Ramit Sethi, author of I Will Teach You To Be Rich and professional financial smart person, joins us on The Upgrade this week to talk about how to reframe our approach to spending, the best ways to invest our savings, and how normal people can find a way to take a six-week honeymoon.
Ramit has been writing about personal finance for over 15 years. His business, IWillTeachYouToBeRich.com, educates over 1 million users every month on how to automate their finances, increase their earning potential, and get smarter with their money. Hear him explain his unique philosophy on what he calls “money dials” in this week’s episode
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Highlights from this week’s episode
From the Ramit Sethi interview
On why it’s important to get past our strict, Puritanical attitudes towards money:
What is so funny about the way we think about money is we’ve been conditioned to minimize ourselves and minimize our dreams. “Oh, I don’t want to be rich. I just want to pay off my debt.” No, it’s okay to be rich. It’s okay to be financially comfortable…It’s okay to say, “I can take my extended family to Rome. I can put them all up in a massive AirBnB, and we can create memories together.” That’s okay. I hate seeing people minimize their dreams. I want to hear you maximize it because once you get comfortable saying, “I want this, I deserve it, I’m willing to work for it,” then you can start to do the hard work of achieving it.
On his philosophy about personal finance:
We have these two forces pulling us, one saying, “Put your money under your bed for the next 80 years,” and the other saying, “I want to be in Tahiti. I want to get a cashmere sweater. I want to buy a round of drinks for my friends or lattes.” And guess which one wins? It is the one that says, “Let’s overspend.” This is one of the reasons Americans are in debt. They’re chronically undereducated about personal finance and they get worse and worse as time goes on. What would be better is instead of denying what we want, is to acknowledge it…And so what my philosophy is, is spend extravagantly on the things you love, but cut costs mercilessly on the things you don’t.
To hear more of Ramit’s advice on spending and saving, we recommend checking out the podcast!