Building Wealth
Master the art of creating wealth by focusing on assets that work for you, not trading time for money.
Wealth is having assets that earn while you sleep.
The Almanack of Naval Ravikant: A Guide to Wealth and Happiness
Seek wealth, not money or status. Wealth is having assets that earn while you sleep.
Hey there, fellow seekers of wisdom! Today, I’m beyond thrilled to share my thoughts on The Navalmanack, a treasure trove of insights from Naval Ravikant, the Silicon Valley icon whose philosophy on wealth, happiness, and life has reshaped how I view the world. If you’re unfamiliar with Naval, he’s the mastermind behind AngelList, a startup visionary, and an angel investor with a knack for backing unicorns like Uber and Twitter. But beyond his business creds, Naval is a thinker who distills complex ideas into bite-sized, profound truths. This book, lovingly compiled by Eric Jorgenson, captures his essence through tweets, podcasts, and interviews. Let’s unpack this gem together and explore how Naval’s first-principles approach can inspire us to build better lives.
Specific Knowledge
Develop unique skills that society can’t easily replicate, rooted in your curiosity and passion.
Specific knowledge is found by pursuing your genuine curiosity and passion.
Leverage
Amplify your impact through capital, code, and media—tools that multiply your efforts without permission.
Code and media are permissionless leverage.
Happiness as a Skill
Learn to cultivate happiness by shedding desires and embracing the present moment.
Happiness is the state when nothing is missing.
Long-Term Games
Build lasting success by compounding trust, reputation, and relationships over decades.
All the returns in life come from compound interest.
Building Wealth
Crafting a Mindset for Financial Freedom
Naval redefines wealth not as flashy cars or status symbols, but as freedom—assets that generate income while you sleep. His philosophy is a wake-up call: stop renting out your time and start owning equity. In today’s world, where 80% of jobs tie income directly to hours worked, Naval’s insight is revolutionary. Imagine this: if you’re earning $50/hour, but your output isn’t scalable, you’re capped. Compare that to building a product or system—say, a piece of software—that serves thousands without extra effort. That’s leverage in action.
Wealth vs. Time Trade-Off
Wealth is having assets that earn while you sleep.
Naval urges us to seek ethical wealth creation, ignoring status games that drain energy. It’s not about working harder in a traditional sense—working 80 hours at a restaurant won’t make you rich—but about working smarter. Pick industries where long-term play is possible, and align with people who share that vision. His emphasis on the internet as a career expander is spot-on; it’s a space where niche skills can scale globally. This isn’t just theory—Naval’s own journey from a struggling immigrant to a tech titan proves that wealth is a skill, not a stroke of luck.
Key Takeaway: Wealth as Freedom
Building wealth isn’t about accumulation for its own sake; it’s about crafting a life where your resources outpace your needs. Focus on creating or owning systems—businesses, investments, or digital products—that deliver value at scale. Naval’s blueprint isn’t a get-rich-quick scheme; it’s a mindset shift toward sustainable, ethical growth.
Specific Knowledge
Unlocking Your Unique Edge
Specific knowledge is Naval’s secret sauce for standing out in a crowded world. Unlike generic skills taught in schools, this is the stuff you’re uniquely wired for—think of it as your personal superpower. It’s often tied to what you loved doing as a kid or what feels like play to you but looks like work to others. For Naval, this might’ve been his knack for spotting tech trends early, leading to investments in Twitter and Uber.
- Identify Your Passion
Discover what you’re naturally drawn to—something you’d do for free.
- Hone Your Craft
Invest time in mastering this area, turning curiosity into expertise.
- Apply at Scale
Use modern tools like the internet to share your knowledge with the world.
- Outshine Competition
Your authenticity becomes your edge—no one can replicate you.
Specific knowledge is found by pursuing your genuine curiosity and passion.
This isn’t about chasing trends or hot jobs; it’s about diving deep into what makes you, you. Naval points out that specific knowledge often lies at the edge of what’s known, making it hard to outsource or automate. It’s why a niche blogger with a loyal following can outearn a generic corporate drone. I’ve seen this in my own life—focusing on unique storytelling in book reviews has carved out a space no one else can claim. Naval’s advice? Escape competition through authenticity. Be so uniquely yourself that no one can touch you.
Key Takeaway: Be Irreplaceable
Specific knowledge is your ticket to relevance in an automated world. It’s not taught in classrooms but learned through curiosity and persistence. Find what lights you up, refine it, and let it define your path to impact and wealth.
Leverage
Multiplying Your Impact
Leverage is where Naval’s wealth-building strategy gets turbocharged. He breaks it down into three forms: capital (money), labor (people working for you), and permissionless leverage (code and media). The last one is the game-changer—think software or content that works 24/7 without extra input. Naval’s own AngelList platform is a prime example, connecting startups and investors at scale with minimal ongoing effort from him.
Types of Leverage
Code and media are permissionless leverage.
Unlike capital or labor, which require permission (someone has to invest in you or follow you), code and media let anyone amplify their reach with just a laptop. Naval’s insight here is democratizing—write a blog, code an app, record a podcast, and you’ve got assets working for you while you sleep. It’s why he says judgment, not hours, is the real currency in a leveraged world. A single well-timed decision can outperform years of grunt work.
Key Takeaway: Scale Without Limits
Leverage turns small efforts into massive outcomes. Focus on permissionless tools like code and content to multiply your judgment and impact. In an age of infinite leverage, as Naval calls it, your potential isn’t bound by time or physical effort—it’s bound by how creatively you wield these tools.
Happiness as a Skill
Cultivating Inner Peace
Naval flips the script on happiness, calling it a skill, not a destination. Forget chasing external validation; happiness is what’s left when you strip away desires for “more.” His personal journey—from a self-rated 2/10 to a 9/10 in happiness—shows this isn’t fluff. Money helps, sure, but Naval insists it’s a small piece. The real work is internal: lowering ego, silencing the mind’s chatter, and embracing the present.
Early Struggles
Rated happiness at 2-4/10, focused on external success over inner peace.
2000s
Mindset Shift
Began prioritizing happiness as a skill, using meditation and philosophy.
2010s
Current State
Achieved 9/10 happiness through presence and reduced desires.
2020s
Happiness is the state when nothing is missing.
Naval’s techniques are practical yet profound—meditate, avoid toxic people, value your time, and accept reality as it is. He redefines happiness as peace, not fleeting joy, and stresses it’s a choice. I’ve tried this myself, cutting out mindless scrolling and focusing on “now,” and the clarity it brings is unreal. Naval’s take on desire as “chosen unhappiness” hits hard—every want is a contract to suffer until you get it. So, choose desires wisely, or better yet, let them go.
Key Takeaway: Peace Over Pursuit
Happiness isn’t found in achievements or stuff; it’s built by shedding burdens and living in the moment. Naval’s approach—part philosophy, part habit—offers a roadmap to peace that anyone can follow, no matter where you start.
Long-Term Games
Compounding Success Over Time
Naval’s obsession with compound interest isn’t just about money—it’s about life. Relationships, reputation, wealth—all grow exponentially when you play long-term games with long-term people. He points to CEOs and billionaires not for their smarts alone, but for the trust they’ve compounded over decades. A stellar reputation, built brick by brick, can be worth more than raw talent.
- Choose Your Circle
Align with people who value integrity and long-term thinking.
- Invest in Trust
Build relationships based on consistency and reliability.
- Stick to It
Stay committed for decades—returns grow with time.
- Reap Rewards
Watch trust and reputation amplify your impact exponentially.
All the returns in life come from compound interest.
This resonates deeply in a world obsessed with quick wins. Naval’s career—spanning Epinions in 1999 to AngelList in 2010—shows the power of sticking to a vision. He advises finding the 1% of efforts that aren’t wasted, the things you can invest in for life, and going all-in. For me, this means doubling down on writing and community-building, knowing the payoff isn’t instant but inevitable. Patience, as Naval says, is key—success takes an indeterminate amount of time, but it comes if you stay the course.
Key Takeaway: Endurance Wins
Short-term hustles pale compared to long-term compounding. Whether it’s money, skills, or trust, Naval’s wisdom is clear: pick your game, play it with the right people, and let time work its magic.