Insights:

1. People have a difficult time seeing themselves in a positive way - we tend to focus on the negative.

Principles:

1. Adopt positive affirmations.

Definition:

1. The principle of incremental improvement.

Insights:

1. Japan recovered from their war-torn economy in the 1950s and 1960s using the principle of Kaizen: "continuous betterment."
2. Kaizen is based on the idea that there are always little ways to improve performance.
3. In Japanese organizations that used Kaizen, every employee is encouraged to seek out and implement improvements every single day.
4. The cumulative impact of small changes over time is huge.
5. The Kaizen principle is based on step-by-step improvements over quantum leaps.
6. Mastery is the product of small improvements over a long time scale.
7. Everyone has the ability to be excellent at something - through the long process of small improvements over time.

Insights:

1. Parkinson's Law with personal finance: expenses rise to meet income. This is dangerous if you want to meet financial goals.
2. To achieve financial independence you must consciously break Parkinson's Law.
3. Over time, if you violate Parkinson's Law with finances, you will save more and more.

Principles:

1. When income increases, save half of the increase.