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Here's Your Guide to Wealth and Happiness

This post gives you insights on how to lead a wealthy and happy life. I've shared the lessons I've learned from the book 'The Almanack of Naval Ravikanth'


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Kenaniah Santhosh

2 years ago | 8 min read

 If I were to ask you to list out the ten most important needs of your life, what would you write down? We all might come up with many different answers, but I'm sure there will be two answers that are common on everyone's list: one is wealth, and the other is happiness

Money and happiness are two things that never seem enough to us. They are like a never-ending desire in life.

If we could find a way to learn how to lead a wealthy and joyous life, wouldn't we treat it like a pot of gold? We sure would.

A while back, I had the chance to find a similar treasure.

In this post, I'm going to share my thoughts on the book'The Almanack of Naval Ravikanth'; your guide to wealth and happiness.

The reason I call this one a pot of gold is in awe of Naval's perspective on wealth creation and entrepreneurship. It talks about getting rich is not about luck but is a skill that we all can master.

So who is Naval Ravikanth?

Naval is an entrepreneur, philosopher, investor, co-founder, and chairman ofAngelList. His philosophies on wealth creation and long-term happiness have captivated the world through the years.

The way I got to know about him was through an interview he did with Joe Rogan back in 2019. I loved every minute of that episode and learned so much from it, and I was automatically intrigued to buy this book

About the book :

This book was not written by Naval himself but was put together by one of his ardent followers, Eric Jorgenson. Jorgenson has made this book entirely out of transcripts, tweets, and talks Naval has shared.

This is a collection of thoughts that Naval has shared through the internet, and in the writer's own words, is a public service, as all this knowledge is also available as a free download in pdf and e-reader versions.

Part 1 - Wealth

  • Creating wealth does not have to depend upon luck. It's a skill that we all can learn and master.
  • "Getting rich is about knowing what to do, who to do it with, and when to do it. It is much more about understanding than purely hard work."
  • One of the most important things that we should be aware of is that wealth and money are different things. The true definition of wealth is having assets that earn for you while you sleep.
  • Money is how you transfer time and wealth. Money is what you get in exchange for the time that you spend.You can never achieve financial freedom by trading money for time!

Focus on these things to build wealth

  • Specific knowledge
  • Accountability
  • Leverage
  • Compounding

->Specific knowledgeis what you were doing almost effortlessly as a kid or a teenager. It's something you were naturally good at or naturally better than others around you.

-> Examples of specific knowledge: Sales skills, musical talents, an obsessive personality, understanding games easily, etc.

-> It's all about your genuine curiosity, your innate talents, and your passion.

-> Choose the field where you are naturally good and work on getting better at it. Everyone is the best at something- being themselves. The best way to create an impact is with authenticity.

-> When you are the best in the world at what you do, you automatically attract money. And one way to do that is with authenticity and uniqueness.

If you want to be rich, you have to be a good learner

-> You have to know how to learn anything you want to learn.

-> Expertise in any field requires continuous learning and improvement.

-> It's very important to be strong with the foundations whenever you're trying to learn a new skill. Basic arithmetic and numeracy are more important than calculus.You have to be an expert in the foundations of the skill before you try to dive into the deeper subjects.

Compounding

-> Compound interest is a very important concept in wealth creation. In fact, it's an important concept in almost all aspects of life.

All the returns in life, whether in wealth, relationships, or knowledge, come from compound interest-Naval Ravikanth

Compound interest is a very important concept in wealth creation. In fact, it's an important concept in almost all aspects of life.

Your reputation among people is a highly valuable asset. You can use the concept of compound interest to improve your reputation as well,

The reason someone has been appointed as the CEO of a public company or is managing billions of dollars is that people trust them. They are trusted because the relationships and reputation they've built have compounded.

This is why compounding in business relationships is very important.

When you find the right thing to do when you find the right people to work with, invest deeply. Sticking with it for years is really how you make big returns in your relationships and money.

Accountability

-> With high risks, come high rewards. When the stakes are very high, you have to take accountability for the actions you take.

Embrace accountability and take business risks under your own name. Society will reward you with responsibility, leverage, and equity.

As I mentioned earlier, leverage is very important if you wish to be rich. If you want to get leverage, you need to build credibility. Without accountability, you don't have credibility.

Accountability also comes with a lot of risks, especially when you are in the public domain. You risk failing in front of people, you risk a great amount of humiliation, and a lot more. But on the other hand, when things go well, you get to take all the credit.

Focus on leverage

The most democratic form of leverage right now is products with no marginal cost of replication. Things like books, media, movies, and code come under this category.

In the modern age, code is the most powerful form of permission-less leverage. All you need is a computer--you don't need anyone's permission.

Most of the new generations' fortune is made through code or media. Look at people like Jeff Bezos, Mark Zuckerberg, Bill Gates, and Steve Jobs. Their wealth is all code-based leverage.

If you have specific knowledge, accountability, and leverage; society has to pay you what you're worth

Focus on learning skills like coding, writing books, recording podcasts, tweeting, etc.

You can start as a salaried employee, but you have to work your way up to try to get higher leverage, more accountability, and specific knowledge.

This combination over a long period with the magic of compound interest will make you wealthy.

Get paid for your judgment

Naval believes that every person should aspire to be paid for unique knowledge and expertise on certain things.

If you are great at what you do, nobody will care about what inputs you're giving, all they will care about is the output. People will only look at your judgment and the results it provides.

Imagine a person who has slightly better judgment than the others. They're right 85% of the time instead of 75. They will be highly paid for their decisions because a 10% better judgment steering a $100 billion ship is very valuable.

This is why CEOs are highly paid. Their judgment is their leverage.

If you love to do it, be authentic, and then figure out how to map that to what society wants. Apply some leverage and put your name on it. You take the risks, but you gain the rewards, have ownership and equity in what you're doing, and crank it up. - Naval

Part 2 - H A P P I N E S S

The definition of happiness isn't the same for everybody. The information shared is from Naval's perspective and is open to interpretation.

Happiness is Learned

Happiness is a very evolving thing. As we move through life learning and experiencing different things our definition of happiness changes.

We can learn to be happy. We can tune our minds to be happy. It has to be treated as a skill. All of this comes with maturity.

Happiness is there when you remove the sense of something missing from your life. It is the state when nothing is missing.

Happiness requires presence

It is very important for us to tune our minds to focus on the present rather than worrying about the past or the future.

Only a small percentage of our brain is focused on the present most time. The remaining is just a collection of unorganized thoughts running riot inside.

Happiness comes from being present in the moment and cherishing the beauty around us. Thoughts about our past and future are just delusions.

Happiness requires peace

Happiness means different things to different people. But ultimately, it's all about inner peace.

You can have all the materialistic possession and all the success and fame you want. But if you don't have peace, then what's the point?

A happy person isn't someone who's happy all the time. It's someone who effortlessly interprets events in such a way that they don't lose their inner peace - Naval

Every desire is chosen unhappiness

When you have a desire in your heart, it simply means that you won't be happy until you get what you desire.

Too many desires ruin our happiness.

It's a fundamental mistake to believe that your happiness exists in an external circumstance. It is a delusion we all suffer from.

Desire is a contract you make with yourself to be unhappy till you get what you want. Try not to have more than one big desire at a time.

Happiness is built by habits

It is very important to know that peace and happiness are skills that can be learned and mastered. They are not something you're born with.

It's all trial and error. You try different things, you see what works for you and you stick with it.

Small changes can help you keep your mood more stable. Avoiding alcohol and sugar can help. Spending less time on social media can help. Spending less time on video games can help. It's all about these small habit changes.

Another small trick to be happy: Tell your friends you're a happy person. then you will be forced to confirm it. You'll have a consistency bias.

Meditation and exercise are important habits

Your health should always be your first priority. A healthy life is a happy life.

Exercise is for the body. Meditation is for the mind

There's nothing like a health problem to turn up the contrast dial for the rest of your life. Prioritizing happiness means prioritizing health. The harder the workout, the easier the day.

Your mind is like an out-of-control mad person. The advantage of meditation is recognizing how out of control your mind is.

Meditation helps our mind to be free of unwanted thoughts and to be present at the moment. One of the keys to a happy life is stillness in the mind. If the brain is like a muscle, you'll be better off resting it and being at peace.

Meditation is turning off society and listening to yourself

Being able to control your own mood is a superpower. It can be achieved only when our mind is trained and conditioned.

If you loved the information you read here, It's time for you to purchase the book right away. Whatever I've written about here has just scratched the surface. There's a lot more in this book. It's a 10/10 all day every day!

Thanks for reading this post today !! Hope you have a great day. 

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Kenaniah Santhosh

Writer|Engineer. Non fiction and self-help enthusiast. Just a simple man who loves to write


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