Timothy Ferriss produced this infamous book back in 2007, and since then it’s made waves throughout the world. There have been a lot of people inspired by it’s controversial strategies. Others believe his views are ‘unbelievable’, ‘unrealistic’ and even ‘scammy’. So what is it? Well, in this blog, I wanted to give you ‘The Four Hour Work Week Summary’ to break it down for you the main key points. I’ll my perspective on this, and allow you to make up your own mind about whether this is legit or not, and whether it’s worth reading.
FightMediocrity put together this animation together with his opinions on the book and the concepts that Tim Ferriss covers.
Key Points of The Four Hour Workweek Summary
1. Absolute Income Vs. Relative Income
One of Timothy Ferriss’ biggest theory in this book is about absolute income vs relative income.
He discusses how on the surface, someone with a larger absolute income (e.g. Salary/wages), may in fact have a lower relative income.
It all comes down to how many hours you need to work for the income you get and the expenses you incur in your lifestyle.
There is a lot of talk about moving to a cheaper country such as Thailand to achieve a better relative income.
Living expenses like rent, food, etc. are much cheaper, making your dollar go further, therefore increasing your relative income.
Obviously, this type of change in lifestyle isn’t suited to everyone.
It’s also only going to be possible if you can earn money from anywhere with a location independent income.
I have thought about the idea of moving overseas before, considering the shift myself at times – Thailand, Vietnam, Bali….
But having a young family with a couple of toddlers, we’ve always ended up to the same conclusion that the best place to raise our kids is right here in Australia.
Everyone’s circumstances are different and not everyone wants to live in a third world country for the sake of saving a few $.
For some, this move is absolutely possible, and very exciting. For others, it’s just not as simple as he makes it out to be and I believe that absolutely should be taken into consideration.
Consider Your Cost Of Living Relative To Income. Can It Be Improved?
Even without moving overseas, there are lots of different ways you can improve your relative income.
Within your own country, there are states, cities and even suburbs which are less expensive to live in.
Our goal is to eventually travel around Australia in a motor home or caravan with the kids that’s kitted out to be able to live off the grid (e.g. solar panels, etc.) while earning our income through our blog.
We actually set up a budget (mock budget) to forecast what we could expect.
We discovered that the money saved on not paying for gym memberships, electricity, rent, etc. would far outweigh the cost of actually being on the road.
It would also give us the time and space to make incredible memories as a family.
2. Consider Ways To Create Passive Income Online
The concept of making money online was still very fresh back in 2007 when The Four Hour Work Week was published. And yet, in 2015 the digital economy in Australia alone was predicted to hit $139billion by 2020, let alone the rest of the world.
The digital economy is a very big cake and there’s plenty of room to take your slice.
Although many more people are becoming aware of the possibilities available online, many more are still completely oblivious.
There are so many different ways to make money online, all of which actually take time and effort to learn and establish.
But Is It Actually Realistic?
As FightMediocrity mentions in his animation, the book can make it appear more simple than it actually is.
This is especially the case for people who have not done anything like this before and have not yet developed the skills they need to achieve it.
But that certainly isn’t to say that it’s impossible or isn’t worth trying.
At the end of the day, the only barrier between someone going from completely new to the whole concept to actually achieving it, is committing themselves to learning those skills and taking action.
There are so many different ways to make money using the internet. Not all people will suit every type.
There are plenty of places where you can go to learn the skills to make a digital income like Thrive University, which has a tonne of free courses and content for you to learn from. Or The Six Figure Mentors if you feel like you may need a little more community guidance throughout your education.
The webinar below run by The Six Figure Mentors CEO, Stuart Ross, is a great place to start if you’re completely foreign to the different ways to make money online.
It was created with complete newbies in mind and covers business models from freelancing, to coaching, to affiliate marketing and eCommerce, etc.
Stuart breaks down what’s required to achieve your first 10K of income online for each of these different business models.
When Can I Expect Results?
One thing I want to be completely transparent about, is to not expect riches overnight.
If you choose to re-skill yourself in order to make money online, understand that it is a process and that everyone’s journey will look different.
Avoid comparing yourself to others.
We made our first sale online within a month of starting marketing online – a whopping $20!
We weren’t ready to hire that private jet to fly us around the world.
But it was evidence to ourselves that it’s absolutely possible for any regular person willing to put the effort in.
It was also a sign that we were on the right path.
We know entrepreneurs that have been enormously successful, making well over their six figures in less than 12 months.
But, we also know others that did not achieve the results that they set out to achieve, and they decided to call it quits.
But, the way I see it, I spent 5 years getting my degree at university to claim my spot in a career that I didn’t particularly love…
In my eyes, if it took me another 5 years to achieve the time and geographical freedom to truly be able to spend my days however I wish then it would be 5 years well spent.
I still have many years ahead of me and I want to spend them doing something I love.
That kind of time and geographical freedom was never going to be possible in the corporate career I was in.
3. Elimination & Outsourcing
Ferris speaks a lot about elimination and outsourcing in his book.
It only makes sense to also include these strategies in The Four Hour Work Week summary.
He speaks about studies that were performed that indicated that people working in the traditional 9-5 job were often very inefficient.
What could typically be done in 1-2 hours, took employees 8 hours to complete.
On average, less than half of the time we spend at work is actually spent working. The rest is filled with unimportant meetings, interruptions, water cooler chat, and admin which could otherwise be automated, or even better eliminated.
As humans, we have a tendency to use all the available time we have to complete a job.
Just like being at uni with an assignment due tomorrow morning you haven’t started but you’ve had for weeks!
The 80/20 rule seems to apply to pretty much everything in life, and it’s suggested than 80% of our income is dependent on 20% of what we actually do.
Focusing on the most important 20% of our jobs and eliminating the ‘clutter’ in our day can help us be more effective and efficient.
This lets us spend less time being ‘busy’ all the time, and more time doing the things we love, and once again improving our relative income.
Outsourcing is essentially paying someone else to do something for you that you either don’t want to do, or don’t have the skills to do.
The theory is that if you outsource jobs that are ‘worth’ a lower amount of money, it opens you up to have more time available for activities with a higher earning potential.
Outsourcing might simply be having a cleaner come through once a week or fortnight, or someone mowing your lawns.
The Four Hour Work Week Summary
To achieve more lifestyle freedom, which is essentially what the Four Hour Work Week by Timothy Ferriss is all about, it comes down to…
- Assessing your Absolute Income Vs. Relative Income and finding ways to improve your relative income
- Creating sources of income online which give you a location independent lifestyle.
- Stop Spending Time Doing Unnecessary Things: Adopt the 80/20 rule and start eliminating or outsourcing your jobs and prevent yourself from distractions
Is this book worth reading? Yes, I believe it is!
Is the Four Hour Work Week A Scam?
I don’t believe it is… BUT… I do think you need to take some of his suggestions with a grain of salt.
Don’t be naive about what it truly takes to achieve this level of freedom.
There is merit in a lot of what Ferriss discusses and it can serve as inspiration to create meaningful change in your life.
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