Chapter 1: The Impact of Naval Ravikant

On May 31, 2018, Naval Ravikant set the internet ablaze with a tweet thread that remains relevant even five years later. I revisit this thread weekly; if you haven't read it yet, I highly recommend you do so. After absorbing Naval's insights at 32, I applied them to my own life and estimate they have contributed approximately $1.55 million to my wealth. You too can harness these principles.

Seek wealth, not merely money or status. True wealth consists of assets that generate income while you sleep. Money serves as a means to exchange time and wealth, while status reflects your position within the social hierarchy.

Although Naval’s thread focuses on the pursuit of riches, a deeper understanding reveals that wealth is what we truly seek—and wealth is synonymous with freedom. He illustrates that the quickest route to this wealth and freedom is through owning income-generating assets. Since I embraced this philosophy, I have built a portfolio that does just that.

Even on my days off, I continue to earn. This fundamental principle is often overlooked in traditional education, which frustrates me.

Money, fundamentally, is a store of time. With financial resources, you possess time reserves that can be utilized at your discretion. This grants you more freedom than those who are perpetually busy and cannot afford to take a day off without financial repercussions.

Achieving a state of time freedom should be everyone's primary objective. You won't achieve wealth by merely renting out your time; genuine financial independence requires ownership—equity in a business or asset.

The conventional income model involves trading time for money, a notion deeply ingrained in our educational system and society. Yet, constant busyness directly contradicts the essence of wealth.

Most individuals are ensnared in a cycle of busyness, often unaware of their confinement. The dilemma with trading time is that everyone has the same 24 hours in a day, leading to a relentless cycle of working longer or harder—neither of which is a desirable solution.

Wealth isn't acquired through luck, be it through cryptocurrency or viral social media fame. True freedom comes from establishing a business or owning a share of another's enterprise. You are either an owner or, by default, a renter.

Renters face: - Landlords - Constraints - The constant threat of eviction

To achieve financial freedom, seek ways to own a business.

Reading can be beneficial, but it is often slower than taking direct action. The key is to combine reading with practical experimentation. Engaging in hands-on learning enables faster growth than merely consuming the success stories of others.

While reading remains valuable, it should be done purposefully, applying the 80/20 rule: 80% action and experimentation, 20% reading.

Section 1.1: The Ethics of Wealth Creation

It's crucial to recognize that ethical wealth creation is indeed achievable. If you harbor resentment toward wealth, it will likely elude you.

Whenever I discuss wealth, I often encounter criticism from those who harbor negative feelings toward financial success. They may express disdain for billionaires or the concept of capitalism, failing to realize that their relationship with money significantly influences their financial outcomes.

Before I embraced Naval's philosophies, I struggled with a negative perception of wealth, often resenting those who had more than I did. I mistakenly equated wealth with moral failing, rather than recognizing it as a tool for good.

Making money is not inherently unethical. After all, your employer likely benefits from substantial wealth, and you wouldn't choose unemployment based on that. Money is merely a tool, and learning to use it ethically is paramount.

As Alex Hormozi wisely states, “Anyone who says money can’t buy happiness hasn’t given enough away.”

Chapter 2: The Internet as a Gateway

The internet has significantly expanded career opportunities, yet many remain unaware of its potential.

Although it may seem cliché, the internet connects us to billions, unlike the past when our social circles were limited by geography. This shift is subtle but transformative. Greater reach translates to increased earning potential and more opportunities.

Combining my career in finance with my online interests revolutionized my life. The internet enhances your chances for success; however, many misuse it for passive consumption rather than active creation.

Leverage is the key to modern wealth-building. In the past, passive income often required real estate investments, but now the internet offers similar benefits.

How does this work? The internet introduces leverage, allowing you to achieve disproportionate results relative to your input. The more leverage you harness, the more your efforts compound, leading to exponential growth.

For instance: - Media: Record once, play multiple times. - Code: Deploy once, run continuously. - Capital: Invest once, earn repeatedly.

Understanding leverage is crucial for escaping the cycle of overwork and reliance on traditional employment.

Set a personal hourly rate and adhere to it. If a task requires more time than your hourly value, delegate it. After determining my worth to be around $1000 an hour, I began outsourcing tasks that fell below that threshold.

This approach has allowed me to sidestep the toxic mindset surrounding discounts and consumerism.

Time equates to money; saving time translates to saving money, which leads to more opportunities for leveraged tasks that compound your wealth, ultimately granting you more freedom.