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Naval

Live Below Your Means for Freedom

Naval

Naval Ravikant

Business, Technology

4.82.4K Ratings

🗓️ 11 March 2019

⏱️ 2 minutes

🧾️ Download transcript

Summary

People living far below their means enjoy a freedom that people busy upgrading their lifestyles just can't fathom.

• People living below their means have freedom 0:00

• The most dangerous things are heroin and a monthly salary 0:38

• Ideally, you'll make your money in discrete lumps 1:17

Transcript: http://nav.al/salary-freedom

Transcript

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0:00.0

Any other big things you should avoid other than renting out your time.

0:04.8

Yeah, there are two tweets that I put out that are related.

0:07.6

So the first one is talking about we are somewhat like how your lifestyle, you know, has to upgrade, shouldn't get upgraded too fast.

0:13.4

And that one basically said, people who are living far below their means enjoy a freedom that people busy upgrading their lifestyle, it just can't fathom.

0:22.2

And I think that's very important, like just to not upgrade your lifestyle all the time to maintain your freedom.

0:27.3

And it just gives your freedom of operation.

0:29.4

You basically, once you make a little bit of money, you still want to be living like your old self.

0:33.9

So that's just the worry goes away.

0:35.6

So don't go out to upgrade that house and lifestyle and all that stuff.

0:39.0

Let's say you're going to pay the $1,000 an hour.

0:41.1

The problem is that when you go into a work lifestyle like that, you don't just suddenly go from making $20 an hour to making $1,000 an hour.

0:49.4

That's a progression over a long career.

0:51.6

And as that happens, one subtle problem is that you upgrade your lifestyle as you make more and more money.

0:57.9

And that upgrading of the lifestyle kind of ups what you consider to be wealth and you stay in this wage slave trap.

1:05.1

So I forget who said it.

1:06.3

Maybe it was Nassin Talea, but he said, you know, the most dangerous things are heroin and a monthly salary, right?

1:11.9

Because they're highly addictive.

1:13.5

The way you want to get wealthy is you want to be poor and working and working and working.

1:18.4

And this is, for example, how the tech industry works where you don't make any money for 10 years and then suddenly in your 11, you might have a giant payday, which is why, by the way, one reason why these very high marginal tax rates for the so-called wealthier flawed because the highest risk taking most creative professions, you literally lose money for a decade of your life while you take massive risk and you bleed and bleed and bleed.

1:39.8

And then suddenly in your 11 or your 15, you might have one single big payday.

1:44.0

But then of course, Uncle Sam show up and basically say, hey, you know what?

1:48.5

You just made a lot of money this year.

...

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