The Almanack Of Naval Ravikant: A Guide to Wealth and Happiness
A much talked about book on social media, “The Almanack Of Naval Ravikant: A Guide to Wealth and Happiness”, collects and organizes the ideas of Naval, an entrepreneur, angel investor, computer science and economics student and brutally honest individual. Collected from tweets, podcasts and blogs - The wisdom of Naval is compiled in the book. I have summarized and condensed the major ideas and quotes from the book.
Part 1
Wealth -How to get rich without getting LUCKY?
"Getting rich is knowing what to do, with whom to do."
Naval suggests :
- You ought to own equity.
- All the gains in life come from compound interest.
- Specific knowledge to be gained -cannot be outscored or automated.
- Leverage is forced multiplier for your judgment.
- Capital, Codes and Media - Let them work for you.
- PRODUCTISE YOURSELF.
- Play Long term games with long term people - Compounding works - Reputation, Wealth or relationship.
- Only 1% of the things are useful.
- Accountability does come with real risk, but the downside risk is not that large - Take accountability.
He differentiates between wealth and money. Wealth works for
you -which can earn while you sleep while money is social credit. Wealth
creation is an evolutionary recent positive some game while status is old zero some game. Naval explains the difference in two giving the sports and
politics analogy. Zero some games are the ones in which you need to put other
person down to win.
Money and having lust for money are two different aspects. Not upgrading your
lifestyle as income increases help to keep that habit in check.
Only way to truly learn something is by doing it. Listen to guidance but don't
wait. Pick the right direction -one direction and start walking.
No one is going to value you more than yourself. Make your own hourly rate and
respect it. Naval explains the point by his own example - $5000 per hour. Get
rid of relative mindset, instead practice optimism.
He highlights the importance of leverage and equity - “Code and media as modern
form of leverage”
Naval describes the modern leverage in details and distinguishes it from
capital and labor leverage. How wealth is created using books, podcasts, media
and websites.
Using real estate development thesis - Naval explains the key role leverage,
accountability and specific knowledge- How in levels everything increases and
creates the way to wealth. On long enough time, you’ll attract what you
project.
Ego, truth and reality paradigm is highlighted. Suffering is the moment when we
can no longer deny reality. Desire and reality are different from each other.
"Tension is what you think you should be, relaxation is what you
are."
There are no permanent solutions in dynamic systems. Learn the skill of
decision making, free of heuristics and biases. Using mental models in daily
life and making them a part of thinking. Models by Parag Parikh, Nasim Taleb
and Charlie Munger serves the purpose. Naval describes a few like principal
agent conflict, complexity, inversion, game theory, basic math, economics,
probability, anchoring.
“Read what you love, until you love to read.” Read from the basics -original
idea be it economics, mathematics, science, or social sciences. Naval
recommends the following list https://www.navalmanack.com/navals-recommended-reading
Part 2
Happiness
In this part, the common version of happiness and Naval's subjective ways are
highlighted. Description prescription way to bring up his thoughts and actions
to be happy. Personally, I would factor in the randomness part in happiness but
clubbing it with few ideas of Naval can help shape your thesis about happiness.
According to Naval -
Happiness = Health + Wealth + Good relationships
Naval's definition of happiness keeps on changing. He regards, at this point,
happiness is to remove the sense of something missing. A state where nothing is
missing. Absence of desires and cherishing the present.
"Happiness, love and passion are choices you make. Choice for being grateful
for where you are now. Enlightenment is the state between your thoughts."
"Peace is happiness at rest and happiness is peace in motion."
"One person who loves you unconditionally can do
miracles."
Happiness is a skill - Naval suggests you to surround yourself with better
people.
Naval uses death as a source to bring acceptance which he describes using miniscule analogy - human lifespan as firefly in timeline of the universe. No one's going to remember you no matter what you do after a few years. He suggests to be yourself with passionate intensity. There is something out there just for you. Listen yourself.
“We evolved in scarcity but likes to live in abundance” Naval explains the evolutionary human cycle and presents health hypothesis (natural activities over leisurely). He covers every aspect - mental, emotional, evolutionary, diet, exercise. He affirms that breathe control is important part of meditation as it is the place where atomic and central nervous system meet. Most of our thoughts are fear based and rest desire based - using different meditation methods we can have a raw look at these thoughts. Transcendental meditation (chanting) or observation based techniques Naval describes some easy meditation methods.
To do so - to take a look at who you are - Naval gives the analogy of monkey throwing faeces- the idea is to see those thoughts. Choosing to build yourself - Habits, without anger and long term decision making. Anger is its own punishment. Modern STRUGGLE - Up against scientist and statisticians weaponizing abundant food medicines and screens to junk food, clickbait news, porn, endless games and addictive drugs.
"When you really want change, you change."
Set up systems not goals - Grow yourself. Being yourself and being the best version of you matters the most. If you loose early you are more likely to succeed. Read and develop a love for it. Value time more than money.
Live by your own values - Naval calls out honesty as one of the core values. HONESTY in the moment, with yourself and your work. IF THE VALUES LINEUP LITTLE THINGS DON'T MATTER.
Wisdom - Wisdom is discarding of vices and moving back to virtue by way of knowledge. He concludes the book by quoting the lines of Achilles from Troy "Everything is more beautiful because we are doomed. You will never be lovelier as you are now and we will never be here again" to mark the importance of present moment.
Naval's Life formulae - Notes to himself
Happiness = Health + Wealth + Good relationships
Health = Sleep + exercise + Diet
Exercise = High intensity training + Sports+ Rest
Diet = Natural foods+ Intermittent fasting + Plants
Income = Accountability + Leverage + Specific Knowledge
Accountability = Personal branding and Platform+ Risk
Leverage = Capital+ people +IP
At last he sums up the major quotes and rules laying out the broad outline of the ideas Naval practice and preach.
The Almanack of Naval Ravikant is a brief on wealth and happiness which uses more practical and less rhetorical means to describe the subject. He covers a wide range of things in brief manner, from wealth, luck, capital, code, compounding to meditation, philosophy, values, habits. Give it a read once and you will cherish the wit and wisdom of Naval Ravikant.
