The Money Expert: "Do Not Buy A House!" 10 Ways To Make REAL Money: Ramit Sethi

Ah, this is driving me crazy to

make

a lot of

money

, you don't need to be a genius, you just need to remember a few key things, Ramit Sethi, the financial

expert

, the

money

man, the New York Times bestseller has more than 20,000 stories of documented success. It's your chance to never worry about money again You can live a rich life no matter where you come from No matter your income How many people are clear about what their rich life is like Less than one percent When I talk to people who have a spending problem 100 Most of the time they al

ways

say the same thing, I just need to earn more.

If you double your income today, do you think your problems would disappear? Some of the statistics I got from your book about 25 people who made a hundred thousand dollars One more year we continue to live paycheck to paycheck

make

s us

real

ize that maybe the things we think we need are things that we have been taught socially and are important For example, owning a

house

is the best investment, it means you are successful, but it can be a very good investment. bad financial decision there are much better investments, much simpler, so I have 100 pounds that I want to invest, where do I start.

I love that we're getting into the nuts and bolts, let's do this exercise together and everyone can do it with us. first and then I understood it now there is only one more thing you have to do do you know the calculations? I would have 736,000 in my account yes

ramit

s 10 rules of money this is where true wealth is created number one this episode changed my perspective on money I am an investor I have been investing for the last six seven years at different levels big companies small companies the S P 500 funds, whatever, but

ramit

changed his mind changed his mind about spending money investing and changed his mind about something that I think 95 of you who are listening to this podcast and are about to hear this too They need to change their mind: if they have the right philosophy towards money, the right perspective and mindset towards money, then there is a way to live our rich life to become rich that not enough people talk about he debunks the myths of money, the limiting beliefs about money and confront all the useless money advice that stands in the way of you becoming rich there is an app on my phone that I now installed because of this conversation and there are three great investments I have made in my life because of this conversation and there's one key idea that I now believe will make me ten times richer in the next three decades because of this conversation you're going to love enjoy it stay someone just click on this podcast on YouTube on Spotify on Apple and saw the title saw the thumbnail thought it sounds interesting tell me why you think they should stay and listen to what we are going to talk about today what can they gain by giving us their time every time someone hears someone talk about money they instantly stiffen they think that Someone is going to come in and tell them you can't spend money on lattes you can't go on vacation you can't buy new clothes save all your money until you're 90 and maybe just maybe then you can spend it and I don't believe in any of that.

So, I think you should spend extravagantly on the things you love, as long as you cut costs mercilessly on the things you don't love. I believe you should live a rich life today and an even richer life tomorrow, so when you combine money and psychology you begin to understand that there is more to a rich life than just a number on a spreadsheet. People already know that they should save more. They know about compound interest. They may not know the intricacies, but they understand that if they invest some now, they will have more later. What's happening?

Stop them, that has been the central question that fascinates me for the last 20 years. So when I studied human behavior, persuasion, and psychology, I was obsessed with this question of what are the things that we know we should do but still do. You can live a rich life regardless of where you come from, you can live a rich life regardless of your income now of course having a higher income helps dramatically but just like Fitness we can all improve where we are and that's what we're all about. we can talk. about today when you talk about the language of money, what do you mean?

I mean understanding the nuts and bolts of money, the same way we all learn to drive, learn the rules of the road, when to use our turn signals more. many of us don't even have the equivalent knowledge of money, for example, the basic language of money would be what percentage of your income are you saving and why what percentage are you investing and why when will you have a hundred thousand dollars or five hundred thousand or a million of dollars and what that money will give you because simply having a million dollars in the bank makes no sense what it gives you specifically this is the basic language of money you have to know your four six key numbers in your life not many just a few but one once you understand those numbers it's like understanding the speed limit understanding the speed limit means you understand a lot there is a traffic rule if you go too fast what is going to happen why these rules exist and these rules are similar in money, you can break them, okay, but first you have to understand the rules, what are those numbers I need to know?

There are four numbers that I

real

ly like to track. I follow them myself and these are the numbers I recommend. The first is your fixed costs. those would be your rent or your mortgage, your debt payments, groceries, the money you spend each month, which is essentially fixed and the number I recommend for that is 50 to 60 of your take-home pay, so that would be if you're spending 50 to 60 percent of what you earn what you take home in rent your groceries any debt payments your car you are in good shape next is your savings which would be approximately five to ten percent of savings can be things like an emergency fund, savings for a car down payment, things like that, third place is Investments, this is where true wealth is created and for this, five to ten percent of what is take home is fine, of course, the more you invest, the more you will have and then the fourth category, the one I like the most, is called guilt-free spending. net pay, so if you're watching or listening to this, take 15 minutes behind your napkin and write down your ballpark numbers;

You won't even have to make them perfect and you can compare how you are. expenses compared to those numbers I will tell you that those numbers tell me a lot, it's almost if you show me those four numbers of your expenses. I can say a lot. I can tell what you love to spend on. I can tell where not. I can tell what your priorities are and I can also tell where you are misaligned, so I'll give you an example when I ask people what your rich life is. One of the common responses they say is: I want to do what I want.

I want when I want I go oh God, no this answer again I hear it every day I say wow, that's very interesting so what do you want? They say uh uh most people have never thought Beyond a trite answer, so the next answer I often get is freedom I want freedom I'm cool that sounds good What is freedom? I want to do what I want when I want. I look at their numbers and see a huge payment they are making for a 30-year mortgage. I see debt payments. See the car payments and I'm going now.

This is interesting. You want freedom, but you have essentially anchored yourself from being able to travel or turn or move. How can those two be? How can you reconcile them? And that dissonance is actually fascinating. moment I love when we experience dissonance, we all do. I say I want to solve more but I don't solve more why and what you will discover is that people often simply have never thought about what our rich life is. these genres these generic phrases Freedom flexibility are just words what I really want someone to say I want them to go much deeper that is to say I want to be able to travel for six weeks a year I want to go to London I want to go to New Delhi I want to go to Thailand because I want to visit my family is a good start if we are even more specific they tell me what airline seat they are sitting in they tell me where they are eating they tell me who they are bringing with them, but simply saying "I want freedom" is so vague that when I look at your numbers, There is often a big incongruence between how you spend and what you claim: your rich life is how many people in your experience of By interviewing people and doing this research, I am clear about what their rich life is like.

You know what you described there. I want to travel for a couple of months a year and then even further down which seat I'll be in. class I'm going to be in while I'm traveling less than one percent less than one percent of people know that no most people literally say I want to do what I want when I want, that's the degree to which they've thought a rich life, why does it matter to be what did that that less than one percent of the people who have it planned have as an advantage or benefit of that meticulous thinking that the other 99 do not have because they can create their rich life?

A life that is uniquely yours is almost like having a hand-made glove, and in fact, the more you craft your rich life, the more disconcerting it seems to the outside world, so I'll give you an example from my own life. I love traveling. I spend a lot. of money when my wife and I go, we travel for months at a time. I love hotels. I love hospitality. I love the details. I love everything. I don't really care about cars, not at this stage in my life, it's just not that important to me, so when I talk about my money dials or the things I love to spend money on, I can spend an incredible amount in a hotel a night just because I love it, but I drive a car that's almost 20 years old. it's just not important to me and I want to hear in your life what you spend extravagantly on but then mercilessly cut costs because I want that duality that indicates that you are intentional about your rich life, what if we are buying things to impress other people and we don't because it's hard to stop looking from the outside, especially it's hard to know if someone really likes Lamborghinis, yeah, or if they're buying Lamborghinis because they got beat up when they were nine years old on the playground. and they are trying to overcompensate and make the world and does it matter where they buy it? does it matter?

I don't know, first of all, how we would know how they would know if there's a difference, do you think? just in your opinion of the impact that purchase has on us, whether we do it intrinsically or extrinsically because I reflect on some of the things I spent money on and say they were for someone else. while there are other things I spend money on that are maybe health or travel related, like the convenience of flying in a good class on a plane, which I know actually adds a lot of benefits to my life, while that mansion I bought in the country when I was 23 or whatever, it was a terrible decision that took me away from my friends because it was an hour and a half outside the city, yeah, and none of my friends came, so I just I arrived at midnight after work to this mansion with this tennis court alone, slept for three hours and then drove another hour and a half back to the city where all my friends and work went.

It was a stupid decision based on external extrinsic motivations. You know, it's a great question and you know particularly. In the United States we love this idea of ​​ownership, we are taught that owning a

house

is the best investment, it means you are successful and if you are renting, no one really says this, but what they say deep down is that you are a loser, yeah okay, this individualistic tension runs deep and has led many people to make poor financial decisions. First of all, you will be surprised to hear my opinion: owning can be a good financial decision, but it can also be a very bad financial decision, in fact, I rent by choice and I live in New York, for example, I lived here for a long time.

I knew that if I bought I would be losing thousands of dollars each month because it actually cost more than twice as much. There's a lot more to owning than there is to renting, but can you imagine the kind of pressures that even I was getting from people coming up and saying, Oh, so you own this place, the place I was renting? I said no, I rent and there was a visible moment of Confusion, they are shaking my hand. They know I'm him. I will teach to be a rich guy, but I rent. How can you teach money?

But renting is not renting for losers and I have to say that because it was rock solid. I'm sure my decision didn't affect me, but I also want to say that many of us buy things based on status, like the idea that we don't buy things based on what people around us think is nonsense, we buy things based on Denying it about status is absurd, but I think that for the big purchases in your life, like a house, a car, the big things you have to do numbers and, if you decide, you already know what I want to buy, even a home.

Although it's going to cost me an additional six hundred thousand dollars in opportunity costs and phantom costs, butI will do it because I like it or it makes me feel good. God bless you if you simply make decisions based on what other people surround you. If you do, you will find out what you did. I thought I was going to feel a certain way and I really don't feel that way and that to me is an opportunity for you to question your own beliefs and money is like a personal game of zerosome so I can't spend indefinitely so buy that ridiculous house in the country takes away something that could have really gotten me closer to happiness, like not going with my family or whatever.

I could exactly talk there about buying a property. I find it really curious because the popular narrative is that for most people, the moment they get a decent amount of money it's to buy their first house and that's what people get, they take a deposit of 10 or 20 deposits, whatever and buy a house. Why is it a bad investment? Why is it a bad thing? Because that goes against the popular narrative. Well, first we have to remember where the popular narrative is. came from America, if you ask people what the American dream is, yes the answer is inextricably linked to a single family house with a white picket fence, that's no accident, it's the result of decades of messaging, some might call it propaganda first.

Most people in the world don't live in single-family homes like we do in the United States, which has caused a lot of problems, but leaving that part aside, that's how most people think about buying a home. They think Grandma bought a house in Austin, Texas. in 1970 for a hundred thousand dollars grandma sold it 50 years later for a million dollars grandma made 900,000 they say it's the most profitable thing you can do to buy a house I say, okay, that sounds great, does the Grandma took into account how much she spent? in maintenance for the last 50 years uh no uh grandma took inflation into account and how that affected her performance uh no what is inflation? uh grandma looked at the opportunity costs of what that down payment could have been used for if it had been invested in the S P 500 uh no And grandma looked at all these phantom costs, like the interest on the loan? uh no it's not just the biggest number minus the smallest number that's wrong that's simplistic for the biggest purchase of your life you have to dig deeper again when I was Living here I kept a very close eye on the real estate and the place right next to me, the same square footage, the same number of rooms, everything, would have cost 2.2 times what I was paying in rent, so just to give you an example, if I were paying three thousand dollars a month, it would have cost about sixty and four hundred dollars a month being a landlord, okay, I said, you know what I like to rent, if I have a problem, I just text my landlord, take the thirty-four hundred dollars that I would have spent on being a landlord. taking into account the Phantom costs, the maintenance interest, the taxes, all of that and I just invested it and made more money doing that than if I owned it.

What if you're buying a place to get rental income that can work? So, owning real estate. As an investment, it can be part of a well-diversified portfolio. If you look at the numbers right now, there's a lot of hype. People say, I'm going to buy a house and if I don't like it or whatever, I'm just going to rent it. That's fine, but you have to remember that if your mortgage is a thousand dollars, that's not just the amount you're paying, there's a lot more; In fact, in my estimates I add 50 to that price, that's fifteen hundred dollars a month, which would include a roof repair in 19 years, we have to amortize that, uh, labor costs, interest, all that if you can rent it out and make a profit, fantastic, cash flows, that's amazing, what you find is that most people who buy a primary residence the place they want to live buy it because they want it and then they tell themselves that it is an investment buying a house can be an investment but many times it is not and it is much better much simpler Investments this is my key message that I want to make sure that no one misunderstands me.

I have been accused of saying that buying a house is bad. No, I never said that I will actually buy a house one day and when I do, it will be a terrible financial decision. to do it anyway my key message is for the biggest purchase of your life you have to do the numbers sometimes buying can be a good financial decision often renting can be a good financial decision do the numbers and never feel guilty about renting as It relates to buying a house. I've al

ways

been hesitant because I'm really afraid of the point you made about being anchored to one location, so the way I justified it was by saying well, I'll just use Airbnb.

I'll rent it when I'm not there or I'll rent it when I decide to move to New York or whatever. There is an opportunity cost to being less flexible about where you can be. People don't think about that. especially when they are younger, yes, and probably a little free from the burdens of life, yes, at that time, yes, buying a home is one of the most profound financial decisions that will affect your lifestyle. You can sell a car even at a lower loss price, but selling a house involves huge transaction and labor costs that most people don't anticipate.

One of the reasons I rent is for lifestyle reasons. I don't know if I'll be in the same place for 10 years, which is one of the key things I would encourage people to decide before buying. You want to know that you will be there for at least 10 years. years because then you can spread all those transaction costs, spread them over 10 years they become much more affordable. It's like buying an expensive jacket if you buy it and wear it once, that's really expensive if you buy it and wear it for 10 years. years becomes much more affordable now multiply it by a thousand and that is a house especially for young people.

I don't give a lot of unsolicited advice. I used to do it when I was young when I learned about money and I realized that no one really wants to listen to it, they really don't, if someone comes to me, they come to my blog, my social media, great, otherwise I don't go to go around telling people that you should do this once in a while, even though a young man asks me. I am about to graduate from university, what advice would you give me? At that point the best advice I have is to move to where the action is and it's usually a big city so that would be where there are the most jobs. where there's just more people if you're looking for relationships and there's a lot of tacit knowledge that happens in big cities like oh, have you tried this?

Oh, have you seen that musical? Have you tried this? This idea that circulates so often. surrounding yourself geographically can be enormously rewarding for you as you grow up, you can't do that if you bought a house because everyone told you it was going to be the best investment and if I told you, show me where you ran the numbers that it was going to be a great investment. More than 75 percent of people have never created a simple spreadsheet. How does buying a home compare in terms of returns to something like investing in the S P 500? It is quite poor, in fact, yes, for about a hundred years. great research showing that it has essentially equaled inflation, it has been slightly above inflation.

People find this mind-blowing again because they think someone bought a house for 100,000 and sold it for a million, so it's 900,000, but they don't properly account for the opportunity for inflation. Phantom costs all that, it is very difficult to take these numbers into account, but it is essential because it is the largest purchase of your life. I'll give you another example of where people don't take it into account properly, some people pay a financial advisor one percent. They go to one percent, it's not a big deal, I'll pay one percent, what they don't realize is that that one percent throughout their life will take 28 of your statements and deliver them in fees, think about it if you do a million dollars in investments over your lifetime 280,000 goes directly from your pocket to that advisor's pocket.

That's super contradictory. One percent becomes twenty-eight percent. How does it work? You can simply go online and search for the investment cost. calculator and plug in the numbers with a one percent rate and you'll see the point of this is that sometimes money is highly contradictory, really contradictory, it's not like anything else, if you and I go to sushi right now and get sushi for 20 dollars, It would be nice if we got it for a hundred dollars, what do you think is probably a little better? And if we get it for a thousand dollars, the fish will have been flown in from Tokyo this morning and will be served in an absolutely stunning setting.

So, in other words, you pay more and get better results. We are used to the fact that if I spend more on a sweater, it will probably have a different type of fabric. More in a car, it will look cooler, it will have cooler features, money is not like that if you spend more you don't get better returns you don't get anything better, in fact if something you get worse returns people find this mind boggling because it's counterintuitive but In investing costs matter when buying a house, you have to run the numbers because they are totally contradictory.

Quick, before we get back to this episode, just give me 30 seconds of your time. Two things I wanted to say. The first is a huge thank you for listening and tuning into the show week after week. the world to all of us and this really is a dream that we never had and we couldn't have imagined getting to this place, but secondly, it's a dream where we feel like we're just getting started and if you enjoy what we do. here, join the 24 people who watch this channel regularly and have hit that subscribe button, it means more than I can say and if you hit that subscribe button, here's a promise I'll make you.

I will do everything in my power. To make this show the best it can be now and in the future, we'll bring in the guests you want me to talk to and continue to do all the things you love about the show, thank you. thanks a lot back to the episode so what is the S P 500 for anyone who doesn't know? Yeah, and what are the returns that I'm probably going to get from investing in the S P 500. I really want to simplify this for people who are at the very beginning of their investing journey, you know, because I mean, this is what you spend a lot of time on. part of your time to do that I just think about my team here, instead of the diary of a CEO, there are about 30 people and we start talking about money. day and it was mind-blowing how no one in my team's lives had ever had a conversation with them about investing.

We all think that investing is something rich people do after age 40 once you have a million dollars, or else. If I don't have a million dollars, the only other way to invest they teach us is to buy a house, driving me crazy. It's true, isn't it? Yes, and the central part of my work is that you can live a rich life and that rich. life can be richer, more vibrant and more personal than you ever imagined if you want to travel you can travel longer than you ever thought you can travel for me in better hotels you can spend more time with your children with your loved ones be Whatever your rich life is, you can do that, but you have to learn some key basic things about investing and money, so let me tell you what I would tell my family when they come to see me and ask me: how should I start investing? ?

The way I advise my family is to get a target date fund so let me explain to you what a target date fund is, it is a single fund and you choose it based on the year you are going to retire so If you are going to retire in 2050, if you are going to turn 65 in 2050, you go and find that a fund is called Vanguard 2065 fund or Fidelity 2065 or Schwab 2006. There are many brokers. These funds are One Fund all you do is put money into it that's it fun like a pie chart it automatically diversifies so as you get older it becomes more conservative because someone who is 75 should invest differently than someone who is 25.

One Fund, all you have to do is set up your money. get into this every month what is a fund a fund is a set or a basket of stocks and maybe bonds so we have all heard of companies like Microsoft Google any fund owns many of these rights and that is important because we have heard about diversification as you should have diversified your investments. Well, how do I do it? There is no need to buy 20 shares and then calculate how much of each to do. It's too much work and honestly, most people aren't good at it.

Plus, even professionals buy a fund that automatically owns a lot of stocks, like hundreds of them, and over time all you, the individual investor like me, have to focus on is putting money into it automatically, so in A fund I essentially have £100 that I want to invest. I find a bottom. Where can I find these funds?many hours in his case, over 60 years, he has earned over 90, I think over 99 percent of his wealth. It happened when he was 60 years old. Okay, think about that, it's all because you started investing a long time ago and what's mind-blowing is that you don't need a sophisticated strategy, you don't need to pick individual stocks, you don't even need to be a genius to make a lot of money, you don't have to To be the smartest person in the room, you just need to remember a few key things, start as soon as possible, okay, and if you're not 16, if you're 30, 40, even 45, okay, start now.

Second, invest aggressively every month, that's critical. Third, keep your costs low. One percent in fees will take 28 of your returns. Two percent will take care of 55 of your returns. Keep your costs down yes. you do those things you will have more money than you ever imagined what are the attributes of someone who will probably be poor in 30 years in terms of that relationship and their behavior with their money are easy they don't invest they feel They are overwhelmed and anxious about money and talk about They do this all the time, but they have never read a single book about money and have deeper attributes that only the rich invest in.

They think Yes, and that's why I'm here. I want everyday people to taste like me. I started, my parents emigrated from India. I had no special investment knowledge, but I had two parents who were educated and encouraged me and told me to learn these things here. We will do it together and that was a gift. Ordinary people can accumulate enormous wealth, which in itself is impressive, but it is even more impressive when that wealth is used to live a rich life, a life rich with adventure, spontaneity, and generosity. Statistics I got from his book, about 25 percent of people who make a hundred thousand dollars a year plus a living paycheck to paycheck, according to a recent survey of millionaires by the US trust, 83 percent of the rich say their biggest gains are their investments. they have come from small victories over time instead of taking big risks yes this goes against everything we see on tv because on tv its really boring what are you going to watch on my vanguard account?

Oh wow, compounded seven percent a year, down eight percent. last year and it's up nine percent this year, it's so boring, so we see these cool stories from business owners and we're both business owners. That's great, but a huge amount of my own wealth will come from low-cost, long-term methodical investments. As a rule of life, isn't it true returns? You know, actually, the big returns come from patience and consistency and things that aren't really sexy like they're not instagrammable if I post on my Instagram today, hey. I have some tips for you guys to get rich and I say, I need to invest in this fun thing, then leave it at that, but if I'm going to listen, I have this new NF, this new collection of nft or cryptocurrency coin that will make you a million. percent this year people are going to go all out, that's like something within the human condition where we want big gains with little effort and today we want to get rich quick, same with a six pack, we want the abs on the pack of six. 10 minutes we don't want six pack abs with dietary restrictions and nine months of work that aren't and that's why I have a lot of compassion for helping people unlearn some of the messages about money because we all have them, we all have the equivalent of I want six-pack abs, but we also have something in life that we've spent time getting really good at and we know the secret is basically consistency.

If I ask someone who is an amazing cook, I want to cook like how do I do it? What are they going to use me for? Cinnamon No, they will tell you: Go to the kitchen and cook every day for five years and you will learn when to use salt and when to cook it. For Longer Fitness, you want to ask someone who looks great or feels great about their body, they'll give you a secret workout, no, they'll tell you, "I show up when I feel good. I show up when I don't." t I appear when we think about the people who might be listening now, so there will be someone who is a bus driver or a social media manager, who is a cleaner.

You're a teacher, you're a personal trainer, if you were, if your job was to make that person a millionaire in 20 years, whatever your age is, what it is now, what it is and you were there as a financial advisor, in fact, you were controlling all of his staff. career decisions, talk to me about what you would do with that person at a very detailed level. I would do a few things, number one, the most important things I would do is set up auto investing and be aggressive about it. Two, you have to increase your income, okay, I'm going to be that person, I'm going to embody that person like I just described, so increase my income.

I'm a personal trainer, perfect, so what should I do? Well, you are a personal trainer, so first of all. I would say how much are you charging how are you finding your clients let's talk about that and let's say you're charging $100 an hour and you have clients that say how long they stay on average uh that's exactly what I'm changing perfect Great, they stay longer than two months. I'm very good, how long do they stay? Three months. Three months. Oh. Okay, you're very good. So your average customer is worth 400. A few thousand dollars. Yes. Great, so you're winning.

Let's say 60,70,000 a year, okay, the first thing I do after understanding all this information, I would say okay, we're going to double your income, how are we going to do that? The first answer everyone gives is: I have to find more clients, okay, you should ask your clients, hey, I have some spaces available, who would you recommend, so you should get more clients? Secondly, you will listen to your customers and say, what more do you want? looking I know you have your fitness journey that you're going to go on they're going to tell you I have a 10 year reunion I want to plan that uh someone else is going to say oh my gosh I know I should Eat healthier but it's so hard for me so that you are thinking about it.

This is what you do. You create a package of meal planning services. You can do their macros for them and charge them a little more, say an extra $200 a day. per week or 200 dollars a month, you can also partner with a food delivery service and you coordinate with that company to feed their macros and they deliver it to them and you take a small cut right there, you have added thousands and thousands of dollars per year for client as long as they stay with you, besides that you can do group sessions so go hey I'm going to do a weekend session I would like you to invite your friends invite them for free and of course the people who come, let's say they come between 15 and 20 people, you do a small free session on Saturday, you go.

I am a coach. I work in SoHo. I have three open spaces. This is how you are finding new clients now. by doing two things, you're finding new customers, you're increasing your average lifetime value per customer, okay, that's two things, now let's do one last thing, let's increase the duration that they stay with you, they stay with you for three months. They give them a special offer to stay with you for six months, so when they sign up they will work with you for a month, you tell them, look, it's a hundred dollars right now, if you stay with me for a six month plan, I'll give you my sessions in ninety and five dollars per plan, you will save x five percent one two three, it has increased and if we did the math, you may have doubled your income, it certainly increased your profits enormously, it's all about making sure that you get better performance per hour that you spend at work, but you also make sure that all those hours are complete, then you double down and make sure every hour, because that's your currency.

When you are a personal trainer, you are trading your time. I need to make the most of every hour I spend. I thought about something recently while writing my new book, The Diary of a CEO. In which I wrote these 33 Laws for Building and Getting Great, essentially, it covers marketing and business, you name it, and one of the chapters I look into is this idea of ​​making sure your skills are in the right market, so my company went public and one of the things I learned from sitting with investment bankers for many years was that if you put a company the exact same company, let's say you know the company that makes these silver mugs in front of me, if I take this company public company on the London Stock Exchange, I could get, for example, four times the revenue if I take the Exactly the same company and list it on the New York Stock Exchange, it will be worth eight times the revenue.

Yes, it is exactly the same company. Exactly the same people. Exactly the same business, just moving it to a different market. And what happens when you leave the world of social media marketing? I was 27 years old, one of the first calls I got was from a biotech company run by a billionaire friend who was going public and they brought me in and in the first week when we were discussing what they could pay me, I'm thinking I really don't They can pay me cash because I have enough cash, I don't really need it, maybe they can give me some shares they offered me for my skills it was eight million dollars, about eight million dollars in options that I would earn in nine months taking the company from where it was building the marketing team managing their narrative and taking the company public, which we did at a valuation of about 3.2 billion, their offer was $8 million in options.

I reflect on that and Wow, I had spent the previous 10 years using the same skill set to sell consumer goods like dresses and iPhones for Apple, Logitech and big fashion brands. Yes, I took the same skill set and applied it to a marketing industry where biotech people were rare. I don't know anything about Reddit, Twitter, Facebook and social media, so my skill set was uncommon in that market, so it was incredibly valuable and I think about this a lot, especially as this AI thing emerges. I think people should be looking at their skill sets and where my skill set as a writer is that will produce the most benefits.

You could be a social media manager. I could be a blog writer or I could add a little string to my bow and become a science writer or something. work as a writer in biotech and you will get paid if you can add that bit of knowledge to your writing skills you will get paid. I'm going to say five times, potentially five times more, yeah, and people don't think about the fact that they need to use Placing their skill sets in the most lucrative market where it's scarce, yeah, and I, so yeah, I just do it.

I rule out because it's something that's really on my mind right now, like retaining, you know. the personal must be in a gym and you will lose 75 of your income in the gym or you can do it virtually, you can specialize in preparing people at the beginning of the year, it is like your best year and every January is your focus they can be famous clients they can being uh Uptown um mid-career executives that's very lucrative you choose but you choose carefully I agree that it's a bit of an advanced concept I think most people start and say how can I earn more? money I'm a coach, I have three hours, but once you get the hang of that and say, for example, there's a coach I know here that charges $175 an hour, that's pretty cool after you get that down and fill your entire calendar.

See, okay, I'm making 305,000 a year. I want to earn more, how do I do it now? You need to be creative, you move to different markets, you add in the package things that scale when you sleep, you have video courses, etc., there are so many different things. ways, but I think everyone would do well to listen to what you're saying, which is thinking about how to move up in the market or potentially in a totally different market. Well, your skill set is really lacking, yes, and that's the problem a lot of people have. you know their skill set may be too abundant in the industry, like social media managers, even social media managers are one thing, but that's a slightly different skill set because there's a lot of knowledge that's unique to know the algorithms, to know the platforms that exist. a really creative element, but I think about my friend Anthony, he was a graphic designer, the best graphic designer I've ever met in Manchester, but he was designing nightclub brochures and he's talked about this publicly before, not on all the nightclub brochures that he designed.

I got fifty dollars, the equivalent of 50 to 100, right. I had a conversation with him a couple of years ago about this and I said, you're really good at luxury design, he has something beautiful, elegant, simple, but you know. elegant design style I always go to him when I just design work like that, so I told him to move toDubai and going there and helping design luxury brands, yeah, and this guy did it, so he left Manchester where he was doing a nightclub. he flies to move to Dubai and without revealing his financial situation, what I can say is that the same hour per piece of work is now giving him tens and tens more in profit, you know, instead of getting 500, he gets fifty thousand dollars per a project and it is simply moving your skill set, same designing with the same software, to a different industry that will appreciate and pay more for the same skill, the lesson I learn from that Beyond your willingness to make a change, the What's surprising is that most of us think, OK, I'm winning.

I have a hundred dollars a month. What if I had 120 dollars a month? Well, 20 is pretty good, that's awesome, but what if I had 500 dollars a month or five grand? that is a discontinuous jump and to get those kinds of numbers, something big has to change in the business markets that drive the development of a new skill that is associated with all those things, but it is different in investment, it is mainly time and That's where we're not on the same page, we're doing fine. I know I only have a few hundred dollars a month to invest, that's nothing, it'll just turn into a few thousand.

You know you're not thinking about time because the human mind isn't built to capitalize, so plug it into a calculator and you'll see. You will be surprised by the same thing when buying a house, you are only thinking about how expensive the rent is, the rentals granted are very expensive, but you are not really taking into account how much time and money it costs to pay taxes, maintenance and interest on your house. loan, you have to be smart in running the numbers and when you start to sit down when you learn the basic language of money and understand how you feel about money, whether I like status or I like luxury or I don't really care about XYZ when you understand your own feelings suddenly you can almost look at the chess board dispassionately you sit down and say okay I see what's going on here I even see that I'm a player in The Game of Life when it comes to money and then you start saying the most powerful of all: What would happen if I earned more?

What would happen if you spent less? What if I decided that I actually love traveling two months a year or buying a house because I can decorate? it's the way I want, and yes, and yes, and then you can start making moves that align with your rich life. Someone comes to you and says: what about cryptocurrencies? I get that question a lot, oh gosh, what about cryptocurrencies? investing in it, my friends told me about this new currency and I'm thinking of investing a couple of thousand pounds in it. I get this all the time. Should I invest in that currency my friend told me about, so I get this question frequently?

I understood it a lot a few years ago, yes, let me tell you what happened. You know, people read the book and know that I'm a fan of long-term, low-cost investing and then all these cryptocurrency nuts grow and, well, grow. until you are, you know, 19 years old and they say oh ramit seiti, such an old guy, so luddite, he doesn't understand investing, this is the new future, Fiat is dead. I come on, I have a couple of questions for you, number one, what is it? the rest of his portfolio looks like crypto. I'm going, oh God, okay, second, do you think it's normal to return four thousand percent per year when for about a hundred years the stock market has returned about seven percent per year?

Yes, that's because Fiat is dead, idiot, we're going to the Moon. I'm going, you're going bankrupt and a lot of them lost a huge amount of money. My take on cryptocurrencies is if you have a well-diversified, well-diversified portfolio. you want to have a little fun with one, two, even five percent of your portfolio, go ahead and that could be crypto, it could be an individual stock, it could be investing in your friend's bar in Brooklyn, it could be whatever you want, but you have to limit it. your risk and what you find is that the type of people who tended to be attracted to cryptocurrencies tended to be extremely risk seeking and in fact found diversification and risk management to be boring for older people.

This game is a marathon where you want to live like a rich man. In life you want to live it for 60 70 years. I'm not trying to get a ten thousand percent return and then screw it up, and that's what happened to a lot of them. I mean, part of the problem here is that when we get our 10,000 returns ten thousand percent return moment yes, we think it's going to be 10 million percent if only but we're also going to tell everyone oh, of course, never do you hear anyone say let me tell you something thanks for saying I got on Twitter because, uh, you know I play a lot with these cryptocurrency guys on Twitter.

I have a great time doing it. I'm going, hey, where did all the Crypto Bros go? They all seem to have disappeared in 2023, where did you guys go and there are like crickets? In 2020, they were really coming out, you know, guns. I said if you have lost a lot of money in cryptocurrencies, send me an email. I want to share your story. I will keep you anonymous. I have many people who follow me. social media I received less than three responses we love sharing our successes we love it we do it with cryptocurrencies we do it by buying a house and selling it for a profit we do it with businesses we do it with all those things but you hardly ever I hear someone say: "Oh my God, I bought this, I sold it for a fifth of the price, and by the way, because of the transaction fees associated with it, I actually lost like 80 of my money, you know, or 85 of my money, you never hear that.” It's deeply embarrassing that people admitting they lost money is the opposite of status, isn't it? and we are not programmed to seek the opposite of status exactly why we voluntarily lower ourselves to the tribe exactly what we are looking for is security seeking status and this is what happens with money, that is why I talk about prenuptial agreements and that is why I talk about investments and mistakes and everything above is that I want to shine a light and show people if you are only seeing the top of the iceberg. all the successes, of course, you feel that you are behind, of course, you feel that everyone knows something that you don't, but it is complex some people make good decisions others make bad decisions we have to analyze them all and then we will understand what is right for us, my position on cryptocurrencies is um, I believe in the underlying technology of blockchain and I've been a big holder of ethereum for a long, long time, but it makes up less than five percent of my portfolio. although I am a big holder of ethereum and have held it for so long that although I am at a profit point right now, I am very aware that I could go into a big you know in the red, yes, regardless of what have it be inconsequential to any decision, almost like my financial portfolio in general and B, because of that, I have such a long-term time horizon that I could hold it for 30 to 40 years and I have never flinched.

I don't check the price sometimes just checking my password works but I'm not in I've never traded I have no interest in that Ramits 10 rules of money I just want to go over these 10 money rules because you mentioned prenuptial agreements there and I was really curious that number 10 in these rules be marrying the right person, but let's start with number one, we always have a year of emergency funds, yes, to me, a year of emergency fund is conservative, it's more conservative. that most let me sleep at night and I just keep the cash in a savings account, it's not under my pillow, cash doesn't mean it's under my bed, please don't try to rob me, it's cash in an account of savings, totally liquid and that's what it is for emergencies rule number two save ten percent invest twenty percent of gross annual income yes this is all about the numbers I shared and being more aggressive with them.

I know that paying myself first now turns into a lot more later, so I aggressively invest rule three paying cash for large expenses like engagement rings or big parties or weddings. Yes, this is controversial because for things that are important to me I don't want price to be the number one concern, so I prefer to save when I was 20 before I met my wife. I knew I would get married one day, and since I'm Indian, I knew we would have a big wedding and I wanted it to be amazing, so I started saving money automatically every month. do the same for trips home, etc.

Rule Four Never question spending money on books, snacks, health, or donating to a friend's charity fundraiser, yeah, so books and snacks are a little weird. I have something called Ramit's book buying rule which means if you ever see a book that even remotely interests you just buy it don't ask questions don't make a mistake just get it because if you can learn something from that book it can transform your life snacks when I was a kid we couldn't afford to eat appetizers so we went out to eat every six to eight weeks, if we had a coupon we usually went to a pizza place and getting appetizers was inconceivable so now when I go out to eat I can see one or even two appetizers.

That looks good, I'm going, yes, I'll take you both, it feels incredibly rich and this is just an example of how our childhood stays with us. It feels amazing to be able to make that rule number five on business class flights on flights that are over four hours long. Yeah, again, my money doesn't rule for anyone else when I used to, when I was in my early 20s, I would get on a flight and actually scoff in my head as I walked from the front of the plane to the back . I feel like why would anyone spend four times as much money to pay for a first class ticket?

It doesn't make sense, we're all getting to the same place, ha ha ha, I wish, instead of belittling that, I would have been curious and wish I would have said, wow, if anyone can afford to get those seats why would I? I ask what they are spending the money on. Aren't we all coming to the same place and if I had gone from contempt to curiosity from D to C I would have understood that some people have their office? paying for it, some people do it for health because they want to get there, they want their back to feel good, maybe they need to go to a meeting and some people just have enough money to be able to do whatever they want and when I started to get more curious for the money it opened my eyes to be able to spend on certain things and spend extravagantly, but also to realize that maybe I try this type of food once it's cold, I don't need to do it again, so for me my money rules. so I don't have to decide every time I take a flight this is my guide it's done it's written I'll never have to think about it again rule six buy the best and keep it as long as possible yes, I love this I think we all intuitively have this idea of quality over quantity, but if you look at someone's closet or look at things in their house, there may be some inconsistency, so for example, my car is 17 years old, it's a good car, so for me I mean it.

It was a good car I don't care it runs well it's a four-door Honda Accord I told you very sensible long term great uh buy the best keep it for a long time it's the same with clothes um those things matter to me So, I'll buy something that can It may seem very expensive, but I will keep it for a long time. It's good for the environment. Yes, rule seven, there is no limit on spending on health or education. Yes, this is important. I learned it. When I was 20 years old and I started training and learning from personal trainers and nutritionists, I really loved it and I also realized that I need help, I need great teachers and finally I realized that I am going to spend unlimited money on this.

The same goes for education, so I'm a teacher. I teach different programs, of course, I am also a student. I want to learn from great professors, from taking accounting classes here at Columbia to buying every imaginable book and digital program I've ever taught. I myself had the freedom to do that and everything that came from I had a scholarship. I had a lot of scholarships that paid for my college studies and one of the scholarships opened an account for me at the Stanford bookstore, so when I went in there I could literally get any book I wanted it was like Willy Wonka and the Chocolate Factory, for a guy like me having unlimited books was amazing and when I graduated college I realized that was going to go away and then I remember having this conversation with myself and saying how much would it really take to get that feeling back that feeling of being able to get anything I wanted to see a book on the shelf I'll get it and the answer really isn't that much, over time it expanded to health and education Health seems really compelling to me because it's clearly the most important foundation of all of this, it's clearly the most lucrative investment of any of we could do, because everything we havedescribed, the rich life, does not exist without that Foundation, yes, so everything is fine. invest in your Vanguard but it doesn't matter at all if you are going to die, yes if you ask people what is important to you they will often give you the same answers, they will tell you relationships, health, maybe travel, career, maybe yes, I'm doing well.

Let's take a look at your expenses, show me where you spend on those things. It gets very quiet, very fast. Now it's one thing to spend time on relationships and we should, but we can also spend money to enrich those things. You might surprise your niece. a Michael Jackson performance or you could surprise her family by coming home and visiting them. There are many ways you can use money to enrich those experiences. The same for health, it could be what you buy at the supermarket, it could be a workout or a gym membership it could be anything that is meaningful to you, but if we claim that something is important to us, it better show up. in our time and our spending rule number eight earn enough to only work with people you respect and I love this.

I decided a long time ago that I only want to work with people that I like and respect and so I make enough money to be able to do that and to me who you surround yourself with matters deeply ideas seep into your consciousness values ​​seep in if I'm surrounded of people that when I look at the calendar when I have a meeting with them it scares me. I already know it's the beginning of the end. Most of us have to work with them. They are right. Yes. I say I have to do it. Should not.

I use that word, I don't like to say "I have to," but most of us spend most of our lives, especially the first part of our lives, working with people that we may not particularly choose for ourselves. I think it's probably like that. Yes, I built a life where I could make that decision for myself. I'm the CEO of my business, but I think what's important is the intentionality behind it. It's like even if I worked in a company I would be deciding which division I want to work in. Which boss do I want to transfer to based on whether I like him or her and respect him?

That's the intention, are you there again? These are my rules, not anyone else's, but if this catches your attention, then the way I would interpret it is wow, who? I don't like my life who I don't respect I need to be close to them maybe it's not work maybe it's the friend I go out socially with on Saturdays again we have a choice not in everything but in the things we have a choice what a shame if not We use it rule number nine prioritize time away from spreadsheets, yes, a lot of nerds love spreadsheets and they go, I have to optimize cell b43 b43 never answer me, I go, okay, look, yeah, I do you need to know your numbers, yes, you should automatically save and invest all of that. yes, make the spending plan conscious, but at a certain point you won, the turkey is cooking, you won, you know your numbers, turn the page, get out of the spreadsheet, you live a rich life outside of the spreadsheet, so on a personal level, that means I spend less. more than an hour a month in my finances everything works it's a machine it's a system I talk to my wife we ​​talk once every two weeks about money besides that don't waste time tinkering because the rich life is lived having conversations like this seeing friends see my family, that's where I want to live, not endlessly tweaking things without making a 10th marginal gain. you mentioned your wife marrying the right person, yes, perhaps the most important of all marriages is the financial decision and most important relational relationship we have ever taken and People are a little weirded out by this rule.

They say: What does this have to do with money? What are you talking about? The partner you choose will affect where you live. What you spend on a daily basis. What kind of house do you buy if you do it how often do you travel the values ​​if you have children that you pass on to the children of course it's important and that's why these are conversations about if you're starting to date, it's a good time, there are natural moments in the dating process or even the relationship process where you can make money, so it's like the first time you go on vacation together, take a trip, hey, I just want you to know that this is on my mind .

I'd love to put it on the table, love. that you invited me on this trip. I'm very excited to go. I'm just curious. How were you planning to pay for the trip? Who in your mind pays for it? How would you see us dividing this? That's a great way to achieve it. up and you learn a lot about your partner there are questions you can naturally ask you know how you were raised with money what do you remember your parents telling you this is what I remember about my parents genuine curiosity also tells you a lot about your partner and then there are some other natural moments in a relationship where it makes perfect sense to talk about money uh when you get engaged when you get married uh yes and when you move in together before or after marriage uh yes and when you have children, there are natural moments when you receive the gift of being able to talk about money .

Do people talk about money? Couples talk about it. When something goes wrong outside of that. What kind of percentage of people do you think couples rarely talk about money? It's really low I know I talk to them all the time I ask them when you talk about money they go when we're fighting or when they talk about it it's like it's these rhythms that have been created for 40 years oh every time she goes to Target she spends too much Ha ha, and I think that's not so funny, like the joke between you is that she spends too much at Target, it sounds like resentment, yeah, why not be something different so that when you talk about money once ? a month proactively you always start by congratulating your partner you know what I really appreciate that when we travel you always choose the best flights.

I have complete trust because you always take us on time and choose the flies that are so comfortable and I just love you for that, it's a great way to reframe how we talk about money, but instead we often just don't talk about it at all. proactively, we only talk about it when something is a problem. Do you think members should know how much money we have? when you're married, probably a little bit before that, I'll also tell you what happened with my wife and me, so in my book, in chapter nine, I talk about how to talk about money and when to talk about money and, first of all , there are many personal finance

expert

s who say you should talk about money on the first date.

I say, have you ever been on a first date? Can you imagine who is talking about their asset allocation on the first date? a life, so she had asked me, like years into our relationship, a 401K question and I was like, read this book, learn that it's there, so I knew everything about her money, we had talked about her finances and then, when we start to take a more serious one. One day she came to me and said I don't feel comfortable because you know everything about my finances and I don't know anything about yours and that was a sobering moment because I realized that I had violated my own rules in chapter 9 of talking about money early and proactively why didn't you feel comfortable she didn't feel comfortable because she felt like I knew everything and she didn't know anything about me being in the dark about your partner and their finances is very uncomfortable we were planning to get married so , what does that mean?

Do you have debts? Doesn't he have that much money or not? Do you expect me to pay exactly the same amount for this apartment because I don't know if I can afford it. What does it mean for the kids? What does it mean for our elderly parents? All those things. This is what money means. Money is not just an amount on a spreadsheet. Where we live? Security Security Who do we become? And you know, security is a really good, that word haunts me because, uh, we, I realized with horror that I hadn't shared my finances, so we had a series of conversations and as we got engaged, um, we had Plus, we started talking a lot about money and I mentioned.

I told my now wife that it is very important to me that by virtue of having run a business for so long, I have accumulated this business, these assets and I love you, but it is important to me that we talk about a prenuptial agreement and I was very , very scared. I had talked to a lot of friends and I'm sharing this because prenuptial agreements are another thing that always happens in the dark and I don't want people to shed light and understand how these conversations happen because no one talks about this I'm going to talk about it so I was nervous and all the advice online is horrible it's like you have the conversation.

I'm like what conversation, what do I say or some people tell you to blame your lawyer. My lawyer insisted. I have a prenuptial agreement. I wonder if I can't be honest with my future wife, what kind of relationship do we have? That's what I told her and she responded amazingly, she said wow, I didn't expect that! I don't know much about prenuptial agreements but I would be willing to learn more, I said fantastic so we started talking more about it, we both got lawyers as we are both required to do so. Everything was going pretty well until it wasn't and we started really disagreeing about money and we were kind of fighting and she finally said we should go see someone because this conversation is not going in the right direction and I totally agreed with her. her, so we literally went on Yelp and searched for like therapists near us and we found one right there, we went and sat down and this therapist was great, she asked us what money means to you and first she asked me how obvious is it that money means growth like I can literally see the compound interest tables in front of my eyes I know about the rule of 72 and the growth of expense ratios of course she has the same question for my wife my wife says security something just like that, it's like someone is saying metal, money means metal to me.

I say, huh, and that's what we did. I realized that we saw money completely differently. She explained to me why my wife wanted more money just sitting in a checking account when I go, but that checking account is losing potential interest. Why would we reduce our performance, blah, blah, blah? We were analyzing it. two totally different lenses, so that one question was very helpful in reframing our conversations, it didn't change everything overnight, we still had a lot of conversations that we needed to have and even once we got married, we still have conversations now that are different.

It's about spending, investing and prioritizing, but for us it was a new way of looking at the way we relate to money. Where did her lens come from childhood like most of ours? Same for me in fact every time I talk to couples who are now in the seat I was in I ask them what they remember about growing up with money and they always tell me similar things uh my parents never talked about money which is very common or They said certain phrases like we can't afford it, money doesn't grow on trees, we don't talk about money in this family, etc.

Imagine you hear that we can't afford it a hundred times a thousand ten thousand times as you grow up and turn 25 35 you start making decent money, but every time you go to buy something, you feel guilty and anxious and you feel like I should save this money and you can't understand why because on paper you make more money if you came to me on my podcast we would track it and You might realize that it's something as simple and vivid as sitting at the table and listening to mom or dad say we can't afford it. Our childhood stays with us and we can change, but it is very important for us to recognize that it stays with us.

If I go up to my partner and say I want to get a prenuptial agreement and they tell me you don't trust me yes and they tell me no uh what are you doing is that the question well I would say first of all I wouldn't start like that I think that's one of the most important conversations you will ever have in your life and the conversations that follow, so take it seriously, you show up and explain it, I explain it perfectly and they turn around and I say that and they say no, they say you don't trust me uh no , okay, that's a contingency that you might have to plan for, so you might say, okay, can you tell me why?

Tell me what's going through your head. I want to understand your perspective on this. It's a conversation, it's not a dictation, trust, you don't trust me, yes, would you marry that person? I would have many more conversations. I can't say yes or no because you can't judge someone based on their reaction to a situation. I have never wondered how I will react if I get into a car accident and start crying. Can you judge me my entire life based on that? No, but let's say we extend it and you and I are in a relationship and I ask you if it's important to me because of this and that and you say, "No, you don't trust me if you're not willing to even discuss it if you're not willing." to talk to friends to talk to lawyers to talk. to people that you can find on your own or that I can introduce you to, then I think we have a bigger disagreement about values ​​andYou know, the way most of us think about a prenup is that it's usually a rich guy telling someone who has a lot less money to sign this document or it will be repeated over and over again, that's the Hollywood prenup, which I learned is about whether the marriage ends what you had before or whether any agreed-upon assets remain with that person, so if you have a business and your partner and you get married, there is no prenuptial agreement. and for some reason, God forbid you suddenly break up, that business could be at risk, the wallet you accumulated before meeting your partner could go to them and that when you explain it that way most people He says, oh, that doesn't seem fair, but the money you accumulate together as Mary Partners, yes, it should definitely be agreed that the money should be divided, etc., and no person, especially the partner who earns less, should be left out.

Do you ever notice a difference when you speak? these couples or on your podcast um on the gender differences when it comes to people's relationship with money because I read a lot of things about men being more prone to gambling addiction and gambling in general, yeah, Yes, I think there are many differences, I think, gender. It is one of the axes in which people differentiate. I typically see more aggressive investing from men. Normally, if I see a gender difference in investment differences, I would be much more conservative with women. You may see words like Safety and Security used more commonly by women.

Um, but I think there are other axes as well. Socioeconomic class is a very important thing that we talk about and that is something that is very much under the covers, particularly in the United States, but we talk about it point blank if someone tells me that I have been poor before and I can be poor again, it doesn't bother me. . I can tell you how they were raised. I can tell you probably in some geographic area. In fact, if you tell me, my parents said to watch them and not listen to them. That tells me a lot about someone. in their financial behavior, so there are different axes in which different behaviors are seen.

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If you know me well enough, you know how obsessed I am with the smallest details. I believe the little things combined produce the biggest gains in our lives and that's it. Exactly what Woop does for my health and fitness every day, being able to see my one percent gains on Woop has had a profound impact on my health journey. I recommend you try it, all you have to do is search join.woop.com CEO. to get free months of membership and if you do, send me a DM and let me know how it goes. I would love, love, love to know when you look at really successful rich people who are living. their rich life they could be billionaire millionaires or just live their rich life what are the non obvious things the character traits the philosophies towards life that you see if it's I don't know confidence or whatever that means if it's patience what those traits are like in character they are really good at multiple things like really good when I was at Stanford my first year there was a Nobel Prize professor and the professor next to him was making a joke but it wasn't really a joke and he said: you know You will hear stories about a person who is an amazing chemistry teacher, but they are a disaster at home, etc., but not him, he is a Nobel Prize winner.

I think he was in chemistry, he is at the top of his field in chemistry and, by the way, I published articles about music and he is an accomplished father. That was the first time I was exposed to the idea that you can be absolutely amazing in multiple domains because it's a comforting story that we tell ourselves, oh, this person is really good at this, but they're probably a disaster at everything else and What I find is that people who are really good at something, they're actually good at a lot of things, they take those skills and transfer them, they show up on time, they prepare even though they didn't have to look at the whole thing. preparation you've done, that's great, you didn't need it, but you did it and they probably have good social skills. work to flip that coin and then on the other side, the people you'd bet on give me three character traits of people you'd bet would never live their rich life in terms of character traits, uh, number. one, they're surrounded by people who keep them down instead of building them up, so it would be phrases like um, why do you need to do that? um, that's weird, don't get too big for your britches, okay, number two, um, impulsive, they do it. decisions based on what's in front of them versus stepping back and looking at the entire chess board and taking a long-term perspective and if I asked you, tell me two things in your life that you do with a long-term perspective, I would probably would answer I have a hard time answering it, whereas a long-term thinker would say, "Oh my gosh, I could talk about this for four hours, investing, being a parent, traveling, uh, what I wear on my feet and going on and on, perfect health, um." , and three, without a personal vision of a rich life." So if I ask them what your rich life is, they say: I want to do what I want whenever I want.

I go, yes, yes, what I want. You know, I want the house and I want the car, and I go, what kind of car do you like? a Ferrari is cool, like for example a Ferrari, oh it's cool like a red Ferrari, like there's no personal connection to it if they said I want a Ferrari because you know my uncle once had a Ferrari and I saw the race in Italy and blah. blah blah, I say, wow, but if it's just about objects driving without us, it's not interesting enough. I wish I had had this conversation when he was 18 years old.

No doubt he would be in a very different position now. I think if I had I have been even smarter with my money and had it accumulating earlier in my life. My life would be very different. In fact, I reflect and that's why there was such a pause there about whether I would be happier because I don't even know. I'm not even sure your story brought you here, yeah, what you did and look, I wish I had started doing squats when I was 14. I didn't know what a squat was, yeah, so we all deal, we play the cards that we're sorted out and then we do the best with what we have and I never want anyone to feel like it's too late.

There is always something you can do honestly. Your life has obviously turned out very fantastic, but I love that you struggle with these. questions like anyone, we all wonder: is it too late? What if it had started five years ago and of course we can't do anything about it? We have a closing tradition on this podcast where the last guest leaves a question for the next guest. and the question they've left you without knowing who they're leaving it for is, oh, okay, what's the biggest misconception other people have about you? I think the biggest mistake is that I have a very specific way of telling you what your rich life is, but that's not true.

That shows because people often interpret what I say about buying a house as telling you not to buy a house. It's true that one day I'm going to buy a house myself. What I long for is to encourage someone to build their rich life with intentionality. Don't do it like me. My rich life is mine. Your rich life will never look like mine nor should it. The concepts wrong things I am telling you follow this exact formula and you will be rich, don't follow it With this formula you will have a lot of money, but building a rich life requires your unique creativity and only you can do that.

Do you see it as a job that we all have to do, like the kind of exercise you did for me? So far, do you think everyone needs to do that initial work? Yes, of course, otherwise what are we working for? You're saving money blindly, that's what the Diary is all about. You have to know even the smallest detail. It's my perfect Saturday, what don't I want to do? I guarantee it when I ask people what their perfect week looks like. Zero percent say I want to spend three hours doing laundry. I do great. Can we use money to solve that problem?

Easy Luggage at the airport, can we use money to solve that problem? In fact, we will never have to think about it again, so we have to design our rich life, it doesn't just happen to us, no one stumbles and falls and lives a rich life, it is intentional and it is a continuous work and in my opinion it is one one of the most important jobs we can do and that is exactly what this newspaper does. I will teach you to be rich. Daily and throughout this daily you hold people's hands. Through those exercises, but alone or you do it with a partner and you can dream about money, most of us feel so nervous, rigid and scarce about money, we feel ashamed, this has almost no numbers, everything is It's about how rich your life is.

And in any case, you finish this and you dream big, not small, when I look at this journal as I read it, there is a real emphasis here on just turning up the lights in terms of what money is, but really turning up your his self-awareness about his relationship with money as well, which seems to be the basis for being good with money and his other book, I Will Teach You to Be Rich, which is the second edition of this book, the first one came out, I think in 2009, right after the financial crisis, which is perfect timing.

This came out in 2019, so this is an updated version of the book. I mean, millions and millions of people have bought this book. If you don't, they are a lot of money. Learn how to start investing if you have debt and aren't sure what to do, including if you have questions about: Should I buy whole life insurance? The answer is no. Should I buy or lease a car? It's all there, no. Gill, no excuses, no nonsense, just a six week program that works. You are known as the new financial guru and I think you know that we need new financial gurus because there is not enough financial education since the beginning of Our lives, as you saw.

According to my story, my relationship with money was catastrophic and I could be in a very different situation. I am well aware that I could be in a very different position because of those early mistakes and mishaps I made and my early relationship with money. People need to start educating themselves about their money because, as I said at the beginning of this conversation, it's about living a rich life and that's subjective to me, it was having the freedom to choose widely in all facets of my life. where I spend my time and who I spend it with, but it is the basis of that freedom of choice and that is what your book and your work do so brilliantly and articulately, it gives us the path to freedom of choice and we can choose. how is our life rich, thank you so much for your time, thank you for being an inspiration and a strong voice in the conversation about money.

I know a lot of people listening to this podcast don't know anything about money, etc. Having these kinds of conversations and having a practical roadmap for how we can improve our relationship so that we can unlock the future that we want is incredibly important now and I'm sure it will continue to be incredibly important in the future because there will be a lot of things. from influences like Instagram and Tick Tock that try to tell us a story about money and aspirations and what we should aim for, which are useless and counterproductive to our happiness, so thank you ramit, thank you for having me, thank you.