The Millionaire Fastlane Summary: MJ DeMarco

The Millionaire Fastlane Summary

The Millionaire Fastlane Summary provides a free book summary and review, key takeaways, top quotes, author biography and other key points of MJ DeMarco’ book. The Millionaire Fastlane is a classic written by MJ DeMarco. MJ founded Limos.com and was its CEO before selling the business. He is a successful entrepreneur and popularly called the “get-rich-slow” anti-guru. MJ also founded The Fastlane Forum and Viperion Publishing Corp. His bestseller, The Millionaire Fastlane is an eye-opening financial book.

Overall, this book The Millionaire Fastlane focuses on the idea of becoming rich fast. MJ disagrees with the concept of “studying-to-get-high-grades-in-school, work hard, save money and then retire wealthy. He defines the meaning of getting rich. MJ also outlines his idea of building wealth. Plus, he guides how you too can retire young and rich.

This article offers you the summary of the book. Plus, it also includes some major points which MJ shares with his readers.

“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”

The Millionaire Fastlane Summary

Wealth in a Wheelchair… “Get Rich Slow” is Get Rich Old

MJ was raised in Chicago. He was an obese kid and had very few friends. MJ was more interested in donuts and video games than in girls. He grew up in a typical neighborhood and watched too much TV.

One day, an incident changed his life forever. MJ was out to get his favorite ice-cream. It is then that he saw his dream car, the Lamborghini Countach. He was speechless because he loved that car so much. He worshipped the car. Then, MJ saw that the owner of the car was around 25-year-old. The owner was dressed in an over-sized shirt and blue jeans.

MJ was more shocked seeing the owner than he was by seeing the car. He had expected the owner to be way older. Most people would think that no way anyone can get so rich so young. So, MJ went to the owner and asked what he did for a living.

The owner responded by saying that he was an inventor. MJ was awestruck. And this moment changed his life forever. He began understanding the Fastlane. From then on, he started his quest for the millionaire Fastlane method. He discarded the idea where one needs to work hard for years and retire old and rich. Instead, MJ now wanted to retire young and rich.

Most of us hold the incorrect view of wealth. We think that becoming rich has bearings with fame and talent. Even MJ thought that he had to be someone famous to become rich. But, this is not true.

Wealth is Not a Road, But a Road Trip

The second part of the book tells why the cliché “get-rich-slow” is a losing game. It requires a long life of painfully working. Your golden years are when you are young. When you are full of energy and consciousness. And not when you get old and have no energy left to enjoy the riches.

You need to know that wealth is not an ingredient. Instead, it is a formula. Plus, it is the process which makes you wealthy, not singular events. People focus on events like winning a major contract or selling their firm. But, the actual key is not in the event. Instead, it is the effort, hard work, and process which makes these events possible. So, if you skip the whole process, you will not reach the event.

MJ also points that talent and fame are not needed for wealth. Change can happen any second. Wealth is built explosively, and not linearly. MJ also states that there are just three kinds of financial roads: Fastlane, Slowlane and Sidewalk.

Poorness: The Sidewalk

The Sidewalkers live well today at the cost of having greater security tomorrow. They end up being poor.

Sidewalkers see debt as an asset, and they prefer spending over saving. Plus, sidewalkers want instant gratification. They do not plan for the long-run.

Being a Sidewalker is harmful. Why? Because events like recessions, job cuts, etc. could be damaging for people living from paycheck-to-paycheck. Remember, being a Sidewalker does not mean you are poor. Many wealthy people earn a lot but spend frivolously.

MJ also says that being rich is not about a luxury car or a mansion. Being wealthy means being in good health, having great family and friends. It also means the choice to live life the way you want. This is where he points to the 3Fs (Family, Fitness, and Freedom).

Sidewalkers chase wealth events like hoping to hit a bonanza or gambling.

Mediocrity: The Slowlane Roadmap

The second financial road which most of us travel on is Slowlane. Slowlaners sacrifice today for a better future tomorrow. This is opposite to the Sidewalk.

It is also a bad choice because you cannot enjoy wealth in old-age. Instead, you can enjoy it when you are young and healthy. Also, if you walk on the Slowlane, there are many elements you cannot predict. For example, market performance or recession. Many people lost nearly half their savings during the financial and housing crises.

Let’s say you sacrifice your time to earn money. You budget rigorously, seeking coupons and deals. So, you do manage to save a lot and invest it in the stock market. You are now happy that you will enjoy the long-run compound interest. In this whole process, you spent two decades of your prime years. And then the one-day financial crisis hit, and you lost everything. How would you feel? This is the mindset of the Slowlaner.

Slowlaners toil from Monday to Friday to enjoy the weekend. This is similar to trading $5 for $2. Do you wish to trade five weekdays for two weekend days?

Having a job will restrict your leverage and control over your money. When you keep a job, means you sell your time for money. Besides, the experience you gain is limited. You will learn a lot more in a month doing your own business. Plus, there is no control of yours on your income. Because your employer gives you a salary.

MJ advises to not rely on your job to become wealthy. You have restricted leverage as your value depends mainly on your time. Plus, you cannot work ten times your working hours.

The Problem with Compound Interest

There is one more problem with Slowlane. The compound interest mantra works mostly during the end of your waiting tenure. Consider a chart which says investing $10k will produce $2.5mn in 40 years. This sounds great. But, what Slowlaners do not realize is that their investment turns $160k in 20 years. And $600k in 30 years. Means, a large portion of the money is collected in the last decade.

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Let’s suppose the market does not do as great in the coming times. Or, even worse what if you die after 30 years? The issue with compound interest is that it needs a long time for fruition. This is what MJ says in his book:

“Ponder over it. Have you ever seen a graduate who became wealthy investing in mutual funds? How about the person who purchased municipal bonds in 2007 and retired in 2010? I wonder if that man driving a $1.2mn car can owe to his mutual fund portfolio? Such people do not exist. Because the wealthy young are not leveraging 8% returns but 800%.”

The Slowlane is full of hope. You hope for a promotion or for the shares to go up.

Stay Away from Financial Gurus

MJ also warns his readers to stay away from financial gurus. These so-called gurus hardly get wealthy following their advice. Instead, such gurus make money by writing books and selling courses. So, be cautious when you take advice from anyone. Ensure that they preach what they practice.

“Time isn’t a commodity, something you pass around like a cake. Time is the substance of life. When anyone asks you to give your time, they’re really asking for a chunk of your life. ~ Antoinette Bosco”

Wealth: The Fastlane Roadmap

The Fastlane approach is not very different from Slowlane. But, its rewards are far greater. Do not confuse “get rich easy” with “get rich fast.” Below are some differences between Slowlane and Fastlane:

  • Slowlaners spend years to collect wealth. But Fastlaners usually take ten years or less.
  • Slowlaners let the market control their money. But, Fastlaners control their assets and can change their value.
  • Slowlaners work for others. But, Fastlaners employ others.
  • Slowlaners use stocks to become rich. But, Fastlaners use these to remain rich.

Hence, Fastlane is all about doing a lot of work early on. You might need spending 5-10 years on your business before reaching your desired success. But, once you reach that level, you become financially free. You can then spend the rest of your life your way.

Fastlaners do not do the heavy lifting to build massive wealth. Instead, they build a system which does the heavy lifting. But, this does not imply avoiding work. Instead, it means being optimal and resourceful.

MJ explains using the example of making a pyramid. The Slowlane method is to carry each stone yourself. One at a time. Such an approach will consume years, and you will tire out. The Fastlane strategy is to first design a system like a pulley for carrying stones. So, at the onset, you build a system while the Slowlaners may laugh at you. But, once the system is done, your efforts will pay off. Now you can make the pyramid faster and more easily.

You do not need to work for 40-50 years to become a millionaire. Instead, use the Fastlane approach. Spend the initial few years creating the system. Then you can make millions after that.

Become a Producer

Since your birth, you were trained to be a customer. You will behave like a customer. That is, you need, want and buy products. And you seek the cheapest products. But, if you’re going to be Fastlaner, you should be a producer. So, think like a producer too.

Do not buy products on TV. Instead, sell them. Rather than digging for gold, sell shovels. Instead of paying for seminars, be the one who holds such seminars. Do not seek a job. Become an employer and hire others. Rather than taking a mortgage, hold one. When you shift your mindset from a customer to a producer, you become Fastlaner.

“Many people want to change their life, but they are not will to change their choices, and ultimately this changes nothing.”

Divorce Wealth from Time

MJ advises readers to create money trees. These are systems which feed on their own. Money trees do need periodic nurturing. But, they can survive themselves. Below are a few examples of money trees:

  1. Rentals – You may rent out your licenses, real estates, patents, etc.
  2. Software – If sell your software online, you optimize internet use. Through the internet, you can make your software available to the whole world.
  3. Content – Writing books, blogs, magazine columns. Making videos, audios, etc.
  4. Distribution system – This covers franchising, TV marketing, networking marketing, etc.

The Slowlaners use compound interest to become rich. But, the Fastlaners use to maintain their riches. For example, a Slowlaner begins with $10 and waits for decades to see it grow into millions. In contrast, the Fastlaner begins with millions. He uses interest as his income source and not a growth source.

To earn millions, you should first serve millions. The Law of Effection applies here. It says that the more people you serve, the more money you can earn.

Your Vehicle to Wealth: YOU

You should first learn how to earn your vehicle. Only then can you start making millions. And this vehicle is you. The phrase “pay yourself first” is impossible to attain in a job. So, begin a corporation which separates you from an act of business.

The ideal business structure is an LLC. This is because it offers tax efficiency and limited liability. Plus, avoid sole proprietorships and partnerships. Such forms do not confine liabilities.

Your choices will define your life. Bad choices are the main reason for poverty. Plus, the choices you make when you are young have the greatest impact. If you change route at the onset of a 10,000-mile trip, it makes a big difference. But, if you change in the final 10-miles, you will mostly arrive in the same place.

As per MJ, the choice is the strongest control you can exercise. Sadly, many people make bad choices by walking on a Sidewalk or Slowlane. Hence, make choices which will take you into Fastlane. You can do this by changing your thinking and actions. When you master your picks, you optimally use time.

Techniques to Make Choices

He continues that there are two great ways to make choices. First is Worst Case Analysis (WCA). Second is the Weighted Average Decision Matrix (WADM).

Using WCA is simple and direct. All you need is to ask the below three questions:

  • What would be the worst case?
  • What are its chances of happening?
  • Can you accept this risk?
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Under WADM, you need to identify the factors which matter to you. Then assign weight to each of them. Rate your choices on every factor. Then multiply the ratings with the assigned weights. This will give you the score for every choice. Then you decide by the highest score.

If you have debts, you will have to work longer and harder. MJ says debts are parasitic. It is because they restrict your choices. So, while making a huge purchase, consider its time cost. Is that $70k car worth two years of your life?

The key to control your debts is to manage instant gratification. You can avoid debt by not buying useless things.

MJ writes, “show me a person who spends hours on the internet playing. I will show you the person who is not very successful. When life is rough, people seek escapes. I do not need TV because I invest my time in real life. And not a false escape which airs every Monday at 9p.”

Fastlaners are economical about time, while slowlaners are economical with money.

The Roads to Wealth

In this section, MJ talks about Fastlane business which meets the 5 Commandments. These are:

  1. The Commandment of Need

Never do a business merely because you want to earn. No-one cares about a business that wants its owners to get wealthy. Hence, do business because you plan to meet a need, fill a gap. Yes, it is true that you ought to love what you do. But, people are not going to pay for your passion. They will pay for your solution.

  1. The Commandment of Entry

Choose a business which is hard to enter. The harder it is, the better you will do. If you breach this commandment, you should be extraordinary in your game. For example, blogs were new some years back. That time, being a full-time blogger was a great pick. But, now it is very easy to start a blog. It might not be a great business model unless you are exceptional at it. If it is simple to do your business, everyone can do it. But, everyone does not become wealthy.

  1. The Commandment of Control

You will get full control through the Fastlane business. For example, you wish to sell franchises and not buy them. Or take rent and royalties for instance. You will not pay them, rather accept them. If someone else can make a change to damage your business, yours is not Fastlane business.

  1. The Commandment of Scale

Business has some levels of scale. That is community, town, region, state, national, and global. The bigger your scale of business, the more you earn. Is there is a restriction on how much your business can scale? Then your business will not go very far. So, before entering into any business, ask what its scale is.

  1. The Commandment of Time

Lastly, an actual Fastlane business should automate. Ask yourself if your business can run without you spending too much time and effort. Making money and having time to enjoy it needs a business which can be automated.

Some Fastlane Business Ideas

The followings are some Fastlane business you may think of entering into:

  1. The Internet

It is easy to scale and automate online businesses. For example, social networking, lead generation, content-based, e-commerce, etc.

  1. Innovation

Invent a product and then produce and sell it. A common misconception is that an invention needs a lot of creativity. This is not true always. Most successful products are an improvement on an old product. They are not made from scratch. Instead, they are a better version to serve the consumers better.

Though the invention is vital, it is a distribution which earns you money. Thus, master the skill of distribution if this is your area.

  1. Iteration

Iteration,n breaches the Commandment of Scale. Consider renting real-estate and buying a franchise. Here you limit your scaling potential due to location constraint. Your income will be limited if you do not buy another real-estate or franchise.

When in business, do not make it about competition. Your goal must be to do things better than the rest. Also, you must aim at improving your products/services. It is not always about creating breakthrough designs. Instead, it is more about mending the performance gaps.

One great way to find opportunity is finding what people complain about. Or look for inefficiencies in goods or service. Others may also be exploiting concepts or already doing it. It does not matter. Do not bother about others. Focus on outdoing them.

Your Speed: Accelerate Wealth

This is the last part of the book. Here MJ explains why speed is the conversion of ideas. Plus, how implementation can take you into Fastlane. Humans love events. Hence, most people have remarkable ideas. But, they fail to succeed. It is because ideas are events, while implementation processes.

MJ also advises to not approach your business just from one angle. For instance, you want to only compete on price. This will not work in the long-run. Instead, create a multi-dimensional business. Then you can lower costs, increase prices, sell more, etc.

Make Your Customers Your Boss

MJ always tells his workers, “the consumers pays your salary, not me. So, keep them happy.” In the world of business, you do not have a boss. But, the person who pays you is your consumer. And they must always be heard. So, multiply your business by formulating an incredible consumer service strategy.

MJ writes, “business succeeds by making your consumer the boss.” Whenever you find that a business’ consumer service is bad, there exists a business opportunity.

Build Brands, Not Businesses

When you do business, you will run into competition. The best means to win the competition is to create a brand people trust. Companies suffer from identity crises. But, brands do not. This identity crisis compels the business owners to enter into price wars.

MJ shares an interesting tale about branding in his book:

“Cleaning his basement, a person found an old dresser. He decided to dispose of it. That man placed the dresser to a street corner. He put a sign on it” FREE. Surprisingly, no one took it. It stayed there for days. This was confusing for the man. The dresser was old but in decent shape. It only needed paint for perfection. So, the man now thought of a new strategy. He went to the dresser’s location and put a new sign: $50. In less than an hour, the dresser was taken away.”

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This example makes it very clear. Price does not determine if a business will thrive or survive. But, branding and marketing of business do matter.

A spread out focus results in scattered results. Having ten businesses earning $15,000 collectively are no good if one business does it alone.

MJ advises picking monogamy over polygamy. Do not spread your attention and shift from business-to-business. Instead, focus only on one Fastlane business and stay 100% committed to it.

Last Section

Finally, MJ sums up the top criteria for creating a Fastlane business. He stresses that the “get rich slow” mindset is wrong. Hence, one must focus on the Fastlane to get rich fast.

Also, remember the five commandments if you want to build a Fastlane business. Plus, move from a consumer mindset to a producer mindset. Once your Fastlane business is up-and-going, create brands. Then learn how to market your brand properly.

“All events of wealth are precluded by process, a backstory of trial, risk, hard work, and sacrifice. If you try to skip process, you’ll never experience events.”

The Millionaire Fastlane Review

The Millionaire Fastlane is a very popular book in the category of finance book. Its subtitle reads, “crack the code to wealth” and it essentially promises to guide the readers to the actual path of wealth. The book has several strong points. It helps you think and act like an entrepreneur and not an employee. It shows the core criteria you require to fulfill to run a successful business. Besides, the book emphasizes a single specific means to become rich rather than keep you guessing. The concepts written in the book are achievable and concrete.

The first half of Millionaire Fastlane is a cold-blooded assassination of everybody and anybody who diverts from his big plan. The latter half contains an excellent depiction of what it takes to draw wealth. His evaluation of entrepreneurship is the kind which gets the readers lining up the parallels with their business. He offers the imperative busting of the myth that working for yourself is synonymous with financial freedom. There are instances in the concluding sections where the book connects with the readers in a manner that no other book has managed to do yet.

There is not any major flaw in the book, but a few small things could have been better. Firstly, it is a very long book, and some chapters become repetitive which could have been deleted. Secondly, more pragmatic advice would have been better. When a reader finishes reading it, he/she can understand what it is speaking about, but it could have been great if it provided a more precise vision. MJ sometimes appears to be an obnoxious, harsh and annoying writer. This method does help in connecting with the young cash-starving audiences, but MJ does push the boat many times. But, it is also true that by the time you arrive at the last page, you will feel too overwhelmed with inspiration even to care.

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The Millionaire Fastlane Quotes

“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”

“Time isn’t a commodity, something you pass around like a cake. Time is the substance of life. When anyone asks you to give your time, they’re really asking for a chunk of your life. ~ Antoinette Bosco”

“Many people want to change their life, but they are not will to change their choices, and ultimately this changes nothing.”

“All events of wealth are precluded by process, a backstory of trial, risk, hard work, and sacrifice. If you try to skip process, you’ll never experience events.”

“There’s a profound difference between interest and commitment. Interest reads a book; commitment applies the book 50 times.” “I’m a great believer in luck, and I find the harder I work, the more I have of it. ~ Thomas Jefferson”

“Instead of digging for gold, sell shovels. Instead of taking a class, offer a class. Instead of borrowing money, lend it. Instead of taking a job, hire for jobs. Instead of taking a mortgage, hold a mortgage. Break free from consumption, switch sides, and reorient to the world as producer.”

“Your choices are made in a moment, and yet their consequences transcend a lifetime.”

“If millions seek you, you will be paid millions.”

“Stop thinking about business in terms of your selfish desires, whether it’s money, dreams or “do what you love.” Instead, chase needs, problems, pain points, service deficiencies, and emotions.” 

“The ideal tyranny is that which is ignorantly self-administered by its victims. The most perfect slaves are, therefore, those which blissfully and unawaredly enslave themselves.
~ Dresden James, Author” 

“The brick walls are there for a reason. The brick walls are not there to keep us out; the brick walls are there to give us a chance to show how badly we want something. The brick walls are there to stop the people who don’t want it badly enough. They are there to stop the other people!” 

“you are owned by your shit, which is owned by your debt, which is either owned or profited by a corporation. So you work for a corporation, everything you buy comes from a corporation, everything you watch is produced by a corporation, and the debt you owe is held by a corporation. Ah” 

“I awoke to the epiphany that I was the driver of my life and my problems were the consequences of my choices.” 

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