Why did Naval state that "the true purpose of investment is the elevation of wealth and freedom"?

Okay, that's an excellent question; it goes straight to the heart of Naval Ravikant's philosophy. When most people talk about investing, they think about making money, getting rich, buying fancy cars, and living in big houses. There's nothing wrong with those things, but Naval looks at it from a deeper layer.

Let's talk about this in plain English.

Wealth is Just the Tool; Freedom is the Destination

You can understand Naval's core idea like this: We invest and earn money not to make the number in our bank account bigger, but to use that money to buy back our life's agency.

To make this clear, we need to break down two key concepts: how Naval defines "Wealth" and "Freedom".

1. First, what is "Wealth" according to Naval?

His concept of Wealth is different from the everyday idea of Money.

Money: It's a tool for exchanging goods. It's the salary your boss pays you for a month of hard work. It's liquid – spend it and it's gone.
Wealth: These are "assets that make money for you while you sleep."

Take the simplest example:

You go to an orchard and help pick apples for a day; you get paid $100. That's Money.

You buy a small piece of land and plant an apple tree. This tree bears fruit every year on its own. You can eat the apples or sell them for money. That apple tree is your Wealth.

Therefore, the primary purpose of investing is to build your own "Wealth" – to create assets that work continuously for you. Think of stocks in companies, rental properties, an automated website, and so on.

2. Then, what does "Freedom" refer to?

Once you have that kind of "Wealth," you can trade it for freedom. This freedom manifests mainly on three levels:

Freedom of time (The most crucial!) This is the core of it all. When the passive income generated by your "Wealth" is enough to cover your daily living expenses, you no longer need to sell your time just to survive.

You wake up in the morning and can decide to read, exercise, spend time with family, or simply pursue a topic you're passionate about. It's not because an alarm went off, forcing you to rush to an office you dislike. You become the master of your time, not its slave.
Freedom of location Your income no longer depends on being physically present in a specific place. You can choose to live by the sea, in the mountains, or anywhere you like, while your "Wealth" continues working for you.
Freedom of choice You no longer need to compromise your principles just to make a living. You gain the freedom to choose who you work with, what kind of work you do, and the ability to say no to people and situations you don't agree with or dislike. Your life and work stem more from "I want to" than "I have to."

3. Why is this the "true purpose" of investing?

Now let's connect the dots.

The pattern for most people is "trading time for money," a very passive cycle. Stop working, and the income stops, so you feel you can't stop.

Investing flips that game. Through investing, you use your money (or your unique skills and knowledge) to create "Wealth" (those apple trees). When you have enough "apple trees" yielding enough fruit to support your lifestyle, you have successfully bought back your time with Wealth.

That's when you truly start "living".

If you chase only money, you'll find it's a bottomless pit. You make $1 million and want $10 million, make $10 million and want $100 million. Pushed by desire, you remain in a state of perpetual chasing, never truly satisfied – essentially still a "modern slave."
But if you chase freedom, the goal becomes much clearer. The benchmark is: "Does my passive income exceed my expenses?" Once reached, you've "beaten the game." Every dollar earned thereafter is just extra, and your mindset towards everything you do changes completely.

In summary, what Naval wants to tell us is this:

Investing is a game, but the ultimate reward isn't the pile of glittering "gold coins" (money). It's the "free pass" that allows you to leave the arena whenever you want and do anything you desire.

Earning money is meant to eliminate money worries. It's about reclaiming the power to define your own life. That is the coolest, most worthy goal behind investing.