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Live Below Your Means for Freedom.html
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Live Below Your Means for Freedom.html
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<html>
<head>
<link rel="stylesheet" href="styles2.css" />
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<body>
<p>![[Naval-Ep7.mp3]]</p>
<p>People busy upgrading their lifestyles just can’t fathom this freedom</p>
<p>People living below their means have freedom</p>
<p>
<strong>Nivi:</strong> Any other big things you should avoid, other than
renting out your time?
</p>
<p>
<strong>Naval:</strong> Yeah, there are two tweets that I put out that are
related. The first one I was talking about where someone, like, how your
lifestyle has to upgrade, shouldn’t get upgraded too fast. And that one
basically said, people who are living far below their means enjoy a
freedom that people busy upgrading their lifestyles just can’t fathom.
</p>
<p>
And I think that’s very important, just to not upgrade your lifestyle all
the time. To maintain your freedom. And it just gives you freedom of
operation. You basically, once you make a little bit of money, you still
want to be living like your old self, so that just the worry goes away.
So, don’t run out to upgrade that house, and lifestyle, and all that
stuff.
</p>
<p>
<strong>The most dangerous things are heroin and a monthly salary</strong>
</p>
<p>
Let’s say you’re getting paid $1,000 an hour. The problem is, 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. That’s a progression over a
long career.
</p>
<p>
And as that happens, one subtle problem is that you upgrade your lifestyle
as you make more, and more money. And that upgrading of the lifestyle kind
of ups what you consider to be wealth, and you stay in this wage slave
trap.
</p>
<p>
So, I forget who said it, maybe it was Nassim Taleb. But he said, “The
most dangerous things are heroin, and a monthly salary.” Right, because
they are highly addictive. The way you want to get wealthy is you want to
be poor, and working, and working, and working.
</p>
<p><strong>Ideally, you’ll make your money in discrete lumps</strong></p>
<p>
And this is for example how the tech industry works. Where you don’t make
any money for ten years, and then suddenly at year eleven, you might have
a giant payday.
</p>
<p>
Which is by the way one reason why these very high marginal tax rates for
the so-called wealthy are flawed because the highest risk-taking, most
creative professions you literally lose money for a decade over your life,
while you take massive risk, and you bleed, and bleed, and bleed.
</p>
<p>
And then suddenly in year eleven, or year fifteen, you might have one
single big payday. But then of course Uncle Sam show up, and basically
say, “Hey, you know what, you just made a lot money this year. Therefore,
you’re rich. Therefore, you’re evil and you’ve got to hand it all over to
us.” So, it just destroys those kinds of creative risk taking professions.
</p>
<p>
But ideally you want to make your money in discrete lumps, separated over
long periods of time, so that your own lifestyle does not have a chance to
adapt quickly, and then you basically say, “Okay, now I’m done. Now I’m
retired. Now I’m free. I’m still gonna work because you got to do
something with your life, but I’m gonna work on only the things that I
want, when I want.” And so you have much more creative expression, and
much less about money.
</p>
</body>
</html>