Are you tired of money lessons like “keep a budget” and “save $3 on coffee”? Do you want to skip the process of “saving money until you get rich” and know “how to directly earn the big bucks”?
You are at the right place. Ramit Sethi is an American personal finance advisor and entrepreneur who has made millions of people rich with his sincere and uncomplicated financial advice.
His journey in the personal finance world began when he was studying Psychology and Human Behavior at Stanford. Coming from a middle-class family, Ramit has no funds to cover his college tuition fees. He paid for his college by coming up with a brilliant plan of applying for over 60 scholarships. Since then, he has been writing books and teaching people like you to be rich and successful.
Here are the 5 money lessons from finance guru Ramit Sethi
1. You don’t need to a financial expert to get rich
It is common for a newbie investor, entrepreneur, or even an employee to waste a tremendous amount of time in learning the right way to do things. Ramit points out that, to get rich, people think they either need to be a financial expert or hire one. This is furthest from the truth. You can begin with the resources you have, at the moment, and learn as you move ahead.
2. Start investing from an early age
This advice is for young people, particularly, for those in their 20s. Ramit wants a 20 something person to invest in assets that yield larger profits. Most youngsters play it safe and invest their hard-earned income in things like low-interest savings accounts, unreliable mutual funds, etc. With less than a 6 percent interest rate you won’t become rich in the next 30 years. He does recommend contributing to the 401k plan though.
3. Automate your savings
In his New York Times Best Seller book, “I Will Teach You to Be Rich“, Ramit has recommended young people to Automate their savings. Instead of worrying(every month) how much to contribute in your 401k account, just link the 401k account to your checking account and set up auto payment. Likewise, automating your investment is also a wise thing to do. Use investment apps like Digit and Acorns that will help you save for your retirement without friction.
4. Pick your banks wisely
When it comes to banks, Ramit’s advice is to pick the one that supports you in your goal of getting and does not eat you bone-dry. There are plenty of brick and mortar banks with a great reputation that is detrimental to a person like you. Ramit prefers online banks who do not charge silly fees, have great rewards, high-interest rates, and no up-selling. This is why he has his checking and savings account in Schwab Bank.
Want to learn more about Ramit Sethi’s philosophy?
Ramit Sethi not only teaches personal finance but also covers plenty of other topics like personal development, dating, and spirituality. For more information, you can check out his YouTube channel and for money-related topics, his blog “I Will Teach You to Be Rich” is a great free resource.