Millionaire Fastlane

Get rich slow

• 401k, save, no debt, index funds and you can be rich at 65.
• but what if you want to be rich before 65???? -> this book
• because a road to wealth that isn't guaranteed and takes most of your life kinda sucks

Chapter 3

• Wealth is a formula
• Process over events
• Process cannot be outsourced because it creates wisdom and context

Chapter 4

• Beliefs motivate action

Side walk

• living check to check basically
• no savings, lots of debt
• no plan
• you can't medicate poorly mine management with more money

What is wealth

• wealth is in
  • Family - relationships
  • Fitness - health
  • Freedom - choice
• the above are different for everyone

Misuse money and it will misuse you

• lots of money but no freedom is still miserable
• must prefer delayed gratification
• if you think you can afford it, you can't. If you could afford it, it would be as inconsequential as buying a pack of gum

Lucky bastards play the game

• create your own luck, take swings and spend time doing research. Process
• the rich people aren't lucky, this opposite is a belief. It's about work and being out there.

Wealth demands accountability

• people assign their fate to others rather than taking responsibility and doing their own research
• take responsibility
• if something bad happens you probably didn't do your do diligence and blaming others doesn't help
• own up to your mistakes and make change (don't just blame others)

The lie you've been sold in the slow lane

• living for the weekend is bad
• trapped in the rate race is bad
• slow lane 5 for 2 time trade of in the negative

The criminal trade your job

The slow lane, why you aren't rich

• need control and leverage
• slow lane is job + index funds is formula
• low control, low leverage
• salary based on time and intrinsic value
• cannot control or leverage time
• compound interest also relies on time
• cannot control investment yield either

The futile fight, education

• thinking you can outwork the time issue from the above, via more credentials.
• Education that expensive or debt ridden or shackling to job specific job
• manipulate intrinsic value by further education

The hypocrisy of the gurus

• paradox of practice
• do you practice what you preach, and has it gotten you the results?
• people shell index funds, usually didn't use them to build wealth, they used their media presence.

Slow lane victory, a gamble of hope

• base on hope and assumptions
• Assumes you will be healthy when old
• Assumed you can stay employed
• assumes home will gain value
• Assumes markers will never have a down turn
• financial discipline is needed when income explode
• slow lane defiance
  • fame defies the slow lane -> because intrinsic value explodes
    • corporate director, over worked
• math is bad

Wealth Shortcut, the fastlane

• controllable unlimited leverage
• business / entrepreneur ship
• perceptions
  • debt: debt is useful if I can grow and build my system
  • Time: most important asset, better than money
  • edu: constant growth is critial
  • money: is everywhere, reflection on value I've created
  • primary income: income via business systems and investments
  • wealth acceleration: make something from nothing,
  • Wealth perspective: build business systems
  • wealth equation: net profit + asset value
  • strategy: help people
  • destination: lifetime passive income via assets / investments
  • responsibility and control: life is what you make it, in your control
  • life perceptions: dream pursuit
• you can get rich quick (5 - 6 years), there is no get rich easy
• paraho tasks sons with build pyramids alone, one drags stones, the other spend a lot of time building a machine and then finishes

Switch teams and play books

• team producer over team consumer
• Need a business and to provide value

How the rich really get rich

• net profit plus asset value
• net profit - unit sold times unit value
• asset value - net profit times industry multiple
• variables in this equation are much more controllable
  • raise until sold by increasing convention ratio
  • raise until sold by increasing traffic to place
  • raise until supply (increase value per unit)
• need large reach with potential scalability (large audience and market)
• business itself is an asset, which increases in value as you grow it with potential to sell later.
• liquidate (sell your business) for an exit

Divorce wealth from time

• passive income, make money trees
• a lot of businesses can't produce passive income
• fast lane passive types
  • rental systems
    • Real estate
    • licenses
    • royalties
  • software systems
    • they work 24/7 and don't have needs
    • accessible to millions
    • easy replication
  • content systems
    • info system
    • books (combination with software), blogging, forums
  • distribution systems
    • moves products to the masses
    • like Amazon Or app store
    • franchising or chaining
  • human resources systems
    • factories with employees
    • employees complicate things a lot (avoid)
      • in large part because they need to be managed and kept happy

Recruit your army of freedom fighters

• best money tree is money (interest). CD or bond or Treasury,
• compound interesting is good for sustaining wealth after you've made it, not good for building wealth like a slow learner

The real law of wealth

• affect millions make millions
• how many people have you impacted and solved problems for
• scale or magnitude or both
• scale is sell something cheap 1 million times
• magnitude is something insanely expensive a few times

Own yourself first

• Sole proprietor or partner ship
• better is C corp, then S corp, then LLC
• all have limited liability and tax efficiency

Life's steering wheel

• poorness come from poor choices
• address problem at source rather than symptoms
• don't make stupid choices
  • drunk driving
  • Murder
  • cheating

Wipe your windshield clean

• your perception of what is possible and what is likely shapes your actions and thus what can actually come to transpire
• stop with internal language like, I can't, I could never, they're so lucky, I think I, I might,
• same with memories, can be framed as acceleratory or saboteury
• change by finding evidence and surrounding with people's
• worst case consequence analysis
  • worst case?
  • Probability?
  • worth the risk?
• weighted average decision matrix
  • big decisions
  • important factors, weight factors, grade each choice by its weighted factors.
  • Multiply weight times grade
  • add up for each one

Deodorize flatulent headwinds

• going to counter society will be hard because people will judge you. You have to be counter and believe you can do it.
• turn your back the others and let them motivate you
• Don't listen to the people who are obstacles, and want to discourage you
  • can include environment
  • Can include job and it's draining nature
• associate with people who encourage and accelerate you

Your primordial fuel, time

• standing in hours for line for free fried chicken is a terrible thing
• money over time and life is awful
• time is more valuable than money
• endentured time is spent serving or recovering from serving someone else
• parasitic debt

Change that dirty stale oil

• learning to helped build your money machine rather than learning to increase intrinsic value
• Always be learning
• learn by doing
• I don't know how -> go learn (you can do it for free)
  • library
  • internet, YouTube
  • books
• I don't have time -> two birds one stone (audio books during, driving, toilet, exercise, waiting event like airport, work down time, )
  • choose area that interest you to start
• learning should be nearly free (anything that expensive should be looked at with maximum suspicion)
• good seminars are less than 1000, but not free

Hit the red line

• you got to want it
• you got to sacrifice and work OT on it
• you gotta be okay with failure (it will happen a lot)
  • bad worst case analysis creates fear of failure
  • you want high upside, low downside
• some day, is a dangerous paralyzing idea
  • I'm waiting for...
• take swings, you only need 1 home run

The roads to wealth

• no all businesses work for this, (can't impact people on the right ways)

The commandment of control

• controll every aspect of your business
  • sell stock they don't buy stock
  • They sell licenses they don't buy them
• if you're doing an affiliate program for someone else, they can change the rules on you at any time
• If you can't change the product or price it's not your business

The commandment of entry

• low barriers to entry means crazy amount of competition and causes tons of issues
• high barriers to entry are a good thing
• can do low barrier things but you have to be exceptional (this is super hard and a bad idea typically), if you are exceptional the easy entry people become an asset because they are your easy Marks and your suckers
• litmus test: business should be a process not an event.
  • If it only takes a day it's to easy to enter
• if everyone is doing it, you probably shouldn't be.

Commandment of need

• business that solve needs
• don't do something because you love it, - look at needs in the market.
• opens martial arts studio -> goes under
  • better questions
  • is there demand for martial arts in my neighborhood
  • existing studios doing wrong that I could do better?
  • what I proved value could I provide
• cannot just want money, for passive income or be selfish about desiring moneys
• provide value
• can
  • make them feel better
  • Solve a problem
  • Educate them
  • make them look better
  • Security
  • appetites
  • Make things easier
  • Give hope
• can't just do what you love
  • lots of competition
  • Jeopardizes your good emotions about it
• outragious dream, and a road that converges on that
• passion for an end goal

Commandment of time

• business be severed from your time
• can it be automated?
• are margins big enough for HR seedlings
• start with the seedlings from the other chapter or introduce one

Commandment of scale

• want large reach (not just local but hopefully global)
• magnitude and scale
• litmus test questions
  • can you go from 20k to 200k a month
  • Can you impact millions
  • units sold potential
  • how pliable is unit price
  • can you impact with magnitude

Rapid wealth creation, interstates (chapter 35)

• internet
  • fulfills commandments
  • types
    • subscription based (analytics, monitoring like site uptime)
    • content based (forums, blogs )
    • Lead generation (fragmented industry, connect consumers with producers)
    • social networks (tribes and aggregators of people)
    • broker systems (fee off the top, PayPal, buyers and sellers together and facilitate transactions, travelocity)
    • advertisers (introducer buyers and sellers, fee for sellers to put up on site)
    • e commerce (sell goods and info, Amazon, adds scale, ebooks)
• innovation
  • manufacture and distribution
    • sell to whole seller
    • sell to affiliate marketing scheme
    • Seller on internet
    • mass media
    • Infomercial
    • Retail
    • Wholesaler
    • direct media
    • Amazon
    • internet
  • Can be many things
    • food (recipes, cookies)
    • vitamins
    • house hold (Roomba, hangers)
    • Info
    • clothing
    • automotive (stickers, add ons, air fresheners)
    • books
    • take something and improve it
    • take an under exposed product and add an Element of uniqueness and repackage it and make it main stream
      • colorful vodka
      • snuggie
    • marketing, PR, business, can have the best thing but will never sell unless you mark it
• intentional I iteration
  • repeating a process with a desired goal
  • doesn't really do scale
  • instead of buying 1 home, buy like dozens
  • franchising or chaining a store
  • 1 vending machine vs 1000 machines

Find your open road

• some ones already doing it? So do it better.
  • can you make it more user friendly?
  • poorly met needs and do it better
• my space -> Facebook
• yahoo -> google
• snuggies (again)
• road seems close but someone came along and did it better
• phrases that uncover opportunity
  • I hate
  • I don't like
  • This frustrates
  • why is this like this
  • do I have to
  • I wish there was
  • I'm tired of
  • this sucks
• any of these prompt issues that you can solve
• discomfort, distress, inconveniences, problems, performance gaps
• everyone fails on the road to success, gotta keep going
• opportunity is rarely about complete creation but about performance gaps, small inconveniences and pain points
• product but better marketing and sales or slight tweak to address majority's complaints or minor issues

Give your road a destination

• passive income or lump sum with interest to support
• define life style
  • house? Cars? Private schools?
• assess cosset targets
  • monthly costs and taxes
  • monthly unknowns (food, gas, health insurance, etc)
  • gross living cost ->
  • for lump sum net cost times 12 divided by 0.04
  • for system, gross living cost times 5
• Fund and open
  • look 3 feet in front not 3 miles (to over whelming)
  • repetitive progress to a goal
• you need to educate yourself on financial literacy
  • basic edu like
    • interest rates
    • taxable and non taxable yield
    • Amortization of mortgages
    • balancing of check book
    • percentage
    • rOI calculation
    • Stock rise and falls
    • why 15 % CD is screaming scam
    • stock calls and puts
    • why insurance exists
    • How a mutual fund works
    • what bonds are and why they rise and fall
    • global currency
    • simple interest
    • price of a bond when interest rates go up
    • basic finance
    • basic economics
  • keep expenses under income, while expanding income
  • hiring a financial advisor doesn't fix thing
    • literacy is needed to evaluate quality of advice

Speed of success

• only looking at price is too simple
• instead play chess (In this order)
  • execution
  • marketing
  • customer service
  • product
  • people
  • ideas
• execution over ideas

Burn the business plan, ignite execution

• the world tells you if they are good
• You need to put things out there and then it will react and you can watch and adapt
• business plans are stupid, more ideas, and not related to execution at all
• financial analysis is still needed
• venture capitalists./ Investors need a track record via execution

Pedestrians will make you rich

• customer service, help, support and resolve
• black book with complains from everyone in it
  • similar complains means you need corrective action
• 4 types of complaints
  • change
    • people hate change, any re design will have some hate but too much is bad
  • Expectation
    • negatively violate their expectation
    • deceptive marketing or didn't get what they wanted
    • either way you need to change
  • void
    • complaints of customer requesting something and you simply don't have it
    • gold mine of opportunity
  • fraud
    • fraudulent complaints to abuse the business owner
    • explain once with grace and then move on
  • keep records and look for patterns
  • some people should be ignored
• most customer service sucks, differentiate by being better
  • surprising if you get someone who speaks English and resolves quickly
  • creates really good word of mouth
  • respond quickly, get a real person to do good things
  • get an understanding of what expectation are for customer support in your industry, then do better and create super fans
  • better to focus on customer retention over new customer acquisition
  • keep the customer happy because they are the boss
  • make your product look big by having profiles for many roles
  • act small by having good service

Throw hijackers to the curb

• business partner is like being married
• be careful on other peoples priorities, values and work ethics being different
• work ethic
• vision
• slowly or fast
• do you trust them with your life?
• synergy over diversification
• good team of accountants and attorneys
• vulnerable to scams
• Verify first, trust later
• con artists and thieves
• employees have the share you customer philosophy
• great product services cannot overcome bad customer service
  • but the reverse can

Be someone's savior

• comodification
  • no loyalty to product but only buy the cheapest and move on
  • gas, airplane tickets
  • product needs to stand out to the crowd
  • you don't want this
• don't do what you love
• don't do what you know
• do what people need
• don't get glued to the competition, do your own stuff, and innovate yourself
  • 5% of the time look at them to see what they're weaknesses are and do them better

Build brands not businesses 43

• marketing
• game of perceptions
• Brand not a business
  • Good brand creates loyalty and protects from comodification
  • Coke over Pepsi regardless of prices
• get unique
  • unique value proposition (USP)
  • What's different? Why you over others?
  • should fulfill a need
  • should be unique, benefit with powerful action verb,
    • loose weight -> shred pounds, obliterate fat
    • grow your business -> explode revenue, shatter sales records
  • be specific and given evidence
    • your car sold in 20 days or it's free
    • drop 20 pounds or don't pay a dime
  • short clear and concise
  • integrate USP into all marketing materials
    • trucks, website, voice mail, sales scripts,
  • needs to capture attention
  • need to deliver
• rise above the nosie
  • polarization - piss off half of people with a crazy extreme idea
    • be riskay
      • sex sells
    • arose emotions
      • pride, achievement, sadness, hope, exhilarate, make them laugh,
    • be interactive
      • taste it, feel it, use it, let them do it
      • get people to talk about themsleves
    • find out what happens next
      • tease people to do some things
    • be unconventional
      • get their attention
    • give a whats in it for me statement
      • how will it help them
• translate features into benefits
  • think from your audience and typical buyer
    • what do they want? Fear? Values?
  • isolate feature which actually offers benefits based on the above
• price as a branding weapon
  • sales are good motivations
  • even if it's what you initially wanted
  • price should not be based your perception by market perception
• wrong price conveys wrong meaning, depends on the market and your brand and differentiation

Choose monogamy over poligamny

• need to commit to a business
• and don't try to do multiple businesses at the same time.
• 1 core focus.

Put it together, super charge your wealth plan

• formula
  • process not an event
• admit
  • slow path is flawed
• stop and swap
  • new road map
• time
  • invest in actives that allow you more time
• leverage
  • controllable and unlimited leverage
• assets and income
  • exponential growth
• number
  • how much do you need to get to be done? Exact number
• effection
  • more people you impact the better
• stear
  • must commit to the process
• uncouple
  • create LLC or C or S corporation
• passion and purpose
  • fuel, food motivation
• educate
  • never stop learning
  • daily reading
• road
  • get onto a fastlane road
  • see needs and problems
  • can be a better solution that already exists
• controll
  • mostly fully control org
• have
  • have what others need
  • don't chase money
• automate
  • time detached from business
• replicate
  • scale, impact millions
• grow
  • multi dimensionally
  • complaints to opportunities
• exit
  • have an exit strategy
  • liquidation event or passivity
• retire / reward / repeat
  • celebrate all the little steps