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On Building Wealth – The Almanack of Naval Ravikant
While I always love to write on people, operations and project management which definitely covers the financials part – i am also certainly sure that you would agree without financials or cost management in business or your set of projects you lead there is really nothing to manage – isn’t it ?
Well that’s the fact whether we all like it or not.
How much ever we think people or the processes are the foundation – yeah i do agree with that concepts but if it does not build the actual wealth and there is no business to run.
A lot of people in this world are told or brought up with a concept that wealth is bad and you shouldn’t run behind money and all that nonsense, but the truth is wealth is important and the value it gives is nothing but the freedom.
That’s where this book beautifully explains on building wealth while learning and how to build the specific knowledge to support this concept.
So this topic mainly shares some of the key tweets which are posted on this book on this particular topic called Building wealth. I hope you read it and share it with your friends and family who mean you the most.
Building Wealth
Making money is not a thing you do – it’s a skill you learn
How to Get Rich (Without Getting Lucky)
Seek wealth, not money or status. Wealth is having assets that earn while you sleep. Money is how we transfer time and wealth. Status is your place in the social hierarchy.
Ignore people playing status games. They gain status by attacking people playing wealth creation games.
You’re not going to get rich renting out your time. You must own equity – a piece of a business – to gain your financial freedom.
You will get rich by giving society what it wants but does not yet know how to get. At scale.
Pick an Industry where you can play long term games with long term people
The internet has massively broadened the possible space of careers. Most people haven’t figured this out yet.
Play iterated games. All the returns in life, whether in wealth, relationships, or knowledge, come from compound interest.
Pick business partners with high intelligence, energy, and above all, integrity.
Don’t partner with cynics and pessimists. Their beliefs are self-fulfilling.
Learn to sell. Learn to build. If you can do both, you will be unstoppable.
Arm yourself with specific knowledge, accountability, and leverage.
Specific knowledge is knowledge you cannot be trained for. If society can train you, it can train someone else and replace you.
Specific knowledge is found by pursuing your genuine curiosity and passion rather than whatever is hot right now.
Building specific knowledge will feel like play to you but will look like work to others.
When specific knowledge is taught, it’s through apprenticeships, not schools.
Specific knowledge is often highly technical or creative. It cannot be outsourced or automated.
Embrace accountability, and take business risks under your own name. Society will reward you will responsibility, equity, and leverage.
“Give me a lever long enough and a place to stand, and I will move the earth” – Archimedes
Fortunes require leverage. Business leverage comes from capital, people, and products with no marginal cost of replication (code and media)
Capital means money. To raise money, apply your specific knowledge with accountability and show resulting good judgement.
Labor means people working for you. It’s the oldest and most fought-over form of leverage. Labor leverage will impress your parents, but don’t waster your life chasing it.
Capital and labor are permissioned leverage. Everyone is chasing capital, but someone has to give it to you. Everyone is trying to lead, but someone has to follow you.
Code and media are permissionless leverage. They’re the leverage behind the newly rich. You can create software and media that works for you while you sleep.
An army of robots is freely available – it’s just packed in data centers for heat and space efficiency. Use it.
If you can’t code, write books and blogs, record videos and podcasts.
Leverage is a force multiplier for your judgement.
Judgement requires experience but can be built faster by learning foundational skills.
There is no skill called “business.” Avoid business magazines and business classes.
Study microeconomics, game theory, psychology, persuasion, ethics, mathematics, and computers.
Reading is faster than listening. Doing is faster than watching.
You should be too busy to “do coffee” while keeping an uncluttered calendar.
Set an enforce an aspirational personal hourly rate. If fixing a problem will save less than your hourly rate, ignore it. If outsourcing a task will cost less than your hourly rate, outsource it.
Work as hard as you can. Even though who you work with and what you work on are more important than how hard you work.
Become the best in the world at what you do. Keep redefining what you do until this is true.
There are no get-rich quick schemes. Those are just someone else getting rich off you.
Apply specific knowledge, with leverage, and eventually you will get what you deserve.
When you’re finally wealthy, you’ll realize it wasn’t what you were seeking in the first place. But that is for another day.
The author mentions at the starting of this book that “if you don’t know yet what you should work on, the most important thing is to figure it out and You shouldn’t grind at a lot of hard work until you figure out what you should be working on”.
I don’t know how better the above sentence can be explained and I want to leave this post here to make you and myself think.
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