what does matter is that you immediately begin to manage what you’re got and you’ll be in shock at how soon you get more.

then the author gives an awesome explanation who says, I am living on the borrowing money, how am I manage money.

the author says, “I had another student at the millionaire mind intensive seminar says, ” how can I manage my money when I’m borrowing money to live on as it is?

the answer is to borrow an extra dollar and manage that dollar. Even if you are borrowing or finding just a few dollars a month, you must manage that money, because more than a ” physical” world principle is at play there: this is also a spiritual principle.

Money miracles will occur once you demonstrate to the universe that you can handle your finances properly. In addition to opening a financial freedom bank account. create a financial freedom jar in your home and deposit money into it every day.

it could be $10, $5, $1, a single penny, or all your loose change. the amount doesn’t matter; the habit does.

the secret again is to place daily ” attention” on your objective of becoming financially free like attracts like, money attracts more money. let his simple jar. become your ” money magnet,” attracting more and more money and opportunities for financial freedom into your life.

Now, I’m sure this isn’t the first time you have heard the advice to sure 10 percent of your money for long-term investing. but it may be the first time you’ve heard that you must have an equal and opposite account specifically designed for you to “blow” money and play.”

friends, above things, really works, just try it as a playing a small game with yourself.

then the author gives the biggest secrets of managing money,

the author says, ” one of the biggest secrets to managing money is balance. On one side, you went to save as much as possible so you can invest it and make more money. on the other side, you need to put another 10 percent of your income into a “play” account. why? because we are holistic in nature. you can not affect one part of your life whatever affecting the other.

some people save, save, save, and while their logical and responsible self is fulfilled their ‘inner spirit is not. Eventually, this ‘ fun-seeking spirit side will say ‘ I’ve had enough. i want some attention too’ and sabotage their results.

on the other hand, if you spend, spend, spend, not only will you never become rich, but the responsible, part of you will eventually create the situation where you don’t even enjoy the things you spend your money on, and you’ll end up feeling guilty. (Money Management)

the guilt will then cause you to unconsciously overspend as a way of expressing your emotions. although you might feel better temporarily, soon it’s back to guilt and shame. it’s a vicious cycle, and the only way to prevent it is to learn how to manage your money in a way that works.

Your play account is primarily used to nurture yourself to do the things you wouldn’t normally do. it’s for the extra special things like going to a restaurant ordering a bottle of their finest wine or champagne.

or renting a boat for the day, or staying in a high-class hotel for an extravagant night of fun and frolic. the play account rule is that it must be spent every month.

that’s right each month you have to blow all the money in that account in a way that makes you feel rich.

For example, imagine walking into a massage center, dumping all the money from your account on the counter, pointing to the massage therapists, and saying, “I want both of you on me. with the hot rocks and the fricking’s cucumber after that, bring me lunch.

like I said, extravagant. the only way most of us will ever continue to follow our saving plan is by offsetting it with a playing plan that will reward us for our efforts your play account is also designed to strengthen your ” receiving”  muscle.

it also makes managing money a heck of a lot more fun. in addition to the play account and the financial freedom accounts, I advise that you create four more accounts the other accounts include.

• 10 percent into your long-term savings for spent account
• 10 percent into your education account
• 50 percent into your necessities account
• 10 percent into your given account
• 10 percent into your investing account

then author give the above management plan, and how poor people think about the money management

the author says, ” Again poor people think it’s all about income, they believe you have to earn a fortune to get rich.

Again, that’s male-cow manure! the fact is that if you manage your money following this program, you can become financially free on a relatively small income.

if you mismanage your money, you can’t become financially free, even on a huge income. that is why so many high-income professionals doctors, lawyers, athletes, and even accountants- are basically broke because it’s not just about what comes in it’s about what you do with what comes in. (Money Management)

One of our attendances John told me that when he first heard about the money management system, he thought, ” how boring! why would anyone spend their precious time doing that?”

then later doing the seminar he finally realized if he wanted to be financially free someday, especially sooner than later, he too would have to manage his money. just like the rich.

John had to learn this new habit because it definitely wasn’t natural for him. he said it reminded him of when he was training for triathlons. he was really good at swimming and cycling; however he hated running. it hurt his feet, knees, and back.

He was stiff after every training session he was always out of breath and his lungs burned every time, even if he was to become a top triathlete, he had to learn to run and accept it as part of what it took to succeed.

where in the past john avoided running he now decided to run every day. after a few months, he began enjoying running and actually looked forward to it each day.

this is exactly what happened to john in the arena, of money management. he started out hating every minute of it but grew to actually like it.

now he looks forward to getting his paychecks and dividing them into different accounts! he also enjoys watching how his net worth has gone from zero to over $300,000 and it growing daily.”

then the author explains money control

the author says, ” it comes down to this; either you control your money, or it will control you. to control the money you must manage it.  I love hearing seminar graduates sharing how much more confident they feel around money, success, and themselves. once they begin managing their money properly. the best part is that this confidence transfer into other parts of their lives and enhances their happiness, their relationships, and even their health.

money is a big part of your life and when you learn how to get your finances under control all areas of your life will soar.”

then the author gives the millionaire mind actions and some declarations.

you can read this in the book, buy this book, and really change your life, link in the following image

so this is all about the wealth file $14 on money management.

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