Book Review: I Will Teach You To Be Rich
- 0 Comments
Written by the founder of IWillTeachYouToBeRich.com, Ramit Sethi’s book “I Will Teach You To Be Rich”
Since I was a twentysomething myself, I was anxious to see what kind of tips I could take out of Ramit’s book. Upon flipping through the book at first glance, I could see that the content consisted of information that formed somewhat of guide towards the general aspects of personal finance – much like many other personal finance books available.
Unfortunately, because I was already doing what most of the things in “I Will Teach You To Be Rich”, there was little that I hadn’t already known. But I sure wished that this book was published earlier because it would have provided a great head start to anyone who had no plan when it comes to managing their money.
Highlights that I found to be thought-provoking:
- The Big Wins
The concept of big wins is to apply smarter financial methods to the things that have a big impact on your finances rather than doing a bunch of little penny saving tactics that represent a frivolous attempt to actually save.
Sethi would believe that using 0% APR balance transfers to make a few hundred bucks is nothing compared to a 20-point increase in your credit score, which would result in thousands less in mortgage payments thanks to lower interest rates. Cutting costs on the two largest expenses will result in bigger savings than cutting several small expenses.
- Guilt-free Conscious Spending
Budgeting doesn’t work. I don’t believe that budgets work neither. So, Ramit advises on creating a conscious spending plan that enables guilt-free spending when you are well on your way towards achieving your financial goals.
Having set up an automatic savings and investing plan with the appropriate amounts of funding, the portion of your paycheck that doesn’t go towards expenses should be spent. To Sethi, spending $21,000 a year on partying is perfectly fine if it doesn’t hinder the progress of a better financial future. It’s nice to see that he supports enjoying life while we can – instead of being a stickler with saving every cent possible.
- The Art of Negotiating
Sethi offers up a few mock scripts of how the process should be when negotiating a job offer/raise and when trying to get a fee waived with the banks. We’ve always learned remain firm with our position but when it comes to actually doing it, many of us blow it. Laying out a script makes it easier to follow and to get what you want. “Is there any way you can remove that fee?” is futile versus “I’ve been a loyal customer for 4 years and I’d like that fee waived because I’d hate to take my business elsewhere – somewhere that appreciates customer loyalty.”
Overview
“I Will Teach You To Be Rich” is, without a doubt, a book that I’d recommend to my friends – and I’ve already have. While I don’t think many people will enroll in this six-week personal finance bootcamp immediately, a twentysomething that is dedicated would read it twice to get their money in order.
The title of the book is a compelling one but it isn’t exciting as I thought it would be upon first impressions. It focuses on building wealth but not necessary become rich – there are no get-rich-quick ideas within these pages. Overall, “I Will Teach You To Be Rich” is filled with solid personal finance advice for the young adult generation without an overwhelming amount of technical information.
Related Posts
