"A Guide to Wealth and Happiness"

I must admit, I hadn't heard of Naval Ravikant before reading this book, but he's since popped up a lot. He is an Indian-American entrepreneur and investor. He's the co-founder and former CEO of AngelList among other things.

Turns out he's got plenty of wisdom to share which is what this book is all about. A veritable collection of tips and tidbits along with experience and suggestions of how to best live life. Whether that's succeeding in business or just generally being happier, healthier or more fulfilled.

There's a lot contained in this book which I went back for a second read. The first time was very impressive (hence the re-read), the second time not so much but I was already aware of the info. Just trying to cement some more of it.

There should be something for all in this offering…

Top Takes & Quotes From the book + My Musings

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

Wealth is different to money. Money is an aspect within wealth but it's the wealth that really moves the needle, and money is a tool and a way of keeping score. We shouldn't aim for status, although we may get that as a natural by-product of these things.

Play iterated games. All the returns in life, whether in wealth, relationships, or knowledge, come from compound interest

The 8th wonder of the world! Most will be aware of the power of compounding and this applies to the accumulation of wealth of course, but in every other aspect of life too. We can underestimate the value of compounding over time as it's incremental and takes a while to see its full effects.

Learn to sell. Learn to build. If you can do both, you will be unstoppable.

Selling is one of the most important things, at least in some capacity. This isn't about being snakey or getting people to buy things they don't need. It's about being able to influence others to help them get what they want whilst you can also profit in that transaction. So everyone goes away happy.

Building is creating, producing, making things. The more you do of this, the more you have to offer and show for yourself. This building should be going on throughout, regardless of results. Any building bubbling away not seemingly achieving anything can actually sprout and become something in the future. What have you lost anyway?

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If you can’t code, write books and blogs, record videos and podcasts.

There's plenty you can do. Especially with all the tech and tools these days, you can find what works for you and go ahead and do it.

Study microeconomics, game theory, psychology, persuasion, ethics, mathematics, and computers.

These are a few areas Naval recommends deepening your understanding. There's a lot going on in that but worth delving into it as much as possible.

Set and 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.

This is about tasks being worth your time or not. Evaluating and delegating where appropriate.

Work as hard as you can.

Seems obvious but highlighted due to its importance. Work smart too of course, but in any given situation it's best to give your best.

Become the best in the world at what you do. Keep redefining what you do until this is true.

You won't be great at first but you can become so. And it's a process of refinement, finding what works and adapting along the way.

“Productize yourself”

To productise is to have specific knowledge and leverage. Then you have uniqueness and accountability, plus specific knowledge. So this concept is about combining all of those pieces.

“Escape competition through authenticity.”

You are unique and it's about showing that. There's no competition in a sense because no-one else is like you or can do what you do, the way you do it. If this is pleasing to others and you're able to show this then you'll do well.

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The most important skill for getting rich is becoming a perpetual learner.

Never stop learning. Some people give up after school, which is a bad idea as you don't learn all that much there. Others keep going until they die. There are always new things to learn, and depth to be added to any knowledge. The world constantly changes, so you need to keep learning just to stay still, then crank it up a notch.

Foundations are key. It’s much better to be at 9/10 or 10/10 on foundations than to try and get super deep into things.

Fundamentals first. Build on those, rather than being great at the surface stuff but the foundations crumbling. There's an order to these things; get the basics down first and foremost.

Play Long-Term Games with Long-Term People

Not looking for the short-term fix but playing the longer game… and doing it with people of a similar mindset.

Intentions don’t matter. Actions do. That’s why being ethical is hard.

It's all about what a person actually does, rather than simply thinking about it or having the best intentions. Actions are how we can truly judge someone.

when you find the 1 percent of your discipline which will not be wasted, which you’ll be able to invest in for the rest of your life and has meaning to you—go all-in and forget about the rest.

Finding that key component, and once you do find it throwing yourself all in and making the most of it. Then letting our ol' friend compound interest take effect!

Without ownership, your inputs are very closely tied to your outputs.

Trading time for money as opposed to having money work for you whilst you're not actively working on doing so.

when you do things for their own sake, you create your best work.

Not for potential rewards but for the sake of great art or for the love of the process and creating… that's when you do your best stuff.

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You get rewarded by society for giving it what it wants and doesn’t know how to get elsewhere.

If you're able to give people what they want and they can't find it elsewhere then they'll happily pay you for it. Whether that be financial or in other ways.

Now, you can multiply your efforts without involving other humans and without needing money from other humans.

Technology is changing the game and widening the field. What you do can be replicated, reproduced, and put on steroids at the click of a few buttons.

Forty hour work weeks are a relic of the Industrial Age. Knowledge workers function like athletes—train and sprint, then rest and reassess.

There's a different flow to it, or at least there can be. The 40 hour work week had its place but we're now past that and operating in a different way. Whether you put in more or less hours isn't the point here, just that the methods and requirements are different.

Constant learning, 'sprinting' when it's time for action, then taking a step back and evaluating, before going again.

Nobody asks him how hard he works. Nobody asks him when he wakes up or when he goes to sleep. They’re like, “Warren, just do your thing.”

Warren Buffet's routine (and anyone else's for that matter) is irrelevant. What matters is that his investments are making money for him and those who they affect. If he makes someone a million in 5 minutes then who cares? He's not being paid for time but rather the results he brings.

There are so many ways to create wealth, to create products, to create businesses, and to get paid by society as a byproduct.

It's increasing too. Obviously we have the internet which has opened a whole new world. Some of the tech coming of age like blockchain and crypto is going to make that look like child's play.

Value your time at an hourly rate, and ruthlessly spend to save time at that rate. You will never be worth more than you think you’re worth.

The point is knowing your worth, then acting accordingly with your time. People won't tend to value you more than you value yourself.

Retirement is when you stop sacrificing today for an imaginary tomorrow. When today is complete, in and of itself, you’re retired.

Don't wait for 'retirement'… live your life now!

“The closer you want to get to me, the better your values have to be.”

Having people with good and similar values in your inner circle.

Don’t keep track, and don’t keep count

Give without expectations. Do things as they're the right things to do and you want to, not for some sort of return.

The really smart thinkers are clear thinkers.

Thinking clearly is key. Managing to find clarity gives us the edge over all the fuzzy and warped thinking out there. To be 'smart' is really being able to focus.

A contrarian isn’t one who always objects—that’s a conformist of a different sort. A contrarian reasons independently from the ground up and resists pressure to conform.

Yeah, we're not talking about being objectionable or just believing or stating the opposite for the sake of it. It's about reasoning and perhaps not fitting in with the herd.

“Tension is who you think you should be. Relaxation is who you are.” —Buddhist saying

What would a BookBabble be without a hint of Buddhism? Relaxing into who you are not trying to be something else, which takes a lot of strain.

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old rule Warren Buffett has, which is praise specifically, criticize generally.

This is a good one from the old geezer.

If you're praising someone, it's a bit wishy-washy to say something general and doesn't really mean anything. Something specific means you've genuinely noticed and are pointing something positive out.

It's flipped with criticism as you don't want to be a dick, so making it more general makes a point without really drilling down and making someone feel bad.

Charisma is the ability to project confidence and love at the same time.

Charisma is a trait that people are attracted to. It just has that balance of people you tend to like or be around. A relaxed genuine internal confidence is attractive, and if they project love with it then you have a winner.

If you cannot decide, the answer is no.

It's got to be a clear yes. Indecision is terrible but if there isn't enough pushing you to yes, then it has to be no. At least for now.

you generally want to lean into things with short-term pain, but long-term gain.

It's much easier to take the more pleasant route but that won't get you as far longer term in general. The more painful shorter term tends to lead to big gains over periods of time.

Put truth above social approval.

What else have you got? Truth should be above all and at least you'll have your own approval!

The three big ones in life are wealth, health, and happiness. We pursue them in that order, but their importance is reverse.

We could debate the semantics till the cows come home, but these are the important things and work together. 'Happiness' is a general feeling that comes when most things are right and you are content. Health is at the backbone of all, and of course wealth is handy for both those things (or at least halting the opposite).

Don’t take yourself so seriously. You’re just a monkey with a plan.

About sums it up ;)

You have to view the negative before you can aspire to and appreciate the positive.

Facing both. Seeing and feeling the negative, to then make the most of the positive.

The world just reflects your own feelings back at you. Reality is neutral.

Everything is neutral, it's just the spin we put on it. The world does simply reflect back who you are and how you're feeling to a large extent.

One can be very happy as long as one isn’t too caught up in their own head.

Get out of your own head, it can get a bit crazy in there. Master your mind and indulge in activities and acts that help with this.

“Enlightenment is the space between your thoughts.”

That's one way of putting it. Not judging or clinging to thoughts but letting them pass through and having those moments in between.

Desire is a contract you make with yourself to be unhappy until you get what you want.

Attachments to desires is suffering. Nothing wrong with wanting things but be content with what is whilst continuing to work for better.

Confucius says you have two lives, and the second one begins when you realize you only have one.

Now we have Confucius getting in there. The realisation that this is all there is (at least for now) perhaps wakes people up to actually live their lives.

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Blaise Pascal I read. Basically, it says: “All of man’s troubles arise because he cannot sit in a room quietly by himself.”

Everyone needs to be able to do this. Meditation is great by the way, but this is more of a general point. Being able to do nothing, not be entertained or have distractions, but just sit quietly by yourself for a period of time.

You can get almost anything you want out of life, as long as it’s one thing and you want it far more than anything else.

You have to be focused but anything is possible. You can't scatter your efforts and you've got to genuinely want it and be willing to pay the price.

Peace is happiness at rest, and happiness is peace in motion.

It's a nice saying.

When working, surround yourself with people more successful than you. When playing, surround yourself with people happier than you.

Sure, makes sense.

“five chimps theory”

In zoology it's said that you can predict the mood and behaviour of one chimp by observing which five chimps they hang out with the most.

Jim Rohn is also famous for saying, you are the average of the five people you spend the most time with.

You take the behaviours and mind think of that group.

In any situation in life, you always have three choices: you can change it, you can accept it, or you can leave it.

They're the only 3 and we need to apply them as best possible. It's like the Serenity Prayer - the serenity to accept the things which can't be changed, the courage to change the things that can, and the wisdom to know the difference. Or words to that effect.

Your goal in life is to find the people, business, project, or art that needs you the most.

Go where you're needed and get in amongst it.

hygiene hypothesis.

The hygiene hypothesis proposes that childhood exposure to germs and certain infections helps the immune system develop. This teaches the body to differentiate harmless substances from the harmful substances that trigger illnesses. In theory, exposure to certain germs teaches the immune system not to overreact.

This is an important part of development and should be encouraged within reason.

When everyone is sick, we no longer consider it a disease.

It was Krishnamurti who said, it is no measure of health to be well adjusted to a profoundly sick society. Just because everyone else is sick it doesn't make sense for you to be so just to fit in. Perhaps get the rest to become healthy to fit in with you?

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When it comes to medicine and nutrition, subtract before you add.

My sentiments exactly. It's mostly about eliminating or reducing first before adding things. When it comes to medications and the like it should be only when necessary and used with caution.

cold showers

Really good for you.

Meditation is intermittent fasting for the mind.

I recently started meditating again, and it's as close to a 'magic bullet' as you'll find. In fact, it may make some of your other crazy ideas obsolete. But try for yourself and see what happens.

Too much sugar leads to a heavy body, and too many distractions lead to a heavy mind.

They both are a huge issue. One nutritionally and the other clouds the mind and you can't think straight. A good idea to reduce both!

If you stop talking to yourself for even ten minutes, if you stop obsessing over your own story, you’ll realize we are really far up Maslow’s hierarchy of needs, and life is pretty good.

Most people are so far up. There's always a way to go but that's the nature of the beast. Perhaps a little gratitude for where you are and to relax a bit.

when you’re forty, what advice would you give your thirty-year-old self?

Good question. What about you?

very long-term point of view

Re-iterating the long-term thinking. That is where the real gains lie.

You become your habits.

We know all about that in BookBabble land. Not least in James Clear's Atomic Habits. It should be obvious by now but what you do on a consistent basis is who you are, and can predict results with certainty.

Impatience with actions, patience with results.

I like this one. There's a time and a place to be patient… that being whilst waiting for the fruits to show, but get moving with planting the seeds!

As Nivi said, inspiration is perishable. When you have inspiration, act on it right then and there.

Don't wait for it, but do use it when it shows up.

Scott Adams famously said, “Set up systems, not goals.”

Goals are a good target but you really want systems set up which will set up habits that will lead you towards any objectives.

Value your time. It is all you have.

It's the most important thing so we shouldn't waste it.

the mind should be a servant and a tool, not a master.

Back to mastering your mind. A bit like technology; it should serve you and be used as a tool but it shouldn't be in control and drive you. You should control it and lead it where you want to go.

I don’t believe in any short-term thinking or dealing.

This goes back to the concept of long-term thinking but I'll leave this here to re-state the sentiment. A lot of short-term thinking and actions do exactly that - satisfies a short-term perspective which is often at odds with longer term goals.

Charlie Munger says, “To find a worthy mate, be worthy of a worthy mate.”

Charlie Munger is Warren Buffet's business partner. Basically be the person you want to attract, if you're not you're going to have some trouble attracting your desires.

I once asked a monk how he found peace. “I say ‘yes,’” he’d said. “To all that happens, I say ‘yes.’”

He accepts everything as is, and is also aware of how things can change. It reminds me a little of the We'll See story.

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I always spent money on books. I never viewed that as an expense. That’s an investment to me.

Absolutely. It's an investment if used well. If spending a tenner is worth thousands then I think that's money well spent. If you try and scrimp here you may struggle to better yourself and your position.

If you eat, invest, and think according to what the “news” advocates, you’ll end up nutritionally, financially, and morally bankrupt.

Avoid it, they're full of crap.

Thanks Naval & Eric! Anything Else?

As I said at the start, this is a great book with plenty of wisdom thrown in. I can't see anyone reading this and not getting some sort of insight. It could well be one of the best books you've read, or at least give you a few nudges and nods.

Apply some of what's in here and it will have to improve your life, and leave you a little more knowledgeable than before.

Eric Jorgenson has pulled it all together and is the actual author, so credit of course goes to him too. This is one of those books you can flick through and read and re-read certain sections as and when. A little bible of sorts.

Have you read it and what do you think? Anything to add to Naval and Eric's musings?

First image my own, others linked to source

Check out the others in the series…

BookBabble #39: "The Almanack of Naval Ravikant" by Eric Jorgenson

Top Takes & Quotes From the book + My Musings

Thanks Naval & Eric! Anything Else?