Book Review: The Millionaire Maker By Loral Langemeier

by James on 03/09/2010

Image of The Millionaire Maker book cover

Just finished up reading a book called The Millionaire Maker: Act, Think, and Make Money the Way the Wealthy Do by Loral Langemeier. I thoroughly enjoyed this read. I will start by saying that my wife has been an avid listener of Loral Langemeier’s radio show over the past year. She met Loral at her book release party for her new book, Put More Cash in Your Pocket: Turn What You Know into Dough, hosted by Biz Radio here in Houston, Texas. My wife got a free autographed copy of her last book, The Millionaire Maker! Needless to say, I stole the book from my wife and read it before she had a chance. Here is a brief summary of her book.

Simply put, this book is about how anyone, including us, can systematically become a millionaire within 3-5 years. That is impossible to believe, isn’t? Well, it is hard to believe, but her methodology seems absolutely logical. She states that she can turn anyone (who is willing to follow her plan) into a millionaire within 3-5 years. Hence the “millionaire maker” title. She sites 6 examples in her book of individuals and families of varying backgrounds from being in debt with virtually no income, to having a lot of poorly allocated assets and high expenses. She determines where they stand through 8 simple questions and based on these answers, comes up with a plan to make them wealthy.

Here are the important points I got from Loral’s book:

1. Becoming a millionaire requires a team. Anyone who proclaims they are a self-made millionaire isn’t telling the truth. Everyone who has made this much money and more has had a team of experts including accountants, lawyers, real estate professionals, marketing specialists, mentors, and other specialists, helping them all along the way. There is simply too much to do and know for one person to be successful alone. Find yourself a solid team of experts, and you’ll be well on your way.

2. Become a leader. In order for your team to help you achieve your goals, you need to be able to lead them all in the right direction for you. These experts should be aware of each other and communicate in order to determine the best approach for you based on your specific situation.

3. Find a mentor. Don’t try to reinvent the wheel. Find someone who has successfully done something you want to do and ask them to guide you.

4. Work through the fear. Fear is what holds most people from achieving their dreams. If you are too afraid of doing something you have never done before, you will never become a millionaire.

5. Get rid of debt and save money at the same time. So many financial experts suggest that anyone in debt should get rid of your high interest debt before doing anything else. Loral says you need to save money and pay off debt at the same time. In order for most people to get out of debt, they need more income. In order to make more income, a person needs cash to invest in income producing assets. She recommends opening a high interest “wealth account” to save money in each month using automatic withdrawals until you are ready to use it.

6. Delegate work. You can’t do everything yourself. You have to delegate work that others can do either as well as you or better. Also, you need to free up your time at home to devote to your ventures by hiring someone to clean your house and take care of your lawn work. She calls this the $400 Solution. Basically, your time is worth more than it costs to do these chores. At only $10 per hour, you could free up as much as 40 hours of your precious time per month (40 hours x $10 = $400) for only $400.

I personally have a cleaning service come to my home every other week and lawn service once a week. This costs me $240 per month and saves me lots of precious time!

7. Manage your finances. Know what your income is, what your expenses are, your assets and your liabilities. If you can’t manage your own budget, you definitely won’t be able to handle business finances. Most importantly, you need to know what your current financial standing is to know what the “gap” is between what you have now and where you want to go.

8. Create entities for liability protection and tax savings. Most people earn income, pay taxes and then spend money. The wealthy earn income, spend money and then pay taxes. By creating corporations you can save money by expensing many of your purchases, thus saving money. Also, you can protect your assets by forming corporations.

9. Do what you know how to do first. Use your skills to create a “cash machine”. Don’t try starting a business that you have absolutely no experience in. Think about what your current skills are and start a business that uses these skills. Once you have a successful business going, then you can try and go off in another direction.

10. Many people are not wealthy because of poorly allocated assets. Many people are so close to being financially free, but they don’t even realize it! By simply reallocating their assets from large amounts of equity in a home, poorly invested stocks, mutual funds, other real estate, IRAs and retirements funds, individuals can start receiving enough passive income to replace their jobs!

Overall, I thought this book was excellent. It provides a wonderful combination of motivation and a solid foundation for attaining wealth. As with anything goal, getting started is an important step. Continue to educate yourself while taking action.

Check out Loral’s book, The Millionaire Maker: Act, Think, and Make Money the Way the Wealthy Do today and get started toward financial freedom!

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