The Millionaire Fastlane
The Millionaire Fastlane: Book Review
A treasure map of its kind. Whatever I write about it, I wonder if I will not be able to justify it fully. A marvelous book on business. The Millionaire Fastlane by MJ DeMarco is a treasure map with directions for you and me to take to get to our treasure. Our treasure boxes are filled with gold and great fortune.
This book has explained how wealth is created by planting our money tree and how in real life, we can use it to enjoy our wealth and not wait for 3-4 decades to let our money grow for us to be able to enjoy. The Millionaire Fastlane is not like any other finance book. You will see for yourself when you’ll see the back lashing of the conventional method of investing and savings received in this book. The traditional strategies are slow, and reading The Millionaire Fastlane, has successfully made me upgrade my thoughts to shrink the waiting period of the road to the wealth of 40 years to 5-7 years.
The usage of compound interest is seen in many books such as The Richest Man in Babylon, but the author argues that for a small sum to create enormous wealth it takes decades which is theoretically correct but when you have the money for yourself, you would have traded your life for it. The millionaire fastlane shows how you can use the same concept and modify it so that you are able to enjoy it when you have the time.
Investing and saving is not bad. But it is just the initial step, it is the foundation to build your enterprise. You have to go one step ahead and build business whose speed you could control. There are many examples of businesses in this book that I feel would help the users to get a better picture.
The main essence of the book is to create a system of hard work and efforts to create something for yourself so that you can cherish it in your early years and not always be 65 to become a millionaire.
I would like to add that this book has been an eye-opener to me with the thoughts around the concept of time and how to best utilize it for our benefit.
The clear distinction between the mental approach of wealthy people around the reality of time and their mentality is of different sorts. They wouldn’t trade it for anything unproductive. You wouldn’t see them trade 2 hours for a $20 discount in a sale in a shopping mall. Other profound concepts you should look out in the Millionaire Fastlane are the Commandment to Wealth and The Law of Effection which shields your business from uncertainty and gives you a constant flow of cash.
I cannot stress enough the practicality of The Millionaire Fastlane and the kind of change it can bring to your life. Do give it a read and tell me about your journey.
The Millionaire Fastlane: Book Summary in 3 sentences
- If you want to be wealthy, the remote control should be in your hands and not in hands of the wall street or your boss.
- Waiting for money to compound in exchange for your life is not a good bargain.
- The fastest road to wealth is by becoming self employed and using the correct commandments to wealth.
Who Should Read It?
Anyone who wants to generate wealth and meanwhile have the years to enjoy it. This is a great business book and the self employed individuals must take up his suggestions to perform better.
Top 3 Quotes: The Millionaire Fastlane
- Wealth is a process, not an event.
- Responsibility is the price of greatness.
- Ideas are nothing but a neurological flatulence.
I’ve compiled notes on some of the key topics in the book which can give you a better overview of the content you’re gonna find in The Millionaire Fastlane.
The Millionaire Fastlane Notes
1: Wealth in a Wheelchair: “Get Rich Slow” is Get Rich Old
- If you wish to become wealthy, doing the usual things will not work. Living frugally, investing in 401(k), low cost mutual funds, because for it to compound, it will take time and to enjoy the money in later years, you are trading your life. The golden years of yours.
- Drive your wealth by taking things in control. Do no let other people decide your fate such as Wall Street. You have to create a money tree which gives you cash irrespective of your involvement.
- To create your money tree, it is tough. You require long hours initially as to create an exponentially growth machine, you should put efforts like a mad person. The money tree is created when you are able to free your business or work from the time dedicated. It should provide consistent flow, whether you give 1 hour a day or 5.
2. Wealth is not a Road But a Road Trip
- Wealth is usually understood as an event where a person sells his/her company for millions, which creates a false image about getting rich. Nobody sees the painstaking hours that the person went through to get to the final stage. The real wealth is due to the path of efforts and process and not the end result.
- The wealth can be achieved by using the road or according to the book, The Roadmaps. The road maps will decide what are the end results if you put in the required efforts. These are:
- The Sidewalk Road map ⇒ Poverty
- The Slowlane Road Map ⇒ Mediocrity
- The Fastlane Road Map ⇒ Wealth
3. Poverty: The Sidewalk Roadmap
- The Sidewalk road maps are adopted by the people with poverty mindset. They do not have a well laid out financial plan which makes them susceptible to outside influence which can derail their entire journey. You’ll find these people when you see their spendings. They spend more than they earn. They have no financial planning. Living paycheck to paycheck. These people are focused more towards ego gratification and don’t even realise how they are throwing away their life. And when they face a small road bump, they get suck towards poverty.
- The people belonging to this category often misuse the money. They buy expensive things on credit which they can’t really afford and are bound to pay regular payment and get stuck in the rat race. People chase after money and compromise other parts of life leading to an utter failure. Using money sincerely can buy you the freedom to do things at your own condition that people with this mentality hardly think about.
- The people in the Sidewalk Roadmap are not accountable for their actions. They easily tend to blame others for their mistakes and never try to rectify it.
4. Mediocrity: The Slowlane Roadmap
- An upgrade to the sidewalk is the slowlane. You are more accountable and responsible for your finances but the desire to wealth isn’t achieved by many people in this category.
- You trade your life to earn money and invest in the market and wait for it to compound. When you actually are able to gain a lump sump money, the maximum of your life would have passed and the enjoyment would not be the same. People in this plan do not create any progress as they do not have the command over their income. It grows linearly as the time passes supported by many promotions. Then also you work more hours and get to enjoy your money even less.
- It is also possible that if you let your money grow for 40-50 years working for somebody else, what is the surety that you will live to see that? Or the returns are according to your expectations?
- The main wealth generation in this category is via a job and your investment. The rate of growth and the amount of time you can work is limited and the annual increment of the both is also very less which results into 30-40 years of your life traded away to get a significant wealth.
5. Wealth: The Fastlane RoadMap
- The real wealth is generated in this category when you have the variables that determine the wealth under control. This can be done mainly by self-employed business or employing peoples under you. Starting your own business is tough but when you put great hours to build your product you can achieve the desired wealth in 4 years what could have been the 40 years in Slowlane Road Map.
- Your business decided your income. Thus the better it performs, the quickly the money flows in. There are certain things that you have to change to be in this group. The shift from consumer mentality to producer mentality: You can build one software and sell millions of copies to the user and earn profit on each one of them. This allows you to control your income. You get to decide how much to sell for. The profit margins and everything.
- Get Rich quick exists. Business is Get Rich Quick. But it is not get rich easy. Business can narrow down the horizon to generate wealth, but it requires your efforts. Get Rich Easy are those methods that people sell you and say do this and earn millions, that is a trap and many people fall for that.
- Create systems that give you independence from your work and still makes you money. this will generate the passive income for you and you get to enjoy the life better.
- The wealthy use the compound interest not to make money but earn income. They use the bulk amount and when that starts to earn interest, it’s massive and create a path for enormous earnings. They skip the initial stages of common people to wait for the money to actually become big.
6. Your Vehicle To Wealth: You
- The road to wealth is created by getting to decide how much money you get in your hands for your efforts. If you have a job you get around a fifth of your income for tax purposes and this creates a lower pay for your work. So to get on the journey of creating wealth you can run your own business and set up corporation where you get to spend the money first and the remainder of the money is taxed.
- Whatever you end of becoming is due to the choices you make. If you decide to earn for something and setup your own business, it’s upto you to make it a success. If you are in a job and not able to enjoy life as you desire, it is because you who is unable to add more value at your job. Your choices have consequences. So whatever you choose, you have to face its consequences too.
- Business is a tough field if you do not have the right mentality. There are times where your mental approach makes all the difference. Have the right perception and the correct course of actions would follow. Use the two methods when making a tough decision.
- Worst Case Consequence Analysis: Helps avoiding treasonous choices.
- The Weighted Average Decision Matrix: Helps making better decisions.
- Learn to respect the time. The Time is a limited resource for everyone. It does not get refuelled. How you value your time decides your fate in the later years. Work towards making indentured time( the time you spend earning) to free time to enjoy your life more.
7. The Roads To Wealth
- The businesses that can allow you to generate wealth and meanwhile let you enjoy it should follow these rules:
- The Commandment of Control: All the aspects of your income should be in control under you. It does not make sense to be at the mercy of others where their decision making affects your income potential. You should control the pricing, the operations, how much it should profit.
- The Commandment of Entry: The greater the ease of entry into any business the greater is the chance of competition and lower is the income potential. When a crowd does the same thing, it is hard for you to earn a living unless you are exceptional. And that is very tough. Choose a business where the entry is not that easy so that you can have a good chance of succeeding.
- The Commandment of Need: The businesses that thrives are the one that solves real life problems. If you feel that your skill solves a problem for people, it has the chance to create a profound business as you already have consumer for you. This is very different than following your passion as you may not always find a market for your passion.
- The Commandment of Time: Can your business thrive without your interference? If not, then it is a job, not a business. The real business gives you the time to enjoy your hard work by streamlining the operations and pursuing automation.
- The Commandment of Scale: The real business is where there is no upper limit for your sales. If you service local, you could go global as it attracts more audience thus higher revenue. As you scale, your numbers grow and create a real wealth producing machine.