I Will Teach You to Be Rich by Ramit Sethi -Book Summary and Notes

The point: Anyone can be rich -it’s just a question of what rich means to you. In order to live the life you want, decide what you value and spend money (without guilt) on those things but cut money ruthlessly from things that are not important to you. 

Who is the book for: Anyone who falls into the two camps mentioned: those who ignore money matters and feel guilty and those who obsess over every financial detail. 

Key points: 

The most important factor to getting rich is getting started, not being the smartest person in the room.

You can spend extravagantly on the things you love as long as you cut costs mercilessly on the things you don’t.

Notes:

Investing isn’t about picking stocks. In fact, your investment plan is actually more important than any individual investment you make.

Come up with a personal finance system that allows you to elevate your goals beyond making it through the daily grind.

People who spent money to buy themselves time, such as by outsourcing disliked tasks, reported greater overall life satisfaction.

There’s a limit to how much you can cut spending, but there is no limit to how much you can earn. Once you increase your earnings, you can use the Conscious Spending Plan as your guide.

While you work on increasing your salary you can do things at work to earn/ask for a raise, get a higher paying job or do freelance work on the side. 

The best part about setting up a strategic Conscious Spending Plan is that it guides your decisions, letting you say no much more easily thus freeing you up to enjoy what you do spend money on. Automate as much of your savings and spending as you can.

As you move farther along in your journey finding ways to accumulate more will help you grow faster. At the same time you can’t have the best of everything so priorities are essential. 

Related Readings:

The Automatic Millionaire by David Bach. If you want to build wealth over your lifetime, the only sure way to do it is to get your plan on autopilot and make everything that’s financially important in your life automatic.” This is similar to Sethi’s Conscious Spending Plan.

Your Money or Your Life by Vicki Robbins. Time is our most valuable asset and if we squander the money we earn by chasing possessions and always wanting more, we end up having to work longer and use up more of our limited time generating income.

Read my Book Notes for Your Money or Your Life.