Hello Grasshoppa,
During my recent trip to Japan, I seized the opportunity to complete one of the books on my Kindle app list, titled “I Will Teach You To Be Rich” by Ramit Sethi. It was a 7-hour flight, providing me with some valuable “me time” for reading and watching Brazilian Jiu-Jitsu (BJJ) videos while enjoying the AirAsia Premium Flatbed zone all to myself. I was incredibly fortunate to be the sole passenger in that zone during the flight, and it truly felt like a royal experience.
Over the years, I’ve delved into various personal finance books, and this one, in particular, stands out as unique. While many books preach about controlling expenses and adopting a frugal lifestyle, “I Will Teach You To Be Rich” places a strong emphasis on saving while allowing for spending on things you enjoy. However, it also shares common principles with other personal finance literature.
Here are some key takeaways that I believe could be useful for some of you:
Ramit outlines a 6-week plan to help you achieve financial fitness. In summary, it involves managing your debts, optimizing your finances, preparing for investment, spending wisely, and automating financial tasks.
2. Credit Score ManagementYour credit score reflects your borrowing and repayment history. Maintaining a good credit score requires timely debt payments. If you’re in debt, you need a plan to pay it off.
3. Choosing the Right Credit CardFor credit card users, finding a card that aligns with your lifestyle and has the lowest costs is crucial. For instance, if you love to travel, you can search for the best air miles credit card. You can also negotiate with your bank to waive certain fees, such as the Annual Fee.
4. Conscious Spending, Not the Latte FactorUnlike “The Automatic Millionaire” by David Bach, which discusses the cumulative impact of daily expenses like a cup of coffee, Ramit suggests “Conscious Spending.” This means you can indulge in daily pleasures like coffee while cutting expenses elsewhere.
5. Start Investing NowRegardless of your income level, you can start investing with even small amounts and gradually build your investment portfolio. This approach also helps develop good financial habits.
6. Using Income to Create a Rich LifeEach of us has a unique income and lifestyle. You can live a rich life with your existing income by simultaneously investing and saving.
7. Understanding Your InvestmentsRamit emphasizes the importance of not relying solely on financial experts for advice. Instead, conduct your own research to understand your investments and automate the process.
In conclusion, this book is a valuable read, especially for young adults starting their financial journeys. It offers an alternative to a frugal and restrictive lifestyle, encouraging you to allocate funds for things you enjoy. For those looking to optimize their financial situation, this book serves as a practical guide. I highly recommend it to anyone striving to live a fulfilling life while building a robust retirement portfolio.
OSS!
