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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
Morn this intake way number four
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
80% of company profits come from 20% of the customers
80% of results comes from 20% of effort and time
80% of consequences stems from 20% of the problems etc.
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
24 to 72 hours is preferred. And if the task seems too big for that chunk it down
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
I recommend my summary of FU Money where I discussed the seven golden rules to internet riches
For the employee. However, it's a bit different
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
Sweet
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
Are you able to fill in the blanks please comment down below with your answers as
As always if you're interested in getting the full read of the book
You can support this channel by getting it from the Amazon link in the description
also, I've been talking a lot about FU Money in this video if you're interested in getting inspiration for a lavish lifestyle and
Hearing about these 7 secrets for internet riches head over to my summary of Dan Lok's book now
cheers guys
Please play the YouTube video first