I will teach you to be rich is the all time best seller which is going to show you different ways to be rich and achieve your life goals no matter what work you do or what stream you are working in.
Everybody wants to be rich but the author wants to ask you, what being rich means to you? If you can answer this question to yourself, it is very easy to overcome any hurdle. But if you can’t than reading this Blog will clarify most of your queries in mind.
1. What does rich mean to you
You have to ask this one question to yourself, what does being rich means to you.
Remember one thing, ” There is always more power needed to say NO to things you don’t need and there is always much more power needed to say YES for things we need “.
Choice is yours, Hustle is yours since Dreams are Yours!
You also have to keep your current financial conditions in mind and also have practicality in your answers so we can talk real value here.
2. Beware The Minutia
Benjamin Franklin once famously quoted this sentence : Don’t put off until tomorrow what you can do today.
There is not correct time, place or strategy to start something. All you need is self belief that it can be done and your dedication will make it happen anyhow. You must start early!
Procrastinators always finds a reason not to do it. Either the value/amount/gift/reward/achievement is small but the efforts or the journey which you will go through to accomplish something will be forever in mind.
There is No better day to start than today.
In case of money, everything starts from a small amount. Everybody wants to be millionaire but it all starts from 0.
3. Swap Your Attention From Micro to Macro
Author of the book i will teach you to be rich, Ramit Sethi wants you to shift your focus on the Macro instead of Micro savings. Think less about saving on 2.5$ coffee , 10% coupons or 0.5-1% more interest on savings account.
Shift your focus to major 12 points which you are going to check in below image. This includes pay off your credit card bills, buy what you need not what you should to look rich in front of people you don’t like etc.
12 Major ways to swap your attention to the Macro.
Once you attain 3-4 checkmarks in the above 12 point, you won’t even need to save on Micro anymore.
4. Set Up Your Automatic Money System.
Here instead of manually trasfering money into our savings account which we hardly do, Author suggests us to setup an automatic money system and divided it into four different buckets.
- Fixed costs ( 50-60%)
- Investments ( 10% )
- Savings ( 5-10% )
- Guilt Free Spending ( 20-35% )
Automatic system makes you independent on all the distributions and headache each month.
Build your income distribution strategy and turn it Automatic
If all the money is already transferred to the right place, we won’t get any urge to spend it viciously.
5. The Pyramid of Investing Options
Pick your own index funds, mutual funds and invest in target date funds are the two most long term safest investments according to Ramit Sethi. If you are looking for a retirement settlement fund, this is the best way for you to decide.
Higher the pyramid goes, more easy it becomes but the things is you need to study more through our blogs about investing in target date funds. Blogs coming soon.
Three Stages of investing options to secure your Retirement
These were all the five takeaways from the book ” I will teach you to be rich ” by Ramit Sethi. Thank you for going through the Blog, hope you got all the values which we wanted to share. Stay tuned for more upcoming blog.