The Millionaire Fastlane is about how to create Wealth that is separate from your time. It is about the forms of Wealth that create ongoing income without active management.
What is Wealth?
Wealth is a process of beliefs, choices, actions, and habits that form a lifestyle. Wealth is created exponentially not linearly. Millionaires are created from the exponential growth of income and asset value, not cutting expenses. Wealth is a process, not an event.
The question is how do you create such wealth? Let’s discuss the big ideas in the book.
Wealth and Value
Let’s look at wealth and value. Money is a medium for the exchange of value. Creating something of value is the only path to attract money. To create value, you must swap your allegiances from consumer to producer.
When you have what others need, money will flow into your life. Many of the best businesses in the world are based on products that already existed. The owners solved the problem better.
You must focus on what attracts money, and that is a business that solves needs. Money comes from providing value.
The more people whose lives you affect in an environment you control, the more money you will make. When you solve needs on a massive scale, money flows into your life. Money reflects value. Assuming you are providing value, the Internet is the fastest path to wealth.
Wealth and Scale
The next big idea is wealth and scale. You must replicate your system and take advantage of scale. Get on a playing field where home runs can be hit. To make millions, you must impact millions. To impact millions, you must be on a field capable of affecting millions. Your total pool of customers determines your habitat. The larger the habitat, the greater the potential for wealth.
“To make millions you must serve millions in scale or a few in magnitude”
The Millionaire Fastlane
MJ Demarco
Wealth and Time
The third big idea is wealth and time. A business attached to your time is a job. The wealth equation is not bound by time. And its variables are unlimited and controllable. Be careful of businesses that are in disguise as jobs.
Wealth cannot be accelerated when pegged to mathematics based on time. You must detach your time from your business. You must automate your business to detach it from your time.
Passive Income and Early Retirement
The fruit from a money tree is passive income. If your passive income exceeds all your needs and lifestyle expenses including taxes, you’re retired. Retirement can happen at any age.
The best passive-income money-tree seedlings are:
- Rental Systems,
- Computer Systems,
- Content Systems,
- Distribution Systems, and
- Capital Systems.
Examples of Money Tree Systems are:
- Real estate, licenses, and patents are examples of rental systems.
- Internet and software businesses are examples of computer systems.
- Authoring books, blogging, and magazines are forms of content systems.
- Franchising, chaining, network marketing, and television marketing are examples of distribution systems.
- Index and Mutual funds are examples of capital systems
Taking Action
Finally, the steering wheel of your life is your choice. You are exactly where you chose to be. You must act now. There is never perfect timing and waiting for “someday” just wastes time. You must start with a business that uses a money system seedling or introduces one.
Ideas are potential speed. Execution is actual speed. Real money and momentum are created when an idea is matched with execution. Success resides in execution, not in the idea.
My Take
This book has had a huge influence on my life. The setting up of my blog was a direct action from the book. The book also grounded my understanding of wealth and time. You cannot rent your time and be wealthy.
To wrap up, Wealth is built through providing value and cost-effectively delivering that value at scale.
Practical Insights
- Create a business that provides value to customers
- Deliver the value in a cost-effective manner
- Be able to scale the delivery without additional cost
- Separate the business from your time
- Set your goals.
- Learn to manage your time and manage money.
- Learn to earn more.
Buy the Book:
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