The Millionaire Fastlane by M.J. DeMarco

In a world where the traditional financial wisdom tells us to work hard, save, and hope to retire rich by 65, M.J. DeMarco offers a refreshing and bold alternative in his book, The Millionaire Fastlane: Crack the Code to Wealth and Live Rich for a Lifetime! DeMarco, a self-made millionaire and entrepreneur, argues that this conventional approach is flawed and presents a roadmap to becoming truly wealthy in 10 years or less. This blog post will delve into the core principles of the book, offering you insights into the “Fastlane” mindset and how you can apply it to achieve financial freedom at an accelerated pace.

How M.J. DeMarco Discovered the Millionaire Fastlane

Unlike most people who follow the traditional career path, M.J. DeMarco took a different route. He pursued entrepreneurship and managed to retire young and rich at the age of 33. His journey started when, as a teenager, he encountered a young inventor driving a Lamborghini. This encounter made him realize that it was possible to become wealthy at a young age. He began studying self-made millionaires who were under 35, had no extraordinary talents, but were living truly affluent lifestyles.

After several business failures by the age of 26, DeMarco was broke, his girlfriend had left him, and he was struggling while his friends were advancing in their careers. However, he didn’t give up. He moved to Phoenix with just $900 and while working as a limo driver, he came up with the idea to create a website that connected limo companies with potential clients. DeMarco taught himself essential skills like search engine optimization, graphic design, and copywriting, and aggressively marketed his website.

The business slowly grew from making hundreds to thousands in revenue. Despite facing challenges and working long hours, DeMarco’s perseverance paid off. In 2001, he sold his website for $1.2 million. The new owners struggled, so DeMarco bought it back for $250,000, refocused on customer satisfaction, streamlined operations, and grew the business until he could sell it again in 2007 for $8 million. By 33, DeMarco had reached his destination using what he calls the “Millionaire Fastlane.”

Understanding the Millionaire Fastlane

The Fastlane is more than just a get-rich-quick scheme; it’s a mindset and a way of life that can lead to financial independence much faster than traditional methods. DeMarco emphasizes that wealth creation is not a one-time event but a process that requires time, effort, and the right strategies. Here’s how he breaks it down:

1. The Roadmap to Wealth

Wealth creation is like taking a road trip—you need a roadmap to guide you. In The Millionaire Fastlane, DeMarco introduces three financial roadmaps: the Sidewalk, the Slowlane, and the Fastlane. Each roadmap represents a different set of beliefs and actions that determine your financial destiny.

• The Sidewalk: People on the Sidewalk live for the present, spending more than they earn, and often end up in financial ruin.
• The Slowlane: The Slowlane is the traditional path—get a job, save, invest in the stock market, and hope to retire rich. This roadmap leads to a life of mediocrity and financial uncertainty.
• The Fastlane: The Fastlane is the path to financial freedom. It involves building a business that adheres to five key commandments (NECST) and leveraging that business to create massive wealth within a short period.

DeMarco’s message is clear: to achieve financial independence quickly, you need to choose the Fastlane and commit to it fully.

The Five Business Seedlings to Money Trees

M.J. DeMarco identifies five types of business seedlings that can grow into prosperous money trees, each with its own characteristics and potential for passive income. While these systems can interbreed, they each have a distinct level of passivity, which influences how much effort is required to maintain them. A higher passivity grade indicates greater potential for generating income with less ongoing effort, but this doesn’t necessarily correlate with a higher income level.

1. Rental Systems (Passivity Grade: A)

• Overview: Rental systems include traditional investments like real estate. DeMarco categorizes these as “Fastlane 1.0” or Wealth 1.0, representing a classic yet effective way to generate wealth.
• Advantages:
  • High passivity: Once established, rental systems require minimal ongoing management.
  • Longevity: These systems can withstand the test of time and continue to generate income.
• Implication: Real estate remains a solid choice for passive income generation and wealth accumulation.

2. Computer/Software Systems (Passivity Grade: A-)

• Overview: Computers and software serve as fertile grounds for creating money trees. They can operate continuously without the need for human intervention.
• Advantages:
  • Scalability: Software can be replicated and distributed to millions without significant loss in efficiency or effectiveness.
  • Passive Income Potential: Once developed, software systems can generate revenue around the clock with little additional effort.
• Implication: Leveraging technology allows entrepreneurs to build scalable businesses that maximize passive income potential.

3. Content Systems (Passivity Grade: B+)

• Overview: Content systems encompass various forms of information, including digital content like blogs, videos, and courses.
• Advantages:
  • Scalability: Content can be distributed through multiple channels, enhancing its reach and profitability.
  • Decreasing Time Cost: As more content is sold, the time investment required diminishes while the return on investment increases.
• Implication: Creating valuable content can lead to significant passive income, especially when integrated with other systems like distribution and digital platforms.

4. Distribution Systems (Passivity Grade: B)

• Overview: These systems are designed to move products from creators to consumers efficiently. They can operate independently or in conjunction with other seedlings.
• Advantages:
  • Hybrid Potential: Distribution systems can incorporate elements of content and computer systems, enhancing their effectiveness and reach.
  • Efficient Product Movement: Streamlined distribution processes can lead to increased sales and profitability.
• Implication: Establishing effective distribution channels is crucial for maximizing sales and minimizing effort in business operations.

5. Human Resources Systems (Passivity Grade: C)

• Overview: Human resource systems involve managing people to support the business. Their passivity can vary significantly based on the quality of employees.
• Advantages:
  • Growth Potential: Skilled employees can help nurture and grow money trees, contributing to the business’s success.
  • Essential for Scale: As businesses grow, effective human resource management becomes necessary to delegate tasks and responsibilities.
• Challenges: Poorly managed human resources can hinder business growth and require excessive oversight.
• Implication: While human resources can complicate passive income, they are vital for scaling and achieving substantial wealth.

Wealth Creation Principles

A. Money as Your Army

• DeMarco emphasizes that money is like an army fighting for your financial freedom. The more wealth you accumulate, the more resources you have to deploy toward achieving your goals.
• Many individuals focus too heavily on expenses, neglecting the importance of increasing income. A focus on generating wealth is essential for building a robust “army” of financial resources.

B. The Power of Compound Interest

• Compound interest is most effective when applied to large sums of money, amplifying wealth over time.
• The sooner you start investing and accumulating wealth, the more powerful the effects of compound interest will be.

C. Action Over Thought

• Merely thinking about wealth does not lead to riches; consistent action is necessary to turn thoughts into reality.
• DeMarco stresses that applying proven financial principles is critical for achieving financial success.

D. The Law of Effection

• This law posits that the more lives you positively impact through a business you control, the wealthier you will become.
• In its simplest form: “Affect millions and make millions.” Wealth is created by scaling your influence and impact.

E. Scale and Magnitude

• DeMarco identifies that scale (the number of people affected) and magnitude (the depth of that impact) are crucial for creating significant wealth.
• Achieving scale and magnitude can lead to substantial financial success, including billion-dollar enterprises.

2. The Vehicle: You

In the Fastlane, you are the vehicle driving toward wealth. This means you must invest in yourself—acquire skills, knowledge, and the right mindset to succeed. DeMarco emphasizes that getting rich quickly does not mean getting rich easily. It requires hard work, dedication, and a willingness to evolve.

To drive your vehicle effectively, you need to:

• Own Your Vehicle: Start and grow your own business.
• Steer Your Vehicle: Make smart decisions that align with your financial goals.
• Clean Your Windshield: See opportunities and challenges clearly by maintaining a positive and proactive mindset.
• Maximize Fuel Efficiency: Optimize your time and resources to ensure you’re moving toward wealth efficiently.
• Change the Oil: Reinvent yourself when necessary to stay competitive and relevant in your industry.
• Hit the Redline: Be 100% committed to your goals and willing to take calculated risks.

3. The Roads to Wealth

Not all businesses will get you on the Fastlane. To ensure your business is a Fastlane vehicle, it must adhere to the Five Fastlane Commandments (NECST):

• Need: Your business must fulfill a genuine need or solve a significant problem.
• Entry: The business should have barriers to entry, preventing easy competition.
• Control: You must have full control over your business and its operations.
• Scale: The business should have the potential to scale and grow exponentially.
• Time: The business should be able to generate income without requiring your constant presence.

Businesses that satisfy these commandments are like highways that can lead you to wealth quickly. DeMarco encourages entrepreneurs to choose the right roads—those that align with their skills, passions, and financial goals—and to drive down these roads with focus and determination.

4. Speed of Wealth Acceleration

The final component of the Fastlane is speed—how quickly you can move from idea to execution. DeMarco stresses the importance of execution, as ideas alone are worthless until they are implemented.

To accelerate your wealth creation, you must focus on one venture at a time, giving it your full attention and effort. Once you have built a successful business, you can diversify your investments and ventures. DeMarco also uses the analogy of a chessboard to explain the different roles in a business and how you can leverage them to build a winning strategy.

• Execution is King: The most critical aspect of building wealth.
• Marketing is Queen: Shapes consumer perception and builds brand loyalty.
• Customer Service is Bishop: Helps resolve customer issues and enhances loyalty.
• Products/Services are Knights: Solve specific problems for customers.
• Partners and Employees are Castles: Form the foundation of your business.

Applying The Millionaire Fastlane Principles

Knowledge alone won’t make you wealthy—action will. DeMarco encourages readers to make a firm decision to start applying these principles in their lives. Whether it’s starting a business, investing in your skills, or choosing the right financial roadmap, the key is to take concrete steps toward your goals.

For those ready to dive deeper, The Millionaire Fastlane offers detailed insights, examples, and actionable advice. This book is structured into 45 short chapters, each packed with distinctions and examples to change how you think about wealth and help you apply these ideas to your own life.

About the Author: M.J. DeMarco

M.J. DeMarco is a semi-retired entrepreneur, investor, advisor, and author. He is the founder of Viperion Publishing Corp. and The Fastlane Forum, an entrepreneurial community. DeMarco previously founded Limos.com, which he sold in 2001, reacquired, and resold in 2007 for a significant profit. Through his experiences, DeMarco has become an advocate for the Fastlane approach to wealth, empowering others to break free from the traditional financial wisdom and achieve financial independence.

Conclusion

The Millionaire Fastlane is a game-changer for anyone who’s tired of the traditional path to financial security. By adopting the Fastlane mindset and applying its principles, you can accelerate your journey to wealth and enjoy financial freedom in a fraction of the time it takes on the conventional road. Whether you’re an aspiring entrepreneur or someone looking to break free from the 9-to-5 grind, this book offers a practical and actionable roadmap to living rich for a lifetime.

The Book in Just 20 Words

A roadmap to wealth: rethink traditional financial advice, choose the Fastlane, and achieve financial independence in under 10 years.

The Millionaire Fastlane Quotes

1. “Millionaires are forged by process, not by events.”
2. “If you want to change your life, change your choices. To change your choices you must change your belief system.”
3. “Poor financial management is like gambling; the house eventually wins.”
4. “Wealth isn’t embodied in a car but in the freedom to know that you can buy it.”
5. “Time is an asset that is undervalued and mindlessly squandered.”
6. “To live unlike everyone else, you have to do what everyone else won’t.”
7. “The amount of money in your life is merely a reflection to the amount of value you have given to others.”
8. “No matter how big or small, dreams have a price, and that price is money, responsibility, accountability, and commitment.”
9. “The owner of an idea is not he who imagines it, but he who executes it.”
10. “Your choices are made in a moment, but their consequences will transcend a lifetime.”