I just read Secrets of the Millionaire Mind: Mastering the Inner Game of Wealth, by T.Harv Eker. With a lot of wealth books, it tends to hover around mindsets. But this book has a good balance of both. I found the practical tips helpful in helping me think about what keystone money habits I need to have.

Sharing them here as reference for myself, and for anyone who might find it useful. This is not a book review, just raw notes lifted directly from the book, with some minor edits, interpretations and categorisations of my own.

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Track your net worth

Make it a policy to know your net worth to the penny. Do this exercise:

Take a blank sheet of paper and title it “Net Worth”. Then create a simple chart that begins with zero and ends with whatever your net worth objective is. Create a net worth statement. To do this, add the current dollar value of everything you own (your assets) and subtract the total value of everything you owe (your liabilities). Note your current net worth as it is today. Then every 90 days, enter your new net worth. That’s it. If you do this, you will find yourself getting richer and richer. Why? By tracking your net worth, you are focusing on it, and because what you focus on expands, your net worth will expand. By the way, this law of focus goes for every other part of your life: what you track increases.

Remember: what you focus on expands. Where attention goes, energy flows and results show.

What gets measured gets done.

**Focus on all 4 net worth factors:

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1. Increase income (via passive income systems)

2. Increase savings

3. Increase investment

4. Decrease cost of living/spending by simplifying lifestyle

**Until you show you can handle what you’ve got, you won’t get any more!

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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 habit, and therefore the habit of managing your money is more important than the amount.

Open separate bank accounts

Open a separate bank account designated your Financial Freedom Account. Put 10% of every dollar you receive (after taxes) into this 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? 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 principal itself. In this way, it always keeps growing and you can never go broke.

Start managing money even if you just have $1

“How the heck am I supposed to become financially free on 10cents a month?” So she committed to doubling that dollar every month. The 2nd month she divided up $2, the 3rd month $4, then $8, $16, $32, $64, and so on until the 12th month was $2048 that she was dividing up each month. Even if you’re borrowing or finding just a few dollars a month, you must manage that money, because more than a “physical” world principle is at play here: this is also a spiritual principle. Money miracles will occur once you demonstrate to the universe that you can handle your finances properly.

Daily “money magnet” habits

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 this simple jar become your “money magnet,” attracting more and more money and opportunities for financial freedom into your life.

To be continued…