I Will Teach You to Be Rich | Ramit Sethi | Talks at Google

you could start, for a reason, what I discovered is that I ended up falling in love with the craft and the discipline to go every day and know that yes, you could watch. in a way, but that's actually a byproduct of all the work you've done every day and perfecting that craft with money, whereas I used to chase money, now I realize that money is the byproduct that has to do with all the right things and In fact, I remember this just six months ago, we were on our honeymoon and I love hotels. I keep a list of hotels I want to go to and love, and I remember we were staying at the last place on our honeymoon. and we were already happy because we are on our honeymoon and having the time of our lives, but I remember being even happier because I was in this dream hotel that I had wanted to stay in for years and I was trying to figure out why I am so happy , even happier than where I started and what I realized was that I could be there with my wife, but also be able to be there and not have to worry about if we could afford this or if we could order room service, which It meant he had done all the right things for years.

I showed up at work. I have a team that is an incredibly talented team. We make the right decisions. We bounced back when we took the wrong ones and now this is the reward. This is one of the rewards of our

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life. I never would have thought about it. So at 22 I would have said like what's in my Excel spreadsheet and what's in my account that's just a number but being able to get in a taxi and avoid the sweat or now being able to dream big and go to a hotel dreaming with my wife is much more meaningful, so I learned to go beyond the dollar amount and that is one of the key things I want to encourage everyone here to learn.

I'm going to show you how we do it. Remember how I said one. One of my philosophies is to spend extravagantly on the things you love, as long as you mercilessly cut costs on the things you don't like. It's a word you don't hear much in the financial industry. Spending extravagantly, what are you talking about? I have to cut back, you know, three cents here, three dollars there, in some ways it's a

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life, that's what most people say, but I don't think I haven't discovered that to be true in my life, so I don't mind.

I would like to ask you now. I'm turning to the person next to you in just a second and I'd like to ask you to answer this question: What do you love to spend money on? It's not that it didn't make you smile, but something specific that you love spending money on. them why and for those of you who are

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ing to tell them how much you spent on it, let's do 60 seconds, I'll bring you back, so, okay, let's bring it back, I want to hear from you, the room wants to hear from you, put up Hand in hand if you're

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ing to share please, we have microphones out there.

I want to hear what you love to spend money on. Let's raise those hands, don't be shy, there's literally no wrong answer, it's just what You love, so let's get a mic in here in the meantime, let's get the mics. We have one there. Let's keep our hands up. We'll get the microphones working. Okay, this way. Do you like spending money on books? Tell me. more why because I feel like I'm gaining knowledge every time I buy a look. I get something very valuable in return. Incredible Incredible. Do you have a bookshelf in your house? Yes, that's my dream.

One of my dreams is to have a huge bookshelf. my apartment or house I have something called the book buying rule refer the book buying rule is if you ever think about buying a book just buy it don't agonize don't debate ten dollars yes it's selfish someone asked me in the back are as if you were rich before writing the book. I make 50 cents per book, that doesn't make anyone rich, that's not the point. I love that and I love that books are your love and joy, they are one of mine too, I also love taking the things I love and putting simple rules on them, why should you even debate for two seconds a $10 purchase that can contain the entire life of an author and that can change your life in a measurable way?

Never Think About It There are things we should think about when it comes to the most important purchases of our lives. Yes, we need to build models and understand it, but a $10 purchase could change your life and you clearly loved it. Who will be the next? Let's go here. Yes, please clean up. Madam and babysitter, okay, tell me why with the babysitter I love. I mean, it's really expensive, but I love not having to worry about it because when the kids have the day off, it's great when they're sick. We used to be so stressed about that and now. with the guilt of the pain that huge sums of money every month come with this relaxation of "it's okay, they're sick", we can still know that they have a person they love and who is taking care of them, we can still go to work and do our thing . and the same with the cleaning lady, it's a great luxury to clean the house again and you know, not have to do it ourselves.

Thank you, thank you for being so sincere. Did you hear the words she used? relaxation, relief, luxury, not words. you usually hear when you talk about personal finances. I really love it. I think we probably share the same money dial. We'll get to that in a second. You and I have a lot in common, although I don't have children at the moment. I hear what you say and I can feel, I can see the smile on your face and feel the relief in what you say knowing that your child is safe and that you too can do what is fulfilling and amazing. thanks for sharing that, who's got another one yeah, who's got the microphone, oh go ahead, I love buying vinyl records, sure, vinyl records, okay, why?

Could you raise your hand high so I can see? Thank you, why do you love them? like the process of finding them sometimes it's not about money it's just discovering them what no it's not about money what do you mean yes what do you mean what do I think I get excited when I see it and no At that moment I don't think about the price, I think about what is its quality and how does it sound and then money is just this factor to get it to my house and I like the allotted time that I have to listen and pick up the Needle and take me to listen to a full album.

Wow, a very interesting journey, a very tactile experience too, by the way, leaving it almost like the equivalent of making coffee. Someone really loves coffee. I want to smell the beans I want to grind. I love the way you talk about it, you know, it's funny, we

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people how to start a business and one of the things we talk about, people are petrified about collecting money and we talk about when you understand your customer and when you find the right price for the customer is a mere triviality and you show that you have it when you say that you love buying vinyl, you mentioned that you like to go through the journey, the process of finding it, which is very similar to when I travel.

I want to research everything and I almost get half the joy out of just figuring out where we can go and then being there is an added bonus, so thanks for sharing that, let's get one more. Yes sir. I am a collector. I have always been a collector. What I currently collect are military. high end tiny military miniatures because they remind me of history because they always have been most of my collections have always been about things related to history and they helped me helped me learn helped me put things into perspective things like that Wow, it's Expensive, yes.

Do you mind a little? It must be very expensive. Okay, I like it. You know what's interesting. I don't know if you live in that area. You know your living situation, but I can almost imagine painting a picture of you going to this area of ​​your house. living space of having this story where you go and like you said it gives you perspective it's a respite in your apartment or your house that gives you a broader vision of what you're doing is priceless, you know, 20 years from now. I'm going to look back and say oh, I wish I hadn't spent those extra X dollars.

No, this is something you probably live and enjoy every day, so thank you for sharing what I call these money dials. Each of us has at least one money. We all intuitively know what our money is, it didn't take long for anyone to turn to the person next to them and share what they love. A money doll is what you love to spend money on, it gives you the joy you really want. spending more on the price is a mere triviality and if I asked you what you would do with the next $10,000 beyond, people give a lot of dumb answers when you ask that question, like I would pay off all my debt.

So why haven't you done it until I owe you? If you had $10,000 more, you would happily put it toward this thing you love, that's a down payment, why is it called a down payment? Because, like a radio dial, you can turn that dial up. spend extravagantly on the things you love, how extravagantly we are about to discover. I would like you to turn to the person next to you and this time here is the question: what if you could quadruple your spending on that thing you love? What does life look like and what would your life feel like? 60 seconds raise your hand, we'll get you the microphones and I want to hear from you.

Yeah, if you could quadruple your spending on what you love, so I was like, um, traveling is like. The only thing I'll spend on is whatever, but if I could quadruple my spending, I probably wouldn't fly economy in Norway and I wouldn't stay in hostels or Airbnbs. It would probably increase the luxury aspect and tell us what it would be like to expand it. For you, yes, if I could buy a first class ticket, I would like to have that option. I'd probably go to further out places I've never been or flights I've ruled out dogs being on too.

Expensive I would take them anyway Do you have any idea? Do you have a secret list? Where would you go before they are underwater? I would love to go to the Maldives so that's probably number one on my bucket list. thanks for sharing, thanks yes, yes mine isn't very deep but I would be the fittest person you have ever met. I love fitness and I love fitness classes. I close my eyes to my monthly bill, you only spend what I want. okay, but if I was really rich that would be great, okay, I heard a lot of things, mind if I ask you a couple of questions, don't be nervous, don't be nervous because I share the same thing, that's one of my money dials and fitness.

And thanks for sharing that, how come you started by saying that mine isn't that deep? I know she set the bar a little high, it's like she's talking about my kids being safe and you're here saying I want to go to work, you know? working out in Rumble, I get it, yeah it's cool, but what's behind this? Why do you love fitness and being in bed? I love fitness for several reasons, but from what you said, I like the discipline and having that routine. It helps me clear my head and stay balanced, but also through it I have met a whole community of people and that has become a very important part because when you walk in and see the same people at 7 a.m.

In the morning, yes, you have a connection with that too. Does anyone in this room feel that a community and a discipline are actually a very deep set of concepts? Thank you for sharing that we often talk ourselves out of doing the things we love and that we often minimize. They like they're just vain, but you're rich, life is yours, it's not mine, it's not your families or your parents, it's yours and what I want to encourage everyone here is to really focus on that and don't apologize. therefore, my money. By the way, the most common money dials are food, travel, health and fitness, and then there are more or less, there are many more: convenience.

I love that everything is like a ballet. I want to wake up in the morning. Everything moves on my calendars perfectly. organized when I travel my assistant activates our travel protocol and I'm not kidding I know I sound like a serial killer but it works so well it's so good most people here like this guy is crazy but that It's what I love and I don't apologize. On the other hand, there are things I just don't care about. We'll talk about ruthlessly cutting costs in a second, but I want to hear more. I want to hear what it would be like if you quadrupled your spending on the things you love, we have a hand here, yeah, oh, so I really like personal growth books, so I think if I had a lot of money I would sign up for direct mentoring, maybe once with the authors.

I'm like that, but those. They are usually very expensive hmm how expensive it could go up to 10k. I think it's great. I love self-development. I love that that's my old business. I love that you invest in yourself, but I also live it. I don't just sell it to others. people, I also attend a lot of classes, lectures that I don't need to, but I love it, so I really believe in that and I appreciate you saying that what I really loved about your answer is what most people do when they answer the question. The fourfold question is that they think very linearly, one of the says.

I had someone in DC who said I loved eating out. I said, "Okay, you quadruple your expenses." It's as ifI went out to eat four times a week. Come on, so I made a little bit. I worked well with him, I did, I mean all the local hobbies, like these guys like Stan, they're so obvious, he came to the resolution that I had to push him to think big, most of us, right? Is that so? We have spent our entire lives. being told what we can't spend money on, that when we really think about what we love, we don't really know how to spend more on it, so it turns out he loves good restaurants, why, because he never got to eat there when he was a child loves the experience loves the atmosphere loves the craftsmanship of the food presented so what would they do?

He made a list of all the Michelin star restaurants in DC and I said, I love it, who are you? I'll take you and he didn't miss the abuse. I'll take my family with me. That doesn't think linearly, but really thinks in a multidimensional way about how rich your life is. One of my favorite examples of this was a young woman. in Pasadena and she had the whole crowd next to her, they loved her because I asked her what do you love to spend money on and she said, I love shopping online. I love her and the whole crowd was like, “Oh my god, this is crazy,” and I was like.

What do you like to buy? She's like I shop at Topshop. I love her. I said great. Quadruple your spending what you would have, she says she would have boxes everywhere. I love her and then I said: you know? Is it possible that if you spend 2X 4X 10X you can't shop at Topshop, the whole room was completely silent? I never considered that I might not shop at Topshop, we laugh, but how many people in this room have done exactly the same thing? We thought linearly and I said if you raised that money, maybe you would buy from a different brand if you raised it.

Even more, maybe you'll get something custom made for you, what if you step it up even further? Maybe you fly to Italy and visit your favorite brand's factory now. To 99% of the people in this room, it sounds ridiculous, but she really loves. spend so much and she loves that thing, clothes, unapologetically, that could be what she wants to do. She loved how excited she got. I love it, this is my favorite question in all of money, okay, and because people want to talk about what they love, they're never asked. and they have never been challenged to rethink the way they think about it.

Now I said spend extravagantly on the things you love, as long as you cut costs mercilessly on the things you don't love. In my own life, there are several things that I simply don't do. I don't mind not having a TV I use a MacBook Air that's 7 years old I know I should probably work with a dual monitor setup I just don't care and I've lived in the same apartment for 10 years and I've rented and I know society tells you that renting is a waste of money, that's not true, these are things I just don't care about, but on the other hand, convenience, I'll spend pretty much anything, hotels, I'll spend pretty much anything and There are some other examples where my wife and I together create our own money dial relationships that are important to us, so I encourage everyone to really take this concept and think about it and don't stay at the surface level.

It's fitness like yours, cool, really think about what that other woman in DC looks like, she was into fitness too and I told her what your life would be like with a quadruplet, she's like I'm devastated. I was like: I love it, think big, don't talk. get out of this, so that's what I've learned about money dials. I was raised, where our money comes from and the way we think about money has a lot to do with the way we were raised, the way I looked at the world. Imagine I'm putting on a pair of glasses, the lens of my money, the way I see the world was frugal, probably like some of the people in this room and some of the people watching I was raised by two immigrant parents, my Dad worked, my mom stayed. at home with four kids and I remember when we went on vacation, the vacation for us was driving from Northern California to Southern California and staying with family and on the rare occasion we liked to go to Disneyland, which I think which was once or twice that we went. get up very early from our cousin's house go to Disneyland we would prepare lunches because there is no way you can buy six lunches for a family in dissonance too expensive and we would stay until the end of the day very final why because we are not coming back here we have to get everything we can from this place that was my money and I think it served me in many ways.

I mentioned the computer. I don't need certain new things if it works. I like to buy the best. and keep it forever, but I also think there are other money lenses, other ways of looking at the world that we heard on the back of the woman who said she loves to spend on convenience, what's my money dial, she'll say, feel relief, feel Luxury and fortunate security is something we all intuitively understand when it is for another person. Well, we will spend more to keep our children safe. We'll never question it, but when it comes to our own spending, we largely put that frugality lens back on. once society has instilled it in us there are other money lenses there is there is the result the results money lens I could work out on YouTube or I can pay a personal trainer to get better and faster results there is experience why do you think that people? go to a really nice restaurant, five more courses, the experience there is pure luxury, the sweater won't last 10 times longer than that sweater, but you just want it and sometimes we need it.

I think of him almost as a musician that you love. have the note of frugality but you don't want to be a OneNote player sometimes frugality is the perfect note but sometimes there are other notes that you want to put in security luxury results whatever your money goal I don't want anyone in this room and Anyone looking to be a OneNote player there are different notes to use at different times so it's difficult, especially for me, it was very difficult to change my vision. I would rather in my early twenties judge other people, that's why I really love that iced tea example because it reminded me of when she said iced tea for the first time.

I was like, ah, this is crazy, she took me back to who I used to be when I was in my early 20s. I would get on a flight and pass by people. in business class or first class and I laughed so stupidly, so why are they spending four times the money? We are all arriving at the same place. What I should have done instead of belittling was changed to curiosity D to see why they are doing that, why would anyone want to spend me that crazy amount on a business class flight? What do they know that I don't?

And I might find that I actually disagree. I do not do that. I don't mind. I don't think it's for me, but instead of closing the conversation with disdain I should have been much more curious and said why someone goes to this restaurant, why someone wants to go to the Maldives, which I did when I was in my twenties. . I don't even know what the reason was and that has really transformed the way I look at money from one note of frugality to being able to hit different notes at different times. One thing I've learned is that most of us have never thought about what our rich life really is, so you ask people what your rich life is.

I told you we actually had some great answers here. The most common answers. I told you three. Most people have complained about money, especially at age 40, it becomes the number one thing. They worry, but they have never spent a weekend reading a good book, most people talk about certain things about money or I wish I could have this, but they have never actually sat down and said what is my rich life so far? the level of I want to be able to buy snacks and without looking at the price if we did imagine how our spending would change imagine how our psychology around money would change now this is important I have learned that this is increasingly important because in the first edition of the book I had all this, you know technical things about Roth IRA and compound interest and everything that's there and I see it updated, it's all there, how you automate your money and what credit cards you can take advantage of.

Yes, use it, what? I realized that if we don't address our psychology of money, no compound interest graph is going to change anything, and from talking to people for a long time, one thing I learned is that the way we treat money is almost like imagining that you are you get on a raft and you are floating down the river it is a nice day the river will end in a good place it is a river of life it is a pretty good life especially for the people who look at these people in the room life is going to know Pretty good, you've already done pretty well.

If the river goes to the left, we go to the left. What I have discovered is that it is much more fun to pick up the paddle and row in the direction I want. Sometimes I can be wrong, but I've learned that it's a lot more fun to map out what my rich life is, and interestingly, the more you actually figure out what your rich life is, for example, vinyl and maybe go to a vinyl making class like original vinyl that I don't know. I don't know, some people around you might say that's pretty strange why you do that that's ridiculous my favorite word that's ridiculous but the more I dialed my money dials in my rich life, the more I realized that I really loved charting my I walk unapologetically and go for it It's okay to spend extravagantly on the things I love and cut costs on the things I do Now one thing is to do it yourself to create your money rules.

I have ten money rules, you can

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remittance money rules and they are all about spending and saving and one of them is marrying the right person, which I think is actually one of the most important money rules you can have. It's one thing to create your own monetary rules and another to bring in someone else. In this conversation, how many people here are in a relationship or have been in a relationship where money was a topic of discussion? I've had quite a few. I've had magical experiences and I've had challenging experiences and I'd like to tell you a little about both.

My wife is here in the room. I remember when we were engaged and we went out to dinner with two couples who were a little older than us and they asked us. We were planning to go on our honeymoon and we were excited that we were planning to go on a safari for eight or ten days. We told them that we had never been and we couldn't wait. They were excited, oh my gosh, that's going to be amazing and then one of them mentioned yes when we went on our honeymoon, we took six months off and traveled around the world, and then the next couple who was again a little older than us, but we thought you know, they're just not that much older, they said, oh yeah, when we went on our honeymoon, we went for a year, it changed our lives and we left that restaurant.

We seem to be juggling. Who are these people? It would have been easy for us to say that's ridiculous, but together we think we both love ourselves. development we both like to learn about the tools to use and we continue to learn about the tools to use to have these conversations we go from this place of that's ridiculous to this magical question what would happen if we did that and the first thing our mind does is try ? to speak well, we have a business, can we afford it? da da da da what if we can't do it and then we just said what if we did that and when you go from a place where we can do that to how can we make that become magical so we fast forward a few months and decided to take not a one-year honeymoon but a six-week honeymoon and one of our money relationships is our joint money brand and we reach each independently?

With this idea we wanted to bring our parents with us to the first part of our honeymoon, so in Italy we told our parents to show up at the airport and not worry about anything else and we remembered that we took them to a market from farmers in Rome with a chef and we picked vegetables and took them to the kitchen and cooked a five-course meal and it turns out that none of us had ever, the parents had never done a cooking class and we remember sitting there chopping vegetables in Rome. and eating this amazing food.

I remember taking my mother-in-law to the Vatican, which was very meaningful to her and she had never been, she never thought she would go and when they left and we continued on our honeymoon, we just looked at each other. others and we didn't have to say a word, we knew we were creating memories in that moment that we would never forget, so that was our rich life. We also had challenging conversations when we sat down to talk about how money works together for us, how are we going to spend like me? This is so obvious. I have the most beautiful financial systems in the world.

It's so flawless. Everything oriented towards convenience. Perfect. I wanted to jump straight to thespreadsheet. Look at this model. I'm going to build this model. The flow is. it's going to be crazy cell c3 it's so logical it didn't work we look at $10,000 or $1,000 or more and we see different things I see growth compound interest investing I see opportunities I see a really nice hotel that's on my list my wife sees that money, the makes you feel safe. I had never thought about the word security when it came to me, no one here had ever thought about the word security when you think about money, yeah look at that, a lot of people had never thought of it to me, so we were speaking completely different languages and I wanted to jump right into the spreadsheet, but we actually had to go way back for both of us to talk about what money meant, what were some of the phrases we heard from our parents growing up and I would be willing to bet that a lot of We hear phrases like "We don't talk about money in this family." Money doesn't grow on trees we can't afford.

Why would you buy that? When we can do it at home. we unrolled those phrases that we've carried with us for so long that there was no way this spreadsheet would ever mean anything to us and that's taken us a long time, in fact it's still happening maybe you guys can have me back in five years and I'll tell you what else I learned, but that's where money goes from being a pure number on a spreadsheet to what its meaning actually is, and that meaning comes from how we grew up, how we spent, and who we suddenly surrounded ourselves with.

That iced tea example made a lot more sense to me, suddenly the woman who texted me was frustrated enough to text me for the first time, walked up to me and asked for a $3 iced tea, It suddenly made a lot more sense every day. She wakes up and sees that her financial values ​​are being violated, but they have never talked about it and based on her name, I would be willing to bet that I don't know for sure, but I would be willing to bet that she grew up like I probably did with parents. immigrants and I would be willing to bet that the husband, who I don't know, probably looks at this $3 thing and says we made a ton of money, this isn't even a rounding, why are we even? talking about this but they're down here discussing $3 questions we've talked about $30,000 questions and we've even talked about the higher level values ​​what is your money dial how do you see the world through your money lens and what is the from your partner if you have one these are the type of questions I want to leave you with I want you to think about what your rich life is.

I want you to think about what your money level is. That thing you love to spend money on. I want you to think about what life would be like if you spent extravagantly on the things you love and of course, you mercilessly cut costs on the things you don't and first I'll leave you with just three things: your rich life matters, it really matters, take it seriously, Don't talk yourself out of it, don't minimize what you intuitively love. We all know what we love inside, don't talk yourself out of it, if something makes it bigger, lean in, you'll start there and that's a lot more aspirational than how I cut five dollars here and ten dollars there, the more you build your wealth. life and articulate it and maybe even reduce it to five or ten of your own money rules, the more surprising it will be to the people around you, even ridiculous, okay, your rich life is yours, it's no one else's, the second thing is when you're building a rich life from a place of possibility, it would have been very easy for us to come out of that dinner with those two couples and say it's ridiculous who does that, but we were lucky to have really worked to have these Asians from the trade and What would happen if we did that?

What if you imagine that you have a magic wand and that your rich life is totally yours and maybe your partners'? How is? How often do you travel? What do you wear? What is childcare like? Do you bring anyone with you? are the type of questions that are thirty thousand three hundred thousand three million dollar questions and an even higher level and finally the last thing I want to leave you with is my personal dream, my dream is that if you are in this room or you are Seeing yourself on the page one of my book, I put my email address.

I want you to read it and send me an email and tell me what your rich life is. That is my dream because my mission is to go and stop people from talking only about that. cut back and actually talk more about what your rich life is like, using the tools, investing, growing, negotiating your salary, that's all there, but what I really want to know from you is what your rich life is. Thank you so much. Thank you.