Sary's notes on The Almanack Of Naval Ravikant

How to Get Rich (Without Getting Lucky): - Seek wealth, not money or status. Wealth is having assets that earn while you sleep. Money is how we transfer time and wealth, Status is your place in the social hierarchy. - You're not going to get rich renting out your time. You must own equity-a piece of a business-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.

Money vs Wealth: If I do my job right, if I create value for society, society says, "Oh, thank you, We owe you something in the future for the work you did in the past, Here's a little IOU, Let's call that money? Wealth is the thing you want. Wealth is assets that earn while you sleep. Wealth is the factory, the robots, cranking out things. Wealth is the computer program that's running at night, serving other customers. Wealth is even money in the bank that is being reinvested into other assets, and into other businesses.

Society always wants new things. And if you want to be wealthy, you want to figure out which one of those things you can provide for society that it does not yet know how to get but it will want and providing it is natural to you, within your skill set, and within your capabilities.

The most important skill for getting rich is becoming a perpetual learner. You have to know how to learn anything you want to learn. The old model of making money is going to school for four years, getting your degree, and working as a professional for thirty years. But things change fast now. Now, you have to come up to speed on a new profession within nine months, and it's obsolete four years later. But within those three productive years, you can get very wealthy.

Compounding in business relationships is very important. Look at some of the top roles in society, like why someone is a CEO of a public company or managing billions of dollars. It's because people trust them. They are trusted because the relationships they've built and the work they've done has compounded. They've stuck with the business and shown themselves (in a visible and accountable way) to be high-integrity people.

You should be very thoughtful and realize in most things (relationships, work, even in learning) what you're trying to do is find the thing you can go all-in on to earn compound interest. When you fnd the 1 percent of your discipline which will not be wasted, which you'll be able to invest in for the rest of your life and has meaning to you--go all-in and forget about the rest.

When wou're dating. the instant you know this relationship is not going to be the one that leads to marriage, you should probably move on. When you're studying something, like a geography or history class, and vou realize you are never going to use the information, drop the class. It's a waste of time. Its a waste of your brain energy.

It's ownership versus wage work. If you are paid for renting out your time, even lawyers and doctors, you can make some money, but you're not going to make the money that gives you financial freedom. You're not going to have passive income where a business is earning for you while you are on vacation. This is probably one of the most important points. People seem to think you can create wealth make money through work. It's probably not going to work. There are many reasons for that.

Essentially, you're working for somebody else, and that person is taking on the risk and has the accountability, the intellectual property, and the brand. They're not going to pay you enough. They're going to pay you the bare minimum they have to, to get you to do their job. That can be a high bare minimum, but it's still not going to be true wealth where you're retired but still earning.

Everybody who really makes money at some point owns a piece of a product, a business, or some IP. That can be through stock options if you work at a tech company. That's a fine way to start. But usually, the real wealth is created by starting your own companies or even by investing. In an investment firm, they're buying equity. These are the routes to wealth. It doesn't come through the hours.

Just from being marginally better, like running a quarter mile a fraction of a second faster, some people get paid a lot more orders of magnitude more. Leverage magnifies those differences even more. Being at the extreme in your art is very important in the age of leverage.

Always factor your time into every decision. How much time does it take? It's going to take you an hour to get across town to get something. If you value yourself at one hundred dollars an hour, that's basically throwing one hundred dollars out of your pocket. Are you going to do that?

There are fundamentally two huge games in life that people play. One is the money game. Because money is not going to solve all of your problems, but it's going to solve all of your money problems. People realize that, so they want to make money. The other game, which is the status game. They're trying to be high status in the eyes of other people watching by saying, "Well, I don't need money. We don't want money." Status is your ranking in the social hierarchy.

The problem is, to win at a status game, you have to put somebody else down. That's why you should avoid status games in your life they make you into an angry, combative person. You're always fighting to put other people down, to put yourself and the people you like up.

Figure out what you're good at, and start helping other people with it. Give it away. Pay it forward. Karma works because people are consistent. On a long enough timescale, you will attract what you project. But don't measure -your patience will run out if you count.