Most personal finance advice is crap. ‘Cut out lattes’? That won’t make you rich. The real money is in optimizing big wins—your career, investing, and automation. I don’t care if you spend $500/month on shoes if you’ve automated savings and investments. The goal isn’t to save every penny; it’s to spend extravagantly on the things you love and cut costs mercilessly on the things you don’t. That’s how you design a Rich Life.
SummaryThe book “I Will Teach You To Be Rich” is a no-BS, action-oriented personal finance book for millennials/Gen Z that blends money management with psychology. Ramit Sethi—a Stanford grad and entrepreneur—rejects frugality dogma and focuses on earning more, smart automation, and guilt-free spending on what you love.
Core Philosophy:
“Conscious Spending”: Cut mercilessly on things you don’t care about (e.g., lattes, subscriptions) to splurge on what you love (e.g., travel, dining).
Automate Money Flow: “Set it and forget it” systems for bills, savings, and investments.
Optimize Credit: Use credit cards strategically (rewards, perks) while avoiding debt.
Earn More: Negotiate salaries, start side hustles, and invest in skills.
6-Week Program:
Banking: Dump fee-charging banks for high-yield accounts.
Credit Cards: Get cards with rewards, pay in full monthly.
Budgeting: Use Sethi’s 85% Solution—automate savings, then spend the rest freely.
Investing: Start with 401(k) matches, then low-cost index funds (e.g., Vanguard).
Housing/Student Loans: Optimize big expenses (refinance loans, negotiate rent).
Earning More: Raise your income through raises, side gigs, or career pivots.
Key Tools:
Automated Money System: Direct deposits split into bills, savings, investments.
The “Rich Life” Quiz: Identify your values to guide spending (e.g., “I value convenience over cheapness”).
Investment “Lazy Portfolios”: Simple ETF allocations (e.g., 60% VTI, 40% VXUS).
Sethi’s humor and tough-love tone make finance approachable, emphasizing progress over perfection.