Ramit Sethi (@ramit) is the author of I Will Teach You to Be Rich, now in its second edition with over 80 pages of new material, new insights, and new tools for mastering money and living your rich life.
What We Discuss with Ramit Sethi:
- What has changed between the first edition of I Will Teach You to Be Rich and the recently published, heavier-by-80-pages second edition.
- How the idea of a “rich” life differs from person to person.
- Thinking critically about bank accounts, investing, engagement rings, marginal tax rates, interest rates, budgets, real estate, and prenups.
- Using the concept of money dials to maximize spending in the areas of your life that count.
- Why you have a huge advantage if you’re able to change your mind quickly in the face of new evidence.
- And much more…
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The budgeting and investment tips that get parroted the most seem to come from people who don’t take their own advice, and have absolutely no background in habit change or psychology. But I Will Teach You to Be Rich author Ramit Sethi is a man who walks the walk in a refreshing, no-BS kind of way when it comes to destroying the bad thinking and flawed stories that we tell ourselves about money and finance-related subjects.
In this episode, we talk to Ramit about what’s changed in the 10 years since I Will Teach You to Be Rich first came out and what we can expect from its heavily expanded update, how to think critically about money and use it to live your idea of a rich life instead of thinking about it as an unconquerable enemy, the best and worst banks to use today, and much more. Listen, learn, and enjoy!
Please Scroll down for Full Show Notes and Featured Resources!
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More About This Show
A lot has changed in the decade since Ramit Sethi first published I Will Teach You to Be Rich, but there are a few things he fought to keep as it was being revised and expanded for the second edition.
“There’s a lot of sensitivity around body positivity,” says Ramit. “There’s a huge cultural change in the last 10 years. In the last book, in the introduction, I made a comparison of the similarities between fitness and finance. And there’s a lot: we don’t count calories, we don’t count our spending, and we listen to people who don’t know what they’re talking about in both fitness and finance.
“In this second edition, I was strongly advised to take that out, and I said no. I actually believe in the last 10 years I became much more fit, I learned how to change my body and work out and eat differently. I fought back and said, ‘No, I’m keeping it in.’ In fact, I believe even more that there are similarities between fitness and food — and mostly that you can take control.
“I do believe we should feel positive wherever we are in our financial situation or our fitness, but I simply refuse to believe that ‘There’s no way I can change anything.’ I don’t accept that. Not at all. I’ve seen myself change; I’ve seen many other people change. So I doubled down and I do want to be sensitive about it, but no, I believe that all of us can take control of our money and our fitness and our food.”
After studying psychology at Stanford, Ramit was aghast at the terrible advice being thrown around by so-called financial experts that pointed out a change in habits as the already obvious solution to a lot of problems most of us face in our relationship with money, but no clues about how to actually enforce such changes and make them stick.
“Guess what every single money book tells you to do in chapter one?” asks Ramit. “Track your spending for the last 30 days. And people are like, ‘Number one, I don’t know what I spent. Number two, I just know that it’s probably bad. And I don’t think I want to do this!’ So in this book, I wanted to incorporate psychology first, because everybody already knows they should probably be saving more.
“Everybody probably knows they should be investing in some weird 401k thing. But on a day-to-day level, most of us just want to go to work, maybe buy a coffee in the morning, have a good time, maybe go out to drinks with our friends, and take a vacation every so often. It’s very simple what a rich life is to most of us day to day. What I wanted to show people is: you can do that. It’s so easy! No problem you can do that. And you can actually think a lot bigger.
“So to do that, you can’t just give people compound interest charts. Everybody’s seen them. It doesn’t mean anything. You’ve got to meet them where they are and incorporate psychology. Anyone who actually knows human psychology would read this and realize this is actually a psychology book disguised as a money book. But for everyone: you know that by the time you finish this book, your money’s going to be basically set for life.”
Listen to this episode in its entirety to learn more about how many lattes you can buy per week with Ramit’s blessing, how your bank is probably screwing with you and what you can do to remind the snooty manager there that they work for you, the best and worst financial institutions (by name, no less!), how Ramit uses automation to ensure he spends less than an hour a month dealing with his money, the rich life benefits Jordan has enjoyed by using Ramit’s methods, honest talk about real estate as an investment, why most people who get angry about millionaires having to pay 70 percent in taxes don’t understand enough about money to actually become millionaires, how to talk to your fiance about money and prenups, and much more.
THANKS, RAMIT SETHI!
If you enjoyed this session with Ramit Sethi, let him know by clicking on the link below and sending him a quick shout out at Twitter:
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Resources from This Episode:
- I Will Teach You to Be Rich: No Guilt. No Excuses. No B.S. Just a 6-Week Program That Works. by Ramit Sethi
- Ramit Sethi’s Website
- Ramit Sethi at Instagram
- Ramit Sethi at Twitter
- Chase Bank Consumer Reviews, my3cents
- First Republic Bank: A Personal Approach to Banking
- The Four Best Checking Accounts to Open Today by Ramit Sethi, IWT.com
- Schwab Bank High Yield Investor Checking Account
- Capital One 360 Checking
- Ally Interest Checking
- Vanguard Personal Advisor Services
- Worst Financial Institutions, Ramit’s :60 Show
- Compound Interest Introduction, Khan Academy
- How Teens Can Become Millionaires by Dave Ramsey
- “When a Nutjob on Twitter Says They Don’t Want to Pay 70% in Taxes.” Ramit’s Instagram
- Ramit’s Troll of the Week
- The Big Wins Manifesto by Ramit Sethi, IWT.com
- How Much to Spend on an Engagement Ring by Ramit Sethi, IWT.com
- Warren Buffett, Charlie Munger, and Mental Agility by Peter Low, GuruFocus
- 5 Things That Are Worth the Money by Ramit Sethi, IWT.com
- Money Dials: Why You Spend the Way You Do by Ramit Sethi, IWT.com
- Cook’s Knives by Tynan
- 5 Mistakes to Avoid When Making a Prenup Agreement, World Wedding Guide
- How to Talk to Your Partner about Money: The Definitive Script by Ramit Sethi, IWT.com
- 15 Lessons on Money and Marriage from Couples Who Have Been Married 10+ Years by Ramit Sethi, IWT.com