Ramit Sethi's Best Advice To Ensure You Live Your Richest Life
Ramit Sethi is best known for being the money mind behind 2009's "I Will Teach You to Be Rich." The 43-year-old financial entrepreneur also hosts the "I Will Teach You to Be Rich" podcast, which he launched in 2021. As of 2023, Sethi was worth $25 million, according to Fortune.
It's safe to say that Sethi has a lot of financial advice to offer, but what's some of his best?
Read on to find out what money tips Sethi can offer you.
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Set Clear and Realistic Goals
Sethi wrote on his website that you can't just say "I want to save more." You have to set a metric for yourself that is achievable given your current financial situation.
"The trick is to be as specific as possible," Sethi wrote. "Instead of saying, 'I want to save more money,' determine an exact figure, like saving $200 a month. This specificity turns a vague wish into a concrete target."
Save 10%, Invest 20% of Gross Annual Income
On Sethi's website, he said that saving is important, but once you build up an emergency fund with at least six months worth of expenses, investing is crucial.
"When you're beginning to save, your emergency fund is the place to start," Sethi wrote. "Once that is built up, you can move on to a high-yield savings account."
From that point forward, Sethi instructs you to put 10% of your income into the high-yield savings account and 20% into investments, which he suggests automating so you don't even have to think about it.
Buy the Best and Keep It as Long as Possible
What might seem expensive at first will save you money in the long run. That's why Sethi advises spending the money up-front on well-made objects so they last a long time.
"For example, I enjoy buying high-end electronics because they last longer, clothes because they don't tear or rip as easily and cameras for their reliability," Sethi wrote on his website. "Some of these items can be passed on for generations."
Pay Cash for Large Expenses
You might be used to putting trips and luxury items on a credit card. According to Sethi, that's the wrong move.
"Many people fall into the credit card trap thinking they can just pay it off," Sethi wrote. "But then something comes up, a trip to the emergency room perhaps and that plan goes out the window. One of my keys to saving money is spending what you have only when you have it."
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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