In the international best seller The Secrets of the Millionaire Mind, T. Harv Eker suggests that readers begin his financial freedom program right away by dividing their cash, of any size even a single dollar, into five different accounts or piggy banks. According to Eker this distribution of wealth is not just a game in the physical world, but a spiritual principle, it is to prove to ourselves and the world that we are capable of handling money properly. The author sanctions that the habit of managing money matters in itself more than the amount of money.
It starts with an initial account called CCLF (Financial Freedom Current Account) in which to deposit 10 percent of the cash (starting from one euro, ten cents), this account should NEVER be touched, for any emergency, and is intended only for investment or passive income generation, when you retire you can enjoy the income from this account, but without touching it. Then, respecting the law of balance, 10% must be paid (another ten cents of our euro) on the account for Leisure because ours is a holistic nature, and we have no guarantee of ticking off the future if we are focused only on logic and responsibility, we need to indulge in a tour of the playful world. This money, once accumulated in a congruent amount, should be spent on doing really special things (a meal at a restaurant, a massage at a spa, something extravagant that trains the ability to make financial management fun). The other items are a Long-Term Savings account for unforeseen expenses, on which to allocate 10%, an account for Personal Training, another 10% (for books, courses, seminars, lectures, subscriptions), An account for Donations, still 10% and an account for Needs, into which 50% is to be paid. Finally, the Financial Freedom (LF) Money Box into which you always put money, any amount, even one or two cents if you don’t have more that day. The LF piggy bank aims to solidify the habit of becoming financially independent. Five accounts, or five wallets, and a piggy bank to create a mind that can handle money and loves doing so.
Toward the end of the book, Eker recounts one of the key steps in his metamorphosis from poor to rich.
“When I was broke in my youth, I was fortunate enough to receive some advice from a multimillionaire friend who took pity on my misfortune. I still remember what he said to me, “Harv, if you are not as successful as you would like, it means there is something you don’t know.” Fortunately, I took his suggestion literally. And from “the one who knows everything” I became “the one who learns everything.” From that moment my life changed…”
The common thread of the book is precisely the concept of mindset change. There is something we don’t know if we are in financial difficulty and, without judgment but out of sheer convenience, we are invited to grow in every area of life and make new choices. As low as one euro.