I have recently finished
the book The Millionaire Fastlane by MJ Demarco. It was a phenomenal read
despite the gimmicky title. There was a lot of credible information in the book
and it was truly eye opening to say the least. The book is a top ten and I
recommend if you have not read it to do so. There were 3 things that stuck to
me in the book that the author pounds on time and time again. You see in life
you have three choices on how to create wealth. They are 3 different
choices or options. So here we go, the three wealth personalities they
are:
1. Side walker
2. Slow laner
3. Fast laner
Now every one of us
falls into one of these categories. So the big question is which one are you and
which one can you be. So without further ado, here are 7 differences between the 3 wealth personalities.
1.)
INCOME GENERATION
The Side walker earns income by an
hourly rate, the Slow laner earns
income by a salary and the Fast laner earns income by net profits through business ownership.
For the Side walker, wealth is not created at all but it is envied and wished
for. The Slow laner uses time and stock market risks to gain wealth. That means
they are fully committed to investing their entire life savings into the stock market
on the premise that if they just patiently wait for 50 years they will get rich.
The Fast laner, however ,uses
units sold to make wealth meaning they have unlimited scale and how much profit
their business makes for instance if you create and invent a new machine you
have the possibility to sell not only a hundred but a million. This is how a Fast
laner gets rich which brings us to the next point.
2.)
RICH BY WHAT AGE
A Fast laner gets rich in ten
years or less, the Slow laner gets
rich in 40 years or more and that's
the sad reality because compound interest is not very effective when you're
dealing with small numbers and a small savings rate. And of course, the Side walker get rich with luck in other words, they play
the lottery.
3.)
PERCEPTION OF TIME
So when it comes to time,
for the Side walker it is absolutely
wasted. It is squandered and is not looked at as an asset or a limited commodity.
For the Slow laner, time is a liability because a slow laner is always trading their time for money. To
top it off, their wealth is predicated on the stock market as they are trading time for investments in the market over decades and decades which means
time becomes a liability and not an asset. For the Fast
laner, time becomes an asset which means they are constantly making money
24 hours a day ,7days a week.
4.)
OFFENSE OR DEFENSE
The Fast laner focuses on income generation meaning they have an offensive
approach to winning the game. They know the more points you score, the easier
it is for you to win. Conversely, the Slow
laner is the opposite. They focus on expenses or defense in other words, the old dance of frugality where you want to live and skimp and save
every coin you make, stop eating out at restaurants, stop doing this, stop doing that
in other words settle for less because you're going to be rich when you're 65 years old this is a defensive approach.
The Side walker focus on consumption;
on what's going to make them feel good now.
5.)
SAVINGS
The Fast laner saves and reinvests 90% of their net profit. Now if that seems ridiculous,
it's because a Fast laner actually makes
5 to 6 figures monthly so saving it at a rate of 90 % isn't that
impractical in fact it is quite reasonable. The Slow laner save 10 % of
their paycheck and they repeat for 50 years.
The Side walker saves nothing.
6.)
LEARNING
So when it comes to
learning, the Fast laner is constantly
learning new things to facilitate their business system. They never stop
learning and they understand that education didn't end at graduation. The Slow laner also educates himself but he
only does it periodically and it is done to enhance his salary. Then we get to Side walker, who learns nothing but pop
culture and various trivial matters that mean absolutely nothing.
7.)
FINANCIAL FUTURE
The Side walker does not control his financial future. The government
and the politicians he votes for do. The Slow
laner’s financial future is controlled by the job market, the stock market
and in some respects the housing market, those are three things he cannot control.
Finally, the Fast laner controls his
financial future because he has created massive wealth so he doesn't care if
the stock market crashes because he's amassed a fortune that can manage those
humps. Inflation becomes negligible because if you have millions of shillings,
you're suddenly not going to care that bread went up from Ksh 100 to Ksh 150.
So which one are you Fast
laner, Slow laner or a Side walker?
Personally, I was a side
walker in my high school and university days but I am a slow laner at the
moment but heading towards becoming a fast laner. Each one of these wealth
personalities lead to a predisposed destination. The destination predisposed
for a Side walker is poverty, the
predisposed destination for a Slow laner
is mediocrity and the predisposed disposition for the Fast laner is wealth. The good news is that there is room for
improvement and that you can always do better. However, the bitter truth is
that it is going to take a lot of work, sacrifices, failures to achieve success
and not everyone is cut out for it.
You can grab a copy of the book using the link below.
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