A movement in it’s own right, visionary Timothy Ferriss gives his formula for escaping the rat race, so the masses can retire, long before they are 65. Ferris reveals how he created location independence and financial freedom lifestyle, that allows him to work only a few hours each day from anywhere in the world.
My key Takeaways from "The 4-Hour Workweek" by Timothy Ferriss
Takeaway #1 Don't Be a Deferrer
You cannot live life waiting for your retirement, waiting for the time to come when you'll be able to do X, Y, and Z. Tim Ferriss calls this postponing your life, and if you're one of these people then you're a deferrer. People work and work and work putting money aside for tomorrow but no amount of money is worth a lifetime of work, especially as you can't be sure you'll be around to enjoy it. As the old saying goes, money does not buy happiness. It can buy a fancy lifestyle but you don't have to be rich to live like you're rich, all you need is flexibility and mobility as this results in you being able to whatever you want, whenever you want.
Takeaway #2 Learn The DEAL Formula
The DEAL formula stands for Definition, Elimination, Automation, and Liberation. With definition, you have to redefine your approach to work. Give up the idea of traditional retirement and define when you want to work and why. Do you want to work 4 days a week? Do you want to enjoy vacation time for 2 weeks out of every 4 weeks? Are you working for the money or from the pleasure you get from it? Work out how much it will cost to live your dream lifestyle and aim for that figure no matter how big it is. Elimination is about removing everything that is not working for you whether that be people or tasks. Automation is rather obvious – You have to automate your business/money so that it grows without you needing to do anything. Liberation is about freeing yourself from the typical 9-5 office job and becoming location independent, even if you're still working for a traditional company and have not created your own business.
Takeaway #3 Live by the 80/20 Rule
In most things in life, less is more. It's no different when it comes to productivity, that 80/20 rule still applies here – About 80% of your work output results from 20% of your effort. Spin that around, 20% of your tasks will yield 80% of your results. This is where the Elimination part of the DEAL formula comes in, you have to remove the time consuming interruptions and find out what the 1 task is that you need to complete that day, forget the other stuff. Don't sit in front of your laptop or arrive at your office without having a clear list of priorities – Work on these, nothing else, don't get distracted by emails and don't get overloaded by information.