Book SummaryThe Almanack of Naval Ravikant, by Eric Jorgenson

1-Page Summary1-Page Book Summary of The Almanack of Naval Ravikant

Many everyday people strive for wealth and happiness, but most of us struggle along the way and very few seem to achieve both. Still fewer share their insights about how to get there—entrepreneur Naval Ravikant has become known for doing this online, via Twitter, podcasts, interviews, and blog posts. The Almanack of Naval Ravikant is a collection of those insights on wealth and happiness compiled by business blogger Eric Jorgenson.

Born to poor parents in India, Ravikant moved with them to New York as a child. From those humble origins, he eventually achieved tremendous business and financial success as a Silicon Valley entrepreneur in the early 2000s. He’s a founder of...

The Almanack of Naval Ravikant Summary Part 1: Principles of Building Wealth

In this part of the guide, we’ll consider Ravikant’s advice about wealth. First, we’ll consider Ravikant’s distinction between wealth and money, and next, we’ll look at several principles he sees as critical for building wealth.

Focus on Building Wealth, Not Money

Ravikant distinguishes wealth from money. To him, wealth is owning assets that grow over time without further inputs from you. Money, by contrast, is merely the means of distributing wealth and time. The equity you own in a growing landscaping company is wealth; the cash people pay you for mowing their lawn is money. According to Ravikant, it’s more important to focus on generating wealth than on generating money.

(Shortform note: Ravikant’s definition of wealth differs from the standard understanding of the concept. Wealth is typically understood as net worth: The sum of your assets, such as your savings and your investment accounts, minus your liabilities, such as your mortgage and student loans. Owning assets that grow over time could be considered a part of your wealth according to this definition, but it doesn’t encompass all that...

The Almanack of Naval Ravikant Summary Part 2: How to Build Happiness

In the second part of this guide, we’ll consider Ravikant’s ideas about building happiness. True happiness, as he understands it, comes from being at peace—another way to express this is: True happiness is fulfillment. When you have this happiness, you don’t long for anything more, and you feel your life is complete.

(Shortform note: Research on happiness suggests that focusing on being happy may actually undermine your ability to achieve the fulfillment Ravikant describes. Researchers have found that those who highly value happiness have difficulty feeling happy under conditions that should make them feel that way. They suggest this is caused by people feeling disappointed in their experience of their emotions—they may not feel as great as they expected. Paradoxically, then, one important part of learning to be happy may be not making happiness a high priority.)

In this section, we’ll consider how you might arrive at this place of fulfillment. While Ravikant believes that being wealthy can help you get there, happiness isn’t dependent on external circumstances—it’s a choice. Making that choice is a matter of...

Shortform Exercise: Prepare to Build Wealth

Ravikant offers several practical tips for building wealth. In this exercise, you’ll consider how you can take steps toward financial success.

Ravikant considers passive income to be one of the most effective ways to build wealth. If you don’t yet have any passive income streams established, consider what opportunities you may have to establish such a stream of income. Typically, experts recommend a few different avenues of passive income, such as traditional investments that pay dividends, owning real estate, selling products, and so on. In the space below, identify at least three potential passive income opportunities you might pursue over the course of this year.

Shortform Exercise: Prepare to Build Happiness

Happiness, to Ravikant, involves caring for both your mind and your body. In this exercise, you’ll consider how you can take steps on both fronts.

If you don’t already regularly exercise, write three to five activities that interest you. Maybe you’re interested in dancing or rock climbing, playing baseball or swimming. Once you’ve done that, brainstorm when you might try one of these activities this month.