Ramit Sethi On 'I Will Teach You To Be Rich' - Google Talks

If you are earning $600k per year. And worrying about $3 ice tea per day then you are asking wrong questions.

You should be asking $30000 questions. Also, don’t be too quick to judge others. Understand the story, and you can understand their psychology about money and the story they tell themselves.

And that’s where Ramit Sethi has mastered his skill – he blends money, living rich life and psychology and helps you.

What Is Your Rich Life

You might say freedom, having a million dollars or doing whatever you want. But that’s the surface. What does this actually mean?

You need to have a specific definition of your rich life. For example, for Ramit, it was ordering appetizers and then it was getting a taxi. Yes, your definition can be big, but it has to be specific.

Ramit Sethi Vs Other Financial Guru

If you read a financial article, you will find how many things you shouldn’t do. Don’t buy this or that – save, save and save.

But Ramit believes in reversing this – what if you thought of doing more of what you want. How you can do that and how to achieve that. Also, he believes you don’t need one more article to tell you what not to do.

Hence, he wrote his book, ‘I Will Teach You To Be Rich’ to offer you the best things you can do to be rich.

Spending Vs Saving

All your life, you have been told to save. But no one told you how to spend the money. It brings joy to your life.

Sure, savings is important and necessary. But that’s not all you have to do. You have to spend and make room for more spending by increasing your income and doing other things. Go live your rich life.

Money Is A By-Product

When you think about it, you might fall in love with fitness for vanity reasons. But soon, you will fall in love with the craft, and the great body is just a by-product.

Similarly, showing up – doing hard work and saving money. Using a strategy to start a business or upgrading skill to freelance is the start. Slowly having enough money to live your rich life will become a by-product.

Remember, the golden rule – spend extravagantly on things you love as long as you cut mercilessly on things you don’t love.

Where Do You Spend Money

There is no judgement here. Money is an instrument to get things which makes you joy. It can be a maid who cleans your home, buying a vinyl record or buying books.

Looking back, you won’t remember how much you spend on these things. But you will remember the lovely memories you got because of this.

And you can do this as long as you follow money dials. It’s like a dial; you can turn it up or down. So spend more on things you love, dialling up. As long as dialling down – on things you don’t love.

What If You Could Quadruple Your Money

Then you could spend money to do more of the thing you love. For example, if you love traveling, you can travel first-class or travel far.

The idea is to think about it and envision it. And remember, you can achieve this by doing two things. Cut costs on things you don’t love so you can spend money on things you love.

And second, you could earn more by asking raise, doing freelance or doing business online.

The key is to dream big. Most people think linearly when envisioning big dreams. Think big, maybe exponentially. Be unapologetic about the things you love. Everyone has different ideas of rich life – no judgement.

Money Lens

Most of the things you believe about money comes from your family and the upbringing culture.
There are many money lenses in the world. You have to work on it to make your life better. Money lens example is you spending huge money on your kids’ safety. But not spending on your own safety.

You want to know about frugality money lens. But you need to know about others lens too. So you can use a different lens at different times.

Disparaging to Curious

When you see someone spending huge money on things, you have a choice. The first thing that might come to your mind is it’s bad. But then you can become curious – what it gets them.

The idea isn’t to agree. But understand how they enjoy spending money. What they know, you don’t.

As you keep questioning, ask yourself – what is your rich life. Others don’t have to understand it. You love it unapologetically, spending extravagant on them is your rich life.

Marrying The Right Person

When you have to discuss the money with another person, it gets tricky. Marrying the right person – with the right attitude will make your life better.

Because you can both align your income and make the spending as per your money dial. And enjoy your rich life together. Creating memories which you will never forget – that’s a rich life.

AppSumo badge