THE 4-HOUR WORKWEEK BY TIM FERRISS-BOOK SUMMARY

 Climbing the corporate ladder, building a huge successful business Investing and getting returns like Warren Buffet. Why do we actually do it? Answer money more money But let's take a step back

What does money create?
It creates time, mobility and options

The new rich is a group of people who have realized that living like a millionaire doesn't require that one is a millionaire They have also realized that you can live like a millionaire without working your ass off until age 65 building a fortune 500 company or consuming millions of annual reports.

In the 4-hour workweek a book written by the entrepreneur Tim Ferriss We shall learn how the new rich managed to do this at the end of this video. You'll be able to fill in these blanks Let's dive in

Take away number one the step-by-step process of joining the new rich

Create time mobility and options without having an abundance of money. Sounds like a great deal. Am I right? That's why the strategy to get there is abbreviated DEAL

Life is negotiable Just because everyone else follows the nine-to-five Dogma doesn't mean that you have to do it too. I hate the but what if everyone else does so two-argument? Don't worry. Everyone won't be willing to do this, but hopefully you will Follow this and you'll be ready to join the new rich in no time

D stands for definition:
                                      First and foremost we must redefine the goal of the game that we've been fooled to play for so long Money in itself is not the end goal relative income trumps absolute income once certain essentials are met more on this in takeaway number 2

E is for elimination:
                                Being busy 24/7 is trumpeted as ambitious but Tim Ferriss disagrees being busy. All the time is lazy, lazy thinking To become truly productive which is essential to have a 4-hour workweek. You must eliminate unimportant activities which we'll discuss in takeaway number three

A is for automation outsource outsource outsource No more wasting your time with repetitive tasks. If you estimate your hourly to be say 20 dollars It probably makes a lot of sense to have someone else do it for seven dollars an hour.

L is for liberation:
                             Skiing is better in Italy Surfing is better in Costa Rica diving is better in Australia and meatballs definitely taste better in Sweden Why tie yourself down to a single location? in takeaway number five, I'll discuss some of the tips that Tim Ferriss gives for the final piece of the puzzle mobility

Takeaway number two relative income trumps absolute income Ok, so D is for definition and it's all about redefining how we think about money Who is richer in your opinion?

A the investment banker with an annual salary of $500,000 who works 80 hours a week or Be the e-commerce entrepreneur with his whole business on autopilot. Who earns? $40,000 per year with a 4-hour work week

Tim Ferriss talks about something he calls a freedom multiplier consisting of four variables Depending on how many of them that you can control the practical value of your money multiplies. They are What you do when you do it? where you do it and whom you do it with An investment banker is typically very restricted in these regards which is why the e-commerce entrepreneur may be richer when we consider what money can do for this person And here we shall introduce a very important concept Relative income Trumps absolute income once you have a cash flow that's enough to support your desired lifestyle By the way for great inspiration on a millionaire lifestyle check out my summary of Dan Lok's FU Money Sure, the investment banker beats the e-commerce entrepreneur in absolute income He earns four hundred and sixty thousand dollars more per year But is this a bit excessive? the e-commerce entrepreneur beats the investment banker once time is introduced to the equation as his relative income is $200 per hour versus a hundred and twenty dollars for the banker The investment banker may be able to stack up that five hundred thousand dollar salary for an early retirement But he should question himself on why he wants to do so So that he can move to a nice and warm Paradise Island and just go surfing all day Well, the ecommerce entrepreneur can live that lifestyle already he doesn't have to wait until retirement to do so and there's every reason not to save it all till the end.

Take away number three how to be more productive What's the difference between being effective and being efficient Being effective is about doing the right things Being efficient is about doing things, right? To join the new rich and reach a four hour workweek. We must focus on the former remember this Doing something unimportant. Well does not make it important It's time to eliminate the activities that are not getting us where we want There are two great principles to keep in mind here Pareto's law and Parkinson's Law Pareto's law states that 80% of the effects comes from 20% of the causes Our mental energy must focus on these 20% For example keep the top 20% customers happy and put the remaining 80% on autopilot fire their asses if they complain In general keep updating priorities and focus each day on one to two big tasks Small bad things will happen when you start to ignore certain tasks, but this is necessary to get the big things done

Parkinson’s Law states that a task will grow in perceived importance and complexity in Proportion to how much time that is allowed for its completion Please I've got to become better at this myself I've had days when I built the whole website in one day But I've also had days when I search for flight tickets for a whole day without would even booking one It's all about deadlines to become as productive as possible Cultivate the habit of selling short ones both for yourself and for others This is closely related to the students syndrome, by the way Smash the like button if you've experienced this partly so that I don't feel alone. But mostly for the YouTube algorithm

Takeaway number four become the ghost in the machine What's the greatest obstacle towards management free money Answer yourself No matter if you're an employee or an entrepreneur to join the new rich, you must learn how to define and delegate tasks Replace and multiply yourself Outsource tasks either to machines and software or to people to have them automated from your perspective Elimination precedes automation because just like doing something unimportant well does not make it important Outsourcing something unimportant does not make it important either But they also go some what hand-in-hand By paying someone else to do an activity for you. You can quickly determine if it's something that should be done or not Would you pay someone seven dollars an hour to manage customers that you only profit five dollars an hour from? Of course not and It's even crazier for you to handle these customers yourself as you probably value your own time much more than seven dollars an hour These customers should be eliminated. Not outsourced Tim Ferriss talks about Geographic arbitraging. It's all about earning in dollars living on pesos and compensating in rupees Get a virtual assistant from for instance Fiverr or Upwork for time-consuming and repetitive tasks and remember the following

Focus on cost per task completed and not cost per hour.

Test you don't know how well you will work with anyone before you try it

Set short deadlines

One task at a time

Apply it try it and hopefully you can multiply yourself down the line making you the ghost in the machinery.

Take away number 5 create unrestricted mobility. Yes, even as an employee for the entrepreneur unrestricted mobility follows from eliminating and automating if you start with the right business An example of such a business is an internet-based one\ and I’ll have to tout my own horn again. You can't just tell the boss that from now on you'll be working from the beaches in Rio de Janeiro

No

Instead you should follow these five steps to gradually allow yourself to pull a disappearing act from the office

Step 1:
           Increase investment,Look for courses and additional training available for employees. You want the company to invest as much as possible in you because no one understands sunk costs

Step 2 :
             Show increased output,Call in sick and do work off-site for a day or two make this period ultra productive

Step 3 :
            Quantify company benefits, Showcase just how productive you've been during these days to your boss emphasize the company benefits that this has

Step 4:
          Suggest a revocable trial, Ask the boss for a revocable trial of working remote for two weeks two days per week, Your fallback plan is one day per week if this request is denied. Again, make these days the most productive ever

Step 5:
           Expand time spent remotely, after a success for trial, Gradually increased time spent outside the office in additional trial periods until you don't have to be in the office at all

And that's it for Tim Ferriss 4-hour workweek let's repeat the key takeaways again

Joining the new rich is a four-step process with the abbreviation DEAL

Relative income beats absolute income once you have enough cash flow to support your dreams. Be more productive by prioritizing tasks and setting short deadlines. Remember Pareto's and Parkinson's Law. Outsource tasks to multiply yourself and become the ghost in the machine. Meatballs taste better in Sweden. Create unrestricted mobility for yourself so that you can experience everything that the world has to offer