What Does Rich Mean To You?
I Will Teach You To Be Rich is an awesome book by Indian-American Ramit Sethi that I found to be a MUST READ for anyone with questions about personal finance.
“No guilt. No excuses. No B.S. Just a 6-week program that works.”
That subtitle says it all!
I admit I am turned off by any book or program that promises to make anyone rich. They are usually crap, with the author the only one getting rich.
However, I managed to get past the title and order the audio version of this book from Audible, and listened to all at once on a road trip.
Written for people in their 20s, the book obviously has a much wider audience, having became a New York Times bestseller and creating lots of buzz.
Ramit asks a fundamental question at the beginning that makes his financial philosophy unique. “I will teach you to be rich isn’t just about money: What does it mean to you?”
Likewise, he proposes a spending plan that seems more palatable for those who don’t like to budget. He talks about conscious spending; deciding what’s important to you, then adjusting your spending patterns to include that.
For example, if spending $3 for coffee everyday is important to you, then do it, but think about eliminating other areas that you care less about, like cable TV if you really don’t use it much.
He also offers some good rule-of-thumb principles about allocating various percentages of your income, like saving 10% of your income from an early age.
Ramit describes how to optimize your credit cards, negotiate with banks and avoid their outrageous fees, automate your bills, save for things like weddings and retirement, and a lot of basic but really important information on investing.
While much of the book is common sense, it offers some fantastic principles in how to handle money, advice that many of us can use (as evidenced by the high levels of debt and low levels of saving).
The book is a light read with humor and constant references to Ramit’s background, with advice on how to negotiate like an Indian!
I found it de-mystified some important principles for me, especially about investing; it is helping me make some strategic decisions.
If you struggle with any part of your financial life, I highly recommend you read this book!