The Millionaire

MasTer Plan

Enlighten Your Path to Financial

Success

RogER JamES Hamilton

NEW YORK BOSTON

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This publication is designed to provide competent and reliable information regarding the subject mat‑ter covered. However, it is sold with the understanding that the author and publisher are not engaged in rendering legal, financial, or other professional advice. Laws and practices often vary from state to state and if legal or other expert assistance is required, the services of a professional should be sought. The author and publisher specifically disclaim any liability that is incurred from the use or application of the contents of this book.

Copyright © 2014 by Roger James HamiltonAll rights reserved. In accordance with the U.S. Copyright Act of 1976, the scanning, uploading, and electronic sharing of any part of this book without the permission of the publisher constitute unlawful piracy and theft of the author’s intellectual property. If you would like to use material from the book (other than for review purposes), prior written permission must be obtained by contacting the publisher at permissions@hbgusa.com. Thank you for your support of the author’s rights.

Business PlusHachette Book Group237 Park AvenueNew York, NY 10017

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Printed in the United States of America

RRD‑C

First Edition: July 201410 9 8 7 6 5 4 3 2 1

Business Plus is an imprint of Grand Central Publishing.The Business Plus name and logo are trademarks of Hachette Book Group, Inc.

The publisher is not responsible for websites (or their content) that are not owned by the publisher.

Library of Congress Cataloging‑in‑Publication Data

Hamilton, Roger James. The millionaire master plan : enlighten your path to financial success / Roger James Hamilton. — First edition. pages cm Includes index. Summary: “The Millionaire Master Plan is a unique and fresh approach as to how individuals can not only get a sense of where they stand on the spectrum of personal wealth, but more importantly, how they can learn to ascend from their present state to a higher level. Roger James Hamilton, himself a highly successful entrepreneur and successful investor, has designed nine steps ‑ from barely surviving ‑ all the way to the highest level of ultimate wealth for life ‑ and he lays out his nine steps in an easy‑to‑understand color‑coded manner that ranges from red (barely living paycheck‑to‑paycheck) all the way to ultra‑violet (where generating income is simply no longer a worry). Along the way, the reader first takes a quick test to determine where one is on the financial spectrum, and then Hamilton provides key insights and practical tips as to how one can progress to the next level. You track your progress by ascending from one color to the next”— Provided by publisher. ISBN 978‑1‑4555‑4923‑8 (hardback) — ISBN 978‑1‑4555‑4924‑5 (ebook) — ISBN 978‑1‑4789‑5374‑6 (audio download) 1. Finance, Personal. 2. Wealth. 3. Investments. 4. Success in business. I. Title. HG179.H2542 2014 332.024'01—dc23

2014002784

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ACTION POINT

Take the Millionaire Master Plan Test!

O n the inside of the back cover flap, there is a code that you can use to take the Millionaire Master Plan Test.

This test is essential for understanding how this book works and following your path through it.

Simply enter the code at www.themillionairemasterplan.com to take the test. It only takes about fifteen minutes. After finishing the test, you will receive two reports via email:

• The first report will come immediately and identify which of the four geniuses is your natural genius. This is your

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C h apt e r 1

YOUR GENIUS

T ry this little experiment: Fold your arms. Look whether you have folded your left arm over your right arm or your

right over your left.Now do the opposite: Fold your right arm over your left

arm or your left over your right. Does it feel comfortable? For most people, it doesn’t; for some, it is even hard to do— it feels . . . unnatural. That’s because you’re doing the wrong thing. That’s not

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C h apt e r 2

THE WEALTH LIGHTHOUSE

J ust like the origins of the four geniuses, the structures that create the Wealth Lighthouse date back five thousand years

to ancient China and India and then draw a path through ancient Egypt, Greece, and Rome up into the time of the Renaissance and the Age of Enlightenment, then through to the modern day. The Wealth Lighthouse has four sides that are connected to the four geniuses we just covered and is made up of nine color‑ coded

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T H E M I L L I O N A I R E M A S T E R P L A N42

In becoming a Blue Conductor and having others lead my busi‑nesses for me, I could no longer choose what I could change in my businesses; instead I empowered others to make those decisions for me. But with multiple streams of income, I gained an even higher level of freedom of movement. At this level, the higher calling to be an Indigo Trustee for your industry or cause inevitably arrives. At this point, you need to ask if you are willing to give up that freedom of movement you have earned to live up to the higher public expectations of being a role model for or leader of your industry or cause.

Notice a pattern? In the nine steps up the Wealth Lighthouse, we move in a zigzag from freedom of choice to freedom of move-ment. We progress through personal value and personal leverage to social value and social leverage. At each step we move from the driver (who knows how to drive the vehicle but not how to build it) to the designer (who knows how to design the vehicle).

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ACTION POINT

Design Your Spaces to Suit Your Geniuses

A key to measuring your money at every level is to create a rhythm to manage your time and money that is aligned to your genius; energizes, engages, and keeps you in flow; and assigns value to the spaces of other geniuses.

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T H E M I L L I O N A I R E M A S T E R P L A N132

the first time— the equation to wealth. It explains how we, like plumbers, can direct flow effectively using our genius, and it is an essential part of moving up to Yellow Level.

Wealth = Value × Leverage

Imagine a river: Water flows where there is a height differ‑ential. Similarly, money flows where there is a value differential, based on value exchange. When people bought my prints for $6, it meant they valued my prints equal to or more than the price I set. I end up with their money, and they end up with my prints. Every day, trillions of dollars of money flows naturally in this way.

Value controls the speed of money flow. It is the grade of the river. Leverage is the width and controls the volume of money

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dynamic. Its two opposites are Innovation (Dynamo Genius) and Timing (Tempo Genius):

• Dynamo Geniuses have an “intuitive” thinking dynamic and create value best through innovation. Dynamos see the future and move things forward. At every level of the Wealth Lighthouse, Dynamo Geniuses take the creative route to flow.

• Tempo Geniuses have a “sensory” thinking dynamic and create value through timing. Tempos know when to buy, when to sell, when to act, and when to hold. At every level of the Wealth Lighthouse, Tempo Geniuses take the sen‑sory route to flow.

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F R O M O R A N G E T O Y E L L O W 163

Promotion: Your Golden Thread

All great promotions follow the same seven steps with each step measurable and controllable:

1. A Compelling Invitation: What is it? Who will it reach? When and how?

2. Simple Registration: Automated, measurable, trackable3. A Firm Confirmation: Building commitment, immediate

payoff4. Thoughtful Preparation: Building anticipation, setting

expectations5. High‑ Impact Delivery: Exceed expectations, make a new

invitation6. Easy Feedback: Honest reflection, quantifiable improvement7. A Sincere Thank‑ You: Completion of the promotion, an

enchanted end

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The Enterprise Promise is never renewed, and it is reviewed annually.

What is your Enterprise Promise in one sentence? How well have you been fulfilling this promise? How will you fulfill it in the year ahead? Set a time to answer these questions and review the promise annually when you bring everyone together to align to your mission. (I run weeklong annual retreats for the leadership of my companies to review and get realigned around our Enterprise Promise.) Don’t make sudden changes that others cannot follow midway through the year; hold off those big strategic decisions until your annual review. Your Enterprise Promise is like your compa‑ny’s DNA. So if you come up with a different Enterprise Promise, it’s better to start an entirely new business with a new DNA.

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F R O M G R E E N T O B L U E 211

Luca Pacioli— who managed the wealth of the Medici family as they funded large parts of the Renaissance— is called double‑ entry accounting. It looks at all accounts as a triangle divided into a cash flow statement, a P&L (or profit‑ and‑ loss) statement, and a balance sheet. Whenever you change a number in one statement, there is an equal and opposite change in another statement. Every transaction gets recorded as both a debit and a credit, so the trian‑gle is always balanced. Understanding this triangle is the key to building your wealth. (I have created a video to explain how the three relate to each other at www.themillionairemasterplan.com.)

Whether you are looking for cash, profit, or capital return, there is someone on another point of a triangle looking for some‑thing different and willing to trade with you. Establish the triangle, and the problem is two‑ thirds solved. In short, money is simply a promise (currently backed by our governments), and all wealth is created through the flow of promises:

• Your cash flow statement shows your promises paid.• Your profit‑ and‑ loss shows your promises delivered.• Your balance sheet shows your promises made.

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