Naval Ravikant is a successful entrepreneur, investor, and thinker known for his wisdom on wealth, happiness, and life. The Almanack of Naval Ravikant, compiled by Eric Jorgenson, is a collection of his insights shared over the years. This book provides practical advice on how to achieve financial success and personal happiness. In this blog post, we will explore the key takeaways from the book.
Wealth vs Money vs Status
Naval makes an important distinction between wealth, money, and status.
- Wealth is not just about having money; it is about having assets that make money for you even when you are not working. These can be businesses, investments, or intellectual property.
- Money is simply a way to transfer wealth. It is a tool, not the goal.
- Status is about social position. People who focus too much on status often play a zero-sum game, meaning that for them to win, someone else must lose. Instead, Naval encourages people to create value rather than compete for status.
The key takeaway is to focus on creating wealth, not just earning money or competing for social status.
Play Long-Term Games
Naval believes that success comes from playing long-term games with long-term people.
- In business, it is better to build relationships and partnerships that last rather than chasing short-term profits.
- Learning valuable skills and improving yourself over time will bring greater rewards than looking for quick success.
He suggests that compound interest applies to everything—not just money but also relationships, knowledge, and reputation. Over time, small efforts lead to big results.
Learn to Make Money While You Sleep
Naval says, “You’re not going to get rich renting out your time.”
- If you are working only for a salary, your income is limited by your time.
- Instead, build or invest in things that generate income even when you are not working, such as businesses, stocks, or digital products.
- The best way to achieve financial freedom is to create value that people will pay for, even if you are not actively working.
This is why he recommends learning about leverage—which means using technology, capital, or people to multiply your efforts.
Learn to Sell and Build
Naval says, “Learn to sell. Learn to build. If you can do both, you will be unstoppable.”
- Building means creating something useful—this can be coding, writing, designing, or starting a business.
- Selling means convincing people to use what you build—this includes marketing, storytelling, and negotiation.
If you master either of these skills, you will do well in life. But if you master both, you will have unlimited opportunities.
Specific Knowledge is Key
Naval talks about specific knowledge, which is something unique to you.
- It is knowledge that cannot be easily taught in schools.
- It usually comes from following your curiosity and interests.
- It is something you do better than most people because of your natural talents and experiences.
For example, a person who loves computers from childhood might develop specific knowledge in software development, making them highly valuable in their field. The key is to find your own specific knowledge and use it to create value.
Work for Yourself, Not for Others
Naval encourages people to aim for financial independence by working for themselves.
- If you are working for someone else, you are helping them build their dream.
- If you work for yourself, you are building your own future.
- This does not mean quitting your job immediately—it means gradually finding ways to earn money independently.
He suggests that owning equity (shares in a business, stock, or real estate) is the best way to achieve financial freedom.
The Importance of Reading
Naval believes that books are a superpower.
- He suggests reading widely and focusing on foundational knowledge that stays relevant over time.
- Instead of reading for entertainment, read books that improve your thinking and skills.
- Good books act as mentors, giving you access to the wisdom of the greatest minds in history.
His advice is simple: Read what you love until you love to read.
Happiness is a Choice
Naval explains that happiness is a skill, not something that happens by chance.
- He believes that happiness comes from peace of mind, not from external success.
- We should focus on controlling our thoughts and reactions rather than trying to control the world.
- Instead of chasing pleasure, we should seek inner peace by removing unnecessary desires.
Naval’s simple formula: Happiness = Reality – Expectations. If we lower our expectations and accept reality, we will be happier.
Learn to Be Alone and Enjoy It
Naval encourages self-sufficiency—the ability to enjoy your own company.
- Many people feel uncomfortable being alone because they rely on external validation.
- True happiness comes when you do not need approval from others.
- Spending time alone helps you understand yourself better.
He advises people to meditate, reflect, and enjoy solitude. This leads to self-awareness and inner peace.
Do What Feels Like Play to You but Looks Like Work to Others
Naval believes that the best way to succeed is to find work that feels like play to you but is valuable to others.
- When you enjoy what you do, you will naturally put in more effort and improve faster than others.
- Everyone has unique talents—find what you love and build a career around it.
- Work should not feel like suffering. If it does, you are probably in the wrong field.
The key is to identify what you can do effortlessly that others find valuable.
Build a Strong Mindset
Naval believes that mental strength is more important than intelligence.
- The way you think determines the quality of your life.
- If you have a positive and growth-oriented mindset, you will find opportunities everywhere.
- Instead of blaming others, take responsibility for your life.
He advises training your mind just like you train your body—through habits, discipline, and conscious effort.
Final Thoughts
The Almanack of Naval Ravikant is a book full of wisdom on how to live a rich and meaningful life.
- Focus on building wealth, not just earning money.
- Play long-term games and create value.
- Learn skills that give you leverage—especially selling and building.
- Read books and develop a strong mindset.
- Choose happiness.
If you apply these lessons, you will be on your way to both financial success and inner peace.
Favourite quote
“The three big ones in life are wealth, health, and happiness. We pursue them in that order, but their importance is reverse.”
Click here to buy ‘The Almanack of Naval Ravikant‘ on Amazon.