THE ESSENCE OF THE MILLIONAIRE FASTLANE BY MJ DEMARCO

In this book, the author, MJ Demarco debunks the myth of slowlance and explain the fastlane track to become millionaire in short time. He describes and compares three financial pathways: Sidewalk, Slowlane and Fastlane.

Sidewalkers are salaried persons who are one paycheck away from going broke. They are living a lifestyle beyond their means and piling-up debt to sustain their luxurious lifestyle. They sacrifice their future to live present luxurious lifestyle. How would that debt be repaid? Of course, by working harder and much longer, often exceeding 8 hours a day. For example, a home mortgage is often for 30 years. How would that be repaid? By continuously working for 30 years. Usually salary is meager for majority of people so they will continue to work harder and for longer hours in their entire lifetime in a hope to obtain a dream house. They will continue to chase money because they are relying on it. Sidewalkers are paving a path of poorness.

Slowlaners are salaried persons who live frugal lives, save money and invest in financial market, mostly stock market. The saved money is invested in accounts like 401(k), IRA or directly in stock markets (mutual funds, index funds etc.). They rely on their jobs to maintain constant cash flows and market to increase their wealth.They are neither in control of their source of income (could be fired anytime) nor the markets. The author also does not like this financial pathway. He is of the view that people following this path are sacrificing their present to achieve a wealthy future. The author is of the opinion that people are following a delusion because they are relying on historical data that the market returns 8% annually on average. What if the market does not return 8% annually from hereafter? What if the job is suddenly lost? They are not in control of these actions so they are buying a delusion because it has been advocated by many financial advisers. He emphasis to study the people who are advocating this lifestyle with the focus on how did they got rich. Whether they got rich by following their own teachings (investing in mutual funds) or other means. The financial meltdown of 2008 and 2020 have greatly exposed the myth of market returns. 50% fall in portfolio is disastrous. Just imagine if someone is retiring in 2020 and suffers 50% fall in one's retirement investment. 30 to 40 years of effort by putting money in market gone in a few years. They will have to continue working.

Fastlaners includes entrepreneurs, CEOs, etc. It is the fastest method to become wealthy in short amount of time. In this path, persons do not have to sacrifice either their present or future to live a wealthy life.

What is the purpose of money? Financial Freedom.. And what is the purpose of achieving Financial freedom? Freedom to do what you want to do, spend time with family and friends, etc. Are Sidewalkers and Slowlaners achieving financial freedom. No. But Entrepreneurs, CEOs, Self-Employed Individuals are. So why not put hard work on establishing business rather than working for somebody else and fulfilling their dreams instead of your own.

Following points are highlighted by the author in the book pertaining to the fastlane track:

Exponential annual growth is possible like 300%, 1000%.
Law of Effection: Effect millions to become millionaire. Effect billions to become billionaire.
Become producers rather than consumers. Instead of buying shoes, start making shoes.
"Get Rich Quick" is possible. Do not confuse it with "Get Rich Easy".
There are opportunities wherever there are complaints. Solve them and there lies your business. Improve the customer service. Improve the already existing technology. It does not always have to out of the reality invention like Electricity, Airplanes. Cars etc.
Difference between risk factors of slowlane and fastlane pathways is in single percentage digits. Slowlane is a risky path. So do the fastlane. But the risk factor is nearly same.
Fastlane business should fulfill the NECST. N-Need of the society. E-Entry barriers (high).C- Control (price, marketing, product etc.). S-Scale (in magnitude(unit profit) or quantity (unit sold)). T-Time (do not always require owner's presence)
Focus on one business at a time.
Keep learning and keep improving. Fastlane requires a lot of hard work.
Execution is more important than idea.
Et cetra

My Intake of this book

The millionaire fastlane is a fantastic book. Prior reading this book, I was of the view that slowlane is the path to riches. Business is risky and should be avoided as far as possible. This book changed my perspective on money. It is often advocated that money is all about mindset. Keep the right mindset and achieve financial success.

It is a good book. If you are following slowlane track, you should read it to expand your horizon about financial literacy.