A YouTuber I follow (Andrew Kirby) has linked to an interesting “twitter storm” with tips on getting rich by a successful investor Naval Ravikant. I had a look and found these tips very insightful. I did not hear about most of them until now, but I think they explain well the moderate success that I had so far. So I’m posting the link to a copy of the twitter storm, maybe it can be an inspiration to someone.
Seek wealth, not money or status. Wealth is having assets that earn while you sleep.
Of course this is some mustachian 101 knowledge. I can add that I never went the way of following a career, to get a higher position at a company, with more responsibility, just for the sake of it.
Arm yourself with specific knowledge, accountability, and leverage.
This applies very well to my work. I learned a banking system in&out, gained accountability through freelancing, and achieved leverage through writing software that is executed thousands of times a day.
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.
That’s exactly what I do.
Understand that ethical wealth creation is possible. If you secretly despise wealth, it will elude you.
I wrote a summary of of Naval’s points out of a 2 hr podcast he did. In case anyone is interested, here it is:
you can’t be normal and expect abnormal gains
extreme people get extreme results
you‘re not going go get rich renting out your time. You must own equity - a piece of a busisness - to gain your financial freedom
You will get rich by giving society what it wants but does not yet know how to get. At scale. i.e. startups
Pick an industry where you can play long term games with long term people
The internet has massively broadened the possible space of careers. Most people haven‘t figured this out yet.
Play iterated games. All the returns in live, wether in wealth, relationships, or knowledge, come from compund interest.
Pick business partners with high intelligence, energy, and, above all, integrity.
don‘t partner with cynics and pessimists. Their beliefs are self-fullfilling.
Learn to sell. Learn to build. If you can do both, you will be unstoppable.
Arm yourself with specific knowledge, accountability and leverage. Specific knowledge is knowledge that you cannot be trained for. If society can train you, it can train someone else, and replace you.
specific knowledge is found by pursuing your genuine curiosity and passion rather than whatever is hot right now
Building specific knowledge will feel like play to you but will look like work to others.
When specific knowledge is thought, it‘s trough apprenticeships, not schools.
Specific knowledge is often highly technical or creative. It cannot be outsourced or automated
Embrace accountability, and take business risks under your own name. Society will reward you with responsability, equity, and leverage.
The most accountable people have singular, public, and risky brands: Oprah, Trump, Kanye, Elon.
Fortunes require leverage, Business leverage comes from capital, people, and products with no marginal costs of replication (code and media)
Labor means people working for you. It‘s the oldest and most fought-over form of leverage. Labor leverage will impress your parents, but don‘t waste your life chasing it.
Capital and labor are permissioned leverage. Everyone is chasing capital, but someone has to give it to you. Everyone is trying to lead, but someone has to follow you.
Code and media are permissionless leverage. They‘re the leverage behind the newly rich. You can create software and media that works for you while you sleep.
Leverage is a force multiplier for your judgement
Judgment requires experience, but can be built faster by learning foundational skills
There is no skill called „business“. Avoid business magazines and business classes.
I wouldn’t say useless, that’s too negative. Maybe “not very insightful”. To be clear, it’s not a bad book.
I think that if you’re into personal finance, also the more philosophical aspects of it, then you’ll find many things that you might already have read elsewhere.
Books like “Early Retirement Extreme” by Jakob Lund Fisker, “Rich Dad Poor Dad” by Robert Kiyosaki, or “Sapiens” by Yuval Noah Harari, especially the chapters where he speaks about work and the economy. Many of the books of Nassim Taleb also come to mind.
Well, I don’t read books, I’m just too tired after work to read anything large. So I liked the concept of a few bullet points that you can follow up on, if you don’t fully understand what is meant by them.
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. It is from Naval’s own Twitter account, written by himself.
