Saving can be a difficult task, as it requires a combination of discipline, planning, and motivation. The harv eker techniqueIt can help you manage your income in the best way, so extra expenses don’t catch up with you.
Saving money is an important financial practice to maintain financial, personal, and family stability, and to achieve long-term financial goals. For many people it is complicated, since involves giving up spending all the money and instead saving it preemptively for an emergency, purchase of goods, investment, retirement, among other objectives.
‘Secrets of a Millionaire Mind’ is a financial self-help book, written by T. Harv Eker, which how to change the way you think about money and how you can transform your mindset to teach financial success.
Eker argues that the way you think about money can be a determining factor. He argues that most people have beliefs and patterns that prevent them from achieving wealth and abundance. He suggests identifying negative thoughts about money and changing them into empowering beliefs. Then look for the financial purpose of saving and set goals, learning to manage money effectively.
(Also read: Methods to save money: easy and effective).
The Harv Eker Method
In addition to emphasizing in his speech the importance of financial education, personal responsibility and perseverance on the road to wealth, has a method adapted to all budgets. It consists of dividing the income into 6 parts as follows:
50% Basic Needs
Basic needs are those elements essential for human survival and well-being. These needs include food, clean water, shelter, clothing, medical care, and basic education. Some basic services such as electricity, gas and public transport can also be considered within this group.
10% Savings
This is a value that will be seen in the long run and being so small you can do it comfortably. This will be the cushion that will allow you to face unexpected costs.
(Keep reading: Need to save money? Here are some tips for getting there.)
10% Investment
Harv Eker points out that it is important to raise capital in the future and propose to allocate this percentage “so that the money does the work for you.”
10% Training
Training and education are fundamental in the personal and professional development of a person. These will allow you to improve your skills and competencies, increase job opportunities, encourage personal development and critical thinking. In addition, you can include financial education training to learn how to best use your money.
(You may be interested in: What is the 50-30-20 rule that will allow you to save easy money?).
10% Leisure
This free time can be devoted to activities that are pleasant and enjoyable for you. It is important to determine the money that you are going to use for your moments of rest and disconnection from your daily activities. It can include activities like going out with friends, traveling, among others.
10% Donations
Harv Eker recommends putting this percentage of income into charitable fines to help others while saving money for your own needs.
This is a comfortable method, as it helps you control your spending, save money, avoid debt and most importantly achieve your goals. It’s a simple but effective strategy that can significantly improve your financial life.
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