Have you ever heard of Naval Ravikant?
Well, if there is anyone who can teach you how to become a billionaire (or even a millionaire, if you don’t have big claims), it is definitely Naval.
Naval Ravikant is the most famous angel investor in Silicon Valley, as well as founder of AngelList, the reference portal for startups, investors and young professionals who would like to start their career in new tech companies.
Naval Ravikant Life
Born in 1974 in New Delhi (India), at the age of 9 he moved with his family to New York. In 1995 he graduated from Dartmouth College and in 1996 he started working for an Internet Service Provider based in Silicon Valley.
For some years he worked in the shadows, until in 1999 he decided to found, together with a partner, Epinions.com, an online review site.
This first company will be followed by many others, but to catapult him definitively into the Olympus of the Gods of Silicon Valley will be his career as an angel investor, the one who provides the very first funds to newly born startups.
… And Naval does it with an exceptional flair by investing very early in Uber, Twitter, Wish.com and dozens of other companies that have become true tech giants.
His career as an entrepreneur and investor assures him a fortune that is currently estimated in the order of 2.2 billion dollars.
But Naval is a decidedly “anomalous” figure among those who populate the Californian Silicon Valley and his advice on how to become a billionaire (and wealth in general) are permeated by a deep knowledge of philosophy and the desire to go beyond the mere accumulation of material goods, in favor of the pursuit of true well-being.
A few months ago, our philosopher angel, who makes a very sporadic use of social media, decided to share on his twitter profile what in his opinion are the fundamental principles for getting rich (without being lucky).
Principle # 1: Wealth, money, and status are three very different things
“Look for wealth, not money or social status. Wealth means having things that make you money while you sleep. Money is a way to transfer time and wealth. Status is your place on the social ladder. “
If you want to create real wealth in your life, stop chasing the next pay raise or cash injection. Focus on creating systems and acquiring assets that allow you to earn money over the long term and on an ongoing basis.
Principle # 2: those who despise (don’t) buy
“Remember to create wealth ethically. If you secretly despise wealth, she will avoid you. “
Unfortunately, however, social envy is the first obstacle to one’s financial growth: if we have been taught since childhood that all the rich are arrogant, unhappy and thieves, we will hardly enter the club. Cognitive dissonance would be excessive.
The truth, however, is quite different: money is simply an amplifier of what we already are.
It is not money, for example, that makes a person arrogant; an arrogant enriched is simply an ex-poor man who did not yet have the means to behave as a bully.
Principle # 3: there are those who rise by creating and those who destroy
“Ignore people who play social role-playing games. They get their status by attacking people who are committed to creating wealth. “
Modern society is made up of a complex network of hierarchies.
There are those who choose to climb these hierarchies by developing new skills and creating value for the wider society and those who choose to do so, instead, destroying the other “participants”.
The current international political landscape are excellent examples of how some individuals are increasing their personal prestige and power, destroying others, without bothering to create anything.
Principle # 4: the fundamentals
“You won’t get rich by selling your time. You must own at least a piece of a company to achieve financial freedom. “
There is very little to add on this point, if you have doubts about the different ways to make money in your life, i will make soon an article about it.
Principle # 5: the world doesn’t give a damn about your passions
“Diventerai ricco dando al mondo ciò che vuole ma non sa ancora come ottenere. Su larga scala.”
For years, there has been this myth of “making money with your passions” on the Internet.
Yes of course, to earn a lot of money you have to put passion into what you do, but forget about becoming a billionaire thanks to your passion for Japanese salaminchia.
Only by creating (and selling) a product or service that solves a problem of a large enough group of people can you generate wealth.
Principle # 6: It takes years to be successful
“You have to play for enough time. Any success in life, whether financial, in the context of relationships or research, arises from the compound interest of daily commitment “
Many of us are convinced that success is a linear path. Nothing could be more wrong.
The success curve is much more like an inverted hockey stick: for a long time, despite your efforts, nothing seems to happen, then suddenly the results arrive exponentially.
To collect those results, however, you have to “play” for enough time, never giving up.
Principle # 7: the two skills you need to become a billionaire
“Learn to sell. Learn to create. If you can do both, you will be unstoppable. “
There are two basic types of entrepreneurs:
- The born sellers. They excel in the ancient art of selling and love being able to bring their products and services to as many people as possible.
- The inventors. They have deep technical knowledge and love to shut themselves up in some laboratory to create their inventions: they are engineers, programmers, technicians or simply creatives.
In each of us one of these profiles dominates, but those who manage to perfect both these skills can achieve unparalleled success.
Principle # 8: knowledge is not enough …
“Armed with specific knowledge, reliability and influence.”
In general, whether we identify ourselves in the figure of the seller or in that of the inventor, to achieve our financial goals, we need to acquire in-depth and specific knowledge either of a certain sector (e.g. catering) or of a certain set of skills (eg copywriting).
This type of knowledge cannot be acquired by attending a simple course or reading a book: it is the result of the encounter between the study of concepts and application in practice.
But knowledge is not enough. To develop a business that flourishes in the long term, we must also be able to prove ourselves reliable, that is, people / companies that others can trust.
Principle # 9: the need to do
“Reading is faster than listening. Doing is faster than watching. “
When we embark on a new project, we often fall into the so-called “training trap”: we feel the need to read articles, listen to podcasts, watch videos on Youtube and attend courses.
We delude ourselves that informing ourselves and educating ourselves on what we want to develop will allow us to make progress towards our goals. We want to make sure we know everything, even before taking the first step.
It’s a trap.
Train yourself, do it as efficiently as possible and do it consistently, but then devote all your energy to doing: an imperfect action will make you much more progress than an impeccable training.
Principle # 10: set yourself an ambitious rate
“Imagine you have your own ambitious hourly rate. If the time you spend solving a particular problem saves you less than your hourly rate, ignore it. If having someone else do an activity costs you less than your hourly rate, delegate it “.
La tariffa oraria è una delle strategie più efficaci per focalizzarsi sulle proprie priorità, imparare a delegare senza sensi di colpa e capire a quali progetti dar seguito (e a quali no).
Scegli dunque la tua tariffa oraria ambiziosa e impara a prendere decisioni che rispettino il valore del tuo tempo.
Principio #11: questo non lo dimenticare mai
“Lavora più duramente che puoi. Ma ricordati che le persone con cui lavori e su cosa lavori sono elementi più importanti di quanto duramente lavori.”
You can work like a bastard for 100 hours a week, but if you work on the wrong activities and do it with the wrong people you only risk draining your physical and mental energies, making insignificant progress.
Choose carefully your priorities and the people you work with (partners, collaborators, customers, suppliers, etc.).
Principle # 12: don’t settle
“Become the best in the world at what you do and keep questioning what you do until it is true.”
Remember this principle enunciated by our philosopher angel especially when you have obtained a first semblance of success: the moment you think you understand the rules of the game, they have the bad habit of changing.
Principle # 13: another story
“When you are finally rich, you will realize that it was not what you were looking for at the beginning of the journey. But that’s another story. “
As mentioned in the introduction to the article, Naval Ravikant is a complex and partly “anomalous” figure compared to the typical Silicon Valley billionaire.
From an early age, Naval has combined his obsession with excellence in his career as an entrepreneur and investor with the pursuit of well-being.
Listening to his recent interview, I was surprised by his “methodical” attitude towards happiness: for years he has dedicated time and energy to understand exactly how to improve his psycho-physical condition, and, ultimately, be happier.
Here, this aspect is often underestimated by those chasing success and wealth.
Too many take it for granted that wealth is the real goal and that once it is achieved, all our problems will be magically solved.
It is not so.
Money can make our life more comfortable, easier and undoubtedly it is easier to think about your personal happiness when you don’t have to think about mortgage payments or bills.
But I repeat: wealth will not be the solution to all your problems.
So apply the principles of Naval and keep chasing your financial freedom, but don’t forget yourself along the way.
