"Wealth is not the same as income. If you make a lot of money and spend it all, you're not rich. You're just a highly paid poor person." — MJ DeMarco
Are you a Sidewalker?
Most people think poverty is about not having money. MJ DeMarco argues that poverty is a mindset. You can earn ₹1 Crore a year and still be poor.
In Part 2 of The Millionaire Fastlane series, we explore the most crowded road in the world: The Sidewalk. This is where the victims, the spenders, and the "fake rich" live. Their destination? The cliff edge of bankruptcy.
1. Detailed Analysis: The Equation of Poverty
The Sidewalk roadmap is defined by one simple equation:
Wealth = Income + Debt
Sidewalkers believe that wealth is determined by how much they earn (Income) and how much credit they can access (Debt).
The Mindset: "Live for today!"
They seek Instant Gratification. If they want a new phone, they buy it. If they want a vacation, they swipe the card. They have zero financial plan. They trust "Luck" or "God" or "Government" to save them.
2. Are You an "Income-Rich" Poor Person?
We often think Sidewalkers are low-income workers. That is only half the truth.
Type A: Income-Poor Sidewalker
Earns ₹20,000/month. Spends ₹25,000/month.
They struggle to pay bills. They blame the rich, the economy, and the politicians. They buy lottery tickets hoping for a miracle.
Type B: Income-Rich Sidewalker (Sidewalker in a Suit)
Earns ₹5 Lakhs/month. Spends ₹5.5 Lakhs/month.
This is the Doctor, Lawyer, or Techie driving a Mercedes and wearing a Rolex.
The Trap: They look rich, but their Net Worth is zero (or negative). They are slaves to their lifestyle. If they lose their job for 3 months, they lose everything (House, Car, Status).
3. What is Real Wealth? (The Trinity)
Sidewalkers confuse "Wealth" with "Material Possessions." DeMarco defines True Wealth as the 3 F's (The Wealth Trinity):
- 1. Family (Relationships): Do you have loving people around you?
- 2. Fitness (Health): Do you have energy and vitality?
- 3. Freedom (Choice): Can you wake up and do whatever you want?
The Sidewalker sacrifices Freedom to buy Possessions.
He buys a car (Possession) on EMI, which forces him to work a job he hates for 5 years (Loss of Freedom). He is not rich; he is indentured.
4. Real-Life Examples (Indian Context)
The "Big Fat Indian Wedding" Trap
In India, families spend 10 years of savings on a 3-day wedding. Or worse, they take a loan.
This is classic Sidewalk behavior. You burn your future freedom for 3 days of social status ("Log Kya Kahenge").
Fastlane Mindset: Have a simple wedding. Invest that ₹20 Lakhs in a business or asset. Start your marriage with wealth, not debt.
The iPhone on EMI Culture
A student earning ₹15,000 buys an iPhone worth ₹80,000 on EMI.
He thinks he "owns" the phone. In reality, the bank owns him.
The Affordability Rule: If you cannot buy it twice with cash, you cannot afford it. Being able to pay the EMI does not mean you can afford the product.
5. The Mindset of a Victim
Sidewalkers never take responsibility.
• "I got fired because my boss is evil." (Not because I didn't upgrade my skills).
• "I have no money because inflation is high." (Not because I bought a car I didn't need).
To leave the Sidewalk, you must accept: You are exactly where you chose to be. Your current financial state is the sum of your past decisions.
Key Takeaways
- Looking Rich ≠ Being Rich: A Ferrari on a loan is a liability, not an asset. Net Worth is the only scoreboard.
- Wealth is Freedom: If your lifestyle forces you to work, you are poor, no matter your salary.
- Kill the Debt: Consumer debt (Credit Cards, Personal Loans) is the chain of the Sidewalker. Break it.
- Producer > Consumer: Stop buying what others create. Start creating what others buy.
Frequently Asked Questions (FAQ)
Q1: Is buying a house a Sidewalk move?
A: It depends. If the EMI takes up 50% of your income and traps you in a job you hate for 20 years, yes, it is a Sidewalk trap. A house should be bought when you have surplus cash, not as a burden.
Q2: How do I get off the Sidewalk?
A: Step 1: Admit you have a problem. Step 2: Stop buying liabilities. Step 3: Switch from "Consumer Mindset" (How can I spend?) to "Producer Mindset" (How can I earn?).
Q3: But I deserve a treat, right?
A: You deserve freedom more than you deserve a treat. Rewards should come after you build the asset, not before.
Up next: Part 3 – The Slowlane (Why a Job + Mutual Funds Won't Make You Rich).
📚 Credit & Disclaimer:
This post is a summary based on the bestseller "The Millionaire Fastlane" by MJ DeMarco. Content is for educational purposes only.
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