Secrets of the Millionaire Mind
I first read this short but power packed book a few years ago and had a great time reading it. I f you are interested in personal development and personal finance books, Secrets of the Millionaire Mind is one of the best books out there. This book is focused not so much about finances or building wealth but it good lessons on how to think about money and life in general, how to adopt a mindset that will help you accumulate more personal wealth and increase your net worth. This book is about changing your approach to money, success and happiness. It gives you a glimpse inside the mind of millionaires and and author gives in-depth insights into how millionaires think.
Eker, the author, believes that our brains have prior internal programming. This programming has a huge impact on how we interact with money and our future wealth. Eker calls these internal programming our “financial blueprint” and explains that this blueprint defines how we think about money. This blueprint is created through lifelong exposure to money conversations from friends, family, society and our past life experiences. By understanding that these blueprints can have errors and reprogramming one’s brains to think and act like millionaires, one can create positive attitude towards making money and then by acting on this thinking, one can make real wealth that she is otherwise not able to achieve.
In Secrets of the Millionaire Mind, Eker describes how we can change the internal programming and take simple actions to change our financial future. Eker lists seventeen ways in which the rich people think and act differently from the poor and the middle-class people. He encourages readers to install these seventeen alternative “wealth files” in their minds to aid in shifting their thinking to how the rich people think. Here are the these 17 wealth files.
- I create my life: Rich people believe, “I create my life”. Poor people believe: “Life happens to me.” Rich people take control of their life, for poor and middle-class people, there is always some reason that prevents them achieving greater results. By taking control of your life and believing that we have the power to create our life, one can change their life.
- Rich people play the money game to win. Poor people play the money game to not lose. Having a positive attitude and courage to do things to win makes rich richer. On the other hand being overly fearful of loosing prevents poor and middle-class people to take advantage of opportunities.
- Rich people are committed to being rich. Poor people want to be rich. Rich people are not deterred and keep working hard to get there, whereas poor people just want to be rich but do not act to achieve their goals.
- Rich people think big. Poor people think small. Rich people have the attitude, “If you aim for the moon, you will end up with stars.” Poor people however, are limited in what they can achieve by their own thinking.
- Rich people focus on opportunities. Poor people focus on obstacles. What you focus on expands. So by focusing on opportunities, rich people further expand the opportunities that are available to them. Poor people expand the obstacles.
- Rich people admire other rich and successful people. Poor people resent rich and successful people.
- Rich people associate with positive, successful people. Poor people associate with negative or unsuccessful people.
- Rich people are willing to promote themselves and their value. Poor people think negatively about selling and promotion. We are all taught to be humble and modest and it feels against modesty to promote yourself but rich people are constantly promoting themselves and the value. They think they are doing other people a favor by showing them the value that they know they or their products/ services have.
- Rich people are bigger than their problems. Poor people are smaller than their problems.
- Rich people are excellent receivers. Poor people are poor receivers.
- Rich people choose to get paid based on results. Poor people choose to get paid based on time. This is because rich people have confidence in their ability to deliver results and are willing to take on whatever it takes to deliver results.
- Rich people think “both”. Poor people think “either/or”. This is a great one that I have started applying in every phase of my life and have seen tremendous benefit. If given a choice, most poor people choose either/ or but rich people figure out a way to make both happen. Once I started thinking about “both”, I realized how easy it sometimes can be and we don’t always have to make an either/ or choice.
- Rich people focus on their net worth. Poor people focus on their working income.
- Rich people manage their money well. Poor people mismanage their money well. This might sound simple but its hard to do and its one of those basic things that one has to do in order to progress on the personal finance path.
- Rich people have their money work hard for them. Poor people work hard for their money. We all have to work hard initially to make certain amount of money. But the rich people shift their income from active to passive in order to grow their wealth.
- Rich people act in spite of fear. Poor people let fear stop them. Rich people also have fear but they do not let the fear stop them for moving forward. They keep progressing and acting even if they are fearful and have self-doubts. I have countless instances where I have lost opportunities to build wealth and career due to my fear of loss or uncertainty. So this something I personally feel I need to get better at.
- Rich people constantly learn and grow. Poor people think they already know. I can definitely say that I have experienced this myself. Once you accept that you don’t know everything, you will learn so much more but poor people don’t want to accept that. May be it hurts their ego or may be they are overconfident. But rich always keep learning and growing their knowledge in the fields that help them make more money.
Erik claims that learning and adopting these 17 wealth files is a starting point to adapt your thinking to how millionaires think. I think these are great lessons that can be applied to various aspects of once life. I personally have to work on a few to achieve greater wealth, happiness and success in my life.