The Hindu Business Line : Investing money passively is a sign of laziness

How to get rich quickly? Michael Masterson shows the way in Seven Years to Seven Figures, from Wiley (www.wiley.com). His `fast-track plan to becoming a millionaire' is different from most `pinch-save-and-wait programmes,' because the plan that he describes in the book recognises `an important truth'. What's that? "To get rich in less than 40 years, you have to radically increase your income."

But first, `Are you ready for wealth?' If yes, know a fundamental truth about wealth — that some forms of wealth are limited, as for example coal and oil. But human resources like intelligence, creativity, and skill are available in infinite quantities, says Masterson. "Most of the products of intelligence, creativity, and skill are also unlimited. As long as there are 100 people living on this planet, there will be 1,00,000 possibilities for creating wealth."

Your first step towards financial independence begins with a promise: "That getting wealthy is going to be your top priority." For a full and balanced life, Masterson urges you to set goals that cover the following four categories, viz. health, wealth, social life, and personal life. Seven figures, he explains, can be $1 million to $9 million of net-worth, that is, `the total of all your assets minus all your debts.' Okay, how much is enough? "Getting wealthy is not such a big accomplishment," observes the author. "Being content with your wealth — that takes some doing."

Takeaway tips

The bulk of the book is devoted to stories of success — `the actual habits, patterns, and practices of eight people... who became wealthy very quickly.' Such as, morphing from being an employee to the status of a partner, and turning around from bankruptcy. `Even accountants can get rich,' teases Chapter 10, on `Brad Solomon', who gives takeaway tips such as:

Identify a business or service sector you could excel in.

Find a powerful mentor and follow his advice.

Be hardworking, diligent and loyal.

Use social skills to develop a network of successful, well-connected contacts.

Develop a second and then a third stream of income.

The final section of the book urges you to act now. Masterson's plan is not only for the young, but also the 50- and 60- year olds.

Repetitive patterns that he emphasises in the book are that winners earned high incomes, had equity in a business, and often invested in real estate.

Business lessons

"The Internet offers businesspeople the revolutionary opportunity to precisely target potential customers in the world's fastest-growing marketplace. There is no business I can think of that wouldn't benefit enormously from doing this as part of its marketing strategy," declares the author.

"The Internet also makes it possible for you to `talk' (meaning `sell') to your core customers on a regular basis for practically nothing." To those who aspire to launch into a business, his instructions are straightforward: "Pick a topic — something you love. Make a marketing plan. Figure out what you can sell, relatively cheaply, to establish your base of core customers." Your first focus must be to sell, he insists.

Masterson weans you away from investing money passively. "The lure of this method of getting rich is enormous, because it appeals to one of our most fundamentally human instincts — laziness." Instead, "Do one thing. Do it right. And then sit back and watch the money flow in."

If you still want to make `a ton of money with passive investments' be prepared to `become very active about them.'

A book that can spur you to actively aspire for seven figures or more.

The secret to success, in the words of Frank Lloyd Wright, cited in the book, is: "Dedication, hard work, and an unremitting devotion to the things you want to see happen." Masterson explains that it takes three things to get wealthy: "A plan of action, making the time to follow the plan; and the willpower to do the work."

There are no shortcuts. "You will have to work hard the first year. Probably harder than you are used to." Let that not bother you, though. Because "you'll be so excited by what you are doing, so motivated by the idea that you are making a business out of something you're passionate about, that you won't notice how many hours you are putting into your work."

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