Whenever anyone asks me for a book recommendation, I immediately tell them to read the “The Millionaire Fastlane.” This book literally changed my life.
The Core Principles
The Millionaire Fastlane starts by describing the three core principles. These are the principles that guide this book and ultimately will end with explaining to the reader how to crack the code to wealth and live rich for a lifetime.
- The Sidewalk
- The Slowlane
- The Fastlane
The Sidewalk is the path one follows when they have no plan. The Sidewalk does not discriminate on age, sex, job, or income. Someone on the Sidewalk path lives paycheck-to-paycheck and immediate gratification is what matters most. It is impossible to solve money problems with MORE money for someone one the sidewalk.
“Sidewalkers create their lifestyle in direct proportion to their income and supplement that lifestyle with EXTENSIVE use of debt. “MJ Demarco, The Millionaire Fastlane
I was so interested in learning about money as a teenager, that the day I turned 18, I enrolled in a money management class at my local community college. They focused on concepts such as investing and compound interest. I was amazed that I could save some money today, and with the help of compound interest, it could be worth much more money in the future.
What they didn’t tell me was this is exactly the Slowlane mentality. I am not suggesting it is a bad idea to invest. However, the Slowlane trades time for money. To be more specific, it trades lots of time, for the possibility of money, at a much later date. So, you work 40+ hours a week at a job you hate (or maybe you like it, most people don’t, so that would be a bonus), skimping and saving your money in your 401(k) and IRAs, so that some day you can RETIRE comfortably… at age 65!!!
The Slowlane epitomizes mediocrity. Life isn’t great, but it isn’t that bad either. You sell your soul Monday through Friday for the paycheck of Saturday and Sunday. The average person trades his time for money, with the hopes of adequate stock market returns so he can enjoy a a comfortable retirement. The ironic part is that Slowlaners will spend the best years of their lives busting their asses under the guise of work, save, invest, and hopefully retire.
The Fastlane is an idea, or rather a system to create wealth. It is not a get-rich-quick scheme. Instead of thinking like a consumer, think like a producer. If you can find a need and fulfill that need for others, you are on your away to Fastlane success.
There are five business concepts in which can be used to succeed in the Fastlane. Each system has a grade that rates level of passivity (the ability to make money without the use of time). A higher grade means a greater potential of passivity, but not necessarily a greater income.
- Rental Systems (Passivity Grade: A). Real estate is one “rental system”. I consider real estate money trees as Fastlane 1.0 or Wealth 1.0. It is the old way and still very much a road to wealth. Rental systems are powerful money trees because they are high on the passivity scale and survive time.
- Computer/Software Systems (Passivity Grade: A-). Computers are miraculous inventions and fertile seeds to money trees. They work 24 hours a day, 7 days a week. Software, when tapped into potent distribution, can be replicated to millions. It scales without significant degradation to passivity.
- Content Systems (Passivity Grade: B+). Content systems are systems of information. That information can be fused to a variety of other systems, like the Internet and physical distribution systems. The content is an asset that is scalable, over and over again, and with each sale, the effective time cost declines while the hourly rate of return expands.
- Distribution Systems (Passivity Grade: B). A distribution system is any structure or organization designed to move products to the masses. Distribution systems can be hybrids with the other seedlings, such as content and computer systems.
- Human Resources Systems (Passivity Grade: C). Human resource systems can add passivity or erode it. Good employees nurture money trees. Bad employees pluck the fruit of money trees and require pruning. However don’t let that scare you. If you want to make millions of dollars, or billions, human resource systems are needed, because you can’t do everything yourself.
What Does the Book Do Well?
The Millionaire Fastlane really shines once the book transitions to discussing The Fastlane mentality. It teaches the reader how to adapt the Fastlane mindset, describes the many different routes to obtaining wealth, and how to accelerate that process. It talks about why following your passion is bullshit, and explains how to make the best use of your time.
I love that this book gives actionable strategies and doesn’t just bloviate on things that have been talked about a hundred times over in other books. For example, when determining what type of business or opportunity you should explore, it talks about the five commandments of need. This list represents a litmus test that will validate your Fastlane road.
- Control: How much control you have over your revenue streams. The more the better.
- Entry: How hard is it to enter your industry? The more difficult, the better.
- Need: Are you satisfying a market need? The more powerful the need, the better.
- Time: How much money you can make when you’re away? The more the better.
- Scale: How easy is it to distribute your product to more people? The more the better.
The Millionaire Fastlane will reframe how you think about life, business, and the way to obtain wealth. It is one of the most valuable and life changing books that I have ever read.
Sidenote: I am not a millionaire. This book will not make you an immediate millionaire. You have to work your ass off. You have to fail. And you have to keep working your ass off after you fail. I will be a millionaire, and when I am, it will be because of this book.
Buy this book. Buy it now. Then read the book. Then read it again. Next, start working your ass off. Finally, become a Fastlane Millionaire.
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