This article is a follow-up to my previous blog post titled, “The Blueprint To Traveling The World & Escaping The Rat Race Now“.
So, if you haven’t spoiled your eyeballs with the decadent pleasure of reading it, please do it so this post can make a whole lot more sense to you.
(Not to sound bossy or anything. )
So, I’ll start with a question for you- have you ever read a book that was beyond your comprehension? That’s probably a dumb question, of course you have. Who hasn’t? Kind of reminds me of my futile attempts at understanding XML site maps and the implementation thereof (it’s just not happening in case you’re wondering). I might as well be reading the latest Physician’s Desk Reference for pleasure (no, thanks).
As much as I want to generate traffic to this blog, my neuron-synapsis’ will thank me later.
To follow up from Part 1 of this post, am I saying that “The 4-Hour Workweek” is beyond ordinary comprehension? No. But, there are some terms that I’ve never heard before. Let me clarify that that’s not to say that I’m the end-all, be-all of the highest literary standard of understanding; what I mean is that if “Geographic Arbitrage” is common language, I must be living in a cave!
I have to admit that I looked up the dictionary term for this. Although, I was unsuccessful finding the exact phrasing, I was successful at finding a blog by a person who actually does this (geographic arbitraging that is, not looking up words in the dictionary. Well, maybe he does- but that’s beside the point).
To get a better understanding of it, I’m going to let him explain here-
As I write this article, I’m sitting outside a small coffee shop in the city of Kanchanaburi, Thailand. What a cool place. I’m just a few miles from the Bridge Over the River Kwai. My room for the night costs 200 baht ($7), and the excellent kaafe yen (iced coffee) I’m now enjoying comes in at a whopping $1.50. Take that, Starbucks. Dinner tonight, including beer, will come to $3. So that’s…$11.50 for today. And Thailand is actually one of the more expensive countries in South East Asia. So, I’m earning money, while living in a less expensive foreign country. Welcome to the world of geographic arbitrage. Dictionary.com defines “geographic arbitrage” as: “the practice of high-paid professionals moving to less-expensive areas.”
Ever since I can remember, I’ve always wanted to travel the world. I did a bit of travelling during and after college, but always seemed to…”
Read more at the link at the bottom of my post~
Obviously, this type of lifestyle is for those who have that classic touch of wanderlust. People that live on the edge, people that are comfortable taking certain risks, things like that.
Does that description sound a bit extreme?
Consider the truth- it IS a risk to leave everything you’ve ever known by uprooting and moving half-way across the globe. Can it be done? That’s not the question (of course it can be done). What the question really boils down to is this: do you have the guts?
When people want to be millionaires they have this vision of what life would be like- fancy cars, a big house, lots of employees, saucy cocktail parties, big, blue swimming pools, a boat (all paid off, too- no bills), prestige, influence, celebrity friends. I know that I have.
I have had visions of those, but those aren’t the visions of what being a millionaire is all about for me anymore. To be totally honest, who wants a big house with more THINGS that collect dust, and only work to separate those you love by the vastness of it all. How about nosey neighbors, lawn care ordinances, and the umpteen billion perks of keeping up a home, and a big one to boot!
What about a fancy car? Yes, please!
But how will I fit all the lovely, beautiful gaggle of children I have and adore? Oh. You’re single and don’t have that problem? OK- well, you’ve got me there. Go for it.
In continuing the vision, lots of employees? Who wants to manage that?
What about saucy cocktail parties? Why? Most of the people that are there probably only want to be there because of your money. I’m sure many millionaires prefer a close dinner party with some of their closest and trusted friends.
A big swimming pool? Hate those.
Ahhhh, you got me. Can’t hate a big swimming pool no matter how hard I try. Look, the point of all this is that people DO have certain visions when it comes to all of the luxuries that money can afford.
But think about this: really deep down, people truly just want to spend more time with the people they love, reduce their bills (and their workload at the same time), chase their hobbies, be able to afford to go out from time to time and travel, travel, travel and then travel some more. Whether that’s to a simple place like Cedar Pointe, or all the way to the Cayman Islands people want to have fun with the other special people in their lives. And, they don’t want to have to work like dogs to do it.
People have swallowed an unfortunate lie that they have to be a millionaire to do all these things. Well, you don’t have to be. And for the first time in my life (and I’m 38 years old), my eyes have seen a new perspective on what it means to live an exciting way of life that doesn’t involve signing people up under me in a pyramid scheme, working 80 hours a week, or joining Amway. And, isn’t that why you’re here?
The only catch to this is that you have to be a little daring. You have to be willing to take some risk. You have to go out to the nearest gun shop, buy an oozi and mow down that domineering tyrant called, FEAR.
First on the list is getting an income and putting it on auto-pilot. This is under the section called, “Off-Loading the Rest and a Taste of Geoarbitrage”. This is the crucial key: learning to delegate personal assistants remotely (that techno speak for, “people who live inside your computer”) in order to be able to give orders or assignments for other people to do for you. That’s part of the automation process; automating job functions so you don’t have to.
Stay with me on this.
To quote Tim,
It’s time to learn how to be the boss. It isn’t time-consuming. It’s low-cost and it’s low-risk. Whether or not you “need” someone at this point is immaterial. It is an exercise. It is also the litmus test for entrepreneurship…”
Becoming a member of the new rich is not just about working smarter. It’s about building a system to replace yourself.”
So, what is it that you need to pursue in order to make an income? In the book, it’s titled, “Finding the Muse”. And, it goes like this:
Our goal is simple: to create an automated vehicle for generating cash without consuming time. That’s it. I will call this vehicle a “muse” whenever possible to separate it from the ambiguous term, “business”, which can refer to a lemonade stand or a Fortune 10 oil conglomerate- our objective is more limited and thus requires a more precise label.
So first things first: cash flow and time. With these two currencies, all other things are possible. Without them, nothing is possible.”
The question now is what is your product? What is your business? Everyone I know has a talent. Do you make something?
Is it information? What have you learned in life (click HERE to read about making a profit by sharing what you know) that others would pay for and benefit from?
Maybe you are a good salesperson and have a knack for selling other people’s products.
What if you don’t want to make something?
Well, don’t worry. “The 4-Hour Workweek” has you covered in all these areas, even in the area of refusing to make something (you lazy dirtbag).
Learn and implement detailed information to cover every imaginable base like:
–How to develop a product (including sharing the names of manufacturers who can help) versus investing in an already manufactured product, including how to confirm sufficient market size
–He brainstorms with you on what benefit this product should be to your customer,
–What the cost should be
–The time-frame of manufacture (how long it takes to make), and
–What you need to do to develop a full online FAQ.
From reselling an already established product to licensing or creating a product, it’s all in here. You’ll have so much fat to chew on your teeth may fall out! You won’t know what to do from information overload; from selecting your market to brainstorming your product to micro-testing it to rolling it out and automating it you may have to take a “summer vacation” like you did when you were in school! Only difference is, it may become a permanent summer vacation.
So, you get all this information. You have everything developed. Now what?
Are you ready for geographic arbitrage? But wait, you say, I’m not making millions right yet!
Listen, you don’t have to make millions.
Continue to stay with me, OK?
Once you have a product that sells, it’s time to design a self-correcting business architecture that runs itself.”
Try this on for size:
While most entrepreneurs dive into their ventures with a zealous passion for their product or service, few start out with a clear idea of what kind of company they want to build. But McDonnell did. From the outset, he wanted Applegate Farms, his Bridgewater, N.J., organic and natural meat company, to be the kind of business that could grow and thrive on its own steam, not on the power of his own adrenaline and charisma. And so he made a radical decision: Even in the company’s infancy, he chose to limit his physical presence at headquarters to one day a week. He’s continued to do this for 17 years now, and it seems to be working. Applegate has been profitable from the beginning. Revenue has been going up 30% a year. Productivity, measured by weekly sales per employee, goes up every year. Labor cost per pound of goods sold goes down every year. McDonnell figures that Applegate’s 120 products, which can be found in such high-end grocery stores as Whole Foods, Wegmans, Wild Oats, and Trader Joe’s, now provide 1.5 million servings a week.
All because he avoids going into the office? Well, yes. “I’m a…”
Follow along to the bottom to get the link to read more. Trust me, you’ll want to!
Here’s the golden nugget: If you have developed a product…
(which you can develop, or have someone else manufacture, or maybe it’s no product at all- it can be information, or affiliate partners, consulting services, marketing strategies that you’ve developed, whatever. The key is this: the possibilities are ENDLESS, remember that!)
…based on the guidelines Tim walks you through in ch. 9-10, it will plug into the detailed structural chart he has constructed hand-in-glove.
Where is he in the structured diagram chart?
I am not a tollbooth through which anything needs to pass. I am more like a police officer on the side of the road who can step in if need be, and I use detailed reports from outsourcers to endure the cogs are moving as intended. I check reports from fulfillment each Monday and monthly reports from the first of each month. The latter reports include orders received from the call center, which I can compare to the call center bills to gauge profit. Otherwise, I just check bank accounts online on the first and fifteenth of each month to look for odd deductions. If I find something, one email will fix it, and if not…
…it’s back to kendo, painting, hiking, or whatever I happen to be doing at the time.”
In the end, you’re going to be automating something. And once that happens, you will be ready for liberation; the liberation that involves freeing you from the 9-5 so you can live anywhere.
Once again, isn’t that why you’re here?
The new rich are defined by a more elusive power than simple cash- unrestricted mobility.”
…Tens of thousands of people, most of them less capable than you, leave their jobs every day. It’s neither uncommon nor fatal.”
Job changes are natural and the book teaches you how simple that transaction can be. If you simply cannot quit your job because of fear or other obligations, why not travel the path that leads around the world by working remotely?
Think it can’t be done?
Just wait till you read the step-by-step plan including example scripts of how to do it (pg. 206). Man, I wish I had this information while I was still employed. This is the section from the first blog touting the statement, “How blue-chip escape artists travel the world without quitting their jobs”. It’s unbelievable, but absolutely brilliant.
If you really want to take the plunge, but can’t get past the what-if’s such as:
- The permanency of quitting (burning that bridge),
- Not being able to pay the bills,
- Health insurance and retirement accounts, or
- Ruining your resume
Don’t worry, the book tackles those subjects too (which are more like job-quitting myths) with remedies in the form of tools and tricks that include plenty of links and articles (all free). So, are you ready for a mobile lifestyle, yet?
The Birth of Mini-Retirements and the Death of Vacations
True freedom is much more than having enough income and time to do what you want. It is quite possible- actually the rule rather than the exception- to have financial and time freedom but still be caught in the throes of the rat race. Once cannot be free from the stresses of a speed- and size-obsessed culture until you are free from the materialistic addictions, time-famine mind-set, and comparative impulses that created it in the first place.”
This is where the term, “millionaire” needs to hit the road! Get.that.stupid.word.out.of.your.head.
I don’t want to be a millionaire. I want the lifestyle that having millions of dollars gives- and, that’s a huge difference. What IS money? It just buys you things and takes you places. The key here is that you don’t need a boat load of it in order to live the lavish lifestyle of your dreams!
And, there’s so much information on the ins-and-outs of travel that it takes up about an 1/8 of the book. It includes next-to-nothing airfare rates, places to stay that are free (yes, you read that right FREE), transportation, high-end luxury monthly rental apartments (some for $300-something a MONTH) and more. You can do this on a modest (or large, whatever you prefer. Maybe you want to work 5 hours a week??), automated income.
Anyhow, I was blown away and constantly came to this reverberating thought, “can this really be true?”
Turns out, it is. People really do this. And, these people aren’t hard to find.
Almost forgot! Don’t forget to check out these links from the sections I wrote about above:
Using Geographic Arbitrage to Live the Lifestyle of your Dreams
Remote Control CEO
Till next time,