Hey Folks!
July greets you with the new edition of the 60 Seconds to FIRE newsletter! Coming to you from the new Substack platform, this month’s book is a little divisive and you might find it confronting. The author makes no apologies and goes against traditional investment advice in many ways. I love me a good antagonist in the finance space.
Remember, this newsletter is here to.
· help you speed up your retirement
· empower you with the knowledge
· Inspire you to stop talking and start doing.
Each month I pull apart a finance or personal development book to give you the key two or three takeaways. You can act immediately on these gems to move forward on your goals…. even if you don’t read the book.
Today, we’re diving into “The Millionaire Fastlane” by MJ DeMarco. Unlike many other financial books, DeMarco pulls no punches in critiquing traditional wealth-building methods. His core message is clear: entrepreneurship is the key to taking control of your financial future and speeding down the road to wealth. But fret not if you’re not keen on starting your own business; there’s still plenty of wisdom here for those aiming to retire early and live life on their own terms.
For salary or wage earners eager to fast-track their retirement plans, here are three standout takeaways from “The Millionaire Fastlane”:
Leverage Time:
Firstly, it’s all about leveraging your time and efforts wisely. How can you do this as a salary and wage earner? Seek out projects at work that offer bonuses or opportunities for advancement. For example, imagine Sarah, a marketing manager, who takes on a high-impact campaign that boosts company sales. Her performance and quarterly bonuses accelerate her savings towards early retirement. Sarah could also negotiate an equity or revenue sharing arrangement with her clients as a means of leveraging her time to generate more income.
Passive Income:
Secondly, explore avenues for passive income beyond your day job. This could involve.
· Investing in dividend-paying stocks
· rental properties
· house hacking
· trading options on your share portfolio
· purchase monetised digital assets (website, blogs etc), then outsource the work.
Passive means different things to different people so find an income stream that works for you.
For instance, John owns a plush 3-bedroom house in Richmond, Melbourne. He rents out his two other rooms for $350 each per week. That’s a cheeky $2800 per month or $33600 per year. He then uses this cash to rapidly pay down his mortgage. His plan is that once the house is paid off, he will rent it out and travel for a couple of years, using the rental income to fund his exploration.
Lifestyle Inflation
Finally, resist the temptation of lifestyle inflation. When you get a pay rise or take that promotion, avoid immediately increasing your spending on the flashy symbols of wealth. Instead, divert the extra income towards investments that will support your early retirement goals and create real wealth. This doesn’t mean you can’t have fun or treat yourself but watch that it doesn’t become a habit that leads you away from freedom and your other objectives.
In summary, The Millionaire Fastlane challenges traditional wealth-building methods, advocating for entrepreneurship as the key to rapid financial success. DeMarco emphasizes leveraging time and creating value through scalable businesses to achieve financial independence quickly. For those aiming to retire early, his principles of generating passive income and avoiding lifestyle inflation are particularly valuable.
Should you bother reading The Millionaire Fastlane?
Yes, and probably not to be brutally honest. Hear me out…
Yes, if you’re an aspiring entrepreneur and are frustrated with the traditional paths to wealth. Ideal for those seeking actionable strategies and a mindset shift towards financial independence through business creation.
It’s probably not going to be your jam if it you’re content with conventional career path or if you prefer conservative investment strategies. If this is you, that’s fine but I think there is better books out there for you. The Simple Path to Wealth by J.L Collins for example.
Book-Book or Audiobook?
For this one you could listen to it as I did but have a pen and paper to hand so you can scribble down ideas as they come to you.
Thanks again for your support!
Finally, thank you for taking the time to read the 60 Seconds to FIRE newsletter. If you have any feedback or recommendations for books I should review, then reach out.
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Thanks
Andy
Madrid/Valencia
July 2024