“Rules of the Successful New Rich by Timothy Ferriss from the 4-Hour Workweek” written by Bren Koger.
Rules of the Successful New Rich:
1) Retirement is a worst-case scenario. It’s like insurance.
Retirement planning is like life insurance.
It’s the absolute worst case scenario; only to be used if you are unable to work.
Retirement as a goal is flawed. It assumes you dislike what you’ve been doing most of your life. 🙁
With a typical retirement plan, you will NOT be able to retire and have a decent standard of living.
The golden years will be the budget years.
If you do save enough you will have worked like a crazy person and when you stop work, it will drive you crazy!
Have a 401k for tax purposes.
But retirement is not the goal.
2)Interest and energy are cyclical.
Doing the same thing for 8+ hours a day causes premature aging.
Impossible workloads are detrimetntal to your mental and physical well being.
Alternate periods of work and rest are necessary to survive.
Capacity, interest and mental activity wax and wane.
Take “mini retirements” throughout life instead of waiting until the end of your life when you could be physically incapable of doing all the things you want to do.
Work only when you are most effective.
The goal should be one month of travel for every two months of work projects.
3) Less work is not laziness
Doing less work that is meaningful is not laziness.
In this society we reward personal sacrifice instead of personal productivity.
We mistakenly think that more time working =more self worth.
Non ideal existence is when others decide for you.
Do you want to amass a fortune like a spectator from an office window?
Be productive instead of busy.
4) The timing is never right.
For all of the most important things, the timing always sucks!
Everything will never be completely lined up.
Conditions are never perfect.
Don’t wait until someday.
Just do it and correct course along the way.
5) Ask for forgiveness not permission.
If the potential damage is moderate or reversible don’t give people a chance to say, “No.”
Get good at being a trouble maker and saying sorry.
6)Emphasize strengths, don’t fix weaknesses
What are you good at? Emphasize that!
If you try to fix your weaknesses the benefit will be incremental.
Leverage your strengths. It’s more lucrative and more fun.
7) Things in excess become their opposite.
More becomes less
Too much and too many and too often become too much of what you don’t want.
We don’t want an excess of idle time, but free time to do what you want to do.
8) Money alone is not the solution.
By using money as the scapegoat, we conveniently allow this to get in the way of what we want to do.
Busy yourself with the money wheel and you will get caught up in it.
It can be a distraction from taking real action.
9) Relative income is more important than absolute income.
Relative income uses two variables time and money.
Throw out the idea of how much money you make per year.
The difference between absolute and relative income can be defined with simple math.
If Jane makes $100,000 per year, $2000 per week for 50 weeks and works 80 hours a week. She makes $25 per hour
If John makes $50,000 $1000 for each of 50 weeks and works 10 hours per week. He makes $100 per hour
In relative income John is 4 times richer.
Relative income is the real indicator of wealth for the new rich.
10) Distress is bad, eustress is good.
There are two types of stress
Distress and Eustress.
Distress leaves you weaker, less confident. an example would be destructive criticism.
Eustress on the other hand, pushes us to exceed our limits. It’s about taking risks that take us beyond our comfort zone.
There is no progress without eustress.
The trick is telling the two apart.
“Forget the old concept of retirement and the rest of the deferred-life plan—there is no need to wait and every reason not to. Whether your dream is escaping the rat race, high-end world travel, monthly five-figure income with zero management, or just living more and working less, this book is the blueprint.
You can have it all—really.”
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