Book Review: "Money Master" — Break Free from 4 Poor-Person Mindsets and Build Your Wealth Mentality

Your Money Mindset Determines Your Wealth

Poor money mindset vs. wealthy money mindset

Reject BCDJ

BCDJ is the biggest obstacle to building wealth (honestly, I think it applies to just about everything in life).

Blame

The biggest problem with blaming everyone and everything: other people’s perception of you changes, and you change how you see yourself too. You become bitter instead of better. And people start avoiding you.

Complain

Blaming isn’t the same as complaining — complaining is the result of blaming. It’s a way of venting regret, anger, and feelings of unfairness. Nobody enjoys listening to complaints, and no one says “thanks for complaining to me.” It’s just negative energy spreading around.

Try the 30-day no-complaining challenge.

Defend

Defending your position and decisions is actually exhausting. In most cases, when you explain yourself and defend your stance, the other person wasn’t planning to change their mind anyway. Arguing for the sake of arguing — why waste the time?

Practice listening, smiling, and considering their criticism. No need to fight back — just keep moving forward. Pay attention to when you feel the urge to defend yourself, but stay quiet. This saves a ton of time that you can use for making money and creating positive impact.

Justify

Wanting to justify your decisions and actions is essentially questioning yourself. Like defending, it’s a waste of air and energy. Why do you need someone else’s approval? Unless they’re someone you truly respect and care about. Only you know which actions create value for yourself and others. You can feel in your heart whether your actions are true to who you are — that’s the only answer you need. Generally speaking, it’s better not to tell others about your plans and goals, so you won’t have to deal with their objections.

VVKIK: From Abstract to Action — The Cycle

• Vision
  • A single sentence or paragraph that defines your life’s purpose — knowing exactly what your life goals are. Your vision will leave a lasting legacy when you pass, and it lives in every single day you’re alive.
• Values
  • Your values are your concept of life and the guiding principles for everything you face. Values influence how we perceive, think about, decide, and act on every matter.
  • Practice the following steps:
    • Write down the most important goals in your life
      • Family goals, wealth goals, freedom goals, learning goals, success goals, growth goals, travel goals, knowledge goals.
    • Prioritize your goals
      • Rank by where you spend your money? By what you want most? By what’s easiest? You decide!
• Key Result Areas (KRAs)
  • To achieve your ultimate goals, you need to focus on “key results.” Key Result Areas means listing three to seven areas you value most — where you must invest the most time and resources to create maximum wealth, income, and career growth.
• Income Generating Tasks (IGTs)
• Key Performance Indicators (KPIs)

The Wealth Creation Formula

W=(V+FE)*L
Wealth = (Value + Fair Exchange) * Leverage
*Value: The perceived worth of the service you provide to others
*Fair Exchange: The money you receive in return for your service
*Leverage: The scale and speed at which your product/service generates income, plus the peripheral benefits it creates.

Behavioral Comparison: Rich vs. Poor

Due to web layout limitations, the table might not display perfectly on mobile. If you’re interested in the tables, feel free to come back and read on a computer when you have time. Thanks!

Further Reading

Lazy Da’s Conclusion

懶大

金融科技新創 CEO | 獨立財務顧問

People often say money can’t cure poverty — because the real fix has to start with mindset.

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