The Naval Podcast – Set and Enforce an Aspirational Hourly Rate

Check out Naval’s Episode Page & Show Notes

This podcast clip is part of a conversation between Naval Ravikant (@naval) and Babak Nivi (@nivi). Unless otherwise noted, quotes are from Naval. For reference, check out Naval’s famous How to Get Rich tweet storm.

Key Takeaways

  • “No one is going to value you more than you value yourself”
    • So set a high personal hourly rate and stick to it
  • Always factor your time into any decision (as well as your personal hourly rate)
    • So if your personal hourly rate is $60, and you estimate it will take you an hour and a half to return a $40 product, it’s not worth it
    • You have a finite amount of high-output mental hours each day – “Do you want to use them to run errands and solve little problems or do you want to save them for the big stuff?”
  • “You can spend your life however you want, but if you want to get rich, it has to be your number one overwhelming desire”
    • This means it has to come before ANYTHING else
  • Advice – Look forward to the future and set an aspirational hourly rate
    • Way back, Naval’s aspirational hourly rate was $5,000/hour (even though he was only making a fraction of this at the time)
      • Today, Naval estimates he’s actually beaten his goal
    • “It should seem and feel absurdly high. If it doesn’t, it’s not high enough.”
  • If you can outsource something for less than your hourly rate, outsource it
    • Even for things like cooking
  • Paul Graham has said (directed to Y Combinator startups):
    • “You should be working on your product, getting product-market fit, exercising, and eating healthy. That’s it. That’s kind of all you have time for while you’re on this mission.”

These notes were edited by RoRoPa Editing Services