I will teach you to be rich by ramit sethi pdf download

I will teach you to be rich by Ramit Sethi pdf download

Details of I will teach you to be rich

Book Name: I will teach you to be rich
Authors: Ramit Sethi
Pages: 266
Publish Date: 23/03/2009
Language: English
Genre: Self-Help Book

Book Review:

I will teach you to be rich by Ramit Sethi, Takeaway number 1: What does rich mean to you? First and foremost You must decide what being rich means to you and become a conscious spender who prioritizes It's 100% okay to spend unapologetically on the things you love as long as you cut down costs on other stuff Heck,

Even Mike Tyson who earned hundreds of millions has been in financial trouble because he didn't spend consciously.

Takeaway number 2: Beware the minutia Benjamin Franklin famously said: "don't put off until tomorrow what you can do today" Do you want to know the single most important thing to get rich?

Starting early. Sure, the best time to start was probably ten years ago for most of us, but you know what? The second best time is today For example, here's something that you probably can do today:

Set up online savings account with no fees no restriction on withdrawals and high interest rate Simply Google: "high-interest rate savings account in ....." But here's where a lot of sceptics and procrastinators stop

Ramit Sethi teaches something he calls the "85% solution" He says that he would much rather get it 85% right than do nothing at all

The perfect time to start is now because the stakes are low A recently formed band shouldn't decline an invitation to a smaller festival just because they dream of filling the Madison Square Garden at some point in the future They should view it as an opportunity to practice and get better Likewise, you can't expect to handle millions well if you are struggling with hundreds of thousands Beware the minutia.

You don't have to get it perfectly right the first time, but you must start at some point. And today is a great day for that!

Takeaway number 3: Swap your attention from micro to macro, If there's something that I especially liked about I will teach you to be rich by Ramit Sethi It's his emphasis on macro over micro-decisions

We should focus our energy on five to ten things that really matter that will yield exceptional results and good return on invested energy Here are a few of those big wins: - Automating your money system, more on this in the next takeaway - Keeping a great credit score - Using credit cards to get free cash backs and rewards.

Contributing towards a 401k to get at least the full employer match - Paying off your credit card debt - Cancel your subscriptions and instead buy monthly. A tip from my brother here if you want to watch a specific series on, say Netflix for instance, you can pay the subscription for 30 days and then instantly cancel You'll have time to watch that series that you created the account for but you won't end up paying for a product that you're not using, say three months down the line

Focus on cutting your costs in a few problem areas rather than a little bit here and there. you know the areas you often tell people that "Yeah, I've probably spent too much on ....."

Negotiating a raise - Doing freelance work - Buying a house that you can afford - Buying a car that you can afford and focus on the total cost of ownership rather than the price tag -

Allocating your capital right, more on this in the final take away Feel free to use this as a checklist If you can get 5 to 10 of these rights, you can buy however many $3 lattes that you want.

Takeaway number 4: Set up your automatic money system We humans are weak, at times. We get distracted, bored, unmotivated etc, which endangers our prior investing efforts and saving habits You think that you care but that's probably just right now in two weeks. It will be back to watching cat videos and Netflix again

Therefore, we must set up an automatic money system that can save us from our worst selves This system will make sure that we stick to our long-term money plan by allocating our income each month for us

Creating an automated money system is a way of doing some work right now to reap a lot of benefits for years and years to come,

A checking account This is where the money goes first to Think of it kind of like a distribution centre Its main purpose is to feed your other accounts appropriate amounts by using automatic transfers and to pay off all your bills -

A savings account This is a parking spot for short-term to midterm savings goals Vacations, gifts, your wedding, a down payment on a house, etc Pick one with no fees, no restriction on withdrawals and a high-interest rate -

A credit card Used correctly, this is a free short-term loan with rewards and perks. Get at least one that gives cashback - A retirement savings account such as a 401k or a Roth IRA, although this is country-specific - An investment account.

Get one from an online broker Your automated money system must be based on a conscious spending plan which contains four buckets: - Fixed costs - Investments - Savings; and - Guilt-free spending. Here's a great suggestion on what percentage of your take-home pay that these should represent Fixed costs: 50-60% Investments: 10%. Savings: 5-10%. Guilt-free spending 20-35%

Now here's an illustration of how you could distribute your money in order to follow such a spending plan Don't go lower than 5% towards savings and 10% towards investments because these two buckets will be the backbone of your new rich life,

However, if you implement a few of the big wins from takeaway number three You'll be able to raise these percentages in no time Automation is great because we learn to live without the money if we never see it we never get the urge to spend it

Takeaway number 5: The pyramid of investing options As I mentioned in the previous take away the savings and the investment accounts will create the backbone of your new rich life.

So let's have a look at how to invest your money in there Remit Sethi presents three different ways to invest your money You can

1. Pick your own stocks and bonds

2. Pick your own index funds and mutual funds

3. Invest in a target dead fund

This is the pyramid of investing options the higher up in the pyramid the simpler the investing process Ramit Sethi thinks that for 99% of people the second or third level in the pyramid is the best option. I think this number may be considerably lower with you guys.

It's difficult for the individual investor to beat the market - Time spent trying to beat the market could be spent elsewhere Have a look at the big wins of takeaway number 3 for such activities.

For the majority of people, Ramit suggests that even index funds and mutual funds are too much of a hassle With the so-called target date funds things such as diversification and asset allocation are solved for you The only thing that you must do is to have your automated money system in place

For example, if you expect to retire in 2055 you can set up your investment or retirement account so that you buy Vanguard's target retirement 2055 each month Then that's that.

No more hassle and your money will experience the wonders of compound interest Talk about passive income! It can also be used for specific savings goals

If you expect to get married in five years, for example, you can start buying target retirement 2025 for that specific goal.

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