Many of you are familiar with Tim Ferriss, author of the excellent “4-Hour Work Week“. Tim is a personal hero of mine (one of his productivity tips is mentioned previously in my post “The Urgent vs. Important Matrix“) so naturally I’ve been eagerly awaiting the arrival of his sophomore effort “The 4-Hour Body“. The new book promises to be “An Uncommon Guide to Rapid Fat-Loss, Incredible Sex, and Becoming Superhuman” – a bold claim indeed.

Tim has written about fitness before, posting two articles with similarly outrageous headlines on his blog – one called From Geek to Freak: How I Gained 34 lbs of Muscle in 4 Weeks and another titled How to Lose 20lbs of Fat in 30 Days – Without Doing Any Exercise. These two posts together give us a glimpse of the principles Tim fleshes out in “The 4-Hour Body”. Is it really possible that Tim has cracked the code on fitness? One year ago, I decided to find out by combining Tim’s published writings into a comprehensive fitness plan and measuring my results. My goal – to determine whether Tim’s methods actually work in real life. This is what I discovered.

Let’s set the scene – back in high school I was an athlete and in decent shape, about 6’1″ and 180lbs. After 4 years of college and too many beers, I graduated in May 2008 at 205lbs and started a job in investment banking. The next 18 months of takeout dinners and 90 hour weeks at a desk pushed me up to 217lbs, with had back pain, acne, and very low energy. I regret now that I didn’t have my body fat analyzed, but I expect I was pushing 30%. I needed to make a change, and quickly. And so in November 2009, I began “The Ferriss Fitness Experiment” to see if Tim could deliver on his promises.

The fitness plan I developed is based directly on Tim’s posts, which are themselves a modification of the Paleolithic Diet (Tim’s modified version is called “The Slow Carb Diet”), combined with exercise methods based on The Colorado Experiment. For the Cliffs Notes crowd, Tim’s methods can be summarized in 4 bullets:

• Avoid white carbohydrates. If it is white or can be white (bread, noodles, rice, cookies, crackers, etc) – cut it out completely.
• Focus your diet on lean proteins (chicken, fish, sirloin, etc) and vegetables.
• Don’t drink calories. No sodas or juices. In combination with the above, that also means (gasp) no beer. We’ll allow wine and hard liquor (straight or with diet soda) because a guy’s got to have a life.
• Exercise to exhaustion. Two or three 30 minute high-intensity workouts are more valuable for building muscle mass than 5x weekly moderate sessions.

I’ll break down the diet and exercise strategies in a lot more detail below. If you’re impatient, you can skip directly to the results of my experiment.

Diet – “Eat Real Food, Not Too Much. Mostly Vegetables.”

The basic idea behind Paleo eating is to consume only foods that our ancestors from the Paleolithic Era had access to (lean red meat, fish, shellfish, eggs, nuts, vegetables, fruit, etc), and exclude foods that developed in the more recent Neolithic, post-agricultural era (processed grains and dairy, sugar, and other “fake” foods). Focus your diet on proteins and vegetables, avoid processed carbohydrates. Volumes of literature have been written about the reasons this makes sense, particularly the ways that carbohydrates and simple sugars are metabolized – they are literally killing you by spiking your insulin, damaging your small intestines, and more. If you want to dig into the science behind how carbohydrates are digested, read this article by Robb Wolf on Tim’s blog. Robb is the former review editor for the Journal of Nutrition and Metabolism, so he knows his stuff.

One note – this is not the Atkins diet. You don’t have cart blache to eat anything as long as it’s not a carbohydrate. Ribeyes are delicious, but if you think you’re being “healthy” just take a look at an uncooked ribeye – it’s nearly all marbling (fat). Beef isn’t off limits, but be aware of what you’re eating. Hamburger meat is rarely, if ever, a good idea. Focus on lean cuts (filet, sirlion) or other lean meats like buffalo or pork.

Tim and I both make an exception to the above diet so it is both less miserable (more sustainable) and more practical. I allow for 1 “cheat day” each week when I can eat whatever I want. No only does this help keep me sane and disciplined the other 6 days, but spiking caloric intake once per week increases fat loss by preventing your metabolic rate (thyroid function, etc) from down-regulating due to extended caloric restriction.

Exercise – High Intensity, Elevated Heart Rate

Now let’s discuss exercise. The two things you’re shooting for are consistent elevated heart rate and lifts to failure. You can accomplish this with cycle training – begin with 15 minutes on the treadmill to get your heart rate up, then move around the gym lifting several muscle groups to failure, with no rest in between. Do all your sets slowly (5 up, 5 down cadence) and to failure. It will burn, but you’ll build muscle mass very quickly.

During your workouts, make an effort to focus on compound movements like squats, pull ups, bench press, lunges, etc. People avoid these exercises because they hurt, but there’s a reason they burn – all of the above target large muscle groups in your body. When your muscles are torn down and rebuild, they release testosterone, which helps build extra muscle, puts hair on your chest, and is generally beneficial for a lot of other reasons. Larger muscle groups release more testosterone. Your biceps is a tiny muscle, you’re not burning many calories or releasing much testosterone doing curls. Do an ass-to-ankles squat on the other hand, and you’re activating your entire lower body, as well as your stabilizing core.

Another benefit of a high intensity workout with minimal rest is that you can be in and out of the gym in under 45 minutes, including locker room time. Do this 2-3 times a week, and you’ll get maximum impact with minimum gym time. This was a huge benefit for me while working in investment banking, when I didn’t have the time to fit in long workouts.

The Results – Do Tim’s Fitness Methods Really Work?

So now we come to the important part – results. Do Tim’s fitness and diet methods actually work? Tim promises his methods can result in either a 34lb muscle gain or 20lb fat loss in 30 days. So how did a combination of the two turn out for me?

When I began my Ferris Fitness Experiment, I tipped the scales at 217lbs. After 3 months of Slow Carb/Paleo eating and 3x weekly 45 minute workouts, I was down to 200lbs. My skin was clear, and my energy level was noticeably higher. After 3 more months I was at 180lbs, with no lower back pain at all, and in the best shape of my life at 15% body fat. Because pictures are worth 1,000 words, I’ve included before and after shots (click the picture for full size). On the left is me at 217lbs before the start of my “Ferriss Fitness Experiment”, and on the right is me in the same outfit at 180lbs. A dramatic improvement.

Based on my own experience, Tim’s methods blow away every fitness plan I’ve ever tried. I lost 37 pounds, 4 inches on my waist, and reduced my body fat by over 10%+ in 6 months. While that’s significantly longer than the 30 days Tim promises in his posts, I recognize that I didn’t singularly focus on weight gain or fat loss – I aimed instead for general fitness and overall health by combining high intensity strength training with the Slow Carb diet. All in all, I highly recommend Tim’s methods to anyone looking to improve their health and fitness level. If the content of Tim’s blog posts on fitness so far are any indication, “The 4-Hour Body” is a must read – you can order your own copy here.

My younger brother just graduated from college this year and is getting settled into a new job, life on his own, and financial independence. Along with his first paycheck, he’s also been bombarded with a lot of new financial choices and a lot of acronyms (IRA, 401k, etc). Everyone knows they should be saving money, but the reality is that nobody ever tells you exactly how to go about it short of stuffing cash under your mattress. This post isn’t going to be an in depth discussion of what stocks to buy or how much of your net worth to put in bonds – rather, I want to focus on the mechanics of how to organize your finances as a single, newly independent young adult in order to set yourself up for prosperity and success.

The 401k

Ah, the first decision you’re going to have to make – how much of your paycheck do you want to allocate into your 401k? The most important thing to know about a 401k is that any money you contribute is “pre-tax”, meaning that it is taken out of your paycheck before taxes are calculated. This is the first way a 401k gives you “free” money – you’re able to sock it away before the government takes a cut. The second way a 401k gives you free money is an employer match. Policies vary among companies, but most offer a match of some kind, up to a certain percentage of your salary. Always, always contribute enough to your 401k to receive the full matching amount that your employer offers – this is literally money in your pocket as an incentive to save. After you’ve received the full employer match, it’s my advice that you don’t contribute anything further to your 401k right now. I’ll explain why in a minute.

Once you’ve got some money in your 401k, you’ll be asked what type of fund you wish to invest it in. You’ll have a lot of options, but your best bet is to select a “target retirement fund”. Add 40 years to the current date, and that’s roughly the year you should hope to retire. These target retirement funds will automatically keep you in equities while you’re young for maximum return, while gradually shifting to bonds for income and protection as you age. Set it and forget it. One thing to be sure of: make sure your 401k is invested in a broad-based fund, not exclusively in the stock of your employer. That’s a lot of eggs in one basket – just ask anyone that spent their career at Wachovia or Bear Stearns.

The Roth IRA

So now you’ve saved a few percent of your paycheck in your 401k (just enough to receive your employer match), but you still have some extra cash remaining that you can afford to lock away for retirement. Your next option is an account called a Roth IRA. Contributions to a Roth IRA are “post-tax”, meaning they come out of your wallet after you’ve already paid income taxes to the government. However, the big benefit to a Roth IRA is that once you’ve contributed, your money grows tax free, forever. That means when you retire, you can withdraw the full amount without paying a dime of taxes on the money you contributed OR on your capital gains. That means you never pay any taxes on all the compounded interest your money made you over the years. And after 40 years of compounding, that’s significant.

You can open a Roth IRA with nearly any investment company (Fidelity, Charles Schwab, TradeKing, and many more), though it may be easiest to use whichever company your employer uses to administer your 401k. There are two major rules regarding Roth IRAs – 1.) You may contribute a maximum of $5,000 each year. You can do this all at once or over the course of the year, but your total contributions may not exceed $5,000. And 2.) You may only contribute to a Roth IRA if you make less than $105,000/year. While this may not be an issue for you now, it hopefully will be in the future, so get those contributions in while you can so they can grow tax-free over the course of your career.

In order to contribute to your Roth IRA, write yourself a check and mail it to your investment company; they will deposit it in an account in your name. The best way to do this is to mail in a check for $416.66 each month ($5,000/12). This will help you in your budgeting, and also keep you disciplined.

Your Checking Account

Speaking of writing checks, now that you’ve contributed to your 401k and Roth IRA, it’s time to make sure you have some “walking around money”. For that, you’ll need a checking account. A checking account provides you with quick, easy access to your money through ATMs, checks, and a debit card. This is the money you’ll use to pay your rent, cover your tab at happy hour, and buy that electric guitar you’ve always wanted.

You can get a checking account from any bank in the country, but far and away the best choice is Charles Schwab Investor Checking. Their two most attractive account features are 0.5% interest (compared with 0% at most banks) and unlimited, free use of any ATM in the world. I can’t stress this second point enough – no more wandering around town to find a specific bank’s ATM, no more paying a $3 “convenience fee” at the gas station. It’s all free, anywhere, all the time. I want mention that I’m not paid by Schwab and that’s not a referral link. I just think they’re awesome (and have been a customer for 4 years myself).

Once you’ve got your checking account open, set up direct deposit with your employer. They’ll drop your paychecks directly into your checking account, and you won’t need to worry about cashing checks every 2 weeks.

So now that the money is streaming in, should you just let it pile up in your checking account? My advice is to keep about $5,000 in your checking account for day-to-day use and personal spending, and get the rest out of there so it’s mentally earmarked for saving or a rainy day. So where should you put any left over money after your 401k and Roth IRA are maxed out, and you have $5,000 in your checking account?

Investing in Mutual Funds and Stocks

If you still have money left over, it’s time to think about investing in individual stocks or mutual funds. Lots of people that are smarter than me (and many who are not) have written miles of text on which stocks and funds you should and shouldn’t buy (caveat investor), so I’ll avoid telling you what to buy and focus on how you buy it.

You’ll need a brokerage account. As with your checking account, there are countless firms that can give you what you need here, but be aware of fees. If you’re only investing a few thousand dollars, commissions can significantly eat into your profits. That’s why I want to make another recommendation – use TradeKing as your broker. Commissions are only $4.95 per trade (the lowest I’ve found anywhere), and they’ll let you trade stocks, options, and mutual funds. Again, they’re not paying me a dime – I just genuinely think they’re the best option.

Once you transfer some money into your brokerage account, it’s time to buy some stocks. Pick up the Wall Street Journal, read the news, and educate yourself – this is a good chance for you to start to learn about investing while the stakes are relatively low. Think long term – remember, you’re investing not trading. Be aware of capital gains tax laws – any profits from a position you hold for under 1 year are taxed as normal income at your normal tax rate (which could be as high as 30%). But if you hold a position for longer than a year, you pay only the long term capital gains rate of between 0% and 15% (depending on your tax bracket). So keep that in mind when you’re tempted to trade quickly in and out of stocks.

If you don’t have the time, knowledge, or inclination to pick individual stocks, you can use your TradeKing account to purchase nearly any of Vanguard’s 100+ index funds – all you need are their tickers, which you can find and research on Vanguard’s site here. While everyone’s investment objectives are different, if you want a set it and forget it index fund, take a look at VEIPX, VDEQX, VWINX, or VGSTX.

In Summary

So there you have it – a complete blueprint to getting organized financially in the real world. Let’s sum up the structure we’ve set up for you:

• 401k Contribution — Enough to receive your full employer match, no more (every paycheck)
• Roth IRA — $5,000 per year (one $416.66 contribution each month)
• Checking Account — Consistent $5,000 balance for every day expenses, direct deposit, free ATM use
• Brokerage Account — Any additional savings are invested in stocks or mutual funds for the long term

If you’re able to follow the blueprint I’ve laid out above, you will not only be able to sleep well at night knowing you’re doing the right things with your money, but also will have set yourself up with a framework to save responsibly over time and build wealth in the long term.

Note: I also cross-posted this guide last week over at Punch Debt in the Face, a great blog about personal finance and budgeting with awesome stick figure illustrations.

As a former investment banker, I have a very, well… unique relationship with my email. For those that aren’t familiar with the life of a banking analyst – email is treated as IM, text messaging, and a pager all rolled into one, with a 24/7 expectation of response. I once had an actual nightmare about that blinking red light on my Blackberry. Accordingly, I developed somewhat of a compulsion about checking email at all hours of the day and night, an affliction I feel is shared by many in corporate America. Many of us keep our Outlook open all day and our Blackberries at hand all night, just waiting to be interrupted by that little “New Mail” popup or blinking red light. Not only is that stressful, I think it’s killing our productivity.

A study by Microsoft showed just how lethal interruptions are to productivity. The researchers taped 29 hours of people working in a typical office, and found that they were interrupted on average four times each hour. Sounds like a day at most offices. Here’s the kicker – 40% of the time, the person did not resume the task they were working on before the interruption. The more complex the task, the less likely the person was to resume working on it after an interruption. That means most of us are getting derailed from our work four times each hour, maybe more if you work in a high email traffic office.

So how do we get back on track? The answer lies in a concept called the “Urgent vs. Important Matrix“, which I was reminded of (and inspired to write this post) when I read fellow Coloradan Devin Reams‘ excellent post entitled “Instant Email is Good for Nobody” (agreed). Most of us have grown up considering “urgent” and “important” to be the same thing, but that is not always the case. An issue can be both urgent and important (a heart attack), urgent but not important (a telemarketer is calling), important but not urgent (that big project you’re working on), or neither (surfing the web). As such, we need to develop the ability to quickly identify urgent and important interruptions that need to be dealt with right now, and file the rest away to be dispatched at regular intervals when they will not interrupt us from the tasks we are focused on completing. Be particularly wary of “urgent but not important” tasks – these often masquerade as top priority items and steal attention they don’t deserve.

In Tim Ferriss’ fantastic “4-Hour Workweek” he discusses his method for handling email interruptions. Tim checks email once at 11am and once at 4pm – that’s it. It’s called batching, and it helps not only to reduce interruptions, but also decreases the time spent switching between tasks (28% of your day, according to the Microsoft study).

Since I’ve left banking and been working with Hosting.com, I’ve tried to turn over a new leaf in email management. I’m no Tim Ferriss, but I try to only check emails once an hour and I completely turn off the alerts on my iPhone during things like dinner, movies, and social time with friends. Not only has it made me more productive, it’s drastically reduced my stress level. Additionally, people learn that email is not a viable option for getting ahold of me instantly. If something is both urgent and important, I get phone calls, which are totally fine and welcomed. My boss operates on the same principle, and it actually creates a great work dynamic in our office – urgent/important things get personal phone calls or face to face conversations, while non-urgent items get dropped in our email boxes for handling at the appropriate time. We both know that if our phone is ringing, the other has considered both the importance and urgency of the task before dialing the number. If you can get everyone in an office or on a team working under this principle, it really does dramatically increase efficiency and decrease stress – I highly recommend it.

I travelled back to my hometown for Christmas this year and took the time while I was there to enjoy the company of old friends over drinks in familiar pubs. I spent one such night with a former colleague and great friend whom had always provided me with a sounding board and personal “level” during our time together in banking.

As we sat alternating rounds at one of our old haunts, he described to me a renewed outlook he had developed over the past several months of particularly long hours at work. He had come to the realization that in addition to professional success, personal zest for life was an equal contributing factor to one’s happiness. Accordingly, he resolved to inject some life back into his waking hours, and that began with a definition of what living meant.

When he sat down to define the things that make us happy, it became apparent that so many of us think that happiness is defined by “having”. That is to say having a 56″ TV, having a nice car, having an arbitrarily high account balance. What my friend realized is that “having” is a poor substitute for “doing”. Thinking back, I realized he was right. The happiest times in my life have not stemmed from things I had, but from things I did. The state championship my senior year of high school. The spontaneous overnight drive with roommates to Florida for a weekend in college. A wild weekend in New York City with my brother and a close friend. Experiences pay dividends far richer than possessions.

So, rather than medicating with shiny toys, we resolved to spend money “having” remarkable experiences with friends. We sat down to write out 30 things we each wanted to experience while we are still young and relatively unencumbered by family, mortgage, and age. We made plans to accomplish at least three of them in 2010 together. My list is titled “30 by 30″, and these are the things I wrote down.

1. Travel to Las Vegas and witness a title fight from the good seats.
2. Learn guitar well enough to play cover songs for tips one night in a bar.
3. Ski the back bowls at Vail without falling. DONE
4. Headline the local paper just once, for something positive.
5. Get lost for a summer weekend in the Rockies with only a tent, sleeping bag and camping stove.
6. Chop down a tree for firewood.
7. Soak up the tropical weather and several mojitos in Miami.
8. Learn mixed martial arts.
9. See the Sox play at Fenway, curse at visiting team with local Bostonians.
10. Travel through Europe for several weeks without a defined itinerary.
11. Become “first name basis” friendly with a celebrity I admire.
12. Climb to the peak of a mountain tall enough to be an accomplishment (more than a day hike).
13. Attend a Hollywood party – with an invitation.
14. Pick up a girl who is way out of my league. DONE
15. Rent a Ferrari and drive the Northern California coast.
16. Learn to snowboard. DONE
17. Live like a king for a week in Buenos Aires.
18. Become a recognized expert in a topic of my choosing, however narrow.
19. Grow a real, outdoorsman-caliber beard.
20. Sail for a week in the Bahamas, on a rented boat, without a guide.
21. Become a good enough sailor to achieve #20.
22. Attend a party at a rooftop bar with a view in New York City.
23. Climb to the top of the Eiffel Tower. DONE
24. Experience the neon and culture shock in Tokyo.
25. Become a regular at a local bar. Enjoy free drinks.
26. Beat one of the old men in the park at chess.
27. See Billy Joel in concert.
28. See Journey in concert.
29. See John Mayer in concert. DONE
30. See The Goo Goo Dolls in concert.

An ambitious list for sure, and one that will probably not end up fully marked off by my 30th birthday. However, if even half of the items do get accomplished, they should provide some excellent fodder for reminiscing next time we share a pint at Christmas. To those following along at home – what things would you put on your “30 by 30″ list? If you’re over 30, what are some things you still want to experience before retirement (i.e. things you don’t want to put off)?

Also, if this is a topic that interests you, make sure to read Paul Graham’s essay “Stuff” which discusses the “over-stuffing” of America. Take the money you would spend on “stuff” and spend it on something that’s actually going to increase your happiness level – life experience.