March 10, 2019

The Naval Podcast – You Won’t Get Rich Renting out Your Time

Check out Naval’s Episode Page & Show Notes

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

Key Takeaways

• From Naval’s famous How to Get Rich tweet storm – “You’re not going to get rich renting out your time. You must own equity – a piece of the business – to gain your financial freedom.”
  • You can’t become truly wealthy when your inputs are closely tied to your outputs
    • When you’re sleeping, you’re not earning
    • When you’re on vacation, you’re not earning
  • Doctors who get really rich open a private practice, or build some kind of medical device
• In most cases – renting out your time means you’re replaceable
• “Everybody who really makes money at some point owns a piece of a product, or a business, or some kind of IP.”
  • Ex. – stock options
  • But most of the time, the real wealth is created by starting your own companies
• Aim to have a job, career, or profession where your inputs don’t match your outputs
  • Like software engineering
  • What’s the opposite of this?
    • Being a lumberjack
    • Even the best lumberjack in the world might only be 3x better than the worse lumberjack
  • The higher the creativity component of a profession, the more likely it is to have disconnected inputs and outputs