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Book Summary: The Millionaire Fastlane by M.J. DeMarco

My Personal Summary

This book is written by MJ DeMarco, a self-made millionaire, who shares the basic principles of how to get rich relatively quick.

Book Notes

  • MJ himself got rich from building a website that got paid based on lead generation. His site drew in 20k visitors per day and he got paid $4 per successful lead at about a 10% conversion rate, e.g. $8k per day. He became a millionaire by 31 and a multi-millionaire by age 33.
  • MJ defines 3 “lanes” to wealth:
    • (1) sidewalk – you don’t even invest, you just hope to win the lottery.
    • (2) slow lane – invest in mutual funds for 50 years and retire with a million at age 70.
    • (3) fast lane – you start a business and help as many people as possible and accumulate $1M+ in roughly 6-8 years while you’re still young.
  • People in the slow lane think the best way to increase net worth is by getting more schooling so they can earn a 10% higher salary. This won’t lead to wealth.
  • The more people you help, the more wealth you can build.
  • To become a millionaire, help a million people.
  • A business attached to your time is just a job.
  • Being an entrepreneur is not enough. You must utilize leverage. If you run a hot dog stand, you’re technically your own boss. But while you might sell 100 dogs in one day, 150 the next, etc. you’ll never sell 20,000. You have limited leverage.
  • Rich people don’t use compound interest to get wealthy, e.g. earning 5% interest per year on $10k, instead they get wealthy with a business and then throw their proceeds into an account earning 5% interest on millions of dollars to generate thousands per year in passive income.
  • Internet businesses offer the best path to wealth creation in modern times because they offer unlimited scale – you can build content, a product, and app, etc. one time with no marginal cost of replication. (This is the same idea Jack Butcher preaches – build once, sell twice)

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