“The Millionaire Fastlane” by MJ DeMarco is a refreshing take on achieving wealth and financial freedom. In this book, DeMarco debunks the myth of the traditional slow and steady path to wealth and offers a new perspective on how to create lasting financial success.
My Five Key Takeaways From “The Millionaire Fastlane”:
1. The Fastlane Roadmap
The first key takeaway from the book is the Fastlane Roadmap. DeMarco proposes a framework for creating wealth that involves leveraging five key factors: need, entry, control, scale, and time. He argues that these factors are crucial for creating sustainable wealth, and that any business or venture should be evaluated based on these factors.
An example of this in action is the story of the creation of the iPhone. Apple recognized a need in the market for a smartphone that combined multiple features into one device. They entered the market with a unique design and approach, had control over the production and distribution process, and scaled the product to a global market. This allowed them to create massive wealth in a relatively short amount of time.
One way to apply the Fastlane Roadmap in daily life is to evaluate any business or investment opportunity based on these five factors. By considering each factor and how they can be leveraged, we can make more informed decisions that are likely to lead to long-term financial success.
2. The Law of Effection
The Law of Effection is another key concept in “The Millionaire Fastlane“. This principle states that the amount of money you make is directly proportional to the value you provide to others. DeMarco argues that creating real value for others is the key to building lasting wealth.
One example of this principle in action is the story of Zappos, an online shoe retailer. Zappos built a reputation for providing exceptional customer service, going above and beyond to ensure customer satisfaction. This led to a loyal customer base and ultimately, the acquisition of the company by Amazon for over a billion dollars.
One way to apply the Law of Effection in daily life is to focus on creating real value for others. Whether it’s through a product, service, or expertise, providing value that improves the lives of others is the key to building a sustainable business or career.
3. The Wealth Triad
The Wealth Triad is another key concept in the book. It consists of three essential components:
Income
Savings, and
Investments
DeMarco argues that true wealth can only be achieved by mastering all three components.
An example of this principle in action is the story of a successful entrepreneur who had built a multi-million dollar business. Despite his income, he struggled financially because he had neglected the savings and investment components of the Wealth Triad. Once he began to focus on building his savings and making smart investments, he was able to achieve true financial freedom.
One way to apply the Wealth Triad in daily life is to focus on building all three components. This means not only focusing on earning a high income but also prioritizing savings and making smart investments. I used this actively in my own life.
4. The Sidewalk, Slow Lane, and Fastlane
“Light at the End of the Tunnel [Explored]” by LINCOLNOSE2® is licensed under CC BY-ND
The Sidewalk is the path of those who live paycheck to paycheck, have little to no savings, and are always in debt.
The Slow Lane is the path taken by those who follow traditional financial advice, such as going to school, getting a good job, saving, and investing in the stock market for the long haul.
The Fastlane, on the other hand, is the path that leads to real wealth, financial freedom, and the ability to live life on your own terms.
DeMarco argues that the Sidewalk and Slow Lane are flawed paths because they rely on factors outside of your control, such as the economy, the stock market, and job security. In contrast, the Fastlane is a path that puts you in control of your financial future by leveraging your skills, resources, and entrepreneurial spirit to create a business that can generate significant wealth and financial freedom.
For example, DeMarco uses the example of a plumber to illustrate the difference between the three paths.
The Sidewalk plumber works for a company, gets paid hourly, and has no control over his income or work schedule.
The Slow Lane plumber starts his own business, but still relies on his time and effort to generate income, and is often limited by the size of his market and competition.
The Fastlane plumber creates a system to scale his business, leverage the efforts of others, and build a brand that allows him to charge a premium price for his services.
To apply the concept of the Sidewalk, Slow Lane, and Fastlane in your daily life, you need to start thinking like an entrepreneur and focus on creating value for others. This means identifying opportunities in the market, leveraging your skills and resources, and developing a system to deliver that value at scale. This could involve starting a business, investing in real estate, or creating an online course or product. By following the Fastlane path, you can achieve financial freedom, time freedom, and the ability to live life on your own terms.
5. The Five Fastlane Business Commandments
DeMarco provides the reader with the Five Fastlane Business Commandments (C.E.N.T.S.), which are the guiding principles for building a successful business. These commandments are:
(C)ontrol commandment: The business owner must have full control over their product, process, and system. This enables the owner to make changes quickly and adjust to market needs.
(E)ntry commandment: The entry barrier to the business should be high, which prevents competition from entering the market easily.
(N)eed commandment: A successful business must solve a need or want in the market. The bigger the need, the bigger the opportunity.
(T)ime commandment: The business must not require significant amounts of time to operate, which enables the owner to focus on other ventures or enjoy their personal life.
(S)cale commandment: The business must have the potential for scale and growth to generate significant profits.
DeMarco explains how adhering to these commandments can help an entrepreneur create a business that is not only successful but also provides financial freedom and a better quality of life.
In one example from “The Millionaire Fastlane“, DeMarco uses his own experience to illustrate the importance of the need commandment. He talks about how his first business was a limousine service that he started because he saw a need in the market for high-quality transportation services. By focusing on a need in the market, he was able to create a successful business that provided him with financial freedom and the ability to pursue other ventures.
To apply the Five Fastlane Business Commandments in daily life, one needs to identify a need or want in the market that is not being fulfilled. By focusing on a need, an entrepreneur can create a business that solves a problem and provides value to the customers. It is important to ensure that the entry barrier to the business is high, so that it is difficult for competitors to enter the market. One should also strive to maintain full control over the business processes, systems, and products, which allows for flexibility and adaptability to market changes. The business must have the potential for scale and growth to generate significant profits, and it must not require significant amounts of time to operate.
In Summary
In conclusion, The Millionaire Fastlane is a must-read for anyone who is serious about creating a successful business. The book provides a no-nonsense approach to entrepreneurship and challenges the reader to think differently about business and financial freedom.
By following the Five Fastlane Business Commandments, an entrepreneur can create a business that is not only successful but also provides the freedom to pursue other ventures or enjoy a better quality of life. If you are looking to build a successful business, I highly recommend that you get this book now.
To Your Success,
Keith Choy
Related Resources:
60 Minutes To Getting Rich Robert Kiyosaki
What You Say About Yourself Makes All The Difference!
Atomic Habits – How To Get 1% Better Every Day
How Highly Productive Successful Millionaires Schedule Their Day: 1-Page Productivity Tool