I Will Teach You To Be Rich Book Summary

Book Summary

15 min

Audio available

Brief Summary

Sethi’s advice boils down to creating a financial plan that allows for as little work as possible in the long run. By putting in a little elbow grease at the outset, Sethi explains how to set yourself up to win through several fundamental changes to how money flows through your life. By automating your money, you can make sure all your bills are paid, your savings are accounted for, and that you are respecting your longterm self. By placing your money in the best accounts, it can grow instead of depreciating. By understanding credit cards, you can save large chunks of money in the long run. Most importantly, Sethi points to basic and smart investing as the key to longterm wealth. Paying attention, understanding goals, and practicing patience make these changes possible.

About the Author

Rami Sethi is a personal finance advisor and entrepreneur. He owns and writes for IWillTeachYouToBeRich.com, co-founder of PBWorks, and founder of GrowthLab.com. He teaches online courses on topics like how to make the most of your money, how to find your dream job, and how to find success in your line of work. He holds a Bachelors's and Master's degree from Stanford University.

Topics

Money & Investments

I Will Teach You To Be Rich Book Summary Preview

Key Insights

In this manual of advice, Ramit Sethi explains that good financial health is easier than we think. Money management skills like budgeting and investing seem complicated and difficult, scaring people away from learning them. Sethi shows that these skills are actually extremely straightforward, and can be set-up in a matter of six weeks and then maintained in our sleep for years on end. In arranging a few foolproof lifestyle changes and habits, Sethi argues that any financial dream is achievable, whether that be freedom to retire early, more money to travel, or a cushioned bank account.

The first step to financial health is taking responsibility for yourself

When you look at your bank account, which may not be as large as you’d like, and your debt, your first reaction may be to blame others in frustration. Maybe you believe your school should have taught you how to do your taxes correctly or how to budget, or you blame your parents for not helping you understand how to save. You may feel frustrated by the investing market for seeming difficult to understand and therefore feeling inaccessible, or disillusioned by the financial recession which lost people their money and left many unemployed.

Although this reaction is normal, it will not help you get back on your feet. In fact, many of these difficulties are already addressed. For example, most schools teach financial literacy courses but these courses are poorly attended. There are also plenty of tools for understanding different money management skills online which may not have been explored. Drops in the market are normal, and irrelevant in the longterm.

Sethi writes that admitting to our neglect to learn about this part of our lives is crucial to moving forward. By admitting that we haven’t done enough to prepare ourselves, we can transcend the frustration of blame and make peace with reality. Then, we can take a deep breath and take control of our financial future. According to Sethi, every single person is capable of solving their money problems.

The sooner a person does this, the better, says Sethi, who points out that the young are unfortunately the least likely to invest. The younger a person starts making a simple plan for themselves, the more opportunities they will have to grow their wealth and feel more relaxed in the future. That being said, it is never too late to start, even for those close to retirement age, and starting earlier is better than continuing to wait.

Being wealthy doesn’t necessarily mean having millions in the bank

When Sethi claims that his book will make you rich, he does not necessarily mean he will increase your net worth to an arbitrary number. Instead, he explains that wealth can mean different things to different people. For example, wealth could mean being able to work for pleasure rather than working to pay the bills. It can mean buying a house in a remote place where relaxing is easy. It can mean helping to pay your kids through college, or retiring early....