The 4 Hour Workweek, Expanded and Updated by Timothy Ferriss - Excerpt
The 4 Hour Workweek, Expanded and Updated by Timothy Ferriss - Excerpt
The 4-Hour
Workweek
q E SC A P E 9 – 5 , L IV E A N Y W H E R E ,
isbn 978-0-307-46535-1
2 4 6 8 10 9 7 5 3 1
[Link]
To purchase a copy of
The 4‐Hour Workweek
visit one of these online retailers:
[Link]
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qCO N T E N T S
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P R O P O S A L TO WO R K R E M OT E LY O N A CO N T R AC T B A S I S 345
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L IV I N G T H E 4 - H O U R WO R K W E E K : C A S E ST U D I E S ,
T I P S , A N D H AC K S 351
Zen and the Art of Rock Star Living
Art Lovers Wanted
Photo Finish
Virtual Law
Taking Flight with Ornithreads
Off-the-Job Training
The 4-Hour Family and Global Education
Doctor’s Orders
Financial Musing
Who Says Kids Hold You Back?
Working Remotely
Killing Your BlackBerry
Star Wars, Anyone?
R E ST R I C T E D R E A D I N G : T H E F E W T H AT M AT T E R 371
B O N U S M AT E R I A L 377
How to Get $250,000 of Advertising for $10,000
How to Learn Any Language in 3 Months
Muse Math: Predicting the Revenue of Any Product
Licensing: From Tae Bo to Teddy Ruxpin
Real Licensing Agreement with Real Dollars
Online Round-the-World (RTW) Trip Planner
AC K N OW L E D G M E N T S 379
INDEX 383
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qP R E FAC E TO T H E E X PA N D E D A N D
U P DAT E D E D I T I O N
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xii Preface
“No, you really hit the list. Congratulations, Mr. New York Times
bestselling author!”
I leaned against the wall and slid down until I was sitting on the
floor. I closed my eyes, smiled, and took a deep breath. Things were
about to change.
Everything was about to change.
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Preface xiii
Not “Revised”
his is not a “revised” edition in the sense that the original no
T longer works. The typos and small mistakes have been fixed
over more than 40 printings in the U.S. This is the first major over-
haul, but not for the reason you’d expect.
Things have changed dramatically since April 2007. Banks are
failing, retirement and pension funds are evaporating, and jobs are
being lost at record rates. Readers and skeptics alike have asked:
Can the principles and techniques in the book really still work in an
economic recession or depression?
Yes and yes.
In fact, questions I posed during pre-crash lectures, including
“How would your priorities and decisions change if you could never
retire?” are no longer hypothetical. Millions of people have seen
their savings portfolios fall 40% or more in value and are now look-
ing for options C and D. Can they redistribute retirement through-
out life to make it more affordable? Can they relocate a few months
per year to a place like Costa Rica or Thailand to multiply the
lifestyle output of their decreased savings? Sell their services to
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xiv Preface
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Preface xv
It’s been an honor to share the last two years with incredible
readers around the world, and I hope you enjoy this new edition as
much as I enjoyed putting it together.
I am, and will continue to be, a humble student of you all.
Un abrazo fuerte,
Tim Ferriss
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qFAQ — D O U BT E R S R E A D T H I S
I s lifestyle design for you? Chances are good that it is. Here are
some of the most common doubts and fears that people have before
taking the leap and joining the New Rich:
Do I have to quit or hate my job? Do I have to be a risk-taker?
No on all three counts. From using Jedi mind tricks to disappear
from the office to designing businesses that finance your lifestyle,
there are paths for every comfort level. How does a Fortune 500 em-
ployee explore the hidden jewels of China for a month and use tech-
nology to cover his tracks? How do you create a hands-off business
that generates $80K per month with no management? It’s all here.
Do I have to be a single twenty-something?
Not at all. This book is for anyone who is sick of the deferred-life
plan and wants to live life large instead of postpone it. Case studies
range from a Lamborghini-driving 21-year-old to a single mother
who traveled the world for five months with her two children. If
you’re sick of the standard menu of options and prepared to enter a
world of infinite options, this book is for you.
Do I have to travel? I just want more time.
No. It’s just one option. The objective is to create freedom of
time and place and use both however you want.
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4 F IR ST A N D FO R E M O ST
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qM Y STO RY A N D W H Y YO U N E E D T H I S B O O K
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6 F IR ST A N D FO R E M O ST
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8 F IR ST A N D FO R E M O ST
If you’ve picked up this book, chances are that you don’t want to
sit behind a desk until you are 62. Whether your dream is escaping
the rat race, real-life fantasy travel, long-term wandering, setting
world records, or simply a dramatic career change, this book will
give you all the tools you need to make it a reality in the here-and-
now instead of in the often elusive “retirement.” There is a way to
get the rewards for a life of hard work without waiting until the end.
How? It begins with a simple distinction most people miss—one
I missed for 25 years.
People don’t want to be millionaires — they want to experience
what they believe only millions can buy. Ski chalets, butlers, and ex-
otic travel often enter the picture. Perhaps rubbing cocoa butter on
your belly in a hammock while you listen to waves rhythmically lap-
ping against the deck of your thatched-roof bungalow? Sounds nice.
$1,000,000 in the bank isn’t the fantasy. The fantasy is the life-
style of complete freedom it supposedly allows. The question is
then, How can one achieve the millionaire lifestyle of complete freedom
without first having $1,000,000?
In the last five years, I have answered this question for myself,
and this book will answer it for you. I will show you exactly how I
have separated income from time and created my ideal lifestyle in
the process, traveling the world and enjoying the best this planet has
to offer. How on earth did I go from 14-hour days and $40,000 per
year to 4-hour weeks and $40,000-plus per month?
It helps to know where it all started. Strangely enough, it was in a
class of soon-to-be investment bankers.
In 2002, I was asked by Ed Zschau, übermentor and my former
professor of High-tech Entrepreneurship at Princeton University,
to come back and speak to the same class about my business adven-
tures in the real world. I was stuck. There were already decamillion-
aires speaking to the same class, and even though I had built a highly
profitable sports supplement company, I marched to a distinctly dif-
ferent drummer.
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Little did I know where questions like these would take me.
The uncommon conclusion? The commonsense rules of the “real
world” are a fragile collection of socially reinforced illusions. This
book will teach you how to see and seize the options others do not.
What makes this book different?
First, I’m not going to spend much time on the problem. I’m going
to assume you are suffering from time famine, creeping dread, or —
worst case — a tolerable and comfortable existence doing some-
thing unfulfilling. The last is most common and most insidious.
Second, this book is not about saving and will not recommend
you abandon your daily glass of red wine for a million dollars 50
years from now. I’d rather have the wine. I won’t ask you to choose
between enjoyment today or money later. I believe you can have
both now. The goal is fun and profit.
Third, this book is not about finding your “dream job.” I will take
as a given that, for most people, somewhere between six and seven
billion of them, the perfect job is the one that takes the least time.
The vast majority of people will never find a job that can be an
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10 F IR ST A N D FO R E M O ST
1. Uncommon terms are defined throughout this book as concepts are intro-
duced. If something is unclear or you need a quick reference, please visit
[Link] for an extensive glossary and other resources.
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I should note that most bosses are less than pleased if you spend
one hour in the office each day, and employees should therefore read
the steps in the entrepreneurially minded DEAL order but imple-
ment them as DELA . If you decide to remain in your current job, it is
necessary to create freedom of location before you cut your work
hours by 80%. Even if you have never considered becoming an en-
trepreneur in the modern sense, the DEAL process will turn you
into an entrepreneur in the purer sense as first coined by French
economist J. B. Say in 1800 — one who shifts economic resources
out of an area of lower and into an area of higher yield.
Last but not least, much of what I recommend will seem impos-
sible and even offensive to basic common sense — I expect that. Re-
solve now to test the concepts as an exercise in lateral thinking. If
you try it, you’ll see just how deep the rabbit hole goes, and you
won’t ever go back.
Take a deep breath and let me show you my world. And remem-
ber —tranquilo. It’s time to have fun and let the rest follow.
Tim Ferriss
Tokyo, Japan
September 29, 2006
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qC H R O N O LO GY O F A PAT H O LO GY
T his book will teach you the precise principles I have used to
become the following:
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Chronology of a Pathology 13
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14 F IR ST A N D FO R E M O ST
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Chronology of a Pathology 15
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16 F IR ST A N D FO R E M O ST
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Step I:
D is for Definition
— A L B E R T E I N ST E I N
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20 ST E P I : D I S FO R DE F I N I T IO N
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D: To have more.
NR: To have more quality and less clutter. To have huge financial
reserves but recognize that most material wants are justifica-
tions for spending time on the things that don’t really matter,
including buying things and preparing to buy things. You
spent two weeks negotiating your new Infiniti with the dealer-
ship and got $10,000 off? That’s great. Does your life have a
purpose? Are you contributing anything useful to this world,
or just shuffling papers, banging on a keyboard, and coming
home to a drunken existence on the weekends?
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22 ST E P I : D I S FO R DE F I N I T IO N
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$500,000 when we run the numbers and look at the lifestyle output
of their money.
Options—the ability to choose—is real power. This book is
all about how to see and create those options with the least ef-
fort and cost. It just so happens, paradoxically, that you can make
more money—a lot more money—by doing half of what you are
doing now.
The options are limitless, but each path begins with the same first
step: replacing assumptions.
To join the movement, you will need to learn a new lexicon and
recalibrate direction using a compass for an unusual world. From
inverting responsibility to jettisoning the entire concept of “suc-
cess,” we need to change the rules.
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24 ST E P I : D I S FO R DE F I N I T IO N
''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''
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Once you say you’re going to settle for second, that’s what
happens to you in life. — J O H N F. K E N N E DY
S ome people remain convinced that just a bit more money will
make things right. Their goals are arbitrary moving targets:
$300,000 in the bank, $1,000,000 in the portfolio, $100,000 a year in-
stead of $50,000, etc. Julie’s goal made intrinsic sense: come back
with the same number of children she had left with.
She reclined in her seat and glanced across the aisle past her
sleeping husband, Marc, counting as she had done thousands of
times—one, two, three. So far so good. In 12 hours, they would all be
back in Paris, safe and sound. That was assuming the plane from New
Caledonia held together, of course.
New Caledonia?
Nestled in the tropics of the Coral Sea, New Caledonia was a
French territory and where Julie and Marc had just sold the sailboat
that took them 15,000 miles around the world. Of course, recouping
their initial investment had been part of the plan. All said and done,
their 15-month exploration of the globe, from the gondola-rich water-
ways of Venice to the tribal shores of Polynesia, had cost between
$18,000 and $19,000. Less than rent and baguettes in Paris.
Most people would consider this impossible. Then again, most
people don’t know that more than 300 families set sail from France
each year to do the same.
The trip had been a dream for almost two decades, relegated to
the back of the line behind an ever-growing list of responsibilities.
Each passing moment brought a new list of reasons for putting it off.
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26 ST E P I : D I S FO R DE F I N I T IO N
One day, Julie realized that if she didn’t do it now, she would never do
it. The rationalizations, legitimate or not, would just continue to add
up and make it harder to convince herself that escape was possible.
One year of preparation and one 30-day trial run with her hus-
band later, they set sail on the trip of a lifetime. Julie realized almost
as soon as the anchor lifted that, far from being a reason not to
travel and seek adventure, children are perhaps the best reason of
all to do both.
Pre-trip, her three little boys had fought like banshees at the drop
of a hat. In the process of learning to coexist in a floating bedroom,
they learned patience, as much for themselves as for the sanity of
their parents. Pre-trip, books were about as appealing as eating
sand. Given the alternative of staring at a wall on the open sea, all
three learned to love books. Pulling them out of school for one aca-
demic year and exposing them to new environments had proven to be
the best investment in their education to date.
Now sitting in the plane, Julie looked out at the clouds as the wing
cut past them, already thinking of their next plans: to find a place in
the mountains and ski all year long, using income from a sail-rigging
workshop to fund the slopes and more travel.
Now that she had done it once, she had the itch.
''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''
qL I F E ST Y L E D E S I G N I N AC T I O N
I was done with driving across town to collect my son from child-
care only to slide across icy highways trying to get back to work with
him in tow to finish my work. My mini-retirement brought us both to
live at an alternative boarding school full of creative lifestyle
redesigning children and staff in a gorgeous Florida forest with a
spring-fed pond and plenty of sunshine. You can easily search for
alternative schools or traditional schools that might accept your chil-
dren during your stay. Alternative schools often see themselves as
supportive communities and are exceptionally welcoming. You might
even find an opportunity to work at a school where you could experi-
ence a new environment with your child. —DEB
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• • •
Tim,
Your book and blog have inspired me to quit my job, write two
e-books, sky dive, backpack through South America, sell all the clut-
ter in my life, and host an annual convention of the world’s top
dating instructors (my primary business venture, third year running).
The best part? I can’t even buy a drink yet.
Thank you so much, bro! —ANTHONY
[Link]
To purchase a copy of
The 4‐Hour Workweek
visit one of these online retailers:
[Link]
The 'New Rich' are characterized by prioritizing time and mobility over accumulating wealth for a distant retirement. Their goal is to live a life of immediate luxury and freedom through lifestyle design rather than waiting until the end of their careers for gratification. Unlike traditional workers who might work for self-sufficiency or status, the New Rich focus on systems that allow for geographic and financial freedom without a fixed location or schedule .
Tim Ferriss proposes separating income from time by creating automated businesses that require minimal intervention, allowing income generation without a constant time input. One key method is developing an income 'muse,' which is a low-maintenance product or service that generates income with little daily effort. This separation allows individuals to pursue other interests and eliminate the rigidity of traditional job structures, offering unprecedented professional freedom .
A 'mini-retirement' is a prolonged break from work, intended for exploring new environments and lifestyles, as opposed to a short-term escape typical of a conventional vacation. As per Tim Ferriss, mini-retirements are planned lifestyle integration of exploration and learning, serving as a practical application of the life one saves for post-retirement, effectively redistributing these experiences throughout one's career instead of concentrating them at the end .
Tim Ferriss redefines retirement not as an end-of-life phase but as a series of 'mini-retirements.' These are deliberate breaks throughout one's life to experience the lifestyles and relaxation typically associated with post-retirement living. He questions the societal norm of working hard for decades and postponing true enjoyment until the end, suggesting instead sampling the deferred-life plan rewards periodically .
Geoarbitrage refers to leveraging economic differences between locations to one's advantage, typically by earning income in a strong currency while spending in a weaker one to maximize purchasing power and reduce costs. This concept plays a significant role in achieving financial independence by enabling a higher standard of living with relatively lower expenses, thereby enhancing one's economic efficiency and lifestyle .
Tim Ferriss addresses 'choice overload' by advocating for the 'Choice-Minimal Lifestyle,' which involves simplifying decisions to reduce stress and cognitive load. He suggests strategies such as adhering to strict criteria for decision-making, setting specific routines, and prioritizing significant decisions over trivial ones to reduce the overwhelm and improve focus and efficiency .
Lifestyle Design, according to Tim Ferriss, involves creating luxury lifestyles in the present by effectively using the currency of the New Rich, which is time and mobility. It stands in contrast to traditional work-life balance that often involves deferred gratification, where people save for an elusive retirement. Lifestyle Design emphasizes immediate fulfillment and freedom without waiting for the end of one's career, challenging the conventional notion that one must work for decades before enjoying life .
'Fear-setting' is a technique developed by Tim Ferriss to address aspects of life and decisions where fear might prevent action. It involves explicitly defining fears, identifying the worst that could happen, and planning for mitigation, which helps individuals move past paralysis in decision-making. This approach reframes fears as manageable issues rather than insurmountable barriers, encouraging action .
Some of the '9 habits to stop now' outlined by Tim Ferriss include checking email constantly, answering unimportant calls, agreeing to unimportant meetings, allowing interruptions, and striving for perfectionism in less-critical tasks. Reducing or eliminating these habits minimizes distractions and inefficiencies, which contributes to increased effectiveness by enabling greater focus on priority tasks and better allocation of time and resources .
Batching involves grouping similar tasks together and completing them in set blocks of time to increase efficiency and reduce time lost to task-switching. Tim Ferriss emphasizes this strategy for tasks like email management and meetings to minimize interruptions and focus on more impactful activities, thereby enhancing productivity and better managing time .