I Will Teach You to Be Rich: The Journal: No Complicated Math. No More Procrastinating. Design Your Rich Life Today.

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Mad Fientist: Now, I’ve heard you do this sort of thing with people on your podcast a lot, but I did not expect this sort of like clammy reaction that I just experienced. So this isn’t even a question on my list because I wasn’t expecting this sort of reaction to those pressing questions. I would say it’s sort of like being in a psychiatrist’s office and the couple are on the couch and you’re there like assessing it and you’re just eavesdropping on this really personal conversation. And yes, some of the higher net worth episodes have been really, really useful to me, which we’re gonna talk about.

I Will Teach You to Be Rich: The Journal: No Complicated Math

Rewrite your money rules (this is a personal favourite, I mean who else doesn’t love creating their own unique rules?) Now, figuring out which side hustle to start is easier than you think. Think about the skills you bring to the table, to start. Ramit Sethi: I think that’s true. I think that a lot of people have been taught well… I think that the world teaches us to save, but nobody teaches us to spend. And if you take that concept of frugality to the logical extreme, then you start to see saving money as a virtue and spending money as a sin. And it seems a little ironic because by the time people are 40, pretty much their number one worry in life is money. So you go, well, why don’t you just read this book or listen to that podcast, YouTube. And there’s a variety of reasons people don’t, but I don’t want to sit here and berate people. Well, that’s not true. I do a little bit. But what I wanna do is help them start to live their rich life. And so I created this journal, and it’s called a no-numbers journal. So you get it and I want you to imagine giving yourself the gift of 15 minutes, your favorite cup of coffee, a quiet room, and you get to sit down and dream. The key message to me is to embrace spending more money than you might otherwise because its value brings you happiness. This is next level optimization to me. It’s about letting go of nominal thinking and fully embracing the value. The key is staring with what you enjoy and then thinking larger. To some this might be a FatFIRE indulgence, but I think it could apply to anyone. Two examples from my life that come to mind:

Mad Fientist: You know what that’s a fantastic idea because sometimes it just doesn’t turn out and I don’t know why. And I’m like, how am I gonna figure this out because it’s not something I can YouTube or something. Because I don’t really know why that’s not as good as it should be. Maybe one day it will, and maybe, you know, I’ll do another experiment once we travel with our new son, which that may change everything. But that’s one of my money rules now because yes, I know I’m not gonna go crazy and just start living this lavish lifestyle that then bankrupts me. And those one-off experiments are really important for pushing my boundaries and finding what it is that it is worth spending on. If you and your partner have a money issue and you want my help, I occasionally select a couple to work with, free of charge. Apply for my help here. How come we don’t do that with money? And so when I suggested to him that there are a lot of people who talk to their kids about money, he was bewildered. Why would you talk to your kids about money? Because in his view, money is something to protect kids from. They could just dream and they can do all these things. And then I kept having to snap out of it and be like, I’m in that position too.

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Money isn’t everything, but if you like to live a life of experiences, it’s hard to be broke. So, how do you strike a balance between your top-heavy budget and some fun money? There are four major components that you simply can’t eliminate completely. They’re housing, utilities, food, and transport. Identify your Money Dials--the things you love spending on, like travel, eating out, health, or convenience--and develop a plan to spend more on what matters to you most. When was the last time you had a raise? If it was last year after a performance review and it didn’t even compete with inflation, it’s time to start doing the math. A raise today could lead to more retirement savings, higher future salaries, a bigger dent in your debt, and more fun money.

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A certain type of sweater, a picture doesn’t do it justice. A certain type of food. When you see it being made in front of you and you understand where the ingredients came from and how it was sourced. Oh my God, I never knew that much work went into this, and how it tastes is incredible. But there are things that are really important to me, and so I actively seek out how to go deeper and make my life easier. And so I’m not surprised that you had that reaction and that you almost kind of seem to go blank when I asked you how would you do it? But that’s okay. It takes a little bit of coaching. But that’s not how wealthy people treat money. That’s not how someone who’s living a rich life treats money. Think about somebody who’s like very good with food. They love to eat healthy food. They’re gonna talk about food with their kids. Oh, come on, let’s cut this garlic together, we eat this because it tastes good and it mixes well with that. I know, it’s crazy. I know. But I learned this myself. I’m like, why don’t you guys just buy this book , and in fact, get it from the library. You’ll solve all your money problems. And there are a lot of people that are just like, mm, I’m not gonna do that. I go, all right, I get it. We have to remember that most people are not buying any book, much less a money book. This is a special solo episode where I answer questions from members of my Money Coaching program. In today’s episode: My favorite services that I use when I travel, how to handle FOMO when you're investing, and also how to handle traveling with other people.

Journal - by Ramit Sethi I Will Teach You to Be Rich: The Journal - by Ramit Sethi

And you define what it is. And if we start from that premise that you decide what your rich life is and suddenly it becomes a lot more exciting to be able to use money to live that life. Mad Fientist: Yeah, so we talked in 2019, and I think for the prior 10 years to 2019, I, we averaged the same amount of annual spend.

Ramit Sethi: Should we get your wife on this call? Is this about to turn into my podcast? This is gonna be amazing. A budget is not a spreadsheet. It’s a proactive approach to your finances and allows you the financial freedom to meet your financial obligations and commitments. Ramit Sethi: Wow. Well thank you. And thank you for giving me the update. And what makes me happiest to hear that is that you’re having fun doing it, which is the point money is supposed to be fun and that you’re doing it together with your wife. That is amazing. That is the culmination. You know, when it comes to money, I’ve learned at the very beginning levels, it’s all about the what… I made a little money, what do I get to buy or what do I want to do with it? And that’s totally cool. I have no problem. You wanna buy a beautiful coat or take a trip? Amazing. I love it. But at the highest levels of personal finance, it is always about the who. Who do I get to bring with me? Who do I get to surprise or delight, and to hear that you’re doing it with your family is just the culmination of what a rich life really should be.