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This microbook is a summary/original review based on the book: The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich
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Tim Ferris is one of our favorite writers and bloggers here at 12'. And his first book, "4-Hour Work Week" brings a new perspective on how to face work in our lives and the future. The book tells us about Tim's experiments, his results, and his progress. In 4-Hour Work Week, Tim coined the term lifestyle design, to state that you have the ability to design your own lifestyle. Tim questions the traditional model of retirement and believes that you do not have to wait to retire to create your lifestyle. Whether it's to travel the world, get away from a monotonous job, make big bucks or just work less and live better, there are more efficient ways to handle your work and your productivity.
True wealth comes from time, from mobility and not just from money. Those who are able to understand this and master the two new currencies of wealth are called by Tim as the "new rich." A dream life is often much cheaper than you think. Your dreams can be things like travel around the world, learn something incredible or take time for your hobbies and they are not things that only millionaires do.
These things are also available to the new rich, and it does not cost millions to enjoy them. This is one of the main truths of the book: people do not necessarily want to be millionaires, but to experience things that only millions can buy. The book is focused on having a "new rich" lifestyle, without having a million dollars and with time and mobility. Of course, you probably will not be able to replicate each of the practices he recommends to have the same results, but he proposes that instead of waiting passively for things to happen, you become a dealmaker, a person capable of creating new opportunities. You need to write your own rules and always dream high.
To become a dealmaker, you need to understand the framework proposed by Tim. It is based on the acronym "DEAL". The four pillars of the DEAL are:
Definition: Replace the premises that block you;
Elimination: Forget time management. Learn to ignore what does not matter and save time doing it;
Automation: Learn how to make money on autopilot.
Liberation: Create your independence of location and work from anywhere; Often people stop to think how the rich and successful have arrived there but the full stories are not always told.
People like to believe that the ladder to success is long and slow, but that is just the reality that the world expects. For Tim, people do not become successful by luck or by having a repeatable formula but by having a DEAL attitude.
Being the new rich is the exact opposite of what many people think. Being rich new does not mean working to buy things you do not need. It means not delaying your dreams by a potential barrier. The new rich man has a mindset to accomplish, now. And DEAL's first step is Definition. It is based on reprogramming your way of facing life and having a new self-image and attitude. In order to define yourself, you will need to develop new approaches to your life. Here they are:
He never allows himself to leave for tomorrow what he can do today. He does the right things now, always coming out of his comfort zone. The new rich man has the courage to take action quickly and overcome his limitations, leaving aside the well-adjusted mindset.
If a well-to-do person dreams of working when they want, the new rich person dreams of having people working for him. While the pensioner dreams of retiring young, the new rich thinks of having constant adventures and mini-retirements planned during their lifetime, but their focus is never on the idea of doing nothing. He is motivated by the idea of doing something. If the affluent thinks of selling the company and thus making a hefty cash, the new rich thinks of having money constantly and leaves the idea of a major liquidity event in the background.
For Tim, being financially wealthy and living like a millionaire are very different things. The value of money should be weighed with your ability to choose what you want to do when you want to do it, where to do it, and with whom to do it. Often, freedom is worth more than the financial asset itself. You do not want just the money. You want to be able to control your destiny in the first place.
Most people opt for conventional solutions to solve a problem. But to have different results than 99% of people have, you have to do differently from them. For this, you need to rethink some aspects of life and develop this opposite approach. Some of the aspects cited by Tim are:
Understand the Myth of Retirement: The idea of retiring pretty much reinforces that people do not like what they do and want to stop it. If people dream about retirement, it says they are spending their youth and their most valuable years doing something they do not like.
Doing less is different from being lazy: Contemporary society tends to value sacrifices, in many cases, more than results. The new rich are measured only by their results and if a great result can be achieved with less effort, why not.
Permission is not required: You should not expect people's approval to start something new and challenging. As long as you do not cause significant problems, it is better to do something and ask for forgiveness, than to ask permission for everything you are going to do.
Focus on your strengths: Developing what you are already good at creates a multiplying effect on your results. Spending your time just trying to improve your weaknesses yields small, incremental results. Play to develop your best sides.
Make time to do what you want: Tim's idea at Work 4 hours a week is not that you have more time to rest, but more active time to do what you love, want and dream about.
Money alone does not solve all: More money does not always improve your life. We tend to believe we do not do things for money, but the great truth is we want to avoid the real cause of our attitude.
Understand your relative income: How much you earn does not matter. What really matters is your relationship between your time and your money. If you work 4 hours a month and earn $ 4,000, you're twice as rich as the guy who works 240 hours a month and earns $ 120,000.
Stress can be a good thing: If it takes you out of the comfort zone and causes you to grow and develop, embrace stress instead of avoiding it.
To have a clear definition, you need to overcome your fears and move on. Many people become paralyzed when they encounter their fears, and this leaves them stagnant. You need to understand what your biggest fears are and ask yourself: what's the worst thing that could happen? With a tip-of-the-tongue answer, it's time to create a plan to recover if the fears materialize. For each fear, it is also important to list the benefit of overcoming it. With this plan in hand, you understand the impacts that moving can have on your life and then it's time to ask yourself: what result would I have if I had been doing the exact same thing for 50 years as I do today?
The way we define ourselves is treacherous and leads us to believe that we can only have one part, not the whole. Most people look for mediocre results, which curiously increases competition for mediocre things and creates the opportunity for those who want to do incredible things. Therefore, there is less competition to do amazing things than mediocre things. Most people fall into the trap of "I'm going to raise $ 1 million, and after that, I'll do what I want." You do not want to be one of them, and so you need to know what you really want. You have to dream and create daring, unreal goals that go against the grain of what you do now.
In this new reality, you need to plan where you will be in the next 6 and 12 months. Take two sheets of paper, one where you map out your 6-month plans and one where you map out your 12-month plans. In each of them, write down the 5 things you dream to have, 5 things you dream to be and 5 things you dream to do. When you have all 15, check the 4 that would change everything. Calculate the monthly cost of each of these things. Add up all the expenses and take a 30% slack up to avoid surprises.
Now that you know the monthly cost of these 4 things, divide the result by 30. That's your daily revenue goal. From it, you know how much money you need to make per day to be able to realize them. Now write the first 3 steps for each of the 4 dreams of your 6-month plan and make the first step for each of them now. Now. Without thinking, just do it. Begin your plan to conquer your dreams.
To take full advantage of your time and channel it in pursuit of your dreams and thus become a new rich, the next step is to focus on eliminating waste. Being efficient is not the most important. Being able to get things done as quickly as possible is not an advantage because unimportant tasks take time even if you are efficient at accomplishing them. It is important to have focus.
Your time is best spent on important tasks, tasks that will bring you closer to your goals. To focus on the important things, use the Pareto Principle, also called the 80/20 rule: In most situations, 20% of the work produces 80% of the results. The rest of the work tends to have very few results. Focus on tasks that have the greatest impact. Ask yourself: What are the 20% of things that cause 80% of my problems? What are the 20% of things that result in 80% of my results? This focus is so important in the choice of tasks that you will use it in relation to the sources of information that you consume. Tim recommends that you never see the news, if something is important, people will tell you and you will find out for yourself. You need to redefine your brain to get used to it, and it suggests that you take a few days without any contact with television, books or surfing the internet. Focus on a consumption of small amount information that is really relevant to you.
You need to get rid of silly emails, unnecessary phone calls, meetings, etc. Turn off your notifications and check email a few times a day. Meetings, for example, are black holes where time and energy disappear, and most of them are completely unnecessary. A meeting is only appropriate when a decision needs to be made, and many people have to participate. If this is the case, set a fixed time and start the meeting reminding everyone of the reason for it. Also, never go into meetings where you do not need to. And if the meeting succeeds without you, skip all the next ones on the same subject. In the office, the same goes for hallway conversations with colleagues. Focus on the necessary subject. Every time someone approaches you, do not ask, "How are you?" And "What can I do for you?". It is also worth telling people in advance that you are in a hurry.
If you seek to earn a living by working just a few hours a week, you need an automatic source of income. You have to make other people work for you and get them to invest their time and not you to invest yours.
Today, it is fairly easy to set up a business that can run without much involvement from you. Hence, you can use outsourcing companies to scale up your operational capability. There are many companies that specialize in manufacturing products for resale, shipping products to customers, packaging customization, technical support, customer service, sales, among other things. But even more complex and evolving tasks can be outsourced. Virtual assistants from India, for example, are extremely inexpensive and offer high-quality services. A virtual assistant can do almost everything you normally would do yourself. By creating a business in which each task is outsourced to a specialist, you can make your involvement almost completely unnecessary. However, before hiring an assistant, keep in mind that you should first try to eliminate, then try to automate. Only the remainder should be delegated, otherwise, you waste your time and money.
Also, delegated tasks need to be time-consuming tasks that you can define with extreme clarity. If the task is too short or you can not pinpoint the expected results, it might be best not to delegate. To hire an assistant, also make sure he communicates well, ask for constant updates at the beginning to know how things are going, have clear timelines and priorities.
With more time on the agenda, it's time to try out new ideas and create new revenue streams. For this, the first thing you need is a product. You can also sell a product that is already in the market, and this is very easy, but the potential profits are much smaller. Creating your own product is much easier than most people think. But before you choose a product and start making it, you need to know if your potential customer base is large enough for you to actually earn money. To test the marketplace, offer your hypothetical product to real customers. The easiest way to do this test is to create a virtual store in which, when people click to buy, it shows a message that the product is out of stock and an apology. This serves to mark out people's interest in the product. It is also important to get the email from all interested parties because when the product is available, you can try to sell to them again. You can also test a product by buying ad campaigns on Google. Create multiple ads for your product, see which leads more people to buy and so you discover how much you would need to spend on marketing to sell a unit of your product.
Once you have a lucrative product, the challenge is to get out of the equation. This will give you the independence to live the life you dreamed with mobility.
To achieve this liberation, you need to learn how to do each business process in detail so that you can later hire outsourcing companies that can assimilate your knowledge and execute it. This will give you redundancy, and you will not depend solely on your suppliers. In addition, you need to ensure communication between all your virtual employees. You need to give them the autonomy to make low-risk decisions without consulting you for maximum automation.
If you still have a job and want to be remote, you need to be able to plan your new work model. And that may mean resigning, and you can not be afraid. So, know that: A resignation is not permanent. There are always other options if you change your mind; Paying the bills is not that difficult. Even if it is, there is always a way for you to reduce your fixed costs; Your resume will not get any worse. If you are resigning to do something you believe, your resume will become more interesting (you probably will not need it, though).
The concept of holidays for people is usually a short trip, one or two weeks to an exotic place. For Tim, you should think about the 20 to 30 years of retirement that you would have and divide them throughout our lives at 6-month intervals. The idea of a vacation is not to get away from your life but rather to have a lifestyle where you have small retirements and really know the world, contrary to the traditional view of just visiting cities and leaving.
If you can overcome your personal settings, eliminate the unnecessary, put your revenues on autopilot and create the freedom to work from wherever you want, you can get lost. You might be asking "why did I do this?" The more time you have, the more introspective you become, and the more you turn to yourself. Do not let the extra time in your life become just free time, but rather time in which you do something that fulfills you and brings you closer to your dreams.
Forget the conventional, the work routine from 9am to 5pm and its long career toward retirement. You need to redefine yourself to live the now, to know that it is possible to draw from scratch the lifestyle you want to live. Escape from mediocrity if you do not want to have a mediocre life, focus on doing amazing things, after all, there is less competition at the top.
12min tip: If you liked this microbook, you will also like our microbook of The Secrets of the Millionaire Mind! Check it!
Timothy Ferriss was born and grew up in New York. He is a successful entrepreneur, author, angel investor, and podcaster. His other books based on a similar “The 4-Hour Body” principle include “The 4-hour Workweek” and... (Read more)
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