5 Principles of Creating Wealth

You have to create something that the people want. That too with scalability.

Create a product or service that can be distributed to many people and creates lots of value.

If you create a product that has lots of value for fewer people, it is as effective as a product with less value for more people. Elon Musk calls it the area under the curve.

Learn to create a product or learn to sell it. If you know how to do both, you are unstoppable.

One way to make money is to acquire a portion of a business. Generally, when new startups are made they give some portion of the business to its founding employees. When the business is successful the founder along with those employees become rich.

If you don’t have the ownership you only earn exactly proportionate to your time input.

Compounding doesn’t only work for money. It also works in knowledge and relationships.

For example:

Naval says he likes to work with Elad Gil . Because he has done so many deals in the past with him that they both are confident that they ensure the mutual profit.

We should build valuable skills. Selling skills for example.

If you can create a product, you also need someone who can market it and sell it to the public. Also, you can be that person for a partnership with someone else who creates the product.

What would Apple be today without the marketing and branding skills of Steve Jobs?

Specific knowledge comes from your passion.

To achieve massive wealth in life, you need to be in massive action. Many talks but less do. Execution is scarce and valuable.

If you can think of something and execute it, you can do anything.

These are the principles that Naval Ravikant used to create the wealth that he owns now which nets around 70 million. Anyone can follow these and be financially successful.
As Naval said, Intentions do not matter, actions do. So let’s go do it.

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