Why did Naval state that "health and happiness are more fundamental than wealth"?

Sure, here is the translation:

Okay, regarding this question, we can talk about my understanding.

Why does Naval say "Health and happiness are more fundamental than wealth"? My understanding is this:

Hey there! When I first heard Naval say this, it also struck me as very profound. Essentially, it's a deep reflection on life priorities. We can break it down to make it clearer.

Think of our lives like a computer:

Health is the computer's hardware and power supply.
Happiness (or inner peace) is its operating system.
Wealth is the various applications and software installed on that system.

Now, let's see why this hierarchy is so important.

1. Health is the "1", Wealth is the "0"s that follow

This is a classic analogy, but very fitting.

Without health, nothing else matters: Imagine your computer hardware is broken, or there's simply no power. What use are all those amazing programs (like wealth, career, fame)? None of them can run. Similarly, if you lose your health and are bedridden, all the money in the world won't let you explore the world or enjoy life. At that point, you'd likely trade all your wealth just to get a healthy body back.
Health is the foundation for experiencing everything: The value of wealth lies in its "use" and "experience." Whether it's traveling, enjoying good food, or spending time with family, it all requires a healthy body as the vehicle. Health isn't the goal of life, but it's the precondition for achieving almost all life goals.

2. Happiness is the "Goal", Wealth is just a "Tool"

Many of us confuse this, thinking wealth automatically brings happiness. Naval reminds us:

We pursue wealth ultimately for happiness: Ask yourself why you work hard to earn money. The answer probably isn't "for the number itself," but for the security, freedom, and better life experiences it brings – and these are essentially components of happiness. So, happiness is the ultimate goal.
You can't substitute the tool for the goal: Wealth is just a powerful tool; it can help remove obstacles to happiness (like worrying about bills). But if you sacrifice your family relationships, inner peace, and joy for this tool, that's putting the cart before the horse. It's like buying a top-of-the-line sports car (wealth) but locking yourself in the garage and never driving it to enjoy the ride (happiness).
Happiness is an internally cultivated ability: Naval believes true happiness (he prefers the term "inner peace") is a skill that can be chosen and practiced. It comes from reducing internal desires, living in the present moment, rather than relying on external conditions. Wealth, however, is sought externally and is full of uncertainty. Building the foundation of your life on "internal skills" (mindset) that you can control is far more stable than building it on uncertain "external things" (wealth).

3. Health and Happiness are "Internal Skills", Wealth is "External"

This analogy might have a martial arts flavor, but it's very illustrative.

"Internal Skills" are yours; no one can take them: The health you build through exercise, good diet, and ample sleep, and the happiness you cultivate through meditation, reading, and adjusting your mindset – these are your true, core assets. Unless you squander them yourself, they stay with you.
"External things" can be lost: Things like wealth, status, and reputation are heavily influenced by external conditions, luck, and economic cycles. What you have today could be gone tomorrow. Staking your entire sense of meaning in life on these "external things" carries too much risk.

To summarize, think of it like building a house:

The Foundation: Health. If the foundation is unstable, the house can collapse anytime.
The House Itself: Happiness, inner peace. This is where we truly live and feel; it's the essence of home that we seek.
The Decor and Furniture: Wealth. Nice decor and furniture can improve the living experience, but only if you first have a solid, comfortable house. You wouldn't sell a load-bearing wall just to buy an expensive sofa.

So Naval reminds us to understand the hierarchy. First, lay a foundation of health, then build the house of happiness, and finally, use wealth to decorate and furnish it. This sequence is the more reliable path to a fulfilling life.