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Retire from your 9-5 job with ease

Today’s book review is going to be on Millionaire fast lane by MJ Demarco, the author doesn’t have too many books to his credit however this book is a popular one as it breaks the conventional model of generating wealth. If Rich Dad Poor Dad by Robert Kiyosaki is a map to get you started on the Personal Finance & Investing space, The Millionaire Fastlane is a guidebook to chuck the latter and to get you started on the Financial Independence, Retire Early (FIRE) movement via Entrepreneurship. This book is about the principles on how to become a high-speed entrepreneur and craft a business to get you into the “Fastlane”. Everything revolves around the following two core ideas:

  1. The Three Financial Roadmaps to Wealth and that the only way to build wealth quickly (we are talking about 3 to 5 years) is by following the strategies of the third roadmap: The Fastlane.

  2. The only way to get into the Fastlane is by being a producer: an entrepreneur, an innovator, a visionary, a creator.

The Three Financial Roadmaps to Wealth The three financial roadmaps to wealth are

  • The Sidewalk

  • The Slowlane

  • The Fastlane

Without even knowing, you are right now going down in one of the three paths. Each roadmap contains key mindsets that provide direction and guide actions within them. A few great examples of the distinctions are on how people in those different lanes perceive Debt, their own Time, Education, Money, Wealth and Responsibility & Control. SIDEWALK The Sidewalk is poverty. You are on the sidewalk when you are living paycheck to paycheck. You don’t even know there is anything different other than the rat-race. All you have is debt in the bank. You give no value to your own time, and sometimes you spend hours in a line to get free samples, and you would drive for 2 hours to get a $20-dollars discount.

You spend your free time watching TV, playing video games and complaining about life. You think leaving money in a savings account is a great idea. You believe your house is the greatest asset one can have. Last time you read a book was in school. You blame your family, your boss, your company and the government on everything that goes wrong in your life. SLOWLANE The Slowlane is mediocrity. You are on the slowlane when you are paying yourself last. You can save a percentage of your gross (pre-tax) and net (after-tax) income. You know you will only be able to enjoy life after your retirement at age 65. You believe that the only way to get rich is slowly relying on the stock market and the magic of the compound interest over many decades. You regret that you were unable to when you were 11 years old because that could have been the only chance for you to retire at age 45.

You have a few thousand dollars in your 401k account along with a big mortgage that is going to take another 15 years to pay down. You know the value of your time, and you don’t waste it. You believe there is a direct relationship between time and income and you know there is cap on your income due to the maximum amount of hours that you can work on a day. You know leaving money in a savings account is not a good idea. Your preferred way of investing is via index-funds with a mix of bonds and stocks. You still believe your house is an asset. You like books and you know they are essential for your growth, but you usually "don’t have time" left on your week to read. The only reason education is important to you is to help you to earn a bigger salary. You still occasionally blame your family, your boss, your company and the government when certain things go wrong in your life. "The Slowlane is a job: your hard work traded for your employer’s cash. To get rich, you’re told to get stronger (spend money, return to school, and earn more in the job market) so you can lift heavier stones.” FASTLANE The Fastlane is wealth. You are on the fastlane when your sources of income and your lifestyle are characterized by maximum control and unlimited leverage. You don’t have your income attached to your time. You have full control of your wealth acceleration vehicles. You can build and grow your wealth without depending on Wall Street. You can enjoy your life now if you want. You see debt as a tool that allows you to build and grow your system. You know that the most effective way to use the stock market and get the compound interests to work for your is by putting a large sum of money in one-shot instead of a tiny amount every month over decades. You regret that you were unable to start your first business sooner. You own multiple business and income streams. You know your greatest asset, far exceeding money is your own time. You are fully accountable and blame only yourself for everything that goes wrong in your life. The winning team is Team Producer. Reshape life’s focus on producing, not consuming. When you reframe your thinking from majority thinking (consumer) to minority thinking (producer), you effectively switch teams and allegiances. Yes, become a producer first and a consumer second. Applied, this means instead of buying products on TV, sell products. 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. Break free from consumption, switch sides, and reorient to the world as producer. How you can achieve this is channelizing your time into anything that requires creativity and attentions, for instance you can handover the heavy lifting of laundry, car wash , house cleaning etc to someone else. Purchasing groceries online can help save your time into building business in the fastlane.

"To switch teams and become a producer, you need to be an entrepreneur and an innovator. You need to be a visionary and a creator. You need to give birth to a business and offer the world value." "The Fastlane is about building a better system, a better contraption, a better product, or a better “something” that will leverage your work. In the Slowlane, you are the source of heavy lifting, while in the Fastlane, you construct a system that does it for you.” CONCLUSION This book may not appeal the audience who are looking forward to job security and shy away from taking risks. This is a model which if followed can bring you great returns which is explained throughout the course of the Author's journey. Again there are areas where the fast lane and slow lane hits a sweet spot when it comes to investing in stocks with a major difference in the way the leverage is made. I would love to hear back from you, please provide your thoughts in the comments below.

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