How to Get Rich, by Naval

Seek wealth, not money or status. Wealth is an asset that earns while you sleep. Money is how we transfer time and wealth; status is your place in the social hierarchy.

You will not get rich renting out your time. To gain economic freedom, you must own equity — a piece of a business.

You will become wealthy by giving society what it wants but does not yet know how to get, at scale.

Pick an industry where you can play long-term games with people you can build with long-term.

Play iterated games. All the returns in life — whether in wealth, relationships, or knowledge — come from compound interest.

Choose business partners with high intelligence, energy, and above all, integrity.

Learn to sell and learn to build. If you can do both well, nothing can stop you.

Arm yourself with specific knowledge, accountability, and leverage.

Specific knowledge is found by pursuing your genuine curiosity and passion, not by chasing current trends.

To accumulate wealth, you need leverage. In business, leverage comes from capital, people, and products with zero marginal cost of replication (code, media, etc.).

If you can't code, write books and blogs, or make videos and podcasts.

Judgment comes from experience, but you can build it faster by learning foundational skills.

Study microeconomics, game theory, psychology, persuasion, ethics, mathematics, and computers.

Reading is faster than listening; doing is faster than watching.

Set and enforce a personal hourly rate (based on hourly pay) for yourself. If solving a problem saves less money than your hourly rate, ignore it. If outsourcing a task costs less than your hourly rate, outsource it.

Become the best in the world at what you do.

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Topics: success,development
Category: Scrap/Article