Eric Jorgenson presents

THE
ALMANACK

Naval Ravikant

Scroll to Leverage

Wealth

Part I

The Physics of
Leverage

Wealth is not money. It's assets that earn while you sleep. The key is leverage.

LABOR

Required

People working for you.

CAPITAL

Money working for you.

CODE

Software and algorithms.

MEDIA

Content, brand, and audience.

Mechanism // LABOR

LABOR

Required
Scalability: Limited

The oldest form of leverage. Constrained by geography and management overhead. Linear growth. Every additional person requires management attention.

CAPITAL

Required
Scalability: High

Requires initial wealth or convincing others to give you theirs. High barriers to entry. Once acquired, compounds reliably through interest and investment returns.

CODE

Permissionless
Scalability: Infinite

Write once, distribute infinitely. Zero marginal cost of replication. No permission needed. The true permissionless leverage of the 21st century.

MEDIA

Permissionless
Scalability: Infinite

Like code, but for ideas. A tweet can reach millions. No gatekeepers. Build in public, compound your reputation over time.

The Three Pillars

01

Specific Knowledge

Knowledge that cannot be trained. If society can train you, it can train someone else and replace you. It is found by pursuing your genuine curiosity and passion rather than whatever is hot right now.

Specific knowledge is found much more by pursuing your innate talents, your genuine curiosity, and your passion.
Fig.1Specific Knowledge
02

Accountability

Take business risks under your own name. Society will reward you with responsibility, equity, and leverage. Embrace accountability and take business risks under your own name.

Clear accountability is important. Without accountability, you don't have incentives. Without accountability, you can't build credibility.
Fig.2Accountability
03

Judgment

The ultimate skill. Demonstrated by making successful decisions with high stakes and compounding consequences over time. Judgment is knowing the long-term effects of your actions.

If you have high judgment, you can make better decisions than other people. That is a form of leverage.
Fig.3Judgment
Play long-term games with long-term people.
All returns in life come from compound interest.

— Naval

Happiness

Part II

Happiness is not something you achieve. It's the absence of desire. A skill to be cultivated, not a destination to reach.

The Formula

Happiness = Health + Wealth + Relationships

If you lack health, wealth means nothing.

If you lack relationships, both are incomplete.

But remember: these are not things to pursue—they are byproducts of living correctly.

The Four Truths

01

Desire

Desire is a contract you make with yourself to be unhappy until you get what you want.

Practice

Observe your desires without acting on them. Practice gratitude for what you already have. The happiness you seek is already within you.

Truth..1Desire
02

Presence

The past is memory. The future is imagination. Only the present moment is real.

Practice

Meditate daily. Practice bringing your attention back to the present moment, again and again. This is the fundamental skill.

Truth..2Presence
03

Peace

Peace is happiness at rest. Happiness is peace in motion. They are two sides of the same coin.

Practice

Choose peace over excitement. Stop chasing. Let things come to you. The universe rewards patience.

Truth..3Peace
04

Acceptance

A fit body, a calm mind, a house full of love. These things cannot be bought—they must be earned.

Practice

Accept what is. Resist nothing. Work with reality as it is, not as you wish it to be. This is true power.

Truth..4Acceptance

Daily Practices

These are not goals to achieve, but systems to maintain. Consistency compounds.

Practice.1

Meditation

60 min daily

The fundamental skill. Meditation is not about stopping thoughts—it's about observing them without attachment.

Meditation is intermittent fasting for the mind. Too much sugar leads to a heavy body, and too many distractions lead to a heavy mind.

— Naval

How

Start with 10 minutes. Sit in silence. Watch your breath. When thoughts arise, acknowledge them and return to the breath. Build up gradually.

Why

Calms the mind. Reduces desire. Increases presence. The foundation of all other practices.

Practice.2

Reading

Books > Articles

Read what you love until you love to read. Books are concentrated wisdom from the best minds.

Read what you love until you love to read. Reading is the ultimate meta-skill—it can be traded for anything else.

— Naval

How

Read for 1-2 hours daily. Prefer books over articles. Read across disciplines. Take notes. Re-read great books.

Why

Builds specific knowledge. Expands your mental models. Connects you with the wisdom of the ages.

Practice.3

Exercise

Body & Mind

A fit body is the foundation of a fit mind. Physical health enables mental clarity.

A fit body, a calm mind, a house full of love. These things cannot be bought—they must be earned.

— Naval

How

Move daily. Mix strength training, cardio, and flexibility. Find activities you enjoy. Consistency over intensity.

Why

Improves mood, energy, and cognitive function. Physical discipline translates to mental discipline.

Practice.4

Sunlight

Morning light

Natural light regulates circadian rhythms. Morning sunlight sets your internal clock.

Get sunlight in your eyes within an hour of waking. This is the most powerful signal for your circadian rhythm.

— Naval

How

Get 10-30 minutes of morning sunlight. No sunglasses. Look toward (not directly at) the sun. Walk outside.

Why

Regulates sleep. Boosts mood. Improves focus. Free and available to everyone.

Practice.5

Sleep

8+ hours

Sleep is the ultimate performance enhancer. Nothing replaces quality sleep.

Sleep is the most important thing. If you're not sleeping well, nothing else matters.

— Naval

How

Aim for 8+ hours. Maintain consistent sleep schedule. Dark, cool room. No screens 1 hour before bed.

Why

Restores the body and mind. Consolidates learning. Regulates hormones. Non-negotiable for health.

Practice.6

Fasting

Discipline

Intermittent fasting trains discipline and improves metabolic health.

Fasting is the ultimate test of willpower. If you can control when you eat, you can control anything.

— Naval

How

Start with 12-hour fasts. Gradually extend to 16:8 (16 hours fasting, 8 hours eating). Listen to your body.

Why

Improves insulin sensitivity. Promotes cellular repair. Builds mental discipline. Simplifies life.

The modern devil is cheap dopamine.
Discipline is choosing between what you want now and what you want most.

— Naval

The fundamental delusion:
There is something out there that will make me happy forever.
Happiness is being satisfied with what you have.
Success comes from dissatisfaction.
Choose your balance wisely.

— Naval

The Almanack

Naval Ravikant

The Source Code

Timeless wisdom on wealth and happiness.

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Reading is the ultimate meta-skill.

The Almanack of Naval Ravikant | Vibary