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The 4-Hour Workweek Tim Ferriss

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The 4-Hour Workweek Tim Ferriss The 4-Hour Workweek Tim Ferriss Operation Value Creation Website LinkedIn. Twitter Email DreamerWe theme of the month: Passive Income Book: The 4 Hour Workweek Author: Tim Ferriss Abstract This book is the New Rich (NR) bible, as it covers the what and how of this new generation that’s trading Ferrari’s and Mansions for financial freedom. The subtitle to his book describes it perfectly, “Escape the 9-5, live anywhere, and join the New Rich”. To most this sounds foreign and unrealistic. However, due to disruptive technologies, mainly the internet, this is reachable for those who understand and can capitalize on the revolutionary ecosystem we operate in. The days of working for a company your whole life and having a stable retirement are gone. Meanwhile, we’ve been fed advice based on this premise. Thus, our mindset and learned habits are completely unfit and we MUST adapt accordingly. Ferris’s book is a start. It is NOT the end, rather a beginning of the revolution in our thought. I highly recommend the following articles to supplement his book: Warning Alright guys, so I’m going to give you two articles on this book. The first is by “branding expert” Dorie Clark. Dorie is a marketing strategy consultant, frequent contributor to Harvard Business Review, and author of the #1 leadership book Stand Out (You can find her bio here). Her article stands to not completely discredit, but warn you of Ferris’s book. Reference 1: Truth Behind 4 Hour Work Week by Dorie Clark The second is a bit of the contrary. I’ll be honest, it is a great visual depiction, but I don’t know about the author. He seems to have a reading list with a not finished website. I’m providing you with it so you understand the book, and similar to Rich Dad Poor Dad (Rich Dad Poor Dad Link), understand the principles. Reference 2: Animated 4 Hour Work Week Book Review My take, just like Crush It, there’s a lot of smoke but some serious take home content. I mean this in the nicest way possible, 99% of us are not Tim Ferris. He possesses that unique blend of an “FU” mentality with the brains of Thomas Edison. Most of us, myself included, aspire to be one of these personalities or a balanced mix, but Tim manages to be stardom in both. For example, he earned a BA at Princeton yet wasn’t the book worm type. I’ll speak for the majority when I say this just isn’t me. Besides the inherent personality bias, this book hammers the mindset and habits consistent in every entrepreneur. It also gives us his framework which is similar to Vaynerchuck’s in Crush It. D r e a m e r We Proprietary | 8 The Book His book is mostly motivational, and I believe you guys are already motivated. Thus, instead of wasting your valuable time, I’m giving you his exact framework and will let you control your own pep talks. His framework is broken up into the acronym DEAL. D: Definition: Replace self-defeating assumptions E: Efficiency: Forget time management, learn to forget the unimportant Time A: Automation: Learn to put cash flow on auto pilot Income L: Liberation: Create freedom of location Mobility jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjD jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjE jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjA jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjL jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj click to go straight to! D r e a m e r We Proprietary | 8 D: Replace Self Defeating Assumptions: What is Rich For those who have read Rich Dad Poor Dad this is going to be very similar. Both hammer the mantra that wealth is a side effect to your process. If you think rich, you’ll be rich. At the heart of this, thinking rich means thinking the opposite as the masses when there is a problem. An awesome example of this was when Tim was in sales. Getting meetings was the problem. Tim noticed the primary barrier to set these up were the “gate-keepers”- secretaries, etc. To solve this he only made calls from 8-8:30 then 6-6:30. Why? Because they were working 9-5, so he bypassed them, unlike his fellow salesmen who kept calling from 9-5. Ferris provides 10 ways to redefine and solve life in order to leverage your ability to think against the current: 1: Retirement is worst case scenario insurance. If you love what your doing do you really want to retire? 2: Interest and energy are cyclical. Don’t overwork! Is one week a year really enough to recharge your batteries? Who really thinks making employees stick to a strict schedule is bringing out the best in them? Ferris advises taking mini vacations to constantly be energized. He calls these vacations mini- retirements. 3: Less is not laziness. If any of you have played sports with crazy coaches, you know how ludicrous and pervasive this mindset is. I played division 1 baseball in college, and let me tell you, 12 hour days that could be accomplished in 2 hours are wasting everyone’s time. Our culture suffers from what I call industrial revolution PTSD. The industrial revolution required skill-less jobs in which frequency and volume was all that mattered. Too bad our economy has completely transformed into one with a brain over bronze and winners are those that out think versus out work. Further, how do you out think? By NOT out working. 4: The timing is never right. Self explanatory, might as well just show a Nike T-Shirt. jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj5: Ask forgiveness, not permission: This is where I disagree. Although it works in some cases, I believe jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjthe focus should be on framing your pitches. D r e a m e r We Proprietary | 8 jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj Back to home! jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj 6: Emphasize strengths, not weaknesses: Weaknesses lead to incremental improvement, strengths are exponential. I believe this depends on the person. 7: Things in excess become their opposite: Too much of anything isn’t a good thing. 8: Money alone is not the solution. This comes into play with your life personally and how you view your customers. Refer: Value Article, Coined Book Summary 9: Relative Income is more important than absolute income. When we think wealth we generally think of it in a very mundane and one track mind way. Do you make 6 figures? If yes, you’re rich. If your between 50 and 90 your middle class, and anywhere below is working poor (Based off status quo versus actual data). BUT what if that 90 is in the North Carolina versus New York City. Better yet, what if that 90 is in a whole different country. That can be the difference between a closet sized apartment and a full blown mansion. Yet we so often stick to an arbitrary number known as the absolute income to determine wealth. Let’s look closer into this through the story of Billy and Joe. Billy Joe Billy makes 30/yr, Joe makes 160/yr. Who’s richer? Our first reaction is Joe….obviously. However, what if Joe works ten hours a week while Joe works 80 (If you guessed Joe works public accounting your right)? This leaves Billy making 58/hour while Joe only makes 36/hr. Further this, let’s look at the costs associated with Billy and Joe. Billy goes out on a Friday night and it costs him 20 bucks. Joe goes out and it’s minimum 200 bucks (An off night in NYC). We don’t need to get into housing and other costs to understand the power of relativity here. Although Joe makes more, Billy lives richer. Not only is his economic value worth much more in this situation, he has an extra 70 hours to do whatever he wants. It could be family, more businesses, whatever, but due to his abiity to understand relative versus absolute income he’s “bought” himself a much more plentiful life. 10: Distress is bad, eustress is good. jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj D r e a m e r We Proprietary | 8 jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjBack to home! jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj It’s cliché as can be, but the more you study successful people the more you see their work as a continuation of their passion. Ferris proposes this is the difference between distress and eustress. E: Elimination: Forget time management, forget the unimportant According to Ferris, the current work model is broke. Why take a creative, productive being and make him/her be at one location for 8 hours. I can tell you from my experience of working at a Big 4 accounting firm to working on my own, although on my own I work more, my productivity is fourfold. If you looked at my intellectual output per hour on my own versus in an office, it would be a tale of two cities. Creativity can’t be planned, and it certainly doesn’t happen while you’re on hour 6 of a day at the office. Ferris uses the 80/20 rule fathered by Italian economist Vilfredo Pareto as a basis for elimination. Pareto studied the Italian economy and noticed 80% of Italy’s income was received by 20% of the population. If we apply this to a business, 80% of revenues are generally generated by 20% of the customers. I’m highlighting 2 specific tools: 1: Elimination This one is pretty straightforward, find your 80/20. For me, I spend too much time on website design.
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