I began re-reading this book today. I will add to this post until I finish it. I really needed to re-read this right now.
- what you do
- when you do it
- where you do it
- with whom you do it
In other words, quality, not quantity, is the major consideration in “psychic yield” from money spent.
In Chapter 2, Ferriss proposes some “rules that change the rules”. To start with, the concept of saving and sacrificing for an old-age retirement is a broken one because:
- it assumes up to that point you spend a majority of your time doing something you dislike during the most physically capable years of your life
- the math doesn’t work and you end up reliving your low-income lifestyle in old-age
- you’ll likely get bored and look for a job or start a company just to keep yourself busy, negating the whole point
Instead, Ferriss proposes taking periodic “mini-retirements” throughout your life. This concept is consistently applied even down to the weekly and daily level, as he suggests that,
Alternating periods of activity and rest is necessary to survive, let alone thrive… By working only when you are most effective, life is both more productive and more enjoyable.
Many people push their dreams into the future and thereby let “someday” become “never.” Instead of waiting for the perfect time to take a break, Ferriss recommends following a passion as soon as you are aware of it and course correcting along the way.
To use your time wisely in life, focus on the things you are best at, rather than wasting time shoring up your weaknesses. This is an economic concept known as “competitive advantage” and it works for individuals just as well as companies or countries (obviously). Using free time efficiently implies doing what you want to do with your free time, not what you feel obligated to do. Finally, it’s important to seek out eustress, which is healthy stress that results in testing our limits and then pushing them out a little further afterward. In other words,
People who avoid all criticism fail.
Chapter 3 is about overcoming the fear of realizing your dreams. Ferriss opens with the quote,
Many a false step was made by standing still.
To overcome fear, we must define it. Often, we realize that what we fear going wrong is an unlikely, temporary 3 or 4 (on a scale of ten) disaster, in return for a probable and permanent 9 or 10 success. If you don’t like what you’re doing now, and you stick with it, how likely is your situation to be improved one year from now?
Instead of seeing how much definite pain you can tolerate now, Ferriss advises you to pull the cord, take a leap and try something different while you still have a chance. You must develop a habit of doing things you fear on a daily basis because “what we fear doing most is usually what we most need to do.” You should ask yourself,
If I don’t pursue those things that excite me, where will I be in one year, five years and ten years?
If you’re bored and dissatisfied with your life and not following your passions, and you define risk as “the likelihood of an irreversible negative outcome”, then it follows that “inaction is the greatest risk of all.”
You’ve decided to face your fears and challenge yourself by demanding more. What should you do? As Chapter 4 recommends, aim as high as you can, and never let admonitions that what you are attempting is “unreasonable” stop you.
The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.
The bigger the goal, the less competition you will face. The less competition, the better your chances of bagging the big one– “the fishing is best where the fewest go.”
When choosing goals and objectives, ask yourself, “What would excite me?” and then do that thing.
Ferriss’s preferred method for envisioning your future, exciting lifestyle is called “dreamlining”. You are to come up with a number of “having, being and doing” items, and then try to convert the “beings” into “doings” by coming up with specific actionable steps you could take (lessons, events, workshops, etc.) that will transform you into that kind of person. Then, you estimate the cost of these different items and divide each amount by 12 (or however many months you’re giving yourself to realize these dreams, though the shorter the better to avoid “someday”-fatigue) to get your monthly cost for each.
Adding the monthly costs of your dreamline to your current monthly expenses (multiplied by 1.3 to give yourself a savings buffer for something going wrong) gives you your Target Monthly Income (TMI) and gives you a real goal to shoot for in helping you understand how much more you need to make on a monthly basis to start realizing your dreamlines. This is the part where you get creative– sell stuff you don’t need and aren’t using anymore, reduce your expenses by not getting that latte every morning, and think up new sources of income by starting a side business or other passive income stream. You’ll often be amazed how close you are to your dreams when you look at them as a monthly figure and consider ways in which your current spending doesn’t really satisfy your dream desires.
Living your dream is about doing, and making bold decisions for yourself. This is why Ferriss ends the chapter by stating:
To have an uncommon lifestyle, you need to develop the uncommon habit of making decisions, both for yourself and others.
The next time someone asks you for a decision on something (where to go for lunch, what to do about that client, etc.), MAKE ONE and course correct if necessary. Almost everything is reversible.
Chapter 5 develops the theme of time management. The focus is on the 80/20 principle of Italian economist Vilfredo Pareto, namely, focus on eliminating the 20% of sources causing 80% of your problems while spending that freed up time on the 20% of sources responsible for 80% of your desired outcomes and happiness. Productive efficiency is about doing more by doing less ineffective stuff via selectivity.
The most important lesson: lack of time is actually lack of priorities.
Give yourself short, clear deadlines to work out critical tasks that contribute the most to your work or quality of life. Ignore or eliminate the rest. A few other tips:
- Ask yourself, “If this is the only thing I accomplish today, will I be satisfied with my day?”
- Never arrive at the office, your computer or anywhere else without a clear list of priorities– otherwise you’ll make up distractions to fill your time
- Compile your to-do list for tomorrow no later than this evening
- You should never have more than two mission-critical items to complete each day
- Do not multitask
Chapter 6, The Low Information Diet, takes these principles and applies them further. Stop wasting time reading the news; start using, “Tell me, what’s new in the world?” as a conversation starter and let others read the news and summarize headlines for you.
If you need to learn how to do something, read the autobiography of someone who has done it. If you’re suffering from information overload, ask yourself, “Will I definitely use this information for something immediate and important?” And practice the art of nonfinishing– if something is boring or not useful, stop reading it/listening to it/watching it, etc.
Stop asking people “How are you?” and instead ask them, “How can I help you?” The former invites interruptions, the latter invites action.
Living The New Rich Lifestyle Starts With Mini-Retirement Jet-setting Practice
Paraphrasing (in Ferriss’s words) the first few paragraphs of the chapter about doing a life-reset by traveling abroad:
Some jobs are simply beyond repair. Improvements would be like adding a set of designer curtains to a jail cell. Most people aren’t lucky enough to get fired and die a slow spiritual death over 30-40 years of tolerating the mediocre. Being able to quit things that don’t work is integral to being a winner. The person who has more options has more power. Don’t wait until you need options to search for them. Take a sneak peek at the future now and it will make both action and being assertive easier.
Begin your new lifestyle of mini-retirements and following your life’s passion by relocating to one place for one to six months before going home or moving to another locale. This will give you time to relax and enjoy the new experiences without having to worry about catching your flight home, and without shortchanging yourself by assuming you won’t be around long enough to really submerse yourself in the local culture and language.
Chose a location where your money will go further than back home (such as Argentina, Thailand or Eastern Europe). To get there, use credit card miles or buy your tickets either far in advance or at the last minute, comparison shopping with Orbitz.com or Kayak.com and the airlines’ own websites and then bidding on Priceline.com for 50% off, moving up in increments of $50 at a time. Consider using major airlines to get to travel hubs in foreign countries and then buying a local airline ticket to make the final leg(s) of the trip from there.
When you arrive, stay in a hostel or cheap hotel and query fellow travelers and hostel/hotel owners for the lay of the land. Tour around local neighborhoods with hop on/hop off bus tours or public transit, or rent a bike. Go look for an apartment (fully furnished and full of amenities) and set up your base for a few months.
If you’re relocating to a country where you can use dollar-arbitrage to your advantage, you can likely live much better than you do back home, enjoying a nice apartment, eating out at fancy restaurants and enjoying entertainment and nightlife you couldn’t dream of back home.
You should also look into local, private language instruction (several hours per week), as well as other local activities such as cultural dance, music, athleticism and exercise, that will allow you to learn from experts, mix with locals, learn the language and do it all for less money than you’d spend back home for equivalent experiences.
Practice taking less with you: take one week of clothes, no toiletries and allocate $100-300 to buy the rest of what you need when you get there. When you come home, leave the excess behind. You should be able to travel internationally with a carry-on and a backpack.
Final Remarks About Living Life Well
If you can’t define it or act upon it, forget about it.
Have at least one 2-to-3 hour dinner and/or drinks per week with those who make you smile and feel good.
Eat a high-protein breakfast within 30 minutes of waking and go for a 10-to-20 minute walk outside afterward, ideally bouncing a handball or tennis ball.
A good question to revisit whenever overwhelmed: Are you having a breakdown, or a breakthrough?
Rehearse poverty regularly. (You’ll fear it less when you know what it’s like and that you can handle it.)