Note from Paula: Every Friday I review a book. Check out a complete list of the books featured in my Weekend Inspiration series.
This week I read The Millionaire Fastlane by self-made millionaire M.J. DeMarco, answering the question: “If someone hands you a free book at a conference, will you read it?” Apparently my answer is yes.
DeMarco’s writing is weak but his ideas are strong. Here are some key points:
Think Like a Creator, Not a Consumer
From early childhood, we’re taught to be consumers. We think about what we want to buy, not what we want to create.
Our focus on how to buy things more cheaply – our focus on frugality – is an extension of this consumer mindset. When we discuss coupon-clipping and skimping on lattes, we’re still thinking like a consumer.
Buy it cheaply, buy it used, buy it wholesale – frugality’s focus is on buy, buy, buy.
Even when we talk about not buying something – “don’t buy lattes” – we’re still locked in a consumer mindset. To buy or not to buy? is a consumer question.
To grow wealth, think like a creator, not like a consumer.
Frugal people have “no spending” days. How many have a “create something epic” day?
To Make Millions, You Must Impact Millions
Wealth comes from two things: the number of people we touch, and the impact we make in their lives.
The author defines this as Scope x Magnitude.
Pepsi’s scope is huge. Everyone drinks Pepsi. But its magnitude – its impact in our lives – is small. If I never drank a Pepsi again, my life wouldn’t dramatically change.
The Pepsi-Cola Company is wealthy because they’ve optimized one side of the equation: scope.
A heart surgeon’s scope is small. He’s limited to operating on a small number of people. But his magnitude – his impact – in each of their lives is enormous.
The heart surgeon is well-paid because he’s optimized the other side of the equation: magnitude.
If the heart surgeon could multiply his reach – by hiring teams of surgeons across 10 cities – his scope would no longer be limited by his time. He and his team would make a huge difference (magnitude) in the lives of many (scope).
This is how true wealth is created. It doesn’t come from clipping coupons, it comes from changing the world.
Time is Limited, Money is Not
Your time is limited. If we’re fortunate, we’ll live 80-100 years.
Money is unlimited. There are trillions of dollars in the world. There’s more money in existence than our minds can grasp.
So why do we cling to money like it’s in short supply, but trade our time like it’s never-ending?
Be frugal with your time, not your money.
You’re Asking the Wrong Questions
Many people ask, “What business can I start from home?” or “What business can I start with no money?”
Those questions are selfish, DeMarco says. You’re thinking about YOUR needs, not the world’s needs.
The better question to ask is: “What business can I start that fills a need in our society? What business can I start that solves a problem, or improves upon a situation?”
To succeed at business, you need to stop asking questions based on your own desires, and start thinking about how you can improve the world.
Is that too vague? Try this: pay attention the next time you hear someone say, “I hate it when …”, “It frustrates me when …”, “I’m so fed up with …”. Each of those statements reveals an opportunity. You can create the solution.
The Bottom Line
I’ll be frank: This book desperately needs an editor. The author’s ideas are fascinating, but they’re buried under a sea of adverbs, acronyms and exclamation points.
That said, many top-selling business books are poorly written. Getting Things Done author David Allen is a weak writer with a strong message, and his book is a well-deserved bestseller.
But I suspect David Allen has a good editor. That’s precisely what this book needs.
This Book Is For You If:
You can focus on the author’s well-developed ideas, and can forgive his long-winded tangents choked with dependent clauses.
This Book Is NOT For You If:
You’re an editor. It will drive you nuts.
Read more reviews of The Millionaire Fastlane.
Call for Reader Stories: Have you ever thought, “I can’t afford it?” — and then figured out a way make that dream come true? (Maybe you wanted a vacation, grad school, a house — anything.)
Or have you tried to pursue a huge goal, and relied on a supportive network of friends and family to cheer you on through the tough times?
If so, email me and share your story. Some of the best reader stories will be featured in an upcoming post.
I’m available at: AskAffordAnything (at) gmail (dot) com, or use the handy “Contact” form at the top of this page.
I’d Like to Thank the Academy …
- Thanks to Fine Art Outdoor Photo for the picture of the surgeon.
- Thanks to epSos.de for the photo of the cash.
- Thanks to the Carnival of Wealth for answering the “chicken or egg” question, once and for all.
- Thanks to the Best of Money Carnival for featuring me in their Top 10 this week.
- Thanks to Briana for featuring me in the Carnival of Personal Finance.
- Thanks to the Totally Money Carnival for applauding my post in this week’s round-up.
I actually just posted a review of this book this week as well! I thought there were some good takeaways and memorable points like the part about asking the wrong questions that you point out above. I’d recommend the book, but I don’t think everyone will like it.
I probably won’t read it. Sounds like the grammar would annoy me. So I’m glad you shared his points on here! They sound like some great ones. I try to have at least one day a week where I just create. Maybe not to change mankind, but I find creating art, whether it be visual, written, or any other kind, centers me. If it makes money, great; if it doesn’t, my soul’s still in tact.
@femmefrugality — That’s great! I think its far more worthwhile to spend a day creating something you love — art, writing, whatever — than to spend a day trying to save a few bucks. Time is limited, so we should use it well!
I really like David Allen, I totally agree with his Getting Things Done Fast. I had not checked this one out yet. Thanks for the review!
Thanks for being honest with your review. After having read some of the points from the book, I feel like I would love to read it. Though there may be grammatical problems, I think I would get the author’s ideas and understand them. But still, I also think it would be best if this book gets an editor just like what you suggested.
@Grace – Thanks Grace! I try to be as balanced and honest as possible with these book reviews. If I heaped only praise upon everything, my reviews would be useless. And if I was only critical, my reviews would be equally useless. But if I can maintain balance — and note both the pro’s and the con’s — then hopefully these reviews can help readers decide for themselves whether or not a particular book is worth their time.
I haven’t read this book, but it’s on my shelf! Good review!
@Tim — Thanks Tim!
The ideas sound very strong and interesting, but since it’s poorly written, it would drive me crazy. Maybe I should offer to edit it for him…hmmm…
@Christa — That’s thinking like an entrepreneur, and seeing opportunities! Awesome!
I recently posted an article on this concept, create value to be rich. Very valid points he raised.
I’ve never read a review like this in my life. I loved it. i might read it. I’m a horrible writer so i may not even notice any additional adverbs or long winded rants.
I do like the message though. I never thought of myself as a consumer but he has a point when he says we are programmed to think like consumers even when we are frugal.
He crystallizes the idea that in order to make money we need to fill some need and change the world instead of focusing on our own needs.
@Annie – I’m glad you like the review! I try to be balanced and honest. No one learns anything if my review is an undiscerning heap of praise. I also loved his message that our focus on frugality is an extension of thinking like a consumer — that was one of my favorite and most hard-hitting lessons from the book.
I like the focus on entrepreneurship. I feel like cutting on expenses is all anyone focuses on these days. I also like the scope x magnitude bit. It’s a good tool for evaluating opportunities.
Does he take the reader beyond idea creation though? Often, thinking up an opportunity is the easy part.
@Shaun — His book isn’t a “how to” on starting a business. It’s a conceptual book on ways to think about money … mentalities you should develop. It’s like Rich Dad, Poor Dad by Robert Kiyosaki, which also lacked how-to specifics and was intended to be a conceptual primer.