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Summary of F.U. Money by Dan Lok

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Every day most of us choose to do things we don’t like and work with people we don’t like. Maybe you have a boss who’s unfairly demanding but can’t quit your job because you need the money. Maybe you don’t like the people you work with or the people you live around or lack the means of leaving. The example that’s true for almost everyone is when you hold back from telling people your true opinions because you’re afraid their reactions could do real damage to your life. In all these situations, you’re technically free to do what you want. No one’s going to show up and hold a gun to
your head and force you to keep doing these.

But what if you were powerful enough that these consequences were completely meaningless; if making other people angry had zero impact on you. If you could risk burning your bridges of anyone without risking your lifestyle. That is what having F.U. Money is all about and today I’ll be talking about what it is why you should really want it and how to get it for yourself.

Dan Lok is a business and marketing consultant who decided to write a book about the concepts of F.U. Money. The term comes from the idea of having the ability to say F.U. to anyone at any time without consequence but it’s really all about the personal freedom that comes along with that. This includes freedom from financial worries and freedom from a fixed work routine. It’s having the freedom to spend your time exactly how you want to. It’s being able to wake up whenever you want and then do whatever you want. Whoever does something like skiing, surfing, or biking, hopping on a plane to spend a month at a resort in Hawaii, or just writing down nothing on your to-do list. It all comes down to being able to have your desired lifestyle without relying on employment or assistance from anyone else.

Now let’s get into what the book says about how you should go about making this amount of money. Dan says there’s a fast way and a slow way.

The slow way is the standard way of working at a decent job for 50 or 60 years while investing a portion of your income along the way so that you can have a pretty good retirement.

The book section on the slow way is almost entirely concerned with explaining how much it sucks. The kind of safe investments people use for retirement savings usually don’t have a good enough rate of return to provide your dream lifestyle and they’re also not entirely safe as we saw in 2008 when the markets crashed.

The fast way is to create automated income vehicles doing something once and then being paid over and over again.

The book recommends starting an online business where you outsource some of the work to others or have affiliates market your product.

Whatever your lifestyle preferences are, you need to make sure this business fits them. The perfect online business is described as having the following nine attributes:

  1. Do what you love because if you don’t that means you’re spending time doing things you don’t want to do which goes against the entire purpose of starting your own business.
  2. Make sure there’s a long-term demand for what you’re offering. This is required for your business to sustain itself over time. It helps if people are happy enough with what you’re offering to keep coming back.
  3. Portable so that you can work from anywhere and never have to be tied to a physical location you don’t like. It also eliminates time-wasting commutes. The book lists examples of people who work in their homes on a beach or even in a boat in the middle of a lake.
  4. It has a high-profit margin which means there’s less work required compared to the amount of money you earn.
  5. Scalable by either having the ability to add multiple revenue streams or using outside technologies and vendors to grow quickly.
  6. It has a low startup cost so it takes you less time to recoup investment and you don’t have to give away control and equity by raising capital from other people.
  7. It has low overhead which contributes to having a high-profit margin. It means you can take out more money for yourself.
  8. It requires few or no staff which contributes to the low startup cost and low overhead and also saves time managing other people.
  9. And finally, it should provide passive income: service businesses where you trade your own time for money are not scalable enough and limit your freedom to spend your time how you want to.

In addition to those tips about what kind of business to build, Dan Lok also lists several personality traits it’s important to work on.

First, he says you need to develop a carefully measured arrogance because without the belief that you deserve success, it will be impossible to attain it. This gives you the confidence to start creating a business and know that you can figure things out as you go along instead of waiting until you’re totally sure about the idea and never actually getting started.

Developing a higher level of confidence to the point where you feel a sense of superiority is controversial because it’s not a normal thing that most people will do. In fact, to make your F.U. money you have to be a little weird because when you consider the way an average person behaves and what an average person achieves it becomes clear that thinking in a normal way is never going to get you what you want.

For those who think it is selfish to make your life about personal achievement Dan makes a strong argument on why it’s actually selfish not to. He says if more people have this type of self-confidence then the world would be a better place. We’ll never know how many people out there could have done great things that benefited all of us instead of spending their life doing a mediocre job and making a comfortable paycheck because they didn’t want to be arrogant enough to say that they can be great.

The other important lesson is to know the value of your time. To do this, you have to work out the amount of money you can earn per hour then think about what that number needs to be for you to have the lifestyle that you really want since it’s your only asset that can never be replaced. You will need to continually work to increase your time’s value. This means you’ll need to eliminate the types of work you do that do not match up with what you need to value your time to be. If you’re not even getting the value you want out of the time spent on something or boosting the future value of your time through learning a new skill then that work activity has got to go.

Once this starts paying off and you start making money efficiently, it’ll be time so that even more tasks go by paying someone else to do them. For everything you do you should think about the return on your time investment. Some people will drive half an hour further to save a few cents on their food shopping. It should be obvious that even someone earning minimum wage is getting a poor return on their time investment with that one.

The more money you earn the more extreme this disparity becomes. Once Dan got to the point of $1700 per hour if he spent an hour mowing his lawn when he can pay a company to do it for $50 then that just cost him one $1650.

Investing in yourself to boost the value of your time is the way to avoid doing things you don’t want to do and the way to live life on your own terms.

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