This post is part of the 📖 The Almanack of Naval Ravikant series.
Today, I am reading Get Paid for Your Judgment section of the Wealth: How to get rich without getting lucky chapter from the book, The Almanack of Naval Ravikant: A Guide to Wealth and Happiness written by Author, Jack Butcher.
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?
The Book The Almanack of Naval Ravikant: A Guide to Wealth and Happiness 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.
Yesterday, I read Find a Position of Leverage section from the Wealth: How to get rich without getting lucky chapter.
Wealth: How to get rich without getting lucky
Get Paid for Your Judgment
Every human should aspire to be knowledgeable about certain things and be paid for our unique knowledge.
We have as much leverage as possible in our business, whether through robots or computers or what you have. We can then be masters of our own time because we are just being tracked on outputs and not inputs.
Demonstrated judgment—credibility around the judgment—is so critical.
Warren Buffett wins here because he has massive credibility. He’s been highly accountable. He’s been right over and over in the public domain. He’s built a reputation for very high integrity so that you can trust him. People will throw infinite leverage behind him because of his judgment.
We waste our time with short-term thinking and busywork. Warren Buffett spends a year deciding and a day acting. That act lasts decades.
Prioritize and Focus
Personal wealth has not been generated in one big year. It just stacks up a little bit, a few chips at a time: more options, more businesses, more investments, more things you can do.
It’s more about consistently creating wealth by creating businesses, creating opportunities, and creating investments. It hasn’t been a giant one-off thing.
Value your time at an hourly rate and ruthlessly spend to save time at that rate. You will never be worth more than you think you’re worth.
Set a very high hourly aspirational rate for yourself and stick to it. It should seem and feel absurdly high. If it doesn’t, it’s not high enough.
What is the most important thing to do for younger people starting out?
Spend more time making big decisions.
There are three really big decisions you make in your early life:
- Where you live?
- Who you’re with?
- What you do?
Choosing what city to live in can almost completely determine the trajectory of your life, but we spend so little time trying to figure out what city to live in.
What are one or two steps you’d take to surround yourself with successful people?
Figure out what you’re good at, and start helping other people with it. Give it away. Pay it forward.
Leverage magnifies those differences even more. Being at the extreme in your art is very important in the age of leverage.
Just from being marginally better, like running a quarter mile a fraction of a second faster, some people get paid a lot more—orders of magnitude more.
Wealth creation is an evolutionarily recent positive-sum game. Status is an old zero-sum game. Those who are attacking wealth creation are often just seeking status.
- Judgment—especially demonstrated judgment, with high accountability and a clear track record—is critical.
That’s it for today. Tomorrow, we will continue to read the Find Work That Feels Like Play section.
Author(s): Eric Jorgenson
Part 8 of 33 in the 📖 The Almanack of Naval Ravikant book series.