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Kindle Notes & Highlights
by
M.J. DeMarco
Read between
May 8 - May 28, 2024
Time Perception: How is your time valued and treated? Abundant? Fleeting? Inconsequential? Do you work for time? Or does time work for you?
Financial discipline is blind to income. Lack of financial discipline resides on the Sidewalk and it doesn’t care what you earn or drive.
A first-class ticket to the Sidewalk is to have no financial plan.
Wealth is the ability to fully experience life. ~ HENRY DAVID THOREAU
Wealth is not authored by material possessions, money, or “stuff,” but by what I call the three fundamental “F’s”: family (relationships), fitness (health), and freedom (choice).
Wealth isn’t embodied in a car but in the freedom to know that you can buy it. Freedom to walk into the dealership, know your price, pay cash, and drive away.
the real thief of happiness: servitude, the antithesis of freedom. The irony is that when most people earn “more money,” it doesn’t add freedom, it detracts.
Luck occurs when probability moves from impossible to likely.
If you want luck, dive into process, because process raises events from the ashes.
this mental defect to assign blame externally is a condition known as an “external locus of control,”
Accountability is culpability to consequences and modifying your behavior to prevent those consequences. You can be responsible while not being accountable. A
Responsibility: It was my fault that my purse was stolen. Accountability: In the future, I will take precautions to ensure it doesn’t happen again.
No one can steer you off course, because you are in the driver’s seat. And when you own your decisions, something miraculous happens. Failure doesn’t become the badge of victimhood—it becomes wisdom.
Would you make a 5-for-2 trade knowing that it could transform into a 1-for-10? Would that be a something to invest in?
The only thing that interferes with my learning is my education. ~ ALBERT EINSTEIN
Paradox of Practice exists when someone promotes a moneymaking strategy but that strategy is not what made him or her rich.
Folks, the rich use the markets for income and wealth preservation—not to create it!
When the torque of you’re financial plan rests with others, you’re likely to lose control.
Slowlane winners are usually extremely talented, elderly, or overworked.
After 40 days, Chuma and his machine accomplish as much as Azur’s three years of toilsome work.
After eight years, Chuma finishes his pyramid at age 26: three years to build the system and five years to reap the benefits of the system.
The winning team is Team Producer.
Applied, this means instead of buying products on TV, sell products. Instead of digging for gold, sell shovels. Instead of taking a class, offer a class. Instead of borrowing money, lend it. Instead of taking a job, hire for jobs. Instead of taking a mortgage, hold a mortgage. Break free from consumption, switch sides, and reorient to the world as producer.
When you encounter an advertising message that coaxes you to buy something, examine it from the producer perspective. How does this company make money? What psychological tactics are used in its marketing messages? What kind of operational processes are involved in offering this product or service? Is this company making a profit? What is the revenue model? Is this product manufactured overseas or locally?
Contrary to this, Fastlaners buy and sell appreciating assets: businesses, brands, cash flows, notes, intellectual property, licenses, inventions, patents, and real estate.
Asset Value = (Net Profit) × (Industry Multiplier)
Since asset value is tied to net profit, raising net profit simultaneously elevates asset value by the average industry multiple.
Money grows on trees if you own a money tree.
Money trees are business systems that survive on their own. They require periodic support and nurturing but survive on their own, creating a surrogate for your time-for-money trade.
The content is an asset that is salable, over and over again, and with each sale, the effective time cost declines while the hourly rate of return expands.
Compound interest pays me a lot of money. It’s a tool I use. It’s a great passive income source. Yet, compound interest is not responsible for my wealth.
Impact millions and make millions. It doesn’t get any simpler than that!
Effection of scale or magnitude always precedes money, either directly or indirectly. The more lives you impact, directly or indirectly, the more wealth you will attract.
Here are some general questions to help you decide. What is your exit strategy? Go public? Sell to private investors? What is your growth strategy? What is your liability exposure in the worst case? Do you plan on raising capital now, or in the future? Do you plan to hire employees? Do you plan to take on new partners? Do you plan on earning profits fast? Or not for a while?
Your life is the sum result of all the choices you make, both consciously and unconsciously. If you can control the process of choosing, you can take control of all aspects of your life. You can find the freedom that comes from being in charge of yourself. ~ ROBERT F. BENNETT
If you aren’t where you want to be, the problem is your choices.
You cannot choose to persevere with one choice. You cannot wake up one day and say, “Oh, today I will choose to persevere.” It must happen everyday, not just once! Perseverance is woven by many choices that fabricate lifestyle.
Determination is not a solitary choice but thousands of them. You cannot decide to be determined; it must occur repeatedly, concertedly, and with commitment.
Until we see what we are, we cannot take steps to become what we should be. ~ CHARLOTTE P. GILMAN
You start making better choices using two strategies dependent on the decision’s gravity. 1) Worse Case Consequence Analysis (WCCA) 2) Weighted Average Decision Matrix (WADM)
1) What is the worst-case consequence of this choice? 2) What is the probability of this outcome? 3) Is this an acceptable risk?
Win the street race—I’ll win life.
Unlike choice’s consequences, you have a choice how your past is classified. The records of the past can be sealed.
When I reflect on my own failures, they serve me to effect future change. It’s a part of the responsibility/accountability process. What did I learn? What can I change in the future? What should I forget?
After a long workday and you have nothing left for your dreams and your Fastlane plan, you’re done. The headwind keeps you trapped.
Time isn’t a commodity, something you pass around like a cake. Time is the substance of life. When anyone asks you to give your time, they’re really asking for a chunk of your life. ~ ANTOINETTE BOSCO
“Indentured time” is the opposite: It’s the total time spent earning money and the consequences of that spent time.
When you spend your entire weekend “recharging” from the workweek, this is indentured time. Indentured time is actual work and the work you must do for the work. Morning rituals, traffic, compiling reports at home, solitary “recharges”—whatever time spent earning a buck is indentured time.
Indentured time becomes the ransom of your free time.
Everything we buy has not one cost, but two: 1) The actual dollar cost 2) The free time transformed into indentured time.
