Month: January 2024

The Millionaire Fastlane: Chapters (16-20) Summary

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Wealth’s Shortcut::
The Fastlane

People would do better, if they knew better.
~ Jim Rohn

The Fastlane Mindposts

Debt Perception: Debt is useful if it allows me to build and grow my system.
Time Perception: Time is the most important asset I have, far exceeding money.
Education Perception: The moment you stop learning is the moment you stop growing. Constant expansion of my knowledge and awareness is critical to my journey.
Money Perception: Money is everywhere, and it’s extremely abundant. Money is
a reflection of how many lives I’ve touched. Money reflects the value I’ve created.
Primary Income Source: I earn income via my business systems and investments.
Primary Wealth Accelerator: I make something from nothing. I give birth to assets and make them valuable to the marketplace. Other times, I take existing assets and add value to them.
Wealth Perception: Build business systems for cash flow and asset valuation.
Wealth Equation: Wealth = Net Profit + Asset Value
Strategy: The more I help, the richer I become in time, money, and personal fulfillment.
Destination: Lifetime passive income, either through business or investments.
Responsibility & Control: Life is what I make it. My financial plan is entirely my responsibility and I choose how I react to my circumstances.
Life Perception: My dreams are worth pursuing no matter how outlandish, and I understand that it will take money to make some of those dreams real.

Chapter Summary: Fastlane Distinctions
••The risk profile of a Fastlane strategy isn’t much different from the Slowlane, but the rewards are far greater.
••The Fastlane Roadmap is an alternative financial strategy predicated on Controllable Unlimited Leverage.
••The Fastlane roadmap is predisposed to wealth.
••The Fastlane Roadmap is capable of generating “Get Rich Quick” results, not to be confused with “Get Rich Easy.”

Switch Teams
and Playbooks

A man wrapped up in himself makes a very small bundle.
~ Benjamin Franklin

Chapter Summary: Fastlane Distinctions
•• Producers are indigenous to the Fastlane roadmap.
•• Producers are the minority as are the rich, while consumers are the majority as are the poor.
••When you succeed as a producer, you can consume anything you want.
•• Fastlaners are producers, entrepreneurs, innovators, visionaries, and creators.
••A business does not make a Fastlane—some businesses are jobs in disguise.
••The Fastlane wealth equation is not bound by time and its variables are unlimited and controllable.

How the Rich Really Get Rich

Only those who will risk going too far
can possibly find out how far one can go.
~ TS Eliot

Chapter Summary: Fastlane Distinctions
••The key to the Fastlane wealth equation is to have a high speed limit, or an unlimited range of values for units sold. This creates leverage. The market for your product or service determines your upper limit.
••The higher your speed limit, the higher your income potential.
••The primary wealth accelerant for the rich is asset value, defined as appreciable assets created, founded, or bought.
••Wealth creation via asset value is accelerated by each industry’s average multiplier. For every dollar in net income realized, the asset value multiplies by a factor of the multiple.
••Your industry of specialization will determine the average multiple that determines your wealth accelerant factor. If the multiple is 3, your WAF is 300%.
•• Liquidation events transform appreciated assets (“paper” net worth) into money (“real” net worth) that can be transformed into another passive income stream: a money system.

Divorce Wealth from Time

Time is the coin of your life. It is the only coin you have,
and only you can determine how it will be spent.
Be careful, lest you let other people spend it for you.
~ Carl Sandburg

The Five Fastlane Business Seedlings:

1) Rental Systems
2) Computer/Software Systems
3) Content Systems
4) Distribution Systems
5) Human Resource Systems

Chapter Summary: Fastlane Distinctions
•• To divorce yourself from the Slowlane’s transactional relationship of “time for money,” you need to become a producer, specifically, a business owner.
•• Business systems break the bond between “your time for money” because they act like surrogate operatives for your time trade.
•• If you have a passive income that exceeds all your needs and lifestyle expenses including taxes, you’re retired.
•• Retirement can happen at any age.
••The fruit from a money tree is passive income.
••A Fastlane objective is to create a business system that survives time, exclusive of your time.
••The 5 money-tree seedlings are rental systems, computer systems, content systems, distribution systems, and human-resource systems.
•• 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.
•• Human resource systems can add or subtract to passivity.
•• Human resource systems are the most expensive to manage and implement.

Recruit Your Army
of Freedom Fighters

The rich rule over the poor, and the borrower is slave to the lender.
~ Proverbs 22:7 (NIV)

Chapter Summary: Fastlane Distinctions
•• One saved dollar is the seed to a money tree.
••A mere 5% interest on $10 million dollars is $40,000 a month in passive income.
••A saved dollar is the best passive income instrument.
•• Fastlaners (the rich) don’t use compound interest or the markets to get wealthy but to create income and preserve liquidity.
••A saved dollar is a freedom fighter added to your army.
••The rich leverage compound interest at its crest, applied against large sums of money.
•• Fastlaners eventually become net lenders.

The Millionaire Fastlane: Chapters (11-15) Summary

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The Criminal Trade: Your Job

By working faithfully 8 hours a day, you may eventually
get to be the boss and work 12 hours a day.
~ Robert Frost

Jobs: Domestication into Normalcy

To Trade Time Is to Trade Life. In a job, you sell your life for money.

Chapter Summary: Fastlane Distinctions
•• In a job, you sell your freedom (in the form of time) for freedom (in the form of money).
•• Experience is gained in action. The environment of that action is irrelevant.
••Wealth accumulation is thwarted when you don’t control your primary income source.

The Slowlane:
Why You Aren’t Rich

Somebody should tell us, right at the start of our lives, that we are dying.
Then we might live life to the limit, every minute of every day. Do it! I say.
Whatever you want to do, do it now. There are only so many tomorrows.
~ Michael Landon

For compound interest to be effective, you need three things:
1) TIME, as measured in years.
2) A favorable YEARLY INVESTMENT YIELD within those years.
3) An INVESTED SUM, repeatedly invested.

Wealth is built with time as an asset, not as a liability!

Chapter Summary: Fastlane Distinctions
•• Slowlane wealth is improbable due to Uncontrollable Limited Leverage (ULL).
•• The first variable in the Slowlane wealth equation evolves from a job that factors to intrinsic value that equates to your nominal value for each unit of your life traded.
•• Intrinsic value is the value of your time set by the marketplace and is measured in units of time, either hourly or yearly.
•• In the Slowlane, intrinsic value (regardless of its time measurement) is numerically inhibited because there are only 24 hours in the day (for the hourly worker), and the average lifespan is 74 years (for the salaried worker).
•• Like the Slowlaner’s primary income source (a job), the Slowlaner’s wealth acceleration vehicle (compound interest) is also pegged to time.
•• Like a job, compound interest is mathematically futile and cannot be manipulated. You cannot force-feed the market (or the economy) to give you phenomenal returns, year after year.
••Wealth cannot be accelerated when pegged to mathematics based on time.
•• Time is your primordial fuel and it should not be traded for money.
••Your time should not be an expendable resource for wealth because wealth itself is composed of time.
••Your mortality makes time mathematically retarded for wealth creation.
•• If you don’t control the variables inherent in your wealth universe, you don’t control your financial plan.

The Futile Fight:
Education

The only thing that interferes with my learning is my education.
~ Albert Einstein

Chapter Summary: Fastlane Distinctions
•• Slowlaners attempt to manipulate intrinsic value by education.
•• Indentured time is time you spend earning a living. It is the opposite of free time.
•• Parasitic debt is debt that creates indentured time and forces work.

The Hypocrisy of the Gurus

There was a time when a fool and his money were soon parted,
but now it happens to everybody.
~ Adlai Stevenson

Chapter Summary: Fastlane Distinctions
•• Take advice from people with a proven, successful track record of their espoused discipline.
••Many money gurus often suffer from a Paradox of Practice; they teach one wealth equation while getting rich in another. They’re not rich from their own teachings.

Slowlane Victory…
A Gamble of Hope

I’d rather live in regret of failure than in regret of never trying.
~ MJ DeMarco

12 Distinctions Between Slowlane and Fastlane Millionaires
1) Slowlane millionaires make millions in 30 years or more. Fastlane millionaires make millions in 10 years or less.
2) Slowlane millionaires need to live in middle-class homes. Fastlane millionaires can live in luxury estates.
3) Slowlane millionaires have MBAs. Fastlane millionaires hire people with MBAs.
4) Slowlane millionaires let their assets drift by market forces. Fastlane millionaires control their assets and possess the power to manipulate their value.
5) Slowlane millionaires can’t afford exotic cars. Fastlane millionaires can afford to drive whatever they want.
6) Slowlane millionaires work for their time. Fastlane millionaires have time working for them.
7) Slowlane millionaires are employees. Fastlane millionaires hire employees.
8) Slowlane millionaires have 401Ks. Fastlane millionaires offer 401Ks.
9) Slowlane millionaires use mutual funds and the stock market to get rich. Fastlane millionaires use them to stay rich.
10) Slowlane millionaires let other people control their income streams. Fastlane millionaires control their income streams.
11) Slowlane millionaires are cheap with money. Fastlane millionaires are cheap with time.
12) Slowlane millionaires use their house for net worth. Fastlane millionaires use their house for residency.

Chapter Summary: Fastlane Distinctions
••The Slowlane has seven dangers, five of which cannot be controlled.
••The risk of “lifestyle” is the one risk Slowlaners will try to control.
••The Slowlane is predisposed to mediocrity because its mathematical universe is mediocre.
•• Slowlaners manipulate the “expense” variable because it is the one thing they can control.
•• Exponential income growth and expense management creates wealth—not just by curtailing expenses.
••You can break the Slowlane equation by exploding your intrinsic value via fame or insider corporate management.
•• Successful Slowlaners not famous or in corporate management end in the middle . . . middle class and middle age.
•• Slowlane millionaires are stuck in the middle class.
•• $5 million is the new $1 million.
••A millionaire cannot live a millionaire lifestyle without financial discipline.
•• Lottery winners fall into the millionaire trap and go broke because they attempt to live a “millionaire” lifestyle, not understanding that a few million doesn’t go very far.