Hello and thank you for joining me in Part 4 of 15 in the series of The Millionaire Fastlane by MJ DeMarco. We have a lot to cover today, so let’s get started with the video and notes below:
Chapter 10 – The Lie You’ve Been Sold. The Slowlane
a) In the previous videos, we highlighted that a Sidewalker has no financial plan and is only concerned with the pleasures of today
b) While the sidewalk is a chronic lifestyle that mortgages the future for a pleasurable today, the Slowlane is the antitheses: a sacrifice of today in hopes of a brighter and a freer tomorrow
c) As a Slowlane traveler, you’re deluged with a series of doctrines that plead discipline to the trade-off. get a job and waste five days a week tolling at the office. Bag a lunch and stop drinking $10 coffee. faithfully entrust 10% of your paycheck to the stock market and your 401k. Quit dreaming about that sports car in the window because you can’t buy it!
d) Delay gratification until you’re 65 years old. Save, save, save because compound interest is powerful: $10,000 invested today will be worth 10 gazillion in 50 years!
e) Future crutches often justify pleasurable now and behind the scenes, lifestyle servitude swells
f) While the sidewalk is typified by undisciplined behavior, the Slowlane’s financial plan introduces responsibility and accountability into the wealth formula
Unfortunately, the Slowlane is like bad directions given at a gas station, except these directions aren’t given by strangers, but by people you trust: teachers, television and radio personalities, financial advisers, and yes even our parents
g) Rich at 25 years old beats the snot out of rich at 65 years old. Wealth is best lived young and enjoyed while you have health, vibrancy, energy, and yes, maybe even some hair. Who wants to wait 40 years to become a millionaire?
h) For the Slowlaner, Saturday and Sunday is the paycheck for Monday thru Friday. The default return on your time in the Slowlane is negative 60% – 5 for 2
The 5 for 2 trade inherit in the Slowlane is generally fixed and cannot be manipulated because job standards are 5 days a week.
Chapter 11 – The Criminal Trade: Your Job
a) In a job, you sell your freedom (in the form of time) for freedom (in the form of money). Experience is gained in action.
b) Wealth accumulation is thwarted when you don’t control your primary income source
A job is like sitting in the bed of a pickup truck. You’re exposed to the harsh elements while the driver of the trucks sits comfortably in the driver’s seat. When the ride gets rough, you get jacked around or worse, tossed overboard.
Jobs suck because they are rooted in limited leverage and limited control. Sure you can have a great job but in the cope of wealth, they limit both leverage and control – two things desperately needed for wealth
c) Here are 6 sucky reasons your financial plan should not revolve around a job, the nucleus to the Slowlane.
Suckage 1 – To trade time is to trade life (who taught us trading time for money was a great idea?) At a job, time trade is central to how you make money. Wouldn’t it make sense to get paid regardless of what you’re doing?
Suckage 2 – Limitation on experience (I learned more as an entrepreneur in two months than I did working 10 years at dozens of dead-end jobs, the problem with a specialized skill set is it narrows your useful value to a confidence set of marketplace needs and if that cogs becomes obsolete or expendable? Guess what, you’re out of luck **Update I have actually worked at my job for the past 4 months!**
Experience comes from what you do in life, not from what you do in a job you don’t need a job to get experience.
Sucakge 3 -No Control (Pick Up Truck Analogy)
NO control or leverage = NO fast wealth accumulation.
Suckage 4 – Linda’s Bad Breath / Social Politics
** Please excuse me again, there are some points of genuine conversation in my job but they are extremely seldom. 99% of the time, what we are talking about has no substance and when I clock out, that discussion becomes irrelevant **
Suckage 5 – A Subscription to Pay Yourself Last
Uncle Sam is your favorite uncle!
Suckage 6 – A Dictatorship on Income
You can’t demand a 1000% raise at a job. Your boss will laugh in your face.
Chapter 12 – The Slowlane, Why You Aren’t Rich
a) Somebody should tell us, right at the start of our lives, that we are dying. Then we might live life to the limit, every minute of every day. Do it! I say. Whatever you want to do, do it now! There are only so many tomorrows. – Michael Landon
b) If the Slowlane is your get rich strategy I can make a likely assumption. You’re not rich and you never will be. Wow, how could I be sure. simple. the Slowlane strategy is rooted in ULL (Uncontrollable Limited Leverage) pronounced yule.
If the slowlane is your plan, ULL never get rich!
b) The first variable in the slowlane wealth equation evolves from a job that factors to intrinsic value that equates your nominal value for each unit of your life traded
c) In the slowlane, intrinsic value (regardless of its time measurement) is numerically inhibited because there are only 24 hours in a day (for the hourly worker) and the average lifespan is 74 years (for the salaried worker)
Reference to CUL = Controllable Unlimited Leverage
d) Intrinsic value is the value of your time set by the marketplace and is measured in units of time either hourly or yearly
Like the Slowlaners primary income source (a job), the Slowlaner’s wealth acceleration vehicle (compound interest) is also pegged to time. Like a job, compound interest is mathematically futile and cannot be manipulated. You cannot force-feed the market (or the economy) to give you phenomenal returns, year after year.
In wrapping up, I would like to restate DeMarco words which are wealth cannot be accelerated when pegged to mathematics based on time. Consider time as your primordial fuel and it should not be traded for money!
Your mortality makes time mathematically retarded for wealth creation.
As a reminder, if you don’t control the variables inherent in your wealth universe, you don’t control your financial plan. My goal is to develop my content and my brand so that I can determine how much I get paid and how often I get paid.
Thank you for tuning in, your homework is to understand each of the wealth road-maps and to make a decision as to which one you will follow to lead to your destination (I understand that not everyone wants to be a millionaire, so choose what is appropriate for you). Remember the concept of true essence! I am grateful for your readership, we will review more on this book next week, have a wonderful day!