Note this is the last entry in the Ultra Condensed Condensed Cliffnotes Series.
Entrepreneurship: shifting economic resources from an area of lower yield to higher yield
- Finding a market before designing it is smarter than the reverse
- The truth is most people prefer unhappiness over uncertainty, as uncertainty entails unlimited potential pain vs the fixed amount of pain in unhappiness
- Those that avoid quitting their job tell themselves that their course will improve overtime. Pure hell forces action, anything less can be endured with rationalization
- Ask yourself: Are you better off than you were a year ago? If not, you must be a catalyst for change
- Worst case scenario is not failing, but accepting mediocrity
- Think of money as monthly cash flow rather than a grand total. This unlocks the mindset of living how you want to live, rather than deferring life to achieve a lump sum.
- Determining How Much Cash Flow You Need:
- Create a want list for 6 months and 12 months out
- Circle the 4 most important ones that will bring you the most happiness
- Determine its monthly cost
- Multiply the sum by 1.3, this is your monthly required income
- Define how you will earn that income
- What you do is infinitely more important than how you do it
- Pareto’s Law: 80% of outputs result from 20% of inputs
- Which 20% of activities bring me 80% of my problems and concerns?
- Which 20% of actions lead to 80% of my happiness?
- Focus on the latter and forget the former
- Most activities make no difference. Being busy is a form of laziness, lazy thinking and indiscriminate action
- Parkinson’s Law: Tasks expand or shrink to the time allotted to them, if you want more done in less time, decrease the alloted time
- Increased productivity is::
- Limiting tasks to the most important to decrease time spent (Pareto’s)
- Shorten work time to limit task to the important (Parkinson’s)
- In other words, identify a few critical tasks (the One Thing, and schedule them with a tight deadline
- Ask: If this is the one thing I accomplish today, will I be satisfied?
- Ask if it sounds reasonable, it’s hard for people to label it unreasonable
- Delegate only what remains after eliminating inefficiencies
- “Make mistakes of ambition and not mistakes of sloth. Develop the strength to do bold things, not the strength to suffer.” Niccolo Machiavelli
- Raising children: each child is given a virtual amount of cash for every hour of good behavior. The same amount is subtracted for breaking the rules. All goodies are purchased from that account, no balance, no goodies.
- Differentiate between results driven activities (exercise) characterized by routine, and enjoyment driven activities (recreations, travel) characterized by variation.
If these brief notes peaked your interest in The 4 Hour Work Week, you can check it out on Amazon here.
And be sure to check out my book, Wiser Next Week.
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