Ramit Sethi On How To Be Rich + Having Financial Freedom | The Skinny Confidential Him & Her Podcast

all right i was telling you i'm ex one huge fan read your book a while ago i went into this whole deep dive where i had to read like every great finance book and i think like yours is you're at the top of the heap they're like we i really enjoyed it and i think thank you other people should you know if you're getting interested in it's easy to digest right like it's not this over it's not like a walk down wall street or the intelligent investor we're like what the [ __ ] is going on you throw it away um so huge fan of me uh thank you for coming on the show i told you we've touched a little bit in finance on this show but out of like the 400 episodes it's maybe baby popped up like two or three times so this i think the audience is gonna love this to to start to give context maybe just give a little bit more background in how you became so interested in the topic of money uh first of all for everyone listening who thinks i'm gonna sit here and lecture you about how you can't afford lattes let's just get that out the window right now i think you should buy as many lattes as you possibly want you wanna travel three months a year great let me show you how to do it uh i got interested in this because i took my college scholarship money at least part of it and i invested it in the stock market thinking i was a genius and in 1999 everyone was a genius very similar to how everybody on youtube thinks they're a genius right now you guys are not geniuses you just have a youtube channel and so i lost half that scholarship money and i realized i need to learn how money worked at the same time i was studying human psychology at stanford and i was realizing that most of the advice we get out there is all about restriction it's no wonder that none of us want to do anything with our money because all we do is hear some old guy lecturing us nagging and saying don't buy lattes don't go on vacation and maybe in 80 years you can save up and take a trip to europe what kind of life is that and my friends and i wanted to go out we wanted to pick up a round of drinks and then as i got older my dreams expanded right i want to take more trips and so what i learned about money was first it's so confusing right we have words hsa 401k compound interest all that stuff but just like in anything whether it be fitness or fashion yeah there's some technical stuff yeah you can learn it actually probably over the course of a week or two but a lot of it in money is emotional and psychological just think of the phrases that our parents used when we grew up actually curious to hear from both of you were there any phrases like we don't talk about money in this house or easycom easygo were there any phrases you remember your parents saying growing up about money for me i think we did money wasn't we didn't give it so much energy now that can be a good thing or a bad thing because we my family didn't lead with money that's not what they led with they really tried to my parents tried to push me to lead with my personality that's good so yeah there was it wasn't we couldn't talk about we could talk about it all day but that it wasn't money wasn't the end-all be-all i'm very blase like that though now which can get me in trouble so there's pros and cons of that what do you mean it can get you in trouble i don't have a huge attachment to money i l i i guess i should say this i like to use money on my time i have more of an attachment to my time but being honest like she doesn't it's not that i don't think because that's a heart everybody everybody has some attachment to money because you used to live but she doesn't she's not in the weeds look like paying attention to where the money's going where it's coming from what's like she like she tries to opt out of that area of our life and i've also done even when i wasn't married like i just am not i'm not someone who checks my bank account obsessively i think that when you put out when you put good things out into the world money comes it's like it's like a byproduct of that but let me tell you a funny story every month or credit card steven comes out she goes oh my god somebody stole my credit card look how much they spent something happen the truth comes out i'm really serious i'm like someone actually didn't steal my she's not saying that she's dead serious and we audited every time i'm like nope that was you so like that's one of the downfalls of never looking so happy and by the way i appreciate hearing that i actually think that if you set up your finances in my philosophy you spend less than an hour a month looking at it my nightmare i told my wife this when we met my nightmare is 10 years from now we're sitting there every month auditing how much we spent on lettuce at safeway like i don't want to live that life what i do want to do is set some basic rules right and those rules can be things like save 10 invest 20 they can also be really permissive rules like hey when i travel this distance i want to fly business class or if my friends are doing a charity i am always going to contribute always right or tipping x percent minimum those are really nice rules we can set for ourselves so i love that the part about not being in the weeds about money i do think you should probably be aware of what's going on and we can talk about that but no i actually think people i always say a rich life is lived outside the spreadsheet you do not want to be sitting there looking at every line for the rest of your life that's just not a good use of time michael grew up completely different than i did well i grew up my parents were first generation of you know they like they they grew up hard upbringings and they're the first generation of their families to like do well for themselves and so and my dad's an entrepreneur like there's a there's an emphasis always on like working hard being successful and at the end of that rainbow is obviously like a financial reward so like i grew up in a where like in the beginning of my career my focus was money how do i make more money how do i like regardless of like what it takes so when we started dating it was like money was such a big conversation and i was like what's happening because i didn't grow up like i was the poster child for what douche bags do with money when they get money right right right right right right right right right right right right right right right right like what like you go into a nightclub you're spending stupid money you have a stupid watch loves you i'm sitting there like with a girl like the most grumpy face like just getting dragged through it i am glad i went through it though because my relationship with money now is much different i'm much and we talked about a little we can dive into it but i don't use money anymore for any kind of external facing thing right i don't like i don't look at it as something that defines or represents me anyway to me it's it's a tool for um owning more time for having more autonomy for giving you a little bit more comfort right like for providing for family so like i and also for building businesses i've realized like it's not really the money that's so enticing it's the actual building and working with people and creating things but it took me 10 years of beginning my career to figure that out and 10 years for me to say like okay like this i had no understanding of what it really was i think our goal today and we have a hundred questions for you is i think what michael and my goal is with money to have like he just said autonomy that's the most important thing to us yeah i hear that both of you mentioned uh money's a byproduct and you like to buy your time back your convenience let me share a concept for everybody listening we can start off with talking about what people love to do with their money right this is a total reversal of what almost everybody experiences with money which is what not to do so if i were to ask the average person this is a exercise that i do i say what do you love to spend money on and everybody has an answer they don't even need to wait so the answer is can you guess the most popular answer travel no travel's up there but it's not number one car no way house no materialism uh maybe it's eating out i love to eat out okay that's number one by far number two is travel okay number three is health and wellness especially in la or new york and after that it dr drops off a sharp cliff you both have the same money dial i do i call it a money dial because you can turn it way up or you can turn it down mine is convenience so i have a personal assistant if you go into my place you know everything's like perfectly laid out i could go blind i know where everything is i just love spending money on that and it sounds crazy right i sound like a nut not to me but exactly to both of you you're like oh i get it i get it perfect um what i love to do then so once they've told me you know i love to eat out then i ask him this question what if you could quadruple your spending on eating out or on that money dial what if you could turn that dial up so i remember i was on book tour in dc and i asked this young guy this he said eating out and people always have the same sort of it's not that funny of an answer but it's like a haha joke he goes well i guess i'd have to go on a diet because i'd be eating out four times a week hahaha i go okay hahaha but really and he goes you know what i actually have a list of every michelin star restaurant in the city i said okay who would you take with you and he gets really quiet he goes i would take my family i said why he said because they've never been able to afford to eat at places like that that is a rich life that is starting out with your money dial the thing you love and then for the first time in your life actually envisioning what would it look like feel like to spend more to spend extravagantly on the thing i love if i like to travel awesome maybe i can take my family with me maybe i can take a friend maybe i can travel business class or order room service for the first time whatever you want and this can it's not just material things for yourself a lot of people say generosity is their money dial fantastic new rule you're going to tip a minimum 20 everywhere you go whoa that sounds crazy okay then make it 10 whatever the number is you can use this concept of money dials to start spending extravagantly on the things you love and what that allows you to do is then to look at the rest of your spending and say you know what i'm going to cut costs mercilessly on the things i don't care about i have a quote it's so funny you say that because one of the things i was going to ask you is like literally a quote it says a rich life means you can spend extravagantly on the things you love as long as you cut costs mercilessly on the things you don't and i want and i my question is can you explain you just you just explain exactly yeah and i want people listening to get rid of the guilt if for example you love spending on clothes so many of us are raised in this culture to think that that's frivolous i really don't give a [ __ ] if you think it's frivolous if you love it then let's talk about how to use your money to create that as part of your rich life if you love convenience and you say like i want everything color coded in my house but people will think i'm a psycho i don't care it's your rich life your rich life is yours it's not mine it's not your parents it's not anybody else's so i want everybody to start thinking of how they can actually spend more on the things they love and that totally changes the way we think of money suddenly it's not a source of guilt and overwhelm and restriction but now it's a source of oh my gosh i love to travel and you're and you're telling me i can actually do that guilt-free maybe even spend a little more oh now i'm interested in money a lot of what i think what first what led me to your book and what led to these conversations is we didn't have that we didn't always have this relationship with money right but at one point it was a very stressful topic at least for me maybe not as much for lauren but it was like this thing that was overwhelming i remember a certain period of time like i always focus on earning but i never wanted to look at any of the accounts i never wanted to face what was going on didn't want to look at any bills just go i think there's a lot of people that are in that position where it's like this thing is so daunting it's so overwhelming at least in their minds right now that they just don't they just don't address it they don't look they don't take it on what can people do if they're in that position and they're like okay i have never thought about money i've never like what is step one for these people when you start talking to like the money issues well first off i understand the overwhelm and the confusion so i recently got some i started a new podcast and i got some gear for my home office and i don't know some sound equipment i don't even know what it is and it comes with this little instruction manual it's like the size of the palm of my hand it's like a child could read it and i open it up and i have never been able to put ikea furniture together i just can't do it so i'm sitting here looking at this thing i'm flipping the two and a half pages that it is and i go i can't figure this out i'm doing it for 15 minutes i cannot figure it out what is going on and i thought to myself oh my god is this what people feel like when they look at money you know they see these words uh asset allocation and they're just like i don't get this [ __ ] it i'm gonna put this away and just go back to life and i get that we all have something in life that feels overwhelming confusing but we also have something in life where we feel really good about it right it could be you know how to cook or you're good at fitness or you're great at style whatever i would like people to really first start off by connecting with how you talk about something that you love so if you have a dog right i don't have a dog i don't want a dog if my wife is listening to this she desperately wants us to get a dog babe i love you but i don't want to get it let me tell you something as a married man you're getting a dog so every time she brings up this dog here's the first thing i bring up oh we gotta walk this dog and we can't travel and all this hair all over my sweaters and she's like yeah okay but we'll love him and but all i can do is think about the negative things now if you have a dog again you're listening to me saying this guy's a psycho but everything i said is true that dog is gonna shed and it is gonna be hard to walk and this and that but you have decided to look at the positive that's what i want you to believe is possible with money so you're sitting here you're overwhelmed you feel like you don't understand all these acronyms fine we'll take that step by step what i find is that most people who feel overwhelmed with money have never spent one weekend reading a book about personal finance not one are you looking at me i've never read a book on personal fine i'm a huge reader i read two books a week i've never read it that was difficult first of all no judgment how come honestly my husband's really damn good at it and that's a horrible thing to say but i'm being really honest i should probably know myself but it's not the first topic that jumps out to me when i get to spend my time reading yeah i get that but maybe i should i'm gonna read yours no okay i i hope you do i'll say this i'll say two things about this first the husband comments i know because when i so predictable well no when i got married i my wife and i had some really challenging conversations about money and i have to tell you especially in couples where there's one person who's more sophisticated about money or more experience maybe is a higher earner it's very easy for them to become the money person right and i think in any relationship you know we naturally are stronger at certain things and and he or she is naturally stronger at other things so we kind of take on our roles but i told my wife i said i don't want to be the only one i don't want to be the money person in this relationship for a couple of reasons one day i'm not going to be here i might get hit by a bus who knows what can happen the worst thing in the world would be that you are sitting there now in grief and you have to figure out how this money thing works that's number one and then number two this there's gonna be a considerable amount of wealth here i want you to feel comfortable to be a good steward of this money so that it's not just something that exists over there it's like if the two of us go kayaking or something you don't want to be the only one rowing both of you rowing in the same direction makes it more fun you have some skin in the game and you're going towards a direction both of you want to go and when i explained it like that my wife was totally in like yeah okay and that's didn't make it easy we still had to have a lot of challenging conversations but i do think that money unlike washing the dishes or something like that is something that both partners should have at least some skin in the game on i 100 agree and also like both you nailed that on the head talk like that's one of my fears now we have especially because we have a kid i'm like i don't i don't want you not to know what to do or where to go or where to find things i don't want someone else stepping in telling you what to do i want you to understand it but the other part of that is i don't want to create a weird dynamic for us this i'm not saying this should happen with every couple but for us like money is not necessarily an issue because we look at everything as like this collectively it's completely equal like like we're not saying like this is mine this is yours like we like everything's on the board um but i don't i don't want to create a power dynamic which i think happens in a lot of relationships where i do become the money guy and it's like you have to come to me for the money and ask what you can spend and ask i don't feel like it's ever been like that so maybe that's maybe another thing why i make my own money he makes his own money what's mine his what says his mind so that's there's never i don't think we've ever really gotten into a fight over money so maybe that's why i haven't been pushed to read a book i'll challenge you on this so it doesn't sound like that is really the issue it sounds like you have been very successful so it's not like you're fighting about you know how much can we spend at target or something like that so you've kind of checked the boxes on all the easy stuff now let's talk about not playing defense but going on offense yeah that's what i need that's why i need to read your yeah so watch this the two of you right now let's use the kayaking example although i don't kayak at all so this is going to be a horrible metaphor so the two of you you're you're rowing you're not but you're on a nice river and it's going really fast so it's like pretty easy right everything's good here's what i would say um i got to give up on this kayak metaphor because i don't know what the hell is going on let's just do this exercise together okay let's do it live right now so in the next 10 years what is on your bucket list in the next 10 years what's on your bucket list and it can be for you each individually and then maybe there's some overlap some joint stuff as well let's try it my bucket list is i want autonomy that's number one important thing what does that mean meaning that i am able to wake up and set my day how i want to structure it entrepreneur wisely what time do you want to wake up seven okay um i also want to be fluid i don't want to stay in one house for my entire life i want to be able to be like oh maybe we move here maybe we go here i don't i don't want a predictable life i want i want it to be spontaneous so in the next 10 years which city do you want to have a house i don't know that i do know that i would want to be in a different city than we are now just because i don't want to be attached to a city great by the way i'm pushing and probing here because i want specifics a rich life is all about the details so when you say i want to wake up you know when i want i say what time you say i want to travel to bali i say what airline seat do you want to sit in i want that level of detail because that's a vivid rich life anything else i mean it'd be nice to have our own form of transportation no i think i'd love like i'd love to travel very you know i'd love to travel and do what i want to do when i want to do it so where do you want to go i don't know maybe we spend three months in europe maybe we spend three months in australia i don't want like this predictable life i want it to be very spontaneous so give me a number for how much you want to travel in a given year two months i'd say three i'd say three okay love it now don't worry you know you're you're setting your own life goals so if it changes and it's one fine but if i'm traveling and i want to wake up and i want to work that day then then i can do that too i don't want to be i just don't want to have like a structured predictable life yeah i can hear you you like fluidity you don't want to feel boxed in and you want to construct a life around that fluidity love it okay um what about for your next well my bucket list things are a little bit more straightforward like i i would like to be able to have maybe two more children right so that's on the list i would like to be able to be able to go when we travel this is like some people not like this answer i would like to be able to use any form of transportation that i want what does that mean meaning if i want to fly private if i want to go no i don't necessarily want a jet but if i want to chart or something or if i want to fly business with the kids i want to be able to bring you know every my family if i want to um i like the idea of dual locations for me it's all about like like you said comfort and convenience i don't need to do things in a flashy way even though like private transportation is flashy but it's all about comfort because lugging a bunch of kids on a plane through the airlines especially now with everything that's going on is an absolute [ __ ] nightmare and by the way notice that what you just said maps directly to your money dial which is convenience yes so it makes perfect sense i'd like to be able to if we are traveled somewhere i don't want to be constrained like we have to check in now and we have to leave now if like something goes wrong we feel like we need to stay we could sit it's not like he loves convenience yeah it's it's this it's comfort right like there's some time you know like when you're on a trip and you're like damn i wish i like i either want to leave early because it's not going like it's not what i wanted or i'm like i'm really enjoying i want to stay but you got to get back as you have obligations i want to be able to just go where i want when i want with comfort you know one of my friends uh told me about a trip he took to australia and he was there with his girlfriend and um they were in this beautiful area they had an infinity pool and they were just loving it and then that night they had to go to sleep early because they had to wake up take a boat then a bus to their next place and he said to her he said what if we just don't and she was like what and she really liked to go with the itinerary and he was like what if we just don't do that and just stay here for a couple more days and i thought to myself that's one of the ultimate luxuries in life which is to change your decision on the fly yes and it sounds like both of you would love to be able to do that okay so we've done this bucket list rich life exercise and i heard a few things what i would do i did this with my wife and we sat down and and we had some interesting things you know my wife said she wants to learn another language in the next 10 years and i said i want to write another book at a really nice hotel right that's just something i want to do so we had these independent things and then we had a couple that we want to do together one of them was uh we were inspired by some of our friends who had a 10-year wedding anniversary in another country and we thought wow we love celebrating we need to celebrate more we want to have a 10-year wedding anniversary so we said okay that's a big rich life item for us let's share that jointly and so we then said okay i asked my wife how much do you think that's going to cost total ballpark and she was kind of uncomfortable because you know she didn't know the numbers i said you know what let's each just come up with our own number and then let's just compare so she came up with a number my number was like five or ten times higher and and that's fine right in a relationship you might have one person who dreams bigger or or has bigger numbers that's okay and i said look this is going to be like multiple years from now we have lots of time to save and invest for it and if we're going to go with any number let's go with the bigger number right let's just do that let's dream big so what we did was we then took that number and we knew that it's going to be you know approximately eight years from now and we put that into our financial system so this is a big goal like for you it would be like flying private okay so what i might say for both of you is how many times a year do you want to fly private let's just make up a number here i have a number okay eight but that's also it's not eight it's not eight wow you've been thinking it's not it's not so eight legs great how much ballpark does it cost well i think that's the thing it depends on i've done some research it depends if you're going light jet just like the number let's just say it costs i don't want to overwhelm people let's just say round trip or anywhere domestically in the us you're talking 30k okay 30k so 30k times four 120. yeah all right fine so maybe maybe let's just call it 150 to be like it's a huge number great okay great now for everyone listening by the way if you're like oh my god 150 this is so unrelatable pick a number that is keep in mind this is the 10-year like this is this is the 10-year map it's not today totally it could be i want to eat at a really nice restaurant once a year but also why not just dream like why not think big my thing is no matter if you're listening if i was i used to be a bartender if i was a bartender i'd be thinking like in these terms too but think big but hold on there was a period in my life i want to remind that like the goal was maybe i can fly business like so these like these goals get bigger and bigger yeah and it's okay i i love i love both of what you're saying first of all if you're in debt most people who are in debt when i ask them what's their rich life their answer is i just want to get to zero sure it's not inspiring at all but when you feel like you're underwater you just want to be able to breathe but you also listening to this podcast i hope is inspiring rather than depressing because look you don't have to fly eight times a year private but maybe for you it's one time in your life business class or maybe it's eating at a restaurant that you love and and it's like the best meal right omakase whatever whatever it is i want to push people to think a little bigger it is so easy when i ask people their rich life you know what they say they go um you know i'd like to have a house one day it doesn't have to be that big it does not to be in a nice it's fine i'm like why are you minimizing your dreams tell me the beautiful vision and then we can figure out if you can get there and maybe you can't get 100 there maybe you get 80 there well you know it's like let me let me think of an example here you know when someone's like how much money do you want i want to be a billionaire but it's like before like you me okay let's focus on a hundred yeah i always tell them like okay how much do you have now they're like i have a hundred dollars why don't you focus on a thousand like when we started this podcast lauren and i started it out of our living room out of our kitchen we thought it'd be great if like one day we can get 10 000 listeners one day we could do that and it'd be great if we could maybe make a little bit of money doing this on the side it's obviously grown like over the years to this and then this this network but i want to remind everybody that like some of these big visions that i have now like there was a period of time i'm like man if i could make 10 dollars a month if i could make five thousand like it started much much smaller and during that time when i was learning my relationship with money that was probably a line it's like how do i make it so i'm never in debt and like i think it wasn't like i when i started my crows like i need to fly in a huge private jet and like that's still my like a 10-year vision and it's mostly like i would never want to take a jet by myself but i think now that i have children and the craziness of travel in the world and a wife and like the chaos of lugging infants around yeah like to me it's just a convenience thing hey listen jump in a car i love it i love a big vision so for everyone listening like when i grew up we were very middle class we ate at a pizza place once every six weeks with a coupon and i there were places in our town i was like um that place isn't for people like me right we don't go in there and i have disabused myself of that now if there's something i see that's interesting to me i'm like if i wanted to i could get that i could work hard i may not be able to afford it or get it or have the time or whatever but no more do i think that's not for me i say that's interesting i'm gonna check it out and if i want it i'll find a way to get it i also think people tell themselves a story and they have this narrative what you just said it's like oh i'll i can't eat there that's not for people like me i think that you should flip it and say when i eat there or i'm going to eat there i think the way that you think really really can control a lot the way we talk about ourselves so back to the private jet example or whatever rich life thing it is for you what we did then to make it a reality and to make both partners engaged with money was we said okay that's going to cost i don't know 100k a year 150 whatever how much do we need to be saving each month in order for that to happen so now you both have a reason to take at least 15 minutes a month and say how we doing towards our rich life goal which both of us feel really good about that is the way you get both partners on the same page now if you're listening to this and you're not going to have this big of a goal fine here's what i'd recommend pick a place you want to go in the next six months with your partner your friend or even by yourself it could be a restaurant it could be vacation whatever pick a number of how much it's going to cost right be conservative with the number so you you're not on vacation and you're having to check every single price of everything and start saving towards it automate your money use the sec chapter five of my book and whether you're putting a hundred dollars a month aside five hundred five thousand whatever the number is now you have something motivating you to actually wanna engage with your money every month so let's let's let's talk about that for a minute and and maybe like get pretty tactical here so a lot of what you're booked in other books did for me was taught me how to think about managing money what to invest what to save what to set aside like these you know if i'm working towards a goal like what that looks like but i think so many people again they're sitting there maybe they have a bunch of credit card debt maybe they're not saving at all maybe they're going paycheck to paycheck what are the tactical things that you know when you're starting out that you can do to start putting yourself in a better position to to either earn more save more afford more so part of it is getting your financial infrastructure right i'll name names because i found this useful i used to watch oprah and oprah would tell us you know her favorite cars and this and that and i just want to know what oprah likes because i trust oprah so i'll just tell you the accounts that i use and the ones i like and the ones i don't um i'm not by the way partnered with any of these companies at all so uh i think getting your financial infrastructure in place is the step one so that is your money should be flowing into your checking account which is like your email inbox and for that i use a schwab account right again i'm being very tactical so you know exactly what i use from there you set up automation so that part of it goes towards saving and there are lots of great savings accounts there's ally marcus there's a whole bunch they're basically commodities at this point part of your money is drawn out automatically and it goes to an investing account lots of great investment accounts like vanguard is where i use fidelity yeah they're great there's lots of low-cost ones uh i don't like these day trading [ __ ] apps that are out we're gonna talk about that okay all right um and uh by the way the banks i hate bank of america i hate you wells fargo i also hate you they are predatory do not use these banks i don't care if your mom and dad opened your account at 13. get out um there's also uh sub savings goals so remember a lot of you know you always hear people you got to save more you got to save more for what why am i saving nobody ever talks about that here's the answer you're saving for your trip to thailand you're saving for perhaps a down payment on a house you're saving for this great dinner this huge dinner with your whole family there are sub savings accounts you can set up and it automatically flows and then at the end pops out you know your fixed expenses your rent mortgage whatever and also your guilt free spending so under my automation system when you go out to a restaurant you never have to feel guilty because you already know your savings are already taken care of your investments are already taken care of and you know exactly how much you can afford to spend here guilt-free that that's one of the main things your book taught me lauren and i we just took a trip um like a couple weeks ago and she's like i don't know like is this expensive i'm like well i don't feel guilty about it at all because the automation set up like already set the money aside for savings already set the money aside for investing already covered the living expenses like this money that is set aside for guilt was specifically for that yeah what do you tell the person that's like okay ramit this sound or me this sounds good it's great but i'm in debt and i have credit card debt and i'm spending every single dollar every month and still being a debt like because they're probably they're saying they're saying i can't invest i can't save like i got to clear my debt what do you tell them well i ask him a couple questions say first of all how much debt are you in do you know that 90 of people i ask that question to do not know how much debt they're in why would you want to it's depressing for a lot of people so that's number one we got to know how much debt we're in by the way funny thing people are equally stressed by being in fifteen thousand dollars of debt as four hundred and fifty thousand dollars of debt just think about how bewildering that is people coming over me i'm in a ton of debt there's no way i'm gonna ever get out i go okay tell me how much it's a lot okay i've heard it all nothing phases me anymore fifteen thousand four hundred dollars of debt i go what the [ __ ] i could show you how to pay that off you know in a matter of months let's go but the same person comes to me with four hundred and fifty thousand 000 okay that's gonna take a little longer we're gonna have to make some different choices here but people are equally stressed out so number one i want them to know how much debt they're in number two then i ask them what's your debt payoff date i want to know the exact month and year your debt's going to be paid off 95 of people do not know this answer nobody knows this answer imagine this imagine that you're in debt but you know that every month it's automatically being paid off and you know the exact month and year where you're going to be free i mean how does that feel if you're empowering it's amazing you have a light at the end of the tunnel so first things first you know in chapter one i show you how to do that and then once you have that system down you have lots of options for people who have big student loan debt often paying 50 or 100 bucks a month can save you tens of thousands of dollars in interest so there are lots of options there then there's other things like should you be investing at the same time actually yes i encourage you even if you're paying off debt even at a relatively high interest rate i do like people to start investing even 50 bucks a month why because the behavior is there and once you your debt is paid off you're gonna look at your investment account be like oh my god i have five thousand bucks in there or ten thousand bucks i'm just going to keep turning that number up now and to clarify and i'm just gonna i don't wanna interrupt but i wanna inject when you say invest because a lot of people are saying like what are these guys talking about what investments where do we get access how do we do it yeah yeah i think i think that you guys are saying things like this and even i'm confused about we're going to clarify let's talk about that i want you to explain i'm going to break it down easy and so accessible it is to everybody with your with the strategies that well actually both of us implement yes so let me start off with what investing is not because this is all this nonsense you see on tv investing does not mean you have to wear a suit and tie and be looking at 15 screens with green letters rolling across it's all [ __ ] okay real investors are not checking their accounts every day you know how often i advise people to look at their investment accounts once every six months it's boring this is not a tnt drama okay you want to have fun get hbo this is not that investing is you set it up once you automatically have money sent from your checking account every month and it just that's it that's it and you can actually mathematically predict exactly when you will become a millionaire or have 500k or 5 million so what kind of investments are we talking about um the in my opinion uh the investments that i have put most of my net worth into are simple low-cost index funds now let me tell you what an index fund is most people think uh you know investing is like picking stocks no it's not even wall street professional investors when they pick stocks they fail to beat an index fund over 80 of the time so an index fund is basically a collection of different stocks imagine those planters peanuts you get you know those ones instead of just getting trying to pick out peanuts you get the planters mixed nuts it's got the almonds and the pecans and all that stuff that's an index fund it's got a whole bunch of different stocks in it when you invest you do not have to become an expert in these companies all the simplest thing you can possibly do to start investing today is to uh get something called a target date fund now let me tell you why this is so easy and how it works let's pretend that you are i don't know 30 years old let's just say okay and that means that we can assume you're going to retire in 35 years okay so what you do is you go over to fidelity or vanguard or any of the places that i talk about in my book and you open up a target date fund the target date fund is going to be like a 2050 fund or whatever the number is that corresponds to when you retire all it is is one simple fund it's like a pie chart and all you do is just send money in there every month now when you get this target date fund again we're talking about how do i start investing when you invest in a target date fund it's low cost it's really cheap and all you're doing is picking one fund it's automatically diversified so your only job is just to put as much money as you possibly can into it and as you get a little older it will automatically become conservative and you can predict because we know the historical returns of the market which are about seven or eight percent per year you can actually predict when you will become a millionaire and i think it's worth caveating and noting that this is not to be used as a checking account correct your money's going in there and you're not touching it is there a specific let's say someone makes a hundred grand a year yeah how much of that if it were you would you be putting into an index fund and which one would you do great question i will give you specifics on what i would be doing i would i have a personal rule for myself i want to be investing 20 of my gross income okay so 20k now you again i've already saved a considerable amount of money you might hear that and go ah [ __ ] i can't do that because my rent is too high or what my expense is fine yeah i've got debt okay lower it down to 18 or even 10 percent but in my opinion 10 is the minimum that i would be putting in if you find you cannot put more than 10 it's time to take a look at your expenses so every single person listening to this podcast you would advise to do at least ten percent gross of your gross income a year yep minimum and if they're not doing that what would you say and be honest no i'll give him a big hug you know i'm a teddy bear deep down i would say look it's okay if you haven't done it until now i have a lot of friends one of my friends is uh basically 40 years old and he's like i don't know anything about investing what should i do is it too late i didn't start doing it till about 30. yeah and i like i regret that because i learned about compounding and i realized that's a whole nother thing but it's not too late no it's never too late at 40 i said look you did miss out on some years of of compound growth which is really important but it's not too late and i i went to google i said okay let me show you how this works i googled for compound interest calculator and i showed him okay let's assume he makes 100k a year i said all right great you're going to be putting in approximately 10k per year it's about a thousand dollars a month for him he was like well it doesn't look like that much in the first year it's like nothing okay a year too it's like nothing it takes him a little while to get to a million bucks but i showed him exactly when he would become a millionaire and after that it took like a matter of a few years for him to get two million compound growth is hard for the human mind to factor in you make a lot of money but the earlier you start the better you better get our daughter's index fund set up tomorrow oh my god for whatever reason that's right and i said you know my parents were first nobody ever talked i think so many parents in schools they don't teach people no they used to buy savings bonds it's crazy why doesn't i by the way speaking of that talk i found some saving bonds that were when i was bored yeah born and i looked them up to see how much they were worth they weren't worth anything like nothing why why doesn't school teach us this you know i'll tell you something this is a common thing a lot of people say i wish they had taught us this in school so i i have a couple thoughts about this that are somewhat controversial first of all some of this stuff was taught in school kids really do not care about it that much when they're in high school why would they they're not earning any money it's not relevant i have found it very challenging to connect even with college students because they're not in the mindset second think of this who would be the person teaching it some teacher who's overburdened already and who would be creating the curriculum i can guarantee you it would be some shitty bank like wells fargo promoting all kinds of nonsense so i actually believe it or not do not think that this is the first thing we should be doing in our schools because there's tons of different interests at play you can't expect some local teacher to be a master of personal finance but i think now if you are listening to this if you're if you follow some people who you trust about personal finance there's an amazing amount of blogs some actual good youtube stuff podcasts out there like you're hearing today where you can start to say oh my gosh i'm taking control of my money now i think what you have to learn too about uh school what you're so smart what you just said is like you you have to go self-educate yourself every single day you have to make it a priority to gain knowledge from other sources yeah i will say i do wish it was a little easier i think it's hard you know you have to figure you you get to work and you have to look at this complex document about 401ks i wish they just automatically enrolled people and we know from the data that when you do that people's savings rates go way up their contribution rates i wish that by default these banks made it easier for you to just click a number and your money gets into a savings account i wish and so i'm trying to work on that myself i'm trying to educate people so they can do that but just like you know like being healthy it's hard in this country to be healthy right you have to go out of your way to look for the right food etc and i wish it was just a little easier for us yeah i think like what i got from your book and many things but you know this is so overwhelming because i think people think it's so complicated but when you really look at it like once i understood i'm like man this is kind of boring right like my strategy is kind of boring just this goes here this goes here you go like it's not like this exciting thing i want to circle around at some point and talk about the day trading stuff but before like one of the hottest topics that we get and one of the biggest questions after we put out a little finance episode was renting versus buying i know you have a very interesting perspective on this yeah and i want to caveat that saying that outside of some investment properties in the past like this is the first time lauren and i have ever bought a home and the large part in that decision was one we moved different states and i wanted to homestead but two we just had a child and three we got to a position where fortunately after a lot of years of work the down payment wasn't something that was extremely stressful yeah and interest rates are low but for the previous 10 15 years we exclusively rented for a number of reasons i just wanted you to talk about it because sometimes people feel maybe they're failing by renting and i i think we both probably disagree with that correct you should not feel guilty about renting just to start this off i rent by choice i could go out and buy a place today cash i don't why well in america we have been taught that buying is what real people do real americans and if you're renting you're pretty much a second-class loser and in fact we have these trite little phrases i don't want to throw money away on rent or i don't want to pay my landlord's mortgage which is ridiculous because what if i asked you when you go out to a restaurant do you feel bad about paying the restaurant owner's bill no of course not when you are renting you are paying in exchange for value and there are some benefits to renting in fact if you look at many different real estate markets including new york city where i rented for over 10 years la and the bay area and certain parts of seattle et cetera it's actually a better deal to rent oh yeah by far now again people listening are like this guy is crazy most of the people have not done a simple analysis buy versus rent which you can find on the new york times and variety of places and you realize you can actually make way more money in certain markets renting taking the money you would have spent owning and investing it in the market now again if you don't know what investing is this can sound very complicated mo as you start to interrogate this idea you start to peel the layers apart and you realize your parents probably told you that you need to buy a house your teachers probably told you renters live over there they're not involved in the community even the government gives people tax advantages which in my opinion is highly overrated uh so that people will own what i would say is you should think about what your rich life is and for the biggest purchase of your life you better run the damn numbers do not go into it thinking oh buying is always better because it always appreciates not true in fact me renting for the last 15 plus years has been a phenomenal financial decision i made way more money than i ever could have made owning real estate and i lived in even better places than i would have bought in right so if you have a flexible schedule if you're not sure where you're going to live 10 years from now which is the basically the minimum you should know before you buy if you don't have a 20 down payment not saying you have to put 20 down but you should have 20 down available then you're not ready to buy don't feel guilty renting is a perfectly valid reason for lots of people to do well people forget too on that 20 down now a lot of times like especially with what's going on they're asking for more and you've got all these closing costs and fees and was it was it you or if it wasn't you i apologize if it was you i'm remembering that said renting's the least you'll complain renting's the least you pay mortgages no no wait renting's the least you'll be renting no renting's the most paid mortgage is the least yeah that's a common phrase in the world so let me give an example of that let's say that you've got two equivalent properties next door to each other one is a thousand bucks a month rent and one is a thousand bucks a month mortgage which one would you choose now think about this a lot of people jumping right to the mortgage why oh here they go i'm gonna build equity the same person who can't even decide if they're gonna eat at red robin this weekend is suddenly becoming a long-term 40-year investor talking about equity where did they get this concept from they don't even know let's break this down if you pay a thousand dollars a month for rent and your fridge breaks you're texting your landlord hey fridge is broken that's gonna get fixed no cost to you what happens if you do it over here with your mortgage you're paying you're also paying what i call phantom costs and they are a lot you have uh interest you have maintenance you have taxes you have all kinds of additional uh fees that you're going to be paying transaction costs like real realtors and most people we're not cognitively wired to factor all those in so all we do is look at the price we go well two thousand bucks on building equity no it's more complicated than that and yes i do expect you to get educated about the biggest purchase of your life one last thing i know i'm going to get a million people writing me they're going to go ramit landlords wouldn't do it if they couldn't make a profit can i please just get rid of this whole thing so i don't get 10 million dms and messages landlords do not charge what their costs are landlords charge what the market will bear yes so some landlords are making a profit and good for them some landlords are not making a profit most landlords don't even know how much profit they're making because it's quite complex real estate is very complicated again my point is you can rent if that's what you choose for your rich life you can buy you can do one or the other i know people who are real estate investors but they rent their own house it's totally up to you i'm not against buying i will buy one day myself with my wife but there's way too much propaganda telling people that buying is the only way to do it for real americans and that if you're renting you're a loser it's not true and i want you to run i agree with that i mean lauren and i fortunately like i we're never we never kind of like believed like like we were never in a rush to buy something at some point like the child changed a few things yeah and also the move to texas but like speaking of phantom costs like we had that crazy storm there we just bought the house i had to replace the whole pool here how much it was like five grand just to replace out of nowhere keep going trees fell down the other day knocked our fence out i don't know i got to get an arborist i guess to get out there and figure this out um what else the ac broke at one point then uh one of the plumbing one of those all new furniture what are we talking about i don't know let's not talk okay that's a big number let's just say the baby's uh bathtub was the plumbing was [ __ ] up and it went down so much um that one i think i made the the previous the the builder fix because it was so close lauren lauren doesn't like aesthetics or something so we need to actually get in and have construction i have to expand priceless this is the best moment of my life right now hold on i had to expand the driveway three grand of course i had to uh what else did i have to do i had to um i have to put up a pool fence because the baby what do you mean our lawn the herbs i want the whole lawn done and architected listen like the point is is i think at this stage like again it's for like i'm looking at it fine we're we're doing this because it's convenience comfort it's where we want our child to be raised there's a few i'm like it's probably not the best financial decision if i was if i was talking to somebody who was trying to make the best financial decision i would say maybe don't do this that's not why we made this decision great okay let me i didn't buy this for like this is a financial decision let me reflect on what you just said because it's very important and very counter-intuitive so again most people have been taught and they believe that real estate is the best investment of all in america real estate is religion guys you got to interrogate this stuff there's actual numbers around this so first if you believe it's an investment i want you to show me show me is it going to do better than seven or eight percent in a vanguard fund which has a 0.1 expense rate if you don't know what i mean then you're not ready to buy a house okay you can learn about that in chapter 7 of my book the second thing i would say is there are also lots of other reasons to buy besides an investment it can be because you want you have a child you want to be in a certain school district you want to renovate whatever fine i have no judgment about that the third thing i'll say is some people look at real estate as an investment usually they're not that sophisticated some people look at it as a purchase this is just a purchase like i buy a vacuum cleaner it's just a really expensive vacuum cleaner when my wife and i buy our house one day we don't even look at it as either of those we're looking at it as you do it's a luxury yes a luxury that's why you should feel totally comfortable that you're doing the driveway and the arborist and all that stuff it makes no finances i'm not counting on it making any money or losing money i'm just counting it as a convenience and election that's okay but don't you think it's nice later on if we want to make it an income property and have people rent it out can't you make it that would be great but you will i i don't know your exact location we could look it up but many people who rent out their houses i will say two things about it one um it's a lot of work okay so it's not just like oh it's just passive it does take some work and two some though not all some people do not make enough to cover their costs as a landlord so you should know oh and one final thing for you since you have a not just a purchase but actually a luxury you're going to have some pretty nice things in there the question is do you want to rent that type of property out and typically the very wealthy do not they're just like we don't want to make a few thousand bucks we'll just let it sit empty so could you wow that that actually makes sense what you're saying because now that i'm starting to think about that what's some rando on your i don't even want i don't even want my husband to sit on my couch i'm not gonna go i have to buy everything he's gonna be a lot of suggestions i don't want anyone to i don't even want the dog to put its dewclaw on my couch i mean i don't want anything on my couch but the reason i wanted you to talk on this because i could sit and i will get attacked and i don't have the authority actually either just lauren to like speak on this from an educated perspective but i want people to not feel ashamed or like a loser because they're renting i actually think honestly and honestly part of the reason that we could afford this luxury is because we rented for so long and we lived in places that didn't that weren't stressful and anytime like what i was like any time we maybe did a little better financially we stayed in the same place and we didn't increase the cost and never stressed about the payment let me give two specifics right now for people so that you can use for your decision and also for some peer pressure that you will invariably get first off there are some helpful numbers and guidelines the typical guideline is that you want your housing expense to be less than 28 of your gross income so again i will give you a simple example let's say you make a hundred k per year easy math you want your housing total to cost less than 28 000 per year now okay if you live in new york city people typically pay more because housing is very expensive la as well but that's a good sort of guideline if you're paying 60 right now you got a problem one your expenses might be too high two you may be living in an area that's too expensive for you now you can use this number if you think about buying a place and you can say okay right now i'm spending you know 1000 bucks a month what are my real expenses going to be oh my gosh i didn't realize i'm going to have to renovate that bathroom that's going to cost 6 000 that's a lot more than i projected etc the second thing is if you get some peer pressure from people i want everyone my dream my wish for you listening here today is that you become comfortable with your vision of a rich life and if that's renting great if it's buying also great if it's buying beautiful sweaters or taking a trip two months a year whatever your rich life is i want you to be totally comfortable in your own skin here's what you can say if somebody says to you why are you not buying that's you're wasting money by throwing it away on rent this is exactly what i say you know what i i appreciate that i ran the numbers and it just doesn't make sense for me to buy right now now you have to say for me because they can't attack you if i say what i really want to say which is i ran the numbers it makes no [ __ ] sense don't you think anyone though that's going to attack you is insecure about their own decision because i would never no matter what i agreed with i would never attack someone else's vision well everyone in america is insecure about their money they don't know anything so the only thing they fall back on are these trite cliches which they were taught by their parents who were taught by their parents who were there taught by the government which is uh real estate is the best investment of all right it's trite sometimes it is sometimes it's not certain situations when you have a child it could change we want to get more sophisticated and this is what part of mastering money looks like you need to be able to slice and dice these complex questions and you know it's not that hard you can learn it in a book but you got to do it i'm never making a purchase unless i'm calling my friend ramit you could text me anytime i'm gonna i'm you're gonna have to go through ramit before we make any kind of wait wait wait wait wait wait wait wait wait wait minimum pick a minimum i don't want getting your uh target questions no no no no you won't i'm talking about like big huge oh yeah yeah i love that stuff let's pivot because i i want to talk about something i think is important especially as we come up on time for and and i would have fallen in this like i said all the douchebags i would have fallen in this camp years ago there's a lot going on with these quick money apps these day trading things those like different platforms people saying get on you know i don't want to call any out by name i will robin hood you can call it yeah you can call him out but people you know crypto all these things this get rich quick schemes and i have been very adamant that i am not a fan of any of these i don't invest in crypto but maybe i'm missing the boat i'll figure that out later i don't invest in the one-off stocks i don't do the gme the amc i don't do any of that stuff and the reason i don't is i don't need i know what i know where are i don't need the stress and the gamble of like potentially putting myself in a bad position at this stage of my life i think there's a lot of young people that are being enticed by people online to take and risk money that they shouldn't be risking on these platforms i wanted to get your take on it because i think a lot of people are jumping into it and i don't think that they realize how detrimental it could be to their financial situation one of my greatest joys in life is observing trolls online i love them i know the rule is you're not supposed to engage with trolls but i engage with every single one of them and to this day i've been waiting for at least one intelligent troll in this entire planet i haven't found them yet although my eyes are wide open so i remember um these troll so charlie munger is this really famous super icon icon uh he's warren buffett's partner and i r and he hates crypto he hates it he said it's like evil and toxic etc and all these uh they're all guys on twitter you know they have like uh the avatar of like a frog and then another one has the avatar of hercules bicep and they're on twitter anonymously saying have fun staying poor to charlie munger one of the richest people in america i'm like this is the greatest day of my life we have twitter losers telling charlie munger to have fun staying poor let me break down uh how this fits into your rich life okay once you have a well-diversified portfolio which means whether it's a target date fund as i talk about in chapter seven or you wanna pick your own index funds because you think you're a little bit more sophisticated fine once you have a well-diversified portfolio and your money's flowing if i ask you what percent is going to this you know the answer if i say when can you afford to take that trip uh to norway you can tell me that when you have that you're all good all flowed you're using iwt or whatever you're using and you decide ramit i want to take five percent of my money and invested in speculative assets i say god bless you all right pat on the back go for it you want to invest in your you know uh degenerate friends bar go ahead similar to angel investing that's how i look at angel investors perfect you're probably gonna lose your money i know you think you're superior to everybody else that's fine whatever maybe you make a lot probably lose it fine it's fun money once you get pretty good at this financial stuff you go okay this is kind of boring maybe i want to have a little fun with it and i'm all for it but you got to have your diversified portfolio setup now when you say this to these crypto guys i'm 39 years old by the way they go [ __ ] old man that might have worked in the past but this is the new time that's code for a phrase we all make fun of in personal finance which goes this time it's different it's never different okay they said that in 2000 and 2001 oh tech is taking over all these other valuations it was not different that crashed 2008 oh different real estate that crash they say it every time it's never different so it's kind of a running joke among sophisticated investors again if you choose to invest in crypto which i would call a very speculative asset awesome make sure that you've got a well-diversified portfolio first and what about like some of these things like these single stocks that you do like the gme the amc those are those would fall under the same exact thing yeah and i have to say you know there's this whole meme stock thing that's going on and really when you dig into it there's there's two things the first layer is [ __ ] the man and um there's no way for us to make it in america anymore therefore we're taking this on ourselves we're going against him you're not going against a man by investing in a meme stock okay you're you're basically the prey and other people are gonna be making money off of you so that's one i don't like to see people turned against their own interests like i'm here for the little investor that's the reason i'm here that's why i'm not promoting some deal that i have with anybody i want you to know how to take control of your money the second thing is if you really probe there's a deeper layer which is basically i want to get rich quick yes and that and so when people they may not come out and say it because they know that it's politically incorrect but when you say uh dude why are you putting like 99 of your net worth into this highly speculative movie theater stock and they'll say all these words oh [ __ ] the man hedge funds and ultimately the truth is they want to get rich quick which is kind of lazy because i think what it takes to become wealthy is patience time um routines you know putting the work in chipping away you know what their response i love what you said but you know what their response is what i don't want to wait till i'm 65 to have money that's for losers that's for old luddites and i got a couple things to say to that first you actually don't have to wait till you're 65. i believe in living a rich life today not waiting to only live it tomorrow most of these folks who say that have never run a compound interest calculator on google never they don't even know how much they could make through compound interest and the second thing is deep down they don't believe that they can do it they don't so they they go hyper leveraged hyper-speculative and they put it all on the line and they actually say it either i'm gonna make it big or i'll be total broke lol that's not investing to me that's speculation and that's not a game i want to play i never had a credit card until i was like 31. like i just got a credit card a couple years ago i just never had one i don't know i just decided to spend what i had i was a bartender so i would get cash tips i would get my paycheck i would spend that which is not a good strategy and then i would move on to the next night where i made cash tips so i just never thought i could handle it i thought i would spend too much is a credit card a bad thing or a good thing or is it neither i advocate for people to have a credit card and to use it wisely i'll tell you why okay i i don't believe in depriving ourselves of something because we're afraid of what we're gonna do i would rather you become stronger stronger enough to deal with whatever the world throws at you okay so with a credit card yeah you're gonna face some temptation i wanna show you how credit cards work chapter one and chapter two and and i wanna show you actually the benefits of having a credit card so there are a lot that a lot of people don't know did you know i could take this phone if i just bought it spill coffee on it and my credit card will write me a check most people didn't know that did you know that when i buy this my credit card automatically doubles my warranty no most people didn't know that so there's a whole bunch of benefits as well it allows you to automatically track your spending in your money flow right so that whole thing i said earlier about you want to be only spending you know 15 minutes maybe an hour on your spending part of that system is having a credit card now there are some downsides um these interest rates on credit cards are really high i especially hate store credit cards man it drives me crazy you know you're at gaap or whatever waiting in line and they're trained to say like would you like to open a card ten percent off your purchase and like in my head i'm like shut up or me don't say anything don't say it be nice but in my head i'm screaming don't open that credit card store credit cards are the worst they're the worst i don't like them they get you for high interest rates even if you're late on another card etcetera so don't do that but there are some great cards they give you great rewards cash back i like a like what i like a fidelity two percent cash back card it's a great card simple two percent i don't want to be sitting there when i'm at a restaurant being like oh do i need to have my two percent cash back on my 1.5 and the one for gas i don't want that [ __ ] convenience simple 2 cash back card is great if you travel the best travel card out there right now is chase sapphire reserve it has about a five or six hundred dollar annual fee so you do need to be spending enough and you can google chase sapphire reserve spending calculator to see if you if it makes sense for you i kind of love that and then i will say that i do have a luxury car just because i have amex platinum it's it makes no financial sense i think the annual fee is four or 500 bucks but i i have it because i like the lounges that's it did you copy him on the chase sapphire card no he's busy he knows what he's doing people i see i know that well he used to do that i respect this guy the amex used to be like i think the best travel card until that one came right yeah there was there was a couple others and then chase really has taken the market so you know what you're doing well i told him i'm a fan and um i think a lot like you know a lot of people like where your book helped kick kick off my like financial literacy and understanding was just like pointing out how simple some of these things were how you can automate so many things and just like looking at it and getting your arms on because now i don't have to even barely pay attention to it if you were to leave our audience with one piece of advice when it comes to money say you're talking to your son or your daughter what would it be super simple super digestible i would say tell me your vision of a rich life and i would probe him you know where do you want to go why what do you want to eat what's it smell like who are you taking with you and then once they paint that picture for me i would say okay what of that vision can you do in the next six months and i want everybody to have a taste of that right if you can't afford to fly with ten of your friends to grease that's okay but where can you go maybe you can treat everybody to a nice dinner and i want people to get a taste of their rich life once you taste it you have to feel it you have to smell it it's tactile but once you do that you suddenly connect money with your rich life and that is really the beginning of the journey once you do that then you're going to be ready to receive things like the tax benefits of a roth ira but nobody's going to sit here and convince you to open up a roth ira until you know why you're doing it and to put 10 to 20 of that's that's something that i got out of this today 10 to 20 of your income yearly gross yep into savings and investments got it and what i found with that is it kind of almost becomes a game and you're like oh if i can do 10 maybe i know i can do 12. maybe i could do 15. i'll tell you what here's because addictive yes here's a fun little math uh i know this that already sounds like crazy but let me give you just a couple quick um things that will blow your mind about math you will make more money increasing your savings rate one percent per year than you would doing almost anything else so if you're currently investing for example fifteen percent okay fifteen thousand dollars out of a hundred thousand dollars next year you make it 16 and next year 17 and next year 18 that number turns into tens of thousands or even hundreds of thousands of dollars over your lifetime forget lattes it's [ __ ] three dollars five dollars it makes no difference just that little one change one percent more per year is tremendous to you you know what else drink your latte for me personally is it's really limited the impulse buys the stupid like i don't need that impulse buyers because every time i do it i'm like oh maybe i could like if that's a thousand maybe i put an extra thousand maybe i can put an extra three hundred foot you have a reason yeah i'm like i don't like because sometimes when you're just sitting on hot cash right you're just like sitting there it's burning a hole in your pocket but if it's out of sight out of mind like oh i didn't even really need that stupid thing i just you know save i will say your growth when i first started dating you to being in clubs to now is you don't really show up this whole time i've just been saving to go to one last hurrah in mykonos yeah yeah one last no i'm just kidding uh it's done you know i have to say listening to just some of the things you've kind of casually mentioned you know you've got the fidelity stuff chase sapphire reserve low cost these are the signs of someone who is and will be incredibly wealthy i married him i'm a total [ __ ] gold digger i appreciate that um but i think what i did was i probably had three mid-life crisis before i hit 30 right and i went through all the stuff so thank god i'm not as i you know i think like listen you i hope everybody finds success and i hope along the way you kind of like also get your ass kicked and contextualize like what real success is because if i would have continued on that path this would not be it would not have been a pretty picture right i just like ended up finding kind of hopefully the right path earlier than than later yeah you are a wealth of knowledge literally um where can everyone find you pimp yourself out maybe we can do a giveaway with your book tell us your podcast everything you're doing so i have a new podcast called i will teach you to be rich by ramit sethi you actually get to listen to real couples who have big fights and discussions about money i take you behind closed doors and you can actually hear some of these stories you've never heard stories like this before my website iwillteachyoutoberich.com and i share a whole bunch of stuff on money and psychology on my newsletter and then i'm on instagram and twitter at ramit and your book my book i will teach you be rich it's on amazon it's got you know tons and tons of reviews and new york times bestseller that's the place if you if you say you know what i want to take this seriously okay i like what we they were talking about today and i want to figure out what to do with my money get the book get it from a library get it from a bookstore any bookstore and um you will be able to change the way you think and behave with money in a matter of days yeah and it's very digestible your book is gonna pop my financial cherry i am a hundred percent reading it we will do a giveaway maybe we can get a signed credit card that's okay okay we'll do it after this episode stay tuned thank you so much for coming on you're incredible that was really really informative thanks man thanks for coming on

Channel: Dear Media Studio

Views: 40,352

Keywords: dear media, dear media studio, female podcasters

Id: K13pvZBSbKY

Length: 71min 11sec (4271 seconds)

Published: Fri Dec 17 2021