“Do Not Buy A House!” 10 Ways To Make REAL Money: Ramit Sethi

10 Ways To Make REAL Money
10 Ways To Make REAL Money

Here are some of the points discussed “Do Not Buy A House!” 10 Ways To Make REAL Money: Ramit Sethi

  • The importance of having a clear vision of your rich life: Ramit Sethi emphasizes that most people don’t have a clear idea of what their rich life looks like, which makes it difficult to achieve. He encourages viewers to spend time defining their own rich life, considering what truly matters to them and what they want to achieve.
  • The four key numbers to track your finances: Sethi identifies four key numbers that everyone should track: fixed costs, savings, investments, and guilt-free spending. He recommends aiming for 50-60% of your income to go towards fixed costs, 5-10% towards savings, 5-10% towards investments, and 20-35% towards guilt-free spending.
  • The myth of homeownership: Sethi challenges the traditional belief that owning a house is the best investment. He argues that there are often better and simpler investments available, and that owning a house can come with significant financial burdens.
  • The importance of investing: Sethi emphasizes the importance of investing for the long term. He recommends starting early and investing consistently, even if it’s just a small amount. He also encourages viewers to learn about different investment options and choose ones that are right for them.
  • The role of psychology in money management: Sethi argues that our psychology plays a major role in our financial decisions. He encourages viewers to identify their limiting beliefs about money and work to overcome them. He also emphasizes the importance of setting realistic goals and celebrating your successes along the way.
  • The importance of financial literacy: Sethi believes that everyone should have a basic understanding of personal finance. He encourages viewers to educate themselves about money management and to seek help from financial professionals if needed.
  • The seven rules of money: Sethi shares seven rules of money that he believes are essential for achieving financial success. These rules include:
    • Rule 1: Earn more than you spend.
    • Rule 2: Automate your finances.
    • Rule 3: Pay yourself first.
    • Rule 4: Invest early and often.
    • Rule 5: Don’t buy a house.
    • Rule 6: No limit on spending on health or education.
    • Rule 7: Design your rich life.

Source: YouTube