I read this book a while ago but never got around to writing a proper review of it. The valuable part of this book is the focus on actual numbers and learning some basic accounting. But it also contains a solid path to creating wealth from start to finish.
Loral Langemeier doesn’t believe in aggressive saving into retirement plans as a way to be wealthy. Her plan for creating millionaires is based on increasing the amount of cash producing assets to increase cash flow and passive income. She believes that her process for creating wealth is universal and anyone that follows the plan is guaranteed to see positive results.
Loral starts the book with what she calls the “Wealth Cycle Process.” There are 12 building blocks of the Wealth Cycle.
- Gap Analysis
- Financial Baseline
- Freedom Day
- Debt Management
- Cash Machine
- Wealth Accounts
The book has a well rounded approach to building a business (cash machine) as a way to create wealth.
One of the things that really made an impression on me was the discussion of entities. Before reading this book I hadn’t really thought about the differences between a LLC and a sole proprietorship, and the importance of choosing the correct entity. The book gives some good examples of how to use entities properly to both protect your assets, and to take advantage of the tax implications.
I really liked this book. It was much better than I expected it would be.