Naval Podcast: You Won’t Get Rich Renting Your Time

Full podcast here.

  • People seem to think that you can create wealth through work. That is probably not going to work. The basic reason is that your inputs are closely tied to your outputs.

  • You want a job, or a profession where your input is doesn’t match your outputs. This is another way of saying that you want to look for things that are leveraged.

  • Everybody who really makes money owns a piece of a product, or a business, or some kind of IP. The real wealth is created by starting your own company. 

  • Businesses that have high creativity and high leverage tend to be ones where you could do an hour of work, and it can have a huge effect. Or you can do 1,000 hours of work, and it can have no effect.

  • Tools and leverage are what create the disconnection between inputs and outputs. The higher the creativity component of a profession, the more likely it is to have disconnected inputs and outputs.