Ramit Sethi started his blog to experiment with his ideas and share his knowledge about money with everyone. And after a time, the readers were asking the same five questions.
So he decided to write the book, titled the same as his blog – I Will Teach You To Be Rich. It contained the answers to your five questions and the rest fifteen questions you should be asking.
His view of money is taking a different approach. Instead of repurposing the general academic, financial advice, he flips it and asks to learn about possibility, systems and becoming better.
Money Should Change People
If you go and ask a bunch of people, what their definition of rich is, you will find varied answers. It is never the filthy rich who don’t value and spills money.
So yes, you can be rich, but first, you need to define your rich life. Now, before you think about becoming financially wealthy, feel gratitude that you are already rich. Because you have parents, great friends, college experience and a beautiful relationship.
Money is a part of becoming rich, but that’s a small part. Actually, it’s an amplifier. Most people have this notion with an evil undercurrent that money changes people. Well, money should change people. Because it can help you make your problems go away. Or make the things you love amplified.
Rich Life Changes
Your meaning of rich life will change. And that’s alright. Dream big and be specific about your rich life. Start by drawing out an image on all the things you can do.
And then trackback the details so you can execute on the plan. An interesting notion is that your rich life might be someone’s misery. And that’s okay too. Your culture has made it paint a bad image of getting rich.
You don’t have to step on people to get rich. You can do the work that matters, get a dream job and manage your finance to fulfil your version of a rich life.
Budgeting Vs Looking Forward
If you have $100 per month left and you are wondering what to do, then you should save. Once you have 3 months of emergency cash, then you can invest in a variety of things.
Another way is to look at your income and expense and wonder is that $100 all you have to spare. Or you can cut some costs and add more to your savings pool.
Ramit’s advice is to not budget every month. Instead, look forward to the goals you want to achieve. And do that – for example, in his book, he gives a specific percentage of money to be saved, invest and spend guilt-free.
But all of this is within constraint about how much money you have. There is a limit to how much you can cut but no limit to how much you can earn. So follow the CEO strategy by Ramit – Cut costs, Earn More and Optimize Your Expenses.
Experience Over Money
The life you live is more valuable than the money in your bank account. Money is a tool to amplify your life, and that should be viewed as it is.
Ramit doesn’t spend on cars or high-end gadgets because that’s not what he wants to experience. But he spends enormously in fashion. That’s his money dial and point of view for money.
Go ahead and make your money rules. Sure the society won’t approve, it’s not for them. It’s for you to experience and enjoy.
How To Persist Impulsive Urges To Buy
Don’t stop your desire. Instead, dream bigger and then start automating your finances to get that thing. Throughout automating, either you will realize that you don’t want this thing or you will learn the journey it takes to get those things.
Another way is to focus on one good thing you want and spend your money and energy on it. Soon the things you don’t like will fade away.
How To Address Multiple Credit Cards
You need to look at yourself because you are the problem and the solution. If this weren’t a credit card, then it would have been something else.
Go ahead and close the extra credit cards and keep one or two. Don’t ask yourself $1 questions and focus on $10000 questions. This way you won’t get a new credit card for 5 percent off offer.
Also, be content with what you want and don’t get pressurized to give in what others like. You can appreciate other decision, but you don’t have to do the same. You choose what to cut and what to focus on – it’s your life and experiences.
Pro tip: Just because your net worth has increased you don’t have to buy more stuff or change your lifestyle.