Naval Ravikant's Life Formulas For Success
In 2008, Naval Ravikant released a blog post called Life Formulas I. In it, Naval distills down his framework for a successful life into a series of formulas.
Here’s the original post:
Naval Ravikant's Life Formulas
These formulas are highly valuable. Here’s a breakdown of a few I really like, with some associated quotes, definitions, and links to further reading.
Happiness = Health + Wealth + Good Relationships
“The three big ones in life are wealth, health, and happiness. We pursue them in that order, but their importance is reverse.” - Naval
Naval has always made clear that happiness is not something you can get from the outside world. It must come from within. That’s why physical and mental health (good relationships) are part of the equation. You must work hard for your health because deep happiness is impossible without it.
It’s also very difficult to be happy if you lack basic necessities like food and shelter. That’s why wealth is also a part of the equation.
“The idea you’re going to change something in the outside world, and that is going to bring you the peace, everlasting joy, and happiness you deserve, is a fundamental delusion we all suffer from, including me. The mistake over and over and over is to say, “Oh, I’ll be happy when I get that thing,” whatever it is. That is the fundamental mistake we all make, 24/7, all day long.” - Naval
Naval also believes is that happiness is a skill you can learn:
“Maybe happiness is not something you inherit or even choose, but a highly personal skill that can be learned, like fitness or nutrition.” - Naval
Health = Exercise + Diet + Sleep
If you were to ask Naval what the most important thing in his life is, he would say his own health:
“My number one priority in life, above my happiness, above my family, above my work, is my own health. It starts with my physical health. Second, it’s my mental health. Third, it’s my spiritual health. Then, it’s my family’s health. Then, it’s my family’s wellbeing. After that, I can go out and do whatever I need to do with the rest of the world.” - Naval
Any “high-functioning” individual who doesn’t focus on exercise, diet, and sleep to improve their health is not actually high functioning. They are running on fumes and will eventually crash.
You’ll also make better decisions if you take care of your health. A calm, clear mind makes good decisions. A tired, foggy mind makes emotional ones.
“Health, love, and your mission, in that order. Nothing else matters.” - Naval
Exercise = High Intensity Resistance Training + Sports + Rest
Building a successful life takes work - it takes a lot of time and energy. That’s why it’s important to build stamina through exercise. One great 10-year stretch can build wealth that lasts a lifetime, but you have to have the energy to go after it.
Here’s Naval on the importance of regular exercise:
“The daily morning workout. That has been a complete game-changer. It’s made me feel healthier, younger. It’s made me not go out late…It’s pretty much every day. There are a few days where I’ve had to take a break because I’m traveling, or I’m injured or sick or something. I can count on one hand the number of breaks I take every year.” - Naval
Each person should build a routine they enjoy. Mine is a mixture of high-intensity interval training, weight lifting, and hiking.
Wealth = Income + Wealth * (Return on Investment)
Naval’s simplest definition for wealth is “assets that earn while you sleep.” An investment that earns a rate of return increases your wealth, along with the income you earn.
“Seek wealth, not money or status. Wealth is having assets that earn while you sleep. Money is how we transfer time and wealth. Status is your place in the social hierarchy.” - Naval
Naval also believes that you can learn the skills to become wealthy. This is one of the quotes that inspired me to create Wealest and convinced me it was worth writing and internalizing the ideas of wealth creators:
“I like to think that if I lost all my money and you dropped me on a random street in any English-speaking country, within five or ten years I’d be wealthy again because it’s just a skillset I’ve developed that anyone can develop.” - Naval
Income = Accountability + Leverage + Specific Knowledge
You are financially free once your passive income is greater than your expenses. How can you build your income? With accountability, leverage, and specific knowledge.
Accountability = Personal Branding + Personal Platform + Taking Risk?
Accountability is taking risks under your own name. It’s owning the upside and the downside of your decisions (equity).
“Embrace accountability and take business risks under your own name. Society will reward you with responsibility, equity, and leverage.” - Naval
Personal branding is about authenticity. You must fuse yourself with the products you build and the platform you own.
Leverage = Capital + People + Intellectual Property
Leverage is tools that amplify your efforts and your judgment. I wrote a comprehensive article on leverage that’s worth reading here.
Naval names four different kinds of leverage:
Capital
Labor
Code
Media
Code and media are what make up intellectual property. IP is significant because it’s permissionless. You don’t need anyone to give you permission to write code, create media, or art - you can just do it. That makes IP very powerful.
Specific Knowledge = Knowing how to do something that society cannot yet easily train other people to do
Specific knowledge is the stuff that you know that can’t be easily taught. It can be a little confusing because specific knowledge is very circumstance-dependent, so I recommend you read my article on it here.
Here’s Naval’s definition:
The first thing to notice about specific knowledge is that you can’t be trained for it… [it’s] found much more by pursuing your innate talents, your genuine curiosity, and your passion…Very often specific knowledge is at the edge of knowledge. It’s also stuff that’s just being figured out or is really hard to figure out... [It] tends to be technical and creative. It’s on the bleeding edge of technology, on the bleeding edge of art, on the bleeding edge of communication.
You won’t learn specific knowledge in school. It’s often learned through apprenticeships - from working for someone in your field who has 10+ years of experience in the business. That’s where you’ll learn how the business works and the specific knowledge to excel in it.
Take What You Like and Leave What You Don’t.
Take these equations with a grain of salt. If you want to change one or all of them because you disagree with it, then do it.
But, most of us would improve our lives by applying these. Naval is a clear thinker who has been working on these ideas since he was a teen. I’ve found tremendous value in them, and I hope you do as well.
Thanks for reading, and keep going.
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ARTICLE SOURCES
Naval Ravikant - Life Formulas I
Naval Ravikant - Arm Yourself with Specific Knowledge https://nav.al/specific-knowledge
Naval Ravikant - Specific Knowledge Is Highly Creative or Technical - https://nav.al/creative-technical
Jorgenson, Eric. The Almanack of Naval Ravikant: A Guide to Wealth and Happiness. Magrathea Publishing. Kindle Edition.