Thursday, August 12, 2010

The Millionaire Maker by Loral Langemeier

I like this book a lot and recommend it. This book teaches you how to build your wealth by first knowing where you are and where you want to go. Discusses the wealth cycle and how to participate in it where ever you are in your financial life.

To find out where you are you have to determine
  • monthly income (gap analysis, financial baseline, entities, conditioning)
  • monthly expenditures (gap analysis, financial baseline, forecasting)
  • assets (gap analysis, financial baseline, assets)
  • liabilities (gap analysis, financial baseline, debt management)
  • what else (gap analysis, financial baseline)
  • what do you want (gap analysis, freedom day)
  • what skills do you use to make money (gap analysis, cash machine, teamwork)
  • are you willing to create and execute the wealth cycle process. (gap analysis, leadership)
The wealth cycle consists of 3 main areas, sequencing within the areas depends on your situation.
  • Gap analysis, Financial Baseline, Freedom Day
  • Assets, cash machine, entities, forecasting, debt management, wealth account
  • Teamwork, conditioning, leadership
In order to activate and sustain the wealth cycle mechanism you must
  • Put a portion of your earnings into a "wealth building account"
  • Invest the above money after due diligence based on your visions & values
  • Reinvest the earnings
  • set up entities to protect these assets
  • maximize tax strategies
  • create a cash machine, a business, to make more money of which a portion goes into the wealth building account. This cash machine uses a known skill set to allow you learn business skills which you can then apply in any arena
She also discusses a credit card debt elimination plan that I've seen other places.

Financial freedom day is when you achieve your following goals:
  • desired monthly cash flow
  • desired net worth
  • Specific date you want this to occur
She recommends the team approach

I also read two of her other books which go into more detail:
  • Cash machine for life
  • Guide to wealth cycle investing

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