In this book we will learn about the techniques that Tim Ferriss talks about in The 4-Hour Work Week that are designed to help you increase your time and financial freedom, giving you more lifestyle options. By automating a passive income and liberating yourself from unproductive tasks you can live the lifestyle of the ‘new rich’ – one defined by having, doing and being what you want. There is a 4-step process that you will need to go through to increase your time and financial freedom and that is: DEAL.
- D for Definition – essentially you need to define what you’re going to do and understand the rules.
- E for Elimination – next you will ‘reset’ and eliminate the unnecessary
- A for Automation – next up is the time to automate everything possible, this may include outsourcing.
- L for Liberation – finally, the part where you get to go out and live it.
To be the new rich you have to know that you will be separated from the crowd by your goals, which represent your priorities and life philosophy.
Now I will use this quote from the book to start: ”Money is multiplied in practical value depending on the number of W’s you control in your life: what you do, when you do it, where you do it, and with whom you do it.”
To become the new rich, replace the assumptions. In this life you have to be cautious. The reality is, that you have options, you have the ability to choose, and this is a real power within you. If you can follow Tim’s simple steps, you’ll be able to see what you can achieve with minimum effort and cost. At the end of this book you will realize that you can make a lot more money by doing a lot less than you currently are!
Another thing is that you should identify your fear. Many people deny it and remain optimistic that things will be better rather than working on it. Tim suggests that you take the following steps to eliminate the fear of the unknown and take a new path:
- Face your nightmare and define what it is exactly. Consider what is the absolute worst thing that could happen. Define the ‘worst-case scenario.’
- Identify what you could do in order to fix or repair the ‘worst-case scenario.’
- Define what the benefits, either temporary or permanent that are likely outcomes of the scenario you are considering.
- Ask yourself, ‘if you were fired today, how would you manage your finances from here?”
- Identify the things that you are putting off or avoiding out of fear.
- By avoiding these things, is it costing you? Whether this be financial, emotional or physical?
- What are you waiting for?
To be busy does not necessarily mean that you are productive. There is a difference between being effective and being efficient. To be effective is to act in a way that is helping you reach your goals. And to be efficient is to act upon any given task, in the most productive way possible. The problem is that the default approach is often being efficient without regard to effectiveness. It’s key to understand that doing something unimportant, but very well, does not by default make it important. And similarly, spending a lot of time on a certain task does not make it important either.
To be productive identify the few critical tasks that contribute most to income and shorten work time to limit tasks to the important. 3 times per day, at scheduled times, ask yourself: Am I being productive or just active? Am I inventing things to do to avoid the important?
How to have more time and do less 1) Define a to-do list and 2) Define a not-to-do list. This will help be clear about what you need to focus on.
There are things that get in our way of the start-to-finish completion of any task. Those are interruptions. There are 3 kinds of them mainly:
- Time Wasters. These include meetings, phone calls, internet surfing, emails, and discussions. They can be ignored with little or no consequence
- Time Consumers. These can be defined as tasks that are repetitive in nature but need to be completed regularly. These are the little tasks that interrupt the start-to-finish workflow of a task. Common time consumers include reading emails, replying to emails, talking on the phone, customer service tasks, errands, personal tasks, regular manual updates. Anything that gets repeated frequently.
- Empowerment Failures. When someone needs approval to make something small happen. This is a case where your approval is required in order for something to happen. When someone has to come to you before they can take the next step in their task. Or, in the case where you have to go to someone else before you can proceed with a task.
Automation and delegation are key.
Here is Tim’s 5 steps to gravitate towards full-time remote work:
- Increase Investment. Get the company to invest in some training for you so the cost of losing you is greater.
- Prove Increased Output Offsite. Call in sick, work from home and make it a super productive day.
- Prepare the Quantifiable Business Benefit. Prepare your results so you can show the quantifiable benefit you gained from working at home.
- Propose a Revocable Trial Period. Start with one day a week.
- Expand Remote Time. Gradually work up to multiple days at home per week. Then eventually, full-time remote work.
When you have started practicing these five steps, you will need to fill the void and add more life after subtracting work. Subtracting the bad does not create the good. It leaves a vacuum. Decreasing income-driven work isn’t the end goal. Living more—and becoming more—is.
Common doubts and self-flagellation of the new rich:
- Am I really doing this to be more free and lead a better life, or am I just lazy?
- Did I quit the rat race because it’s bad, or just because I couldn’t hack it?
- Is this as good as it gets?
- Am I really successful or just kidding myself?
- Have I lowered my standards to make myself a winner? Are my friends, who are now making twice as much as three years ago, really on the right track?
- Why am I not happy? I can do anything and I’m still not happy. Do I even deserve it?
These are outdated comparisons using the more-is-better and money-as-success mind-sets that got us into trouble to begin with.
Before spending time on a stress-inducing question, big or otherwise, ensure that the answer is “yes” to the following two questions:
- Have I decided on a single meaning for each term in this question?
- Can an answer to this question be acted upon to improve things?
If you can’t define it or act upon it, forget it.
The two fundamental components to enjoy life:
- Continual Learning. Transport skills that you practice domestically to other countries, like sports. Instant social life and camaraderie. Or pick skills that you can practice there, like learning a language
- Service. Doing something that improves life besides your own.