I Will Teach You to Be Rich: Ramit Sethi
You don’t need to be an expert to get rich but you do need to get started early. One of the secrets is to spend extravagantly on the things you love and cut costs mercilessly on the things you don’t.
In aiming to be rich, the growth mind set is critical, because there’s a limit to how much you can cut, but no limit to how much you can earn.
I will Teach You to be Rich: The 10 nuggets
- Most of us fall into one of two camps regarding money: We either ignore it and feel guilty, or we obsess over financial details by arguing interest rates and geopolitical risks without taking action. Both options yield the same results—none
- The single most important thing you can do to be rich is to start early. Getting started is more important than becoming an expert (also known as “The 85 Percent Solution”)
- Investing should be very boring—and profitable—over the long term.”
- “There’s a limit to how much you can cut, but no limit to how much you can earn.”
- “Sometimes the most advanced thing you can do is the basics, consistently.”
- If you’re investing in the long-term, the best time to make money is when everyone else is getting out of the market.”
- To figure out how long it will take to double your money, divide the number 72 by the return rate you’re getting, and you’ll have the number of years you must invest in order to double your money.
- Marry the right person. Marrying the wrong person will bring you stress, and divorce could make you
- Focus on Big Wins, not on small (but painless) actions that have little real impact on your financial future. (What’s the point of clipping coupons when your mortgage debt is crushing you? You need a new house, not cheaper toilet paper!)
- Crafting a prosperous future starts by asking a simple question: Why do you want to be rich? When you picture your ideal life, the next question is what are you doing about it.
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