Sunday, October 24

The New Rich

A short summary of the book by Tim Ferriss.

Ferriss uses the acronym DEAL for the four main chapters in his book. The acronym stands for: Definition, Elimination, Automation, and Liberation. Furthermore, Ferriss makes note that if somebody has a regular job, the order of steps will be DELA, not DEAL.

    • Definition means to figure out what a person wants, get over fears, look past society’s “expectations,” set goals, and figure out what it really costs to get where a person wants to go.
    • Elimination is about time management, or rather about not managing time. This is achieved by using Pareto’s Law, commonly called the 80/20 rule (80% of your benefits come from 20% of your efforts) to focus only on those tasks that contribute the majority of benefits, and using Parkinson’s Law (work expands to fill the time available for its completion) to control the amount of time spent working. Ferriss says, there is a difference between efficiency and effectiveness. The book emphasizes effectiveness.
    • Automation is about building a sustainable, automatic source of income. This includes techniques such as; drop-shipping, automation, Google AdWords and AdSense, and outsourcing functions and jobs to Virtual Assistants from developing countries to free up personal time.
  • Liberation is the successful automation of one’s lifestyle and the liberation from a geographical location and job.

I read through the book in a matter of days and the key ideas are:

  1. Principles- The philosophy of life! Set goals and targets.
  2. Time Management – Become more efficient. The biggest wasters of time being; lack of empowerment, Time wasting and Time consuming activities which don’t achieve your goal. He discusses eMail at depth.
  3. Manage people and processes.
  4. Create an income machine.

There are some challenges in implementing Ferriss’ plan:

  • You have to define what you want and that isn’t easy!
  • You have to be able to communicate and learn to say no the right way.
  • You have to be a focused and hard-working, and you must only work on essential tasks.
  • You need to be a perceptive individual who can decide if you’re becoming the New Rich.

In conclusion, a terrific insight into one persons journey to different lifestyle. It’s all about how to get to a 4 hour work week…. Yes! I said 4 hour work week. I have recommended the book to people I know, so get a copy and read how you can take control of your life and become one of the “New Rich”.