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The Almanack of Naval Ravikant – Book Summary

Book Summary of Almanack of Naval Ravikant - Hackedwits.com
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Almanack of Naval Ravikant is a compilation of all the wisdom that Naval has shared across the digital platform in terms of his Twitter, Podcast, and other Start-up conference. Eric Jorgensen has collected the golden nuggets which were shared by the Naval. 

Books try to capture all the fundamental frameworks, principles, and mental models that are required by us to live comfortably. One of the famous frameworks that Naval wrote for himself at just the age of 14 was “How to Get Rich Without Getting Luck”

The book is divided into multiple sections from Wealth, Health, and partnership. The books cover these aspects in depth. In this blog, I will try to summarize the main points that you can start implementing upon 

Building Wealth 

The fundamental of getting rich is about knowing what to do, who to do it with, and when to do it with. You must own equity in a piece of the business to gain financial freedom. Naval says that wealth can be defined in a simple way saying that it’s an asset that earns while you sleep. 

This can be in the form of factory robots, which are cranking out things. Society will pay for the creation of things it wants, but society doesn’t yet know how to create it yet.

Find your specific Knowledge, this can be found out by persuading your inner talent, genuine curiosity, and your passion. It will give access to opportunities that require specific knowledge to do it.

An important skill for getting wealthy is becoming a perpetual learner. It is much more important today to be able to become an expert in a brand new field in 9-12 months than you have studied it years ago at the right time.

Build long-term partnerships, long term partnerships build trust for the work you have done. If you have a sterling reputation and you keep building for decades upon which people will eventually start noticing you.

Start taking accountability and business risk under your name, if you are able to make things work that will help you build credibility this will have incentives associated with it. Society will reward you with responsibility, equity, and leverage. 

Trust and follow your intellectual curiosity more than whatever is hot right now. If your curiosity ever leads you to a place where society eventually wants to go, you will be paid extremely well. 

I someone can train other people how to do something, they can replace you. If they can replace you then don’t pay you a lot. You want to know something other people don’t know how to do at a time when those are skills in demand. Opportunities can be leveraged (maximized) 

There are three types of leverage 

  • Labour – The other humans that are working for you 
  • Money – It means every time you make a decision you multiply it with money 
  • Products with No marginal cost of replication – In this you don’t need anyone’s permission to replicate ( Code, Media, Movies ) 

If you have specific knowledge and you have accountability and leverage society will have to pay for what you are worth. 

Pick up the job roles which does not follow the equation of input is equal to output ( Coding, Real Estate sales ). This puts you in a better position for wealth generation with freeing up time for you.

A person must spend time on making the decision, there are three big decisions that we make in early life 

  • Where you live 
  • Who you are with 
  • What you do 

Most people will learn when it is only necessary after it stops

 becoming a necessity people stop caring about learning. 

Show your craft, practice your craft and the right set of people will eventually find you

The best way to get out of the competition trap is to do the thing that you know you can do the best from the rest. Ensure that you love doing it, then find what society wants and apply the above leverage, and then wealth creation will be a mere process. 

Naval divides luck into different types of luck 

  1. The blind luck 
  2. Luck through persistence, hard work, hustle 
  3. The skill of becoming good at spotting the luck 
  4. You build luck through the mindset, unique character, and brand which causes the luck to find you 

A good signal to identify if the people are trustworthy or not is seeing their talking patterns. The people who generally talk about how honest they are, then they are generally dishonest. 

How to Build a Judgement 

Judge put in simple words is knowing the long-term consequences of your action 

Naval Says that to be rich in life in a predictable way one needs to be on the bleeding edge of trends and study technology, Design, and Arts and become good at something. 

The less desire you can have for the outcome you want, the easier it is to see reality. 

Naval says it is important to be able to uncondition yourself, to be able to take your habit apart, and understand its purpose and relation to your happiness.

If you can be more right and more rational you are going to get nonlinear returns in your life. Decision-making is a skill that everyone should learn and it has compounding effects. 

Collect mental models and use them in decision-making, these will help to make informed decisions and help as guidance in making decisions. Mental Models are impactful ways for you to recall your own knowledge. 

When you are reading the book and if you understand the whole gist of the book it is completely fine to drop the book and pick up another book. Naval the book almanack of Naval Ravikant says to read the foundational book based on physics, maths, microeconomics, and evolution. 

Once you have learned a new concept, the best way of learning is teaching someone the same concept. This will help to identify the knowledge gap. Every time you desire something just ask yourself this question is it important to me I’ll be unhappy unless this goes my way?”

Because this will form a contract with yourself to be sad until you achieve this goal. 

Meditation for Naval is the process of turning off the voice of society and listening to yourself. There are different types of mediation and you do what feels connected to you. 

Activities that can help act as meditation

  • Hiking 
  • Praying 
  • Sitting Quietly 
  • Journalling 

The true return in life does not lie in living life in the herd but in being out of the herd. When you are out of society then you will do your own thing that will take you places. 

To make progress in life it is important to set up systems in life as inspiration fades after a while. Naval suggests that one should look to setting up systems that help you to become the best version of yourself but with working the least hard as possible. 

Always value your time, it’s the most important thing that you have in your life. It is more important than money as well. As long as you are doing what you want you are not wasting time. You should not spend time in making people happy it is not your problem neither that is your responsibility.

Quote from Charlie Monger – “To find a worthy mate, be a worthy mate” 

Don’t do short-term dealing or thinking rather think from a long-term perspective. To find a worthy partner you first need to be worthy. Naval says that he has observed that people fight when their values don’t line up

Conclusion 

This book talks about the importance to build a foundation strong that will achieve your life goals. Wealth creation lies in specific knowledge and specific leverage. This book is a collection of wisdom shared by Naval Ravikant which is shared across different social media and Keynote speeches. 

One Line Take-Aways 

  • Focus on Wealth creation rather than making more money 
  • Society will pay you when you can give society what it wants which it does not know how to get it 
  • Always be curious and it will take places 

Who Should Read this? 

I would say this book should be picked up by each individual irrespective of career or qualification. Anyone who picks up this book will find it helpful in areas like career, relationship, or health. 

Final Score 

9/10 

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Roopesh

Roopesh Bhosle is an author at Hackedwits and writes on summary for books from Business and Finance. A Project Manager at day and content writer at night. Love to learn new things, to connect dots in life. Connect with me on LinkedIn for collaboration on project or Guest Post

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