Seek Wealth, Not Money or Status
Wealth makes us all better off
I was debating with myself how to write about this idea. I know it’s a critical one, but I lack the credentials to discuss it. As a college student, I’m not wealthy and have that much control over my time. I have the principles of wealth creation in my mind, and I’m applying them at a smaller scale, but I’ve decided to let Naval “talk” more for this post.
What’s Wealth?
Let’s start by defining wealth. This can be somewhat subjective, but Naval describes it as “businesses and assets that can earn while you sleep.” It can be an online business that works 24/7, investments that grow daily, or real estate that is rented or used for Airbnb, for example. Wealth is supposed to give you freedom—control over your time so that you don’t have to live according to a schedule someone else designed. I love how Naval puts it:
It’s about being your own sovereign individual.
I find that quote very encouraging, for whatever reason. It reminds us that we can become truly independent—that there’s another way to live. It just sounds powerful.
Wealth is Competitive (in a positive way)
Unlike other zero-sum situations in which people compete, such as sports, politics, or status, wealth is a positive-sum competition. Let’s define zero-sum and positive-sum before we keep going.
Zero-sum situations are those in which no wealth is created or destroyed. One player wins, the other(s) loses. In a tennis match, there is always one winner and one loser, no matter how good of a match both players have. In zero-sum games, players have no shared interests.
Positive-sum games are those in which the total of gains and losses is greater than zero. The fact that one player wins doesn’t mean the other(s) lose. Everybody in the world can have a house. Because you have a house doesn’t take away from my ability to have a house. If anything, the more houses that are built, the easier it becomes to build houses, the more we know about building houses, and the more people can have houses.
Growth, therefore, comes from positive-sum games. And so does wealth creation. Some people see wealth creation as something negative, a demonstration of greed and evil capitalism. This is nonsense. Capitalism might have its flaws (although most of them are due to cronies and lobbying that actually restrict free markets), but it’s hard to argue that it’s the best economic system to date. Here are some graphs that prove this before moving on to the next point:
Why not Money?
After that capitalist rant, let’s go back to the main point of the post. Why do we want to focus on wealth and not money or status? Isn’t money the same as wealth?
No, they are not. As mentioned previously, wealth is about assets that earn while you sleep. If you’re only making money while you’re directly putting in worked hours, you’re not wealthy. Your outputs and inputs are connected. If a doctor earns $500,000 and has a big house, you might assume that doctor. Well, if that doctor still has to work 40 hours a week because someone tells them to do so, I wouldn't say that person is wealthy. I’m just working to keep up with a rich lifestyle. If that doctor created their own practice or healthcare company and it’s successful, they would be earning from their share of the company’s equity.
Upgrading your lifestyle at the same rate your income rises is a trap. It doesn’t make you more free. As Naval puts it, “people who are living far below their means enjoy a freedom that people busy upgrading their lifestyles just can’t fathom.” Someone who earns $50,000 through an internet business might be seen as poor by the doctor, but that entrepreneur has more freedom because they can work from wherever, whenever.
Why not Status?
Remember the different types of games from earlier in the post? Well, status is a zero-sum game. There have to be winners and losers. Why do we get involved in these situations if we know that there are other games that can make everybody win?
It’s an evolutionary trait. Before farming was invented, people couldn't be wealthy. Hunter-gatherers didn’t have possessions. Because of this, status was a much better predictor of survival than wealth. You couldn’t be rich, but you could be the leader of the tribe. Humans lived like this until 12,000 years ago. We have been hunter-gatherers for 90% of our history.
Therefore, status is ingrained in our DNA. It’s like sugar’s addictiveness. We can’t stop eating sweet things because sugar was a very scarce resource for most of our past. Our brains have evolved to eat as much as we can since they make us think we won’t be able to get any for some time.
When humans started moving from status to wealth-based societies, status games didn’t disappear. In 2024, people playing status games keep attacking wealth creators. A recent example of this would be journalists and regulators attacking tech entrepreneurs with stupid messages about AI “Safety” or whatever. They want to make themselves look like protectors of the people because, of course, THEY know what’s better for them. They just point out the “problems” and then propose “solutions” that are usually about banning rather than creating an alternative and putting it to the test.
I hope you enjoyed this post! I think this idea is fundamental to understanding if you want to achieve true freedom. I’d love to hear your opinions and insights, whether they are positive or negative! If you liked what you read, consider subscribing! Please leave a comment or message me on X, Instagram, or Facebook, and we can chat! Thanks for reading!
See you later!