A Review: The Almanack of Naval Ravikant

The enchanting rhythm of Naval Ravikant’s wisdom on the famed Joe Rogan podcast first introduced me to this philosophical entrepreneur. I was captivated by the three-hour discourse, which felt like mere moments. Whether by fate or Twitter’s analytical prowess tracking my interests, recommendations for Naval’s book, “The Almanack of Naval Ravikant”, began to populate my feed. I was intrigued and promptly purchased a copy, unaware at the time of the true meaning of ‘almanack’. What awaited me was a curated collection of Naval’s insights derived from various interviews, tweets, and speeches.

I’m eager to share my journey through the book in this blog post, spotlighting the highlights, learning moments, and my reflections and disagreements. Let’s delve into the profound lessons of Naval Ravikant together.

“All returns in life, whether in wealth, relationship or knowledge, come from compound interest.”

The concept of compound interest brought me a sense of calm amidst my ambitious aspirations. Rather than feeling overwhelmed by lofty goals, this idea guided me to choose a goal, map out a trajectory based on my current understanding, take the initial step, remain consistent, and periodically review my progress. For instance, if your ten-year plan is to attain financial freedom (as is mine), the principle of compound interest helps break down that monumental goal into daily actionable steps.

This compounding is not merely linear but exponential. For instance, if your path to financial freedom is to build an online audience by offering them valuable content and subsequently monetizing it, the skills you’ll acquire and compound might look like this:

• Learning compelling writing through blogging.
• Developing articulate speech via a YouTube channel.
• Understanding online growth strategies through consistency.
• Mastering communication, content creation, storytelling, and more as your online audience expands.
• Grasping sales and marketing techniques when it’s time to monetize your audience.
• Compounding all the above skills by creating products and services that your audience will find valuable.

However, the drawback of compounding in any domain is that it takes time, a fact often overlooked by those seeking immediate returns.

“There are two skills one must master to build wealth — Learn to build and Learn to Sell.”

One can amass wealth by mastering either skill, but mastering both makes you a formidable force. As I reflected on this, I realized that almost every wealthy person I know has harnessed these two skills in some capacity.

“Understand the power of leverage.”

Leverage was a word I had often heard but never fully grasped. At its core, leverage is any tool within a system that allows the output to be disproportionately larger than the input.

Wealth creation requires leverage. Naval identifies four forms of business leverage: capital, labour, reputation, and products with no marginal cost of replication (like code and media). These levers are key to scaling, which in turn is vital for wealth generation.

“Optimise for being accountable for the output rather than the input.”

Financial independence is not about directly correlating your time (input) to your income. True independence means maintaining your lifestyle without trading your time for income. Optimizing for output can be achieved through ownership in a company, starting a business and employing people, or creating intellectual property. By conceptualizing your routine activities as systems with inputs and outputs, you can apply the power of leverage to amplify the results of your time and energy.

“Value your time more than money.”

Naval brings a unique approach to this familiar adage. He suggests setting an aspirational hourly rate for yourself. Then, consider outsourcing any task you dislike, doesn’t contribute to your goal, and can be affordably delegated. This approach emphasizes the importance of your time over money and aids in creating wealth with your intellect, not your time.

“If you can’t decide, the answer is no.”

Though not a universal solution, this heuristic can guide decision-making amidst the overwhelming abundance of choices we face today. If you’re uncertain about a relationship, a business deal, or a career path, perhaps the answer is no.

“When faced with a dilemma, pick the path with the greatest short-term pain.”

Our biology amplifies short-term pain and downplays long-term gains as a protective mechanism. However, the path with the greatest short-term pain often leads to the least long-term suffering.

“Happiness is removing the desire that something is missing in your life.”

In the Happiness section of “The Almanack of Naval Ravikant,” the prevailing idea is that happiness is a skill to be learned and fostered. It’s something you can manifest by eliminating the sensation of something missing in your life, leading to the idea that happiness can be attained by stripping oneself of most desires. Here, I propose substituting ‘happiness’ with ‘contentment’ for a more fitting perspective.

Naval’s approach to cultivating happiness lies in shedding most desires, an idea to which I present two counterarguments.

Firstly, the moment we consider happiness as an internal state, a mindset, or a skill to develop, we transform happiness into an end goal. However, happiness is a fleeting illusion that shatters at the first touch of pain — a reality that life does not spare us from. If life were an ocean, happiness would be akin to the occasional island with a margarita-laden beach, far and few in between the vast expanses of water.

Secondly, navigating life requires a compass of values. Whether the guiding star is as intangible as ‘happiness’ or as profound as ‘enlightenment’, values are vital. With values come desires — desires for what we perceive as ideal. Thus, it seems that the ultimate goal of relinquishing all the discomforts associated with desires in exchange for a utopian state of desirelessness, of simply ‘being’, is not aligned with human nature. The essence of being human lies in our capacity for desire, our striving for ideals, and our capacity to feel, learn, and grow.

Therefore, I posit that happiness should never be a goal. We need a more robust objective for life. Mine is to maximise my potential for good. It’s a goal I will never attain because human potential is limitless.

Nonetheless, I want to learn all can. I want to visit everywhere I can. I want to create as much value as I can. I want to love the people around me as much as I can. I want to inspire them as much as I possibly can. I want to leave this world completely expended of every gift and talent I was given.

I believe that’s a noble goal.

“Desire is a contract you make with yourself to be unhappy until you get what you want.”

Desire often entails a level of suffering until it’s fulfilled. Recognizing this can help us avoid needless suffering for unfulfilling or unworthy desires.

“Meditation is intermittent fasting.”

Likening meditation to fasting gives a fresh perspective. Just as fasting gives our bodies a rest, meditation allows our minds to take a break from distractions. Whether it’s being present in your thoughts during a shower, dedicating daily time to sit alone undistracted, or reducing phone usage before bed, you’re allowing your mind to detox and promoting self-reflection.

I hope that my insights into this masterpiece have sparked curiosity and a desire to dive into the depths of this book for yourself. I’d be incredibly interested to hear your thoughts and takeaways on “The Almanack of Naval Ravikant.” What resonates with you? How do you interpret its teachings? Do you agree or disagree with my assessments?

Feel free to leave your comments below — a lively discussion could provide new perspectives and fresh understanding. Let’s learn and grow together!

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Thank you for reading!