Book Excerpt
The Millionaire Maker : Act, Think, and Make Money the Way the Wealthy Do
by Loral Langemeier

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An excerpt from The Millionaire Maker : Act, Think, and Make Money the Way the Wealthy Do by Loral Langemeier, published 2006 by McGraw-Hill.
Book excerpt reprinted with the permission of the publisher.
Copyright © 2006 Loral Langemeier




8 -- Myths About Money

I grew up on a farm in Nebraska. My family had always worked hard for their money, and as a result, I always equated working hard with making money, with no idea that my beliefs could not have been further from truth. As I educated myself on human behavior and financial strategies, I learned that it's actually the people who make their money work hard for them, rather than the people who work hard for their money, who end up with more of it. Since creating my millionaire-making program, I've learned that I was not alone. There are many people who shared this same myth.

Much like our views about many things -- people, relationships, food, and health to name a few -- our beliefs came from our parents, our teachers, and other adults in our lives. And it goes back even further, beyond them, back to the circumstances through which they lived, or what they learned from their parents, what their parents learned from their parents, and so on. These beliefs are ingrained, and because they're usually subconscious, the cycles are continuous -- until someone breaks them. You can break the cycle. Beliefs about money are many and varied, but in my research, I've discovered that there are a few that predominate.

Money is scarce. Several of us have parents or grandparents who lived through the Great Depression, an era that rooted an entire generation in a scarcity mindset. These people passed onto their children the idea that money was in short supply and that when it did surface, spending had to be limited and saving was imperative. If any of the following ever crossed your mind -- "A penny saved is a penny earned," "Don't dip into savings," or "We can't afford it" -- then you have this perspective and rainy days loom ominously. Money doesn't grow on trees. These threats create a fearful relationship with money.

Money is evil, dirty, or bad. Several of us have parents or grandparents who believe that the road to bad places is lined with green. They've only ever seen the drawbacks of the rat race, the downside of the money chase, and the audacity and indulgence of those with too much money. Some even believe that wealthy people are bad people. Novels and films often highlight the idea that it's the crooked ones who make the money. The meek shall inherit the earth. Such prophecies create a hands-off relationship with money.

Money comes monthly. The most common way to make a living is to be employed, either with a company or as a skilled professional, with a weekly wage or an annual salary. Historically, this provided the safe, sure thing required by heads of households. Yet, that level of risk was usually balanced with an equal level of reward -- low and low. For most, even those who do very well, working for a company or as a skilled professional is a constrained opportunity. Except for the outrageous exceptions, the average CEO of the average company making six figures a year will still experience only a small increase in salary during his or her lifetime. Slow and steady wins the race. Such fables create a cautious relationship to money.

Money is not for me. Some people feel that they don't deserve to be wealthy or that there is only so much of the millionaire pie to go around. Creating wealth and financial freedom is available to everyone. It is our right to be wealthy, and my hope is that people take their space and know they deserve it. By making money, you are not taking it from someone else; this isn't Bonnie and Clyde Go to the Bank. By making money, you create a greater capacity to contribute, and it's your duty to do this. Better them than me. Such adages create a defeated relationship to money.

Money is a man thing. There was a time that men made and managed the household money. That time was not so long ago, and some of you may have grown up with such conditioning. Though there are gender tendencies, for example, men tend to carry more money in their pocket than women and are more likely to invest than women, the reasons behind this are not genetic; they are realities falsely fabricated from years of conditioning. Women and men need to understand that money knows no gender. One of my programs that really resonates with up and coming wealth builders is "Wealth Diva: A Man Is Not a Plan." This is a must-do seminar for every man and woman, and the daughters and sons they love. Let him bring home the bacon. Such perceptions create an apathetic relationship to money.

Money is good medicine. For some people, retail therapy goes a long way; there's no difficulty a new blouse can't cure. At the moment, we live in a culture of consumerism, and many of us use money to fill the unsatisfying holes in our lives. Some people grew up with a sense of entitlement about money, assuming their parents or a trust fund would always pay for everything, and in the process, they became careless about what they had. This is a vicious and unproductive cycle. The new car gets old, the closet fills up with clothes, and the toys pile up in the playroom. This is notto say there aren't wonderful things to buy and spend our money on; after all, money should be fun. But as with overeating, too much spending on the wrong things can get any of us feeling sluggish and sad. Shop till you drop. Such bombarding messages create a disrespectful or nonchalant relationship to money.

Money is always a menace. For too many of us, money was always a problem. Bills were a hassle, keeping up with the Joneses was exhausting, entrepreneurs were considered nuts, and one's station in life was, well, stationary. And getting rich would be worse. Money can be such a burden, not to mention all that paperwork and responsibility. These views of money create a perspective that money is actually a problem, not a solution. It's hard enough just to survive, let alone thrive. Such pessimism creates a negative relationship to money.

Money talk is taboo. Many of us have been brought up to believe that conversations about money are in bad taste. Money and financial success, and failures, are considered personal subjects that shouldn't be discussed and certainly shouldn't be taught. Few of us asked our parents how much money they made, and even now, there are people who don't know their spouse's salaries. The results have unintended consequences and have created a world where very few people are having real conversations about money and finances, the very conversations they need to learn and succeed. These things are not discussed in polite society, dear. Such a scolding creates an ignorant relationship to money.

In each of these examples, it's clear that unless your parents made a conscious choice to think and act differently, they conditioned you to have the same mindset as them. If you make a decision to break this cycle, you will have the opportunity to teach your children to have more productive beliefs about, and a more profitable relationship to,money. As you come to understand the beliefs you hold, you will work to change them. Through the action steps in this process, and with the help of mentors and respected friends, you will change your behavior. By sharing your desire for new beliefs and asking your mentors and respected friends to help you spot the subconscious limitations you may be putting on yourself, you will teach your brain to follow your behavior. Begin now by restating your beliefs. For example, if you've discovered that you hold any of the above examples as beliefs, you will

1. Change "money is scarce" to "money is abundant" and support a courageous relationship to money.

2. Change "money is evil, dirty, or bad" to "money is good and acceptable" and create a hands-on relationship to money.

3. Change "money comes monthly" to "money comes from a range of sources" and create an opportunistic relationship to money.

4. Change "money is not for me" to "who better than me for money to come to" and create an empowered relationship to money.

5. Change "money is a man thing" to "I can and will know about and understand money," and create a thoughtful relationship to money.

6. Change "money is good medicine" to "money is a tool to help make my life better" and create a respectful and concerned relationship to money.

7. Change "money is a menace" to "money is a solution" and create a positive relationship to money.

8. Change "money talk is taboo" to "money talk is vital" and create a knowledgeable relationship to money.

You can see how much better it is to be courageous, hands-on, opportunistic, empowered, thoughtful, respectful and concerned, positive, and knowledgeable than to be fearful, hands-off, cautious, defeated, apathetic, disrespectful and nonchalant, negative, and ignorant. The choice is yours and it looks like you're well on your way. You've already taken a huge step by deciding to actually take the first step. By making the decision to start right now, you have created the opportunity to raise your financial consciousness and change your life.


A Five-Step Strategy for Getting Out of Debt

Most people with debt problems are so caught up in their Lifestyle Cycle or their debt juggling that they can't imagine finding a positive solution that will enable them to build wealth. Many would be so grateful to end the pain and panic of debt that they don't think much further than that one issue. Chuck Wallace had made the decision to remove himself emotionally from his debt and the reasons he got into it. For him this became, as it should for you, a pure business venture, a matter of simply applying dollars and cents to abolish debt. Committed to putting the debt plan in place, Chuck had relinquished the idea that he was too far in and only a windfall could save him. Chuck also understood that it takes longer to get out of debt than it does to get into it; but since, as he started to get out of debt, he was also creating wealth, he didn't feel that he was losing any time making himself a millionaire.

I know for a fact that because you want to, you can and will be able to end your role as a debtor and become a lender. By diligently employing basic debt elimination measures, you can get out of the debt cycle within three to seven years and at the same time start to build your Wealth Cycle. It is key to understand that these processes are simultaneous. The following Five-Step Debt Elimination Plan is what we use for all of our clients. If you have debt it will help you begin to get out of that debt, as well as into the habit of the Wealth Account Priority Payment. As you move forward in this process you will note that what makes this different from the other debt elimination processes is that this approach allows you to live a normal life while you eliminate your bad debt. I've actually seen books that make you question why you need to buy any new clothes for a year. I don't know about you, but that doesn't work for me. If you personally do not have debt, you may know many others who do, and by helping them through this process, you help all of us to live in a better society.

Step 1. Create a Debt Elimination Box

List all your consumer debt. Like your Financial Baseline items, this should be done electronically so you can keep track easily. This list should include all of your credit cards, charge accounts, any high-interest loans that are not against an asset, and other outstanding credit or liabilities. The list should include (1) the name of the creditor, (2) the amount you owe, (3) minimum monthly payments, and (4) the interest rate. On our Web site,, we have a debt calculator that allows you to insert these numbers and easily create these calculations.

Step 2. The Factoring Number

To fill in the last column, the factoring number, the following simple calculation is necessary. Take the number in column 2, which is the amount of the debt, and divide that number by the number in column 3, which is the minimum monthly payment required. For example, if you owe $7,000 on your credit card and the minimum monthly payment is $200, your factoring number would be 35. Fill in the factoring number for each item on your consumer debt list.

Step 3. Priority Payoff Box

On a new list, take the debt with the lowest factoring number and put it at the top. This debt is the first priority payoff. Continue to list the debt in order of the factoring number, with the debt with the lowest factoring number appearing in first place, the debt with the second lowest factoring number in second place, all the way down to the debt with the highest factoring number listed at the bottom.

Step 4. The Jump-Start Allocation

In addition to the minimum payments required, you are going to take $200 from your current spending and allocate this to your debt elimination plan. This amount, about $7 a day, will greatly accelerate your debt elimination plan. Don't scream. This is going to be easier than you think. And once you put together your detailed Financial Baseline you will have a clear understanding of where your money comes from and where your money goes. Finding that $200 will not be difficult, and your cash flow from new assets may create the extra money. In my experience, when you list every single expenditure in your Financial Baseline, you will find a cut that doesn't even come close to forcing you to scrimp or sacrifice.

On the Financial Baseline of one of my clients, I discovered $600 a month spent on sushi. After several attempts to defend this expenditure, she finally, reluctantly, painstakingly, made a decision to spend just $400 a month on sushi. My guess is that when you honestly dig up your expenditures, you'll discover a few sushi-like items that you could, perhaps, not do away with altogether but cut down on a bit. For those of you still smoking, you can kill two birds with one stone: take care of your health and your wealth by cutting out cigarettes.

Step 5. Debt Payments

Take the debt listed in the first spot of the priority payoff box and apply the $200 jump-start allocation to the minimum payment listed with this debt. For example, if the minimum payment is $350, add the $200 for a new monthly payment of $550.While you continue to pay the normal monthly minimum payments on all the other debts, you will pay, in this example, $550 monthly on this specific debt until it is paid in full. When you're finished paying off the debt in the number one spot, you will take the amount you paid for those minimum monthly payments, plus the jump-start allocation, in our example $550, and add this amount, $550, to the minimum payment on the debt in the second slot. As you can see, the payments build and build as you drop on down the list of debts and your capacity to pay off your debt accelerates incrementally. Though you will be uncomfortable with this process at first, when you witness the speed at which you make progress, debt elimination will become as addictive as accumulating the debt once was.

In this plan, it is vital that you commit to making the minimum payments, and also to adding the jump-start allocation. That number, the jump-start allocation, must be specific and consistent. Additionally, you must have in your mindset that as you pay off one debt, the minimum payments stay in this debt payment pool and contribute to the next debt's payments. That is the only way this will work. And it works wonderfully well. You will be amazed at the speed with which you cross off each debt payment. And by the time you get to the one at the bottom, the one with the highest factoring number, which in reality represents the months it should take to pay it based on the original monthly payment, you'll see that you'll pay that debt off much faster than the factoring number indicated.

Making these commitments is tough to do on your own. I strongly recommend that you share your priority payoff box with members of your team. At times, you'll be tempted to use your credit cards or assume some additional debt. If your close friends and advisors have been given permission to check in with you about your debt, they will facilitate your process with a system of checks and balances against your old impulses.

The Millionaire Maker : Act, Think, and Make Money the Way the Wealthy Do by Loral Langemeier,


You -- A Millionaire?

(It's true, and you might be closer than you think.)

Master the art of wealth building, and make money the way millionaires do!

Even financial woes and a limited income can't stop you from creating real, sustainable wealth and the freedom it buys. The Millionaire Maker reveals Loral's proven wealth-building system that thousands of ordinary people have already used to begin a life of unlimited financial freedom.

Regardless of your income, you will learn how to

* Eliminate debt while you create a consistent, diversified stream of cash

* Make your money work for you by committing some of your earnings to cash-producing investments instead of just savings

* Cover the costs of owning a home, sending your children to college, and securing an enjoyable retirement

Ready to begin a new life of unlimited financial freedom? Read The Millionaire Maker and find out how to tap into the power from which great fortunes spring.

Master the art of wealth building, and make money the way millionaires do!

There are only two things millionaires have that you don't: wealth and the knowledge to build wealth. But that's all about to change. Thanks to "Millionaire Maker" Loral Langemeier, you can develop the same financial intelligence that millionaires use to create, grow, and sustain their fortunes.

Regardless of your income -- and in as little as one year -- the exclusive wealth-building method in The Millionaire Maker can have you generating enough money to

* Quit your job and start doing the things you love

* Control and then eliminate your debt no matter how much you owe

* Live your life on your schedule -- instead of your employer's

Loral Langemeier has already shown thousands of people how to tailor her proven wealth-building program to their individual needs, no matter what their financial condition -- and she can do it for you too. As a hardworking single mom, Loral developed a process of transforming her income into assets, and assets into income that in turn created even more assets -- something she calls the Wealth Cycle. Using her program, you'll learn how to build your own continually growing cycle of wealth by

* Engaging in business ventures that generate passive income

* Substantially decreasing your tax burden

* Forming trusts, corporations, and partnerships to protect your assets and create a nonstop revenue stream

* You'll also gain free access to many of the resources and investment advisors previously available only to those who sign up for Loral's world-famous Live Out Loud seminars and workshops.

The Millionaire Maker : Act, Think, and Make Money the Way the Wealthy Do by Loral Langemeier,


"Loral is the real deal . . . she actually makes millionaires."

-- Harv Eker, author of the New York Times #1 bestseller, Secrets of the Millionaire Mind

"Read The Millionaire Maker and create the wealth of your dreams today."

-- Mark Victor Hansen, co-author, Cracking the Millionaire Code and The One Minute Millionaire

"I personally know countless people who are millionaires today and credit Loral with their financial success. Read this book and become a member of Loral's millionaires' club!"

-- Bob Proctor, author of You Were Born Rich

The Millionaire Maker : Act, Think, and Make Money the Way the Wealthy Do by Loral Langemeier,

We have reviewed this book.
Link to our book review.