The 4-Hour Workweek By Timothy Ferriss ►Summary Book ► Change Your Financial Life

The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich

Imagine only working four hours a week anywhere in the world for the rest of your life, imagine sipping a cocktail on a beautiful Venice Beach whilst your online business makes money for you automatically, sounds amazing right.

But is it truly possible yes, yes it is, now there's a lot of content in this book, so I've nailed it down to the six most vital lessons that will actually bring you closer to living the 4-hour workweek and joining the new rich.

The Content ►

One Specific fear.
Two Automate income.
Three Be effective, not efficient.
Four Outsourcing.
Five Relative income.
Six Mini retirements and geo arbitrage.

Let's Start ►

Lesson 1: Specific fear.

What's the absolute worst-case scenario that could happen if you did what you're considering on a scale of one to ten one being nothing and ten being permanently life-changing your worst-case scenario is probably a three or a four.

Maybe you'll have a temporary argument be out of the job for a month or lose a friend who didn't like it anyway.

Tim bought a one-way ticket to Europe, he forgot all about his business and life worries and traveled around the world in style for 15 months finding ways to make it work along the way.

What is it costing you financially emotionally and physically by not chasing your dream, Are you really going to lie on the couch for the next 10 years and continue doing something you don't enjoy because you're scared to take a few risks.

Lesson 2: Automate income.

Three popular ways to automate income are one to create a product two to license a product or three to resell a product here's an example of how I resell a product.

I have a page with my website with shirts for sale there's also an online t-shirt service called printful and then there's the wholesaler like alibaba.com, here's what would happen if Jerry ordered a shirt from my website, Jerry pays me $25 for the shirt printful would be notified that Jerry purchased a shirt so printful orders a shirt from Alibaba for $10 printful.

Then prints my logo on the shirt and charges me $15, finally printful ships the shirt to Jerry Jerry's happy because he's supported my Site and got him t-shirt printful is happy because they made $5 Alibaba is happy because they sold a shirt for $10 and I'm happy because I gained a new loyal fan and made $8 by reselling a show from a printful store.

This process doesn't require my time, printful handles the payment packing shipping and customer service for me.

All I had to do was create the logo and make a simple WordPress site many, drop shippers outsource these tasks to automate their business, once you've chosen a way to make money you'll need to test if your idea is viable which Tim calls testing the muse.

You might want to sell toys shots with laser beams attached to their heads because why not but are there people willing to buy the final part to income automation is removing yourself as the bottleneck in your business.

If you run a lemonade stand your business can't scale if you keep serving lemonade, to scale means that a business can handle 10,000 orders per week as easily as it can handle 10 orders per week, In the case of a lemonade stand what happens when the line gets very long.

People will leave because you can't serve them fast enough right however if you hired two employees to take over then you are no longer the bottleneck, To scale you could hire more and more employees to run more and more lemonade stands as long as you're making a profit.

Lesson 3: Effective, Not efficient.

Don't fool yourself into thinking you're productive by filing papers and checking emails.

We like to think we're busy when in reality we're avoiding the important tasks elimination is key you could write a book in only 3 days but if you haven't done your research and the market doesn't like it then you've probably wasted your time.

To decide what's important you sir 80/20 principle, if you had a gun to your head and had to stop doing 80% of your tasks what would you remove.

Parkinson's law says that work expands to fill the time available for its completion, So if you give yourself eight hours a day to write 1,000 words then you'll probably take 8 hours, But if you only give yourself 2 hours your mind will shift gears and accelerate you're befits.

Lesson 4: Outsourcing.

What if you never had to do dishes again you could pay your roommate to do one hour worth of dishes for 10 dollars, you could spend that extra one hour on activities that would give you 20 times a value.

let's say I was paid $200 by a client for a 16 minute coaching call, I could then spend that $200 on 20 hours worth of dishes and use that 20 hours coaching other students which would be 400 times more valuable use of my time.

Over time I could increase the price of my coaching and afford to outsource more things, Like preparing meals doing the laundry and business tasks like responding to Guster complaints, etc.

Do you see what I'm getting at hiring a virtual assistant has a tremendous return on investment, they can do tasks for $3 an hour whilst you sleep.

let's not sugarcoat anything though it may take time to find a suitable VA and Tim suggests hiring one from an organization because they have backups, Before you outsource anything ensure you eliminate us that don't matter eliminate before you delegate.

Lesson 5: Relative income.

Ronald earns $100,000 per year he works 80 hours per week, Ronald makes $25 per hour now Debbie earns $50,000 per year, half as much as Ronald but she only works ten hours per week and makes $100 per hour.

Although Ronald makes double in absolute income Debbie is four times richer in relative income, Debbie makes more by working less which gives her more time freedom than Ronald.

You can't do this working a standard nine-to-five job, that's why reselling licensing or creating a product is the way to go

The final, lesson 6: Many retirements and geo arbitrage.

Once you're freed up time automated income and escape the office, You can begin taking many retirements which is where you relocate to one place for one to six months.

Many retirements aren't as expensive as you think when you recognize that the costs of travel are mostly transportation housing costs and that you can rent a posh apartment for three to four weeks for the same price of staying in a mediocre hotel for four days then things start to get very very interesting.

I saved $32,000 so it sounds counterintuitive but you can actually improve your finances by taking many retirements in countries where things cost less.

Tim stayed in a penthouse apartment on a popular street including cleaners security guards a phone energy and high-speed internet for just 550 $ per month

He also had two for two five-star meals per day for just 10 $ this concept is known as geo arbitrage leveraging the economic differences between markets to generate a high return.

For example you could earn 100 US dollars online whilst living in Thailand that $100 could buy you 60 mils in Thailand but only six in the US.

Now that's 10 times more food for the same amount of money do you see how crazy that is the same goes for accommodation gym memberships and almost anything else you can think of.