<ol><li class="ql-align-justify">labor</li><li class="ql-align-justify">money</li><li class="ql-align-justify">product with no marginal cost of replication</li></ol>

classes of leverage

<ul><li class="ql-align-justify">dominant form of leverage for the last century</li><li class="ql-align-justify">capital is trickier form of leverage</li><li class="ql-align-justify">banker, politician</li></ul>

Money leverage

<ul><li class="ql-align-justify">media, movies, and code</li><li class="ql-align-justify">code is permissionless leverage, which means they don’t require somebody else’s permission for you to use them or succeed</li></ul>

Product with no marginal cost of replication leverage

<ul><li class="ql-align-justify"> making money is not a thing you do, it’s a skill you learn</li><li class="ql-align-justify">getting rich is about knowing what to do, who to do with, and when to do it</li><li class="ql-align-justify">you should not grind at a lot of hard work until you figure out what you should be working on</li></ul>

Wealth

<ul><li class="ql-align-justify">other human working for you</li><li class="ql-align-justify">require leadership skills</li></ul>

Labor leverage

anger is its own punishment. An angry person trying to push your head below water is drowning at the same time

<ul><li>optimize for independence rather than pay</li><li>if you have independence and you’re accountable on your output, as opposed to your input - that’s the dream</li><li>what you want in life is to be in control of your time</li></ul>

Prioritize independence

<ol><li class="ql-align-justify">have so much money saved that your passive income covers your burn rate</li><li class="ql-align-justify">drive your burn rate down to zero → become a monk</li><li class="ql-align-justify">do something you love and enjoy it so much that it’s not about the money</li></ol>

how do you retire

<ul><li class="ql-align-justify">the challenge to make money is to figure out what product or service society wants but does not yet know how to deliver it at scale</li><li class="ql-align-justify">without ownership, you are being paid renting out your time</li><li class="ql-align-justify">when sleeping, on vacation, or retired, you’re not earning</li><li class="ql-align-justify">work up to a point where you can own equity in a business</li></ul>

1) blind luck<ul><li class="ql-align-justify">something completely out of their control happened, which include fortune, fate, etc.</li></ul>2) luck through persistence, hard work, hustle, and motion<ul><li class="ql-align-justify">you running around creating opportunities</li><li class="ql-align-justify">you generate enough force, hustle and energy for luck to find you</li></ul>3) you become very good at spotting luck<ul><li class="ql-align-justify">if you’re very good in a field, you will notice when a lucky break happens in your field</li></ul>4) weirdest, hardest kind of luck<ul><li class="ql-align-justify">you build a unique character, unique brand, unique mindset, which causes luck to find you</li></ul>

Four kinds of luck in getting rich

the three big ones in life are wealth, health, and happiness. We pursue them in that order, but their importance is reverse

<ul><li class="ql-align-justify">money is how we transfer wealth</li><li class="ql-align-justify">money is social credit, having the ability to have credits or debits of other people’s time</li><li class="ql-align-justify">wealth is assets that earn while you sleep</li><li class="ql-align-justify">wealth is the factory, the robots, cranking out things</li><li class="ql-align-justify">wealth is the computer program that’s running at night, serving other customers</li><li class="ql-align-justify">wealth is money in the bank that is being reinvested into other assets, and into other businesses</li></ul>

Wealth vs Money

<ol><li class="ql-align-justify">spend more time making big decisions:</li></ol><ul><li class="ql-align-justify ql-indent-1"> where you live</li><li class="ql-align-justify">who you’re with</li><li class="ql-align-justify">what you do</li></ul><ol><li class="ql-align-justify">figure out what you’re good at</li><li class="ql-align-justify">start helping other people with it</li><li class="ql-align-justify">give it away. pay it forward</li><li class="ql-align-justify">long enough time scale. you will attract what you project</li></ol>

most important things to do for younger people

Technology democratizes consumption but consolidates production. The best person in the world at anything gets to do it for everyone

more accountability has more leverage, and more risk, and needs more specific knowledge<ul><li>labor to repair house: low accountability, low risk, low payment, least leverage</li><li>contractor: mid accountability, average risk, average payment</li><li class="ql-align-justify">real estate developer: high accountability, high risk, high leverage</li></ul>

Accountability

you can get almost anything you want out of life, as long as it’s one thing and you want it far more than anything else

<ul><li class="ql-align-justify">making effective decisions boils down to dealing with reality</li><li class="ql-align-justify">the number one thing clouding us from being able to see reality is we have preconceived notions of the way it should be</li><li class="ql-align-justify">when you’re in pain, it is the moment of truth, where you are forced to embrace reality the way it actually is</li><li class="ql-align-justify">to see the truth, you have to get your ego out of the way because your ego doesn’t want to face the truth</li></ul>

How to think clearly 

when you stop sacrificing today for an imaginary tomorrow. when today is complete, in and of itself, you’re retired

Definition of retirement

Enjoy reading the book as it breaks down his way of thinking and how he makes decisions in life. Hope my posts helps. 

Understand yourself and those around you.

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Getting rich is not just about luck; happiness is not just a trait we are born with. These aspirations may seem out of reach, but building wealth and being happy are skills we can learn. So what are these skills, and how do we learn them? What are the principles that should guide our efforts? What does progress really look like? Naval Ravikant is an entrepreneur, philosopher, and investor who has captivated the world with his principles for building wealth and creating long-term happiness. The Almanack of Naval Ravikant is a collection of Naval's wisdom and experience from the last ten years, shared as a curation of his most insightful interviews and poignant reflections. This isn't a how-to book, or a step-by-step gimmick. Instead, through Naval's own words, you will learn how to walk your own unique path toward a happier, wealthier life.

Eric Jorgenson is an entrepreneur, writer, and investor. He is on the founding team of Zaarly, and has been publishing online since 2014. His blog has educated and entertained over a million readers.Eric is on a quest to create (and eat) the perfect sandwich. He tweets at @ericjorgenson and publishes new pieces and projects on ejorgenson.com/blog

Accountability

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