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Achieving dom and planning for retirement is at financial freeop priority for many people. Despite the abundance of material on the topic, Naval Ravikant’s perspective is particularly noteworthy and worth considering. An early investor and American entrepreneur of Indian origin, Naval Ravikant is known for his insights on the path to happiness and how to live a fulfilling life.

His unique perspective, which is characterized by logical arguments and a rational point of view, is commonly referred to as “Navalism.” Among his most popular teachings is his philosophy on happiness and finding peace. Naval Ravikant is a successful investor.

He has endorsed some of the most well-known tech companies, including unicorns such as Postmates, Twitter, and Uber. As an active voice on social media platforms, he shares his thoughts and insights on various topics including health, life, and investment. Naval’s achievements clearly demonstrate his success in balancing work and personal life.

AN INSPIRATION AND A TRUE MENTOR

Naval Ravikant’s rise to fame began with his active presence on social media platforms. He regularly posts on various online platforms, where he shares his philosophies and unique perspectives on the world. One of his standout qualities is his ability to explain complex ideas and concepts in a clear, practical, and logical manner. This is precisely why he has earned a massive following on Twitter, with more than 2 million followers, many of whom see him as a sage-like figure, providing them with the practical wisdom to navigate the world.

His unique perspectives on life and the way he presents them through unconventional theories and connections have had a profound impact on many of his followers and readers. His lessons have inspired and changed the lives of many people. His approach is seen as unconventional and refreshing, and it has helped many to gain new insights and perspectives on their own lives and the world around them. Ravikant’s ideas and insights cover a wide range of topics. However, we have chosen to focus specifically on his views regarding retirement.

INSPIRATION FROM BUDDHA

Ravikant has a unique approach to combining health, wealth, and happiness. He uses the teachings of Buddha to illustrate how one can find happiness and peace while also pursuing wealth. According to Naval, true happiness comes from understanding what we truly want and focusing on that, rather than constantly competing with others.

Ravikant says, “Be authentic to escape competition, find what you know how to do better than anybody because you love to do it and it feels like play, and get to ‘retirement.’ “The way to get out of the competition trap is actually to be authentic. The way to retire is actually to find the thing that you know how to do better than anybody. And, you know how to do that better than anybody because you love to do it,” he adds.

HEALTHY , HAPPY , AND WEALTHY

Naval’s ideas revolve around the belief that true happiness is closely tied to financial stability. His belief is that achieving peace and fulfillment in life should not be tied to accumulating wealth or material possessions, but rather to having enough resources to meet our basic needs.

According to him, if a person wants to live a happy and peaceful life, it’s important to) have enough money to afford 0t. Therefore, the first step to happy retirement is financial stability or becoming reasonably wealthy. Ravikant’s approach is a bit different from most gurus. He believes that the first step towards true happiness is achieving financial stability, so that one has the means to afford their basic needs in life.

“Happiness can be bought by money” is not his preaching; rather, he shares a different perspective. “Happiness comes after becoming wealthy,” he espouses. The role of money is to meet basic necessities of life. Money alone cannot be a goal but a means to achieve financial freedom that contributes to happiness. He says, “Money doesn’t buy happiness - it buys freedom.” And with freedom you are detached from the niggling worries that could therwise disturb your inner peace. Thus, Naval reiterates that financial freedom is one of the important steps in achieving happiness.

NAVAL’S 3-STAGE FORMULA FOR RETIREMENT :“RETIREMENT IS FINANCIAL FREEDOM”

Stage 1: Create A Passive Income Source To Settle Your Burn Rate.

Stage 2: Target Burn Rate To 0; It Is The Monk Level.

Stage 3: Finding A Way To Do What You Love To Do.

STAGE 1: CREATE A PASSIVE INCOME SOURCE TO SETTLE YOUR BURN RATE.

Discipline with finance and savings is hard. People tend to increase their rate of expenses as their disposable income grows. Naval suggests reducing daily expenses to a minimum and keeping them only to the level where you can live your life happily. Cutting down on expenses and controlling unnecessary desires could help speed up savings and investments.

As we grow our savings and investments little by little daily,the effect of compounding starts to produce results in the long run. One of the key tasks in achieving financial stability, according to Naval, is to generate passive income. To do this, he suggests focusing on increasing savings and investments. This can include earning passive income from sources such as dividends, capital gains, and interest.

The idea is “To have so much money saved that your passive income (without you lifting a finger) covers your burn rate.” What this means is that your passive income should be enough to cover all your expenses, allowing you to live a comfortable life without having to rely on active income from a job or a business. This allows one to have more freedom and flexibility.

STAGE 2: TARGET BURN RATE TO 0; IT IS THE MONK LEVEL

Achieving Buddha’s stage means having a burn rate of 0. He agrees that this may be impractical or unrealistic for many people, but suggests that it is possible to find inspiration and strive towards a similar level of peace and contentment. He advises individuals to find a mentor or a role model who can inspire and guide them on this journey. He points out that one should not be misguided by those who may live like a monk but haven’t reached enlightenment; rather look for a mentor who can guide and show the path to ultimate peace.

He believes that by letting go of materialistic aspirations and possessions, one can achieve eternal happiness, but it requires planning and effort. Constantly striving to meet daily needs and having an insatiable hunger for more, can lead to a very high burn rate. To lower or eliminate this burn rate, one must work on silencing these desires through financial and other means. Reaching the stage of low or zero burn rate is an important step in achieving the ultimate goal of retirement.

STAGE 3: FINDING A WAY TO DO WHAT YOU LOVE TO DO

People must turn their passions into a way of living by finding ways to monetize their skills. In today’s world, it is possible to earn an income doing something you are truly passionate about. He suggests starting a business, starting a project, or sharing your skills in any way you can. He believes that now is the best time to take action, to pursue what you're passionate about and convert it into a way of earning a living.

He says, “I don’t care how rich you are. I don’t care whether you’re a top Wall Street banker. If somebody has to tell you when to be at work, what to wear and how to behave, you’re not free. You’re not rich.”

In current times, many people are caught up in the pursuit of fame and material possessions. Naval says that one should take a different approach to life, by searching for their true passions and finding ways to turn them into a source of income.

This means breaking free from the traditional 9-5 job culture, and finding ways to earn a living doing what they love. Ultimately, we all should strive for financial independence by doing something of our own, he says emphatically. Good health, wealth, and ultimate happiness will follow.

Moreover, achieving retirement at a particular time, age or stage of life is often an illusion. The best way to reach that stage is to work from today and to reach that stage as early as possible irrespective of age.

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Naval Ravikant’s 3-Stage Mantra For Retirement

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