I Will Teach You To Be Rich / Ramit Sethi

Intro-Would you rather be sexy or rich?

• The Rich Life is about freedom.
• FIRE - Financial Independence, Retire Early

#1. Optimize Your Credit Cards

• Doing nothing is the worst choice you can make.
• the best time to start investing was ten years ago, the second best time is today.
• The problem, and the solution is you.
• Get really specific.
• there's limit to how much you can cut, but no limit to how much you can earn.
• The most advanced thing you can do is the basics, consistently.
• One of the key differences between rich people and everyone else is that rich people plan before they need to plan.
• plan to achieve financial freedom
• Having 2 or 3 cards is perfect.

#2. Beat the Banks

• Choosing the bank - trust, convenience & features.
• Bank is the first defense in managing your money, it needs to be easy to put money in, get money out, and transfer money around.

#3. Get Ready to Invest

• Put simply saving is not enough.
• Investing is the first and best way to do it.
• Albert Einstein - is mankind's greatest invention because it allows for reliable, systematic accumulation of wealth.
• Open an investment account.
• Older people are more worried about running out of money than dying.
• 3 categories of people
  - A : already managing their money and want to optimize what they're doing.
  - B : the largest group - not doing anything
  - C : unwashed mass of people who are a lost cause
• Forties: they suddenly realize that they should have been saving money all along.
• Don't put off until tomorrow what you can do today.

#4. Conscious Spending

• Conscious spenders care about the value of something.
• Conscious spenders try to get the lowest price on most things but are willing to spend extravagantly on items they really care about.
• Conscious spenders think long-term.
• Habit don't change overnight, and if they do, chances are they won't be sustainable.
• make is a bite-size on in.
• Follow your own plan for gradually increasing it. in this way, time is your friend.
• Once you spend the money for that month, that's it: you can't spend more.
• these are training wheels. build the habit first. systematize it later.
• Quantify it.

 

#5. Save While Sleeping

• Making your accounts work together - automatically

#6 The Myth of Financial Expertise

• Ultimately, expertise is about results.
• In truth, being rich is within your control, not some expert's. Acknowledging this fact takes guts.
• The fact is that nobody can predict where the market is going.
• Don't wish it was easier, wish you were better.
  Don't wish for less problems, wish for more skills.
  Don't wish for someone to hold your hand like you're a four-year-old skipping rope and chewing bubblegum, wish to build discipline of long-term investing, like an adult. Other have done it and you can too.

#7. Investing isn't Only for Rich People

• Imagine one day you woke up and you had enough money in your accounts to never work again. in other words, your investments were generating so much money that your money was actually producing more money than your salary. That's the Crossover Point.
• Creating your own portfolio takes significant research.
• The returns of fine art have been significantly overestimated, and the risk, underestimated..
• John Maynard Keynes's massive art colleciton

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#8. How to maintain and Grow your system

• You've done the hard work. what's next?
• dark side of blindly following the idea of being the best without reflecting on why you're working so hard.
• Why do you want more? freedom, security. Those are fine but I want to challenge you to go deeper.
• I want you to be educated about taxes.
• Pay your taxes, and be a contributing member of society.
• You should think twice about selling.
• Young, single people don't need life insurance.

#9. A Rich Life

• Money is an important part of a rich life.
• Living a rich life happens outside the spreadsheet.
• Remember, investing shouldn't be dramatic or even fun - it should be methodical, calm, and as fun as watching grass grow.
• Remember that nobody cares about you.
• Videotape it - you'll be surprised how much you learn with this.
• Housing - the longer you stay in your house, the more you save.
• Priorities are essential.