I Will Teach You To Be Rich by: Ramit Sethi
This is my first book for my weekly Wednesday book review.
I choose I Will Teach You To Be Rich first because it’s the most recent book that filled with practical and helpful insights for just about anyone.
The book, as the title describes, gives principles for helping people manage and invest their money. But he’s not Dave Ramsey or Suzie Orman. He does dig deep on budgeting or dealing with debt, but rather shares simple insights using negotiation and the internet. He gives a fresh and technologically relevant financial approach.
My Major Takeaways:
1. Ramit Sethi is not Dave Ramsey. He’s new school not old school. He directs his attention to young people; i.e. people in the 20’s.
2. He gives great insight and advice on selecting bank accounts. I never thought much about what bank I chose for personal finances. He reveals the fact that online banks give lots more interest on your money as compared to traditional banks. Likely because they don’t have as much overhead.
3. He’s big on negotiating. Negotiating the best interest rates on credit cards, car and home loans. He talks about putting energy toward big wins and not insignificant savings. Thus, being able to research and negotiate a good price on your car or auto loan will save you thousands.
4. He talks about the necessity of having a good credit score. Even if you don’t think you planning to buy anything on credit anytime soon. The fact of the matter is, eventually you’ll need credit, if it’s it’s for you house. But by planning and making your score a good as possible, you’ll save thousands if not hundreds of thousands of dollars.
5. My biggest takeaway I think was on conscious spending. Conscious spending is being completely unashamed and unhinged at spending whatever you have for what you love, but being cheap or extremely conservative for the things that are not loves. He says, if you have first saved, and invested, and paid your bills and debts, what remains should be spent guilt free on what matters most to you. The key here is: (a) knowing in advance what you love and what you don’t love and (b) saving/investing first.
6. Lastly, he talks about automating as much as possible the flow of your money. Setting up auto bill pay, 401k’s, Roth-IRA’s and bank to bank transfers. This way you won’t have to worry about making sure things are paid on time and your investing is in place.
I read or heard once someone say that every generation needs a new voice to restate some of the same ole ideas from the past. The fresh perspective will be more accepted by today’s generation. Ramit to me, seems to be that new voice for the realm of personal finances.
I recommend this books for everyone! All ages and any financial situation can learn from Ramit. Note: There is a lot more information than what I described! He spends multiple chapter on investing and ways to grow your money. I personally am more focused on dealing with debt and conscious spending that investing. But when that time comes, I’ll pull this book back up and start applying some of the ideas presented.
Here’s a link to buy: I Will Teach You To Be Rich