Summary of : The 4-hour work week

The 4-Hour Work Week introduces a new way of living that Tim Ferriss calls the New Rich. Instead of having millions sitting in the bank, all you need to be truly rich are (1) Cash flow and (2) Mobility.

The process of becoming a member of the New Rich is what known as DEAL:

1. D for Definition introduces the rules and objectives of the new game.
2. E for Elimination kills the obsolete notion of time management once and for all.
3. A for Automation puts cash flow on autopilot using geographic arbitrage.
4. L for Liberation is the mobile manifesto for the globally inclined.

Tim Ferriss needs no introduction  and this was the book that brought him on to our screens.
Tim Ferriss  tells to
○Be effective, not efficient.
○Validate all of your business ideas.
○Charge a premium to make your life easier.

Tim outlines the  rules that you need to consider and keep in mind:

1. The Timing is Never Right
It will never feel like the right time to do the significant things in your life. Quitting a job,  moving house? You can’t continue to put these things off until the time is right because  that time may never come.

2. Relative Income Is More Important Than Absolute Income
Cash should be generated even when we sleep and that's possible only by investing in business. Relative income uses two variables: the dollar and time, usually hours.

3. Retirement Is Worst-Case-Scenario Insurance
Your work should be so enjoyable and achievable that you can continue to work without retirement.

4. Doing Less Is Not Laziness
People assume that by doing less you are lazy. You can work a lot less and still be as successful.

5. Things in Excess Become Their Opposite
There is such a thing as too much of a good thing. Remember this, as they become a burden eventually.

6. Money Alone Is Not the Solution
As per the previous point, too much money can be a problem. The answer is not always money.

Effectiveness and Efficiency

Tim explains the differences 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.

Two Laws to consider

Tim uses Pareto’s Law to explain
80% of the outputs result from 20% of the inputs, 80% of the consequences flow from 20% of the causes, 80% of the results come from 20% of the effort and time, 80% of company profits come from 20% of the products and customers, 80% of all stock market gains are realized by 20% of the investors and 20% of an individual portfolio.

Another Law that Tim discusses is Parkinson’s Law.
Parkinson’s Law dictates that a task will swell in (perceived) importance and complexity in relation to the time allotted for its completion.

Make your life easier 

Avoid the interruptions, time wasters, time consumers and empowerment failures.
Automation and delegation are key. Get a Virtual Assistant, even if you don’t think you need one yet.

Validate your business ideas 

When getting ready to create a product, find the market and the customer first, then create a product for the defined audience. Don’t come up with the product first.
Take mini-retirements throughout your life instead of saving it all up until the end.

Favorite Quotes :

1. What we fear doing most is usually what we most need to do.

2. Doing something unimportant well does not make it important.

3. Slowing down doesn’t mean accomplishing less; it means cutting out counterproductive distractions.

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