The Almanack of Naval Ravikant: A Guide to Wealth and Happiness - Book Summary&Review

The Story Behind This Article

After purchasing the domain for my blog, I accumulated a lot of content on my MacBook, unsure of where to start as the first post for this blog. In the end, I followed a principle that if you want to do something you consider important, you should do it now. So, I decided to start immediately, even if it's not perfect. I will continuously update the content and structure based on my learning, growth, and discussions with others.

As a result, all the content in all articles will be dynamic and ever-changing, much like a person who evolves with experience, cognition, and thought patterns.

I chose to begin with this article because I've been discussing topics from this book with many people lately, and I hope to use this article to share more content and engage with everyone.

I believe that reading a good book is like engaging in a mental dialogue and debate with the author. Therefore, it's a process of conversation and speculation with Naval Ravikant and you all.

Summary

Judgment, Mental Models

1 You never have to guess what he's thinking. I've never needed to speculate on his views about me, other people, or any particular matter. In this world filled with empty talk and ambiguous statements, it's a tremendous relief.

• My perspective
  • Clear communication and consistent principles.

2 Good decision-making is crucial. Those with an 80% success rate in their decisions can create and gain several hundred times more value and returns in the market compared to those who can only achieve a 70% success rate. Good decision-making relies on judgment, clear thinking, and a wise mindset.

3 Many people overestimate the correlation between effort and success, but underestimate the importance of judgment. Judgment is the wisdom to solve external problems, and true wisdom is knowing the long-term consequences of one's actions. Wisdom and judgment are closely related, making the right decisions when fully understanding the long-term consequences of one's actions.

• My perspective
  Judgment includes:
  • Filtering: Knowing what matters are crucial and what is secondary in specific contexts.
  • Context of matters: Understanding the interconnection and dependency between different matters.
  • Prioritization: Determining the priority order for execution.
  • Levels and scope of thinking: Having a clear understanding of the knowledge framework in a specific domain and comprehending the scope involved in different levels and situations within that framework to understand particular issues.
  • Perspective of insight: Using the identified key factors and their corresponding significant impacts as entry points for analyzing and contemplating the problem at hand.

4 When you find it difficult to make a decision about something, the answer is negative. If you create a long list of pros and cons to make a decision but still can't decide, then the answer is no.

5 If you have two choices that you equally want to try but can't decide between, choose the path that requires more short-term effort. Choosing the path with more short-term challenges will lead you to long-term benefits, especially considering the compounding effect, which can result in much greater long-term gains than you might imagine.

6 Clear thinkers will understand fundamental knowledge at its most foundational level. Clear thinking naturally demonstrates authority without relying on complex theories or complicated jargon.

7 Moments of pain are moments when you see the truth. When you bravely accept the reality's truth, you can make meaningful changes and progress. Only by starting from reality can you truly make progress.The pain of accepting reality arises from the conflict between inner desires and reality, which hinders one's ability to see the truth. The more you desire things to go according to your expectations, the harder it becomes to see the truth. "Feelings are not facts; they are just your judgments of reality."

8 Exceptionally intelligent people tend to be odd because they insist on considering all aspects before reaching a conclusion.

9 Do not assume a position; what you believe may not always be right. Question all your beliefs and reevaluate them from the fundamentals. Avoid seeking self-identity at any level to avoid having too many "preconceived positions."

10 When you draw favorable conclusions for yourself, raise the standard.

11 Learn mental models from top knowledge or individuals. For example: evolutionary theory, game theory, Charlie Munger, Nassim Taleb, Benjamin Franklin, and others.

12 Reading is not a competition; the better the book, the more it needs to be absorbed slowly. The number of books you've read is just a vanity metric. I know some people who read many books but lack wisdom. The problem lies in reading the wrong books or in the wrong order. They start reading from false or pseudo-truth sources, and these books become the foundation of their worldview. Later, when new ideas arise, they judge them based on this faulty foundation. So, the foundation of your thinking is crucial. If you want to cultivate a solid foundation, you should read original and classical works.

Happiness, Desires

1 Happiness is not dependent on positive or negative thoughts but rather on the disappearance of desires. The fewer desires you have, the more accepting you become of the present situation. This leads to reduced mental fluctuations, allowing you to focus on the present, which brings greater happiness and contentment. Holding onto a feeling, like being fixated on "I'm happy now and want to continue being happy," leads to losing that happiness. This is because your mind starts to fluctuate, trying to grasp onto something and turn a temporary situation into a permanent state.

2 Life is as it presents itself, and when you accept this, there's no reason to feel unhappy just because the outcomes aren't ideal.

3 Every moment on this planet is precious, and you have a responsibility to live happily and interpret everything in the best way possible.

4 Diminish self-identity, overlook trivial matters. Avoid involvement in politics, steer clear of unhappy people, value your time on Earth, and spend it with joyful individuals. Find inner tranquility.

5 Enlightenment can happen in an instant.

6 Desires are contracts you've made with yourself – you won't be happy until you get what you want. Strive to have no more than one desire at any given time, setting a limit to desires. Simultaneously, accept that desires are at the core of self-inflicted suffering.

7 True successful individuals and winners are those who can fully exit the game. They're no longer invested in the game and have even transcended it. They possess internal strength, self-control, and self-awareness, needing no external factors to empower themselves.

8 We believe that attaining peace is the solution to all external issues. However, external problems are endless, and the only way to attain inner peace is by ceasing to view problems as problems.

9 Don't invest too much time in people or things that are unsustainable or difficult to maintain, including challenging relationships.

10 If you're clear about what you want and what aligns with you, you no longer need to question why someone treats you a certain way. Seek out people who don't make you feel that way. Don't waste time on the wrong relationships.

Creating Wealth and Autonomy

1 Finding the people and things that need you the most

2 All of life's rewards, whether they are wealth, relationships, or knowledge, come from compounding.

3 In life, 99% of what you do and the time you spend may seem futile, but this time and effort are meant to help you find the crucial 1%. When you find that 1% opportunity, give it your all and make it meaningful.

4 Be willing to take responsibility and become a trustworthy individual - building wealth requires leveraging both human resources and capital, both of which necessitate establishing credit. You must act in your own name and take on responsibilities to build credibility.

5 Having a good reputation is one of the keys to becoming wealthy, but spending energy building a business network is a waste of time. The focus should be on developing good character, honing your skills, and showcasing your abilities.

6 The work style of knowledge workers is similar to athletes: training, sprinting, resting, and then reevaluating.

7 Three important life decisions: where to live, who to be with, and what to do. If you are planning to live in a city for ten years, work in a job for five years, or develop a relationship for decades, you should spend years contemplating and deciding. Don't just go with the flow, and don't give up your autonomy to others.

8 Identify what you excel at or understand what those around you need. Use it to help people and contribute your value. Don't keep track of time, or you will lose patience.

9 Ways to make yourself lucky:

• Hope that luck will find you.
• Work hard, persist, and create opportunities until luck comes your way.
• Train your mind to see opportunities that others don't.
• Become a master in your field, and opportunities will naturally come to you, making luck your destiny.

10 Success takes time, and you must remain patient. Success may not come when you expect it, but it will happen.

11 You must find your place, leverage your unique knowledge and skills, and be willing to take responsibility, becoming a master in your field. You should tirelessly persist and keep going. Don't constantly tally your efforts or calculate how much time and effort you've invested.