How To Get Rich?

Naval Ravikant

2020 June 24th

30 min read

--- views

Photo by Micheile Henderson on Unsplash

Seek Wealth, Not Money or Status

Wealth is assets that earn while you sleep. Wealth buys your freedom. Money is how we transfer wealth. Status is your rank in the social hierarchy. Status is a very old game. People creating wealth will always be attacked by people playing status games.

Make Abundance for the World

Wealth isn’t about taking something from somebody else Everyone can be rich

Free Markets Are Intrinsic to Humans

We use credits and debits to cooperate across genetic boundaries Free markets are intrinsic to the human species Too many takers and not enough makers will plunge a society into ruin

Making Money Isn’t About Luck

Make Luck Your Destiny

You Won’t Get Rich Renting Out Your Time

Live Below Your Means for Freedom

Give Society What It Doesn’t Know How to Get

The Internet Has Massively Broadened Career Possibilities

Play Long-Term Games With Long-Term People

Pick Partners With Intelligence, Energy and Integrity

Partner With Rational Optimists

Arm Yourself With Specific Knowledge

Specific Knowledge Is Highly Creative or Technical

Learn to Sell, Learn to Build

Read What You Love Until You Love to Read

The Foundations Are Math and Logic

There’s No Actual Skill Called ‘Business’

Embrace Accountability to Get Leverage

Take Accountability to Earn Equity

Labor and Capital Are Old Leverage

Product and Media Are New Leverage

Product Leverage is Egalitarian

Pick a Business Model with Leverage

Example: From Laborer to Entrepreneur

Judgment Is the Decisive Skill

Set an Aspirational Hourly Rate

Work As Hard As You Can

Be Too Busy to ‘Do Coffee’

Keep Redefining What You Do

Escape Competition Through Authenticity

Play Stupid Games, Win Stupid Prizes

Eventually You Will Get What You Deserve

Reject Most Advice

A Calm Mind, a Fit Body, a House Full of Love

There Are No Get Rich Quick Schemes

Productize Yourself

Accountability Means Letting People Criticize You

We Should Eventually Be Working for Ourselves

Being Ethical Is Long-Term Greedy

Envy Can Be Useful, or It Can Eat You Alive

Principal-Agent Problem: Act Like an Owner

Kelly Criterion: Avoid Ruin

Schelling Point: Cooperating Without Communicating

Turn Short-Term Games Into Long-Term Games

Compounding Relationships Make Life Easier

Price Discrimination: Charge Some People More

Consumer Surplus: Getting More Than You Paid For

Net Present Value: What Future Income Is Worth Today

Externalities: Calculating the Hidden Costs of Products

Bonus: Finding Time to Invest in Yourself