The Naval Podcast – Seek Wealth, Not Money or Status

Key Takeaways

  • Having wealth means having assets that earn while you sleep
    • “The reason you want wealth is because it buys you freedom”
  • Money is how we transfer wealth
    • “Money won’t solve all your problems, but it will solve all your money problems”
  • Wealth is a positive sum game and status is a zero-sum game

Intro

  • This is a short piece of a conversation between Naval (@Naval) and Babak Nivi (@nivi)
    • Quotes in this piece are from Naval
  • Check out the Podcast Notes from the previous part of this conversation and Naval’s famous How to Get Rich tweet storm

What’s the difference between wealth, money, and status?

  • You want wealth (assets that earn while you sleep)
    • Examples:
      • A website that’s earning money as you sleep
      • A computer program you wrote that is continually earning you money
    • “The reason you want wealth is because it buys you freedom, so you don’t have to wear a tie like a collar around your neck, so you don’t have to wake up at 7 AM and rush to work in traffic, so you don’t have to waste away your entire life grinding all your productive hours away to a soulless job that doesn’t fulfill you.”
  • Money is how we transfer wealth
    • Money is just social credits – it’s the ability to have credits/debits on other people’s time
    • “Money won’t solve all your problems, but it will solve all your money problems”
  • Status is just your ranking in the social hierarchy

Wealth and Status Games

  • “Wealth is not a zero-sum game. Everyone in the world can have a house. Because you have a house doesn’t take away from my ability to have a house.”
    • Wealth is a positive sum game
  • But status is a zero-sum game
    • For #2 to be #1, #1 has to move out of that slot
    • Sports is an example of a status game – to be a winner, someone has to lose
    • “To win at a status game, you have to put someone else down. That’s why you should avoid status games in your life because they make you into an angry combative person. You’re always fighting to put yourself and the people that you like…up.”

These notes were edited by RoRoPa Editing Services

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