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Lifestyle design involves creating a life that aligns with your values, dreams, and purpose, allowing you the freedom to live authentically. It emphasizes experimentation, as described in Tim Ferriss's "The 4-Hour Workweek," which indicates that discovering what you truly enjoy comes from trial and error. Instead of merely fantasizing about your ideal life, the process encourages you to actively experience it. The video outlines three experiments you can undertake today to start building a life you love, highlighting the importance of taking actionable steps rather than remaining in contemplation.