Acharya Prashant explains that true knowledge exists at two levels: the level of fact and the level of impact. While factual knowledge involves understanding how a thing works or its material origins, the level of impact is more critical as it concerns why a thing is in one's life and its effect on the mind. Accumulation occurs when one possesses things without understanding their purpose or impact, leading to a life burdened by ignorance. When one truly knows themselves and the place of things in their life, they realize they need very little, and what they do possess serves a higher purpose rather than personal accumulation.
