Latest news with #IWillTeachYouToBeRich
Yahoo
5 days ago
- Business
- Yahoo
Ramit Sethi Reveals A Misconception About Personal Finance: 'There's This Phrase That Drives Me Insane'
Financial personality Ramit Sethi has been helping people navigate their personal finances for decades. His book, "I Will Teach You To Be Rich," helped him claim the spotlight and get in front of millions of people in the process. Sethi hasn't been afraid to share hot takes and challenge people to think differently about their finances. However, he recently let loose on a common saying that's been dominating the personal finance industry in recent years. "There's this phrase that drives me insane," Sethi explained in a recent TikTok. Don't Miss: Maximize saving for your retirement and cut down on taxes: Invest early in CancerVax's breakthrough tech aiming to disrupt a $231B market. Sethi's talking about how people say that personal finance is personal. He doesn't like the saying and explains how it can make personal finance harder than necessary. Sethi rips the phrase by saying that you are not a special snowflake. While personal finance involves personal goals and challenges, many people have those same goals and challenges. If you're looking to save money for a down payment while budgeting your expenses, you're not alone. You are also not alone if you are looking to climb the corporate ladder so you can invest more money into your portfolio each month. Deciding between buying vs. renting is another common issue that many people debate. It's not just you. Sethi explains that this perspective can reduce your stress when it comes to personal finance. It's easier to see what others have done in a similar situation and assess the pros and cons of each financial decision that comes your way. Trending: GoSun's Breakthrough Rooftop EV Charger Already Has 2,000+ Units Reserved — Sethi believes we should be saying, "Most people are mostly the same," instead of "personal finance is personal." When you shift to realizing that most people are mostly the same, you don't need personalized advice. Instead of seeking personalized advice, you can take advice that has worked well for others and apply it to your life. Some Reddit posts and communities are great for gauging people's thoughts on money and how they overcame common obstacles. Seeing other people talking about their experiences can also give you motivation. You can hear stories about how someone went from living in their car to having a $1 million portfolio or how a single parent managed to make ends meet before their children went to college. People have endured various challenges and achieved significant personal finance goals, and some of these same people share their entire experience, plus what worked for them, on sites like advice on distancing ourselves from the idea that personal finance is personal gives us more control over what we have to do. We don't need personalized advice and aren't special snowflakes, and that makes it easier to get on with your rich life. Most people know what they have to do. It's just a matter of doing it. If you don't make enough money, you know you have to work a side hustle, ask for a raise, climb the corporate ladder, job hop, or start a business. You have a bunch of options to achieve your financial goals. If you're not sure what you're supposed to do, a quick Google search can give you everything you need to make informed decisions about your personal finances. Read Next: Here's what Americans think you need to be considered wealthy. Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Ramit Sethi Reveals A Misconception About Personal Finance: 'There's This Phrase That Drives Me Insane' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Yahoo
7 days ago
- Business
- Yahoo
Ramit Sethi says you need these 9 'money milestones' before 40 if you want to be rich — how many have you hit?
Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. Money mastery isn't always taught in school. In fact, only 11 U.S. states guaranteed students access to a personal finance course in high school before 2021, according to Next Gen Personal Finance — meaning, if you're an adult in the U.S., there's a good chance you were never taught how to manage your money. But Ramit Sethi's goal in life is to bridge that knowledge gap. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 4 of the easiest ways you can catch up (and fast) No millions? No problem. With as little as $10, here's how you can access this $1B private real estate fund of diversified assets usually only available to major players 'Many people drift through their 20s and 30s hoping money just figures itself out,' Sethi said in a video posted to his Youtube channel in June. With his website, I Will Teach You To Be Rich, he created an empire built around clear, no-nonsense financial advice that anyone can put into practice today. If you're in your 20s, 30s, 40s or beyond, his 9 money milestones are worth considering. His first milestone is clearing all high-interest, meaning over 6%, debt. 'You cannot build a rich life while dragging credit card debt behind you — and you will be shocked at how fast your money grows once this anchor is gone,' Sethi says. Credit card debt is the worst kind of debt, according to Sethi. It creates compound interest in reverse, counteracting any of the benefits you would otherwise receive from investing. Clearing this debt before doing anything else with your cash should be your number one priority. The fastest path to understanding your debt is by creating a budget that tracks it all — credit card debt, student loans, mortgage, personal loans — alongside the APR, or the interest rate charged on your debt. Monarch Money can act as your personal finance concierge, connecting with over 11,200 financial institutions. This means you can have a top-down view of your bank accounts and investment portfolios. This can help you get a handle on your financial situation faster — then it's time to pay down your debt strategically. The two most common types of debt payment strategies are the avalanche and snowball methods. The avalanche technique starts with your largest, or highest interest, debt to create cascading relief once it's settled. The snowball method aims to knock off smaller debts first and build momentum over time. After your debts are under control you can use Monarch Money to start actively planning and tracking your financial goals. Want to build an emergency fund, save for a vacation or make a down payment on a home? Monarch Money can help you set these goals and track your progress. Another, more difficult, option is to consider if any of your assets can be sold off to pay down your debt. This is something of a last resort, but if you're drowning in debt identifying what you can cut could be an important step towards regaining your financial freedom. After your debt is cleared, the next milestone is creating an emergency fund. While many money influencers suggest three to six months so you can invest more of your money faster, Sethi believes six to 12 provides true psychological security. Building this extra layer of protection takes time, but is often worth the effort. 'Your goal is to build six to 12 months of core expenses in an emergency fund,' Sethi notes. 'That includes rent or mortgage payments, transportation, groceries — and put that money in a boring high-yield savings account.' His next milestone is all about ensuring you are investing regularly, without lifting a finger. Automating your finances means you don't have to do anything to invest — it happens automatically. This requires setting up automatic contributions with your banking and investing accounts, so a percentage of the money you earn is automatically invested every time your paycheck hits your account. 'The secret to getting rich is not about stock picks, it's not about crypto, it's definitely not day trading … it's boring, automated, consistent investing,' according to Sethi. He recommends investing at least 10% of your income into your 401k and/or Roth IRA every time you are paid. He also suggests increasing that auto-investment by 1% every year to supercharge your investment plan — meaning if you invest 7% of your pay this year, next year you would revisit your automatic investment plan and set it to 8%. The year after would be 9%, and so on. The best part? You don't need a lot of money to start saving for your long-term financial goals. Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it Sethi notes that your income is your most powerful wealth building tool. Your career is where you earn money, and the more money you earn, the more you can invest. 'The majority of millionaires in America made it from having a nice stable salary and then investing their money in low cost investments,' he says. 'They didn't win an insurance settlement. They didn't pick a lottery ticket. 'They literally had a nine-to-five job and they took part of that money and invested. That's why it makes a lot of sense for you to pay attention to your career and build the skill of increasing your income.' Sethi's next milestone is all about finding and understanding the bank account balance you need to retire and achieve all the financial goals you want in life. 'What number in the bank is enough for you? Is it a million dollars in savings? Two million, five million? Okay, but why?' Sethi asks. 'Why do you want that number? Truly rich people know their number and they know their why.' Ask yourself what number will make you feel like you have enough to retire comfortably, retire early or go on that dream sabbatical. Knowing how much you need and why is the backbone of any strong financial plan. 'If you don't know what that money is for, then you are simply wasting your life chasing a number,' Sethi continues. If you're unsure of what that number should be, a financial advisor can help you get a better picture of your goals. You can quickly find the right financial advisor for you through Advisor, by answering a few questions. From here, you can book a call with no-obligation to hire to see if they're a good fit. If you are married, or considering marriage, this is crucial advice. Sethi notes that there should never be one person in the relationship who controls all the fiances — as that can be a breeding ground for resentment. A shared dashboard means you actively look at your money together, share financial goals and make long-term plans together. His advice isn't just about emotions. It's also practical. 'If you happen to get hit by a bus one day, you're going to leave your grieving family not even sure where the money is.' If one partner holds access to all the accounts, and that person is suddenly gone, this creates extra chaos for the partner left behind. With this in mind, Monarch Money also offers tools for couples to track your combined finances across multiple accounts. This can help you and your partner create a shared dashboard to manage your full financial picture. What don't you care about? Cut it out ruthlessly. 'This checkpoint is about clarity. It's about knowing what doesn't matter to you,' Sethi notes. 'Here's what you need to do: Write down three things you don't care about spending money on, then write three things you want to spend money on unapologetically.' This means actively looking at what you spend money on by tracking spending for a few months. Make sure your spending is aligned with the things you actually care about. 'Once you know what is not part of your rich life, then you can cut those things without guilt, and you can actually redirect that money to the things you love,' Sethi says. Tracking your spending could show that you're actually spending $120 a month on subscription services you haven't used in years, allowing you to make cuts and put your money toward something more meaningful. While you're tightening up your finances, it might be a good idea to look at other monthly expenses like insurance. A big part of this is shopping around for the best rates, but this can take a lot of time and energy. One option is to use to do the hard work for you. The platform lets you compare reputable providers like Geico and Progressive in minutes with offers as low as $29/month. For homeowners, you could instead look at to see if they beat the rates you're currently paying. On average, you can save $482 per year using side-by-side comparisons of providers in your area. From here, you could put the money you'll save each month toward investments instead. Keep in mind that, in most cases, you don't need to wait until your policy is up for renewal to make a switch. Sethi's next milestone is all about simplicity. It is easy to get caught up in financial optimization to the detriment of enjoying your life. An all-consuming obsession with getting the best deal possible, or carrying around a wallet full of credit cards that need a spreadsheet to keep track of the best cash back rates for each spending category, is not how you create a healthy relationship with money. 'Do you really want to spend the rest of your life optimizing a spreadsheet of cash back rewards?' Sethi asks. This takes up time you could better spend earning money, recharging by watching your favorite show or being with family. All that work to save an extra $50 a year isn't always a worthwhile use of time. Instead, he recommends keeping 'one to two solid rewards cards.' 'Cancel those junk cards, including those predatory f—ing credit cards with 30% plus APRs that you got from Gap and Kohl's to get $10 off a sub par pair of jeans,' he continues. 'And then monitor your interest rates like a hawk while you're paying off debt.' Finally, Sethi recommends using everything you learned from the other milestones to create a financial vision that you revisit yearly. What you think you want out of life in your 30s will not be the same as what you might want in your 40s or 50s. At the end of each year, update your plan to suit your current lifestyle and future goals — a recurring calendar event can help with this. Sethi recommends asking yourself the following questions during these check-ins: 'What do I want more of in this coming year? What doesn't matter to me anymore? What do I want less of? And finally, what's next?' For some, a big goal might include real estate investing to create generational wealth. But not everyone can afford a mortgage, or a big downpayment. Crowdfunding platforms like Arrived allow you to enter the real estate market for as little as $100, meaning even if you never want to own your own home, you can still benefit from investing in the market without the hassle of home ownership. Backed by world-class investors, including Jeff Bezos, Arrived helps you invest in shares of vacation and rental properties, earning passive income from real estate without the midnight maintenance calls about burst pipes. If you have at least $25,000 to invest, you could instead consider Homeshares, which offers exposure to hundreds of owner occupied properties around the U.S. Homeshares can help you access this market through their U.S. Home Equity Fund. The fund provides homeowners with substantial, property-based equity access to liquidity through Home Equity Agreements, without incurring debt or additional interest payments. This can translate into risk-adjusted target returns for investors ranging from 14% to 17%, while offering a low-maintenance alternative to traditional property ownership. BlackRock CEO Larry Fink has an important message for the next wave of American retirees — here's how he says you can best weather the US retirement crisis There's a 40% chance of a recession hitting the U.S. economy this year — protect your retirement savings with these essential money moves (most of which you can complete in just minutes) Here's how 5 minutes could get you up to $2M in life insurance coverage — with no medical exam or blood test Rich older Americans are using these 3 retirement saving strategies to supercharge their nest eggs — here's how to use them to prepare for a comfy retirement Money doesn't have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Sign in to access your portfolio
Yahoo
02-07-2025
- Business
- Yahoo
3 Mistakes To Avoid When Choosing a Bank Account, According to Ramit Sethi
If you're looking to open a new bank account to store your savings, you may narrow your options down to two types of accounts: a money market account or a high-yield savings account (HYSA). They have a lot in common — they both generate interest, they both generally allow you easy access to your money and they both, if with a FDIC-backed institution, provide coverage up to $250,000. Find Out: Read Next: But, as financial expert and self-made millionaire Ramit Sethi discussed on his website, I Will Teach You To Be Rich, there are differences between a money market account and a HYSA. For example, the former usually comes with transactional features, like a debit card and/or checkbook, while HYSAs are more exclusively geared toward growing your money. To make the best choice for you and your money, be careful to avoid common mistakes when deciding to open a new money market account or HYSA. When dealing with any transaction or onboarding process, it's so tempting to quickly scroll through all the fine print and just get to the parts where you sign and submit. All that fine print is so repetitive, tedious and dense. But this stuff is important — it's where you'll learn everything about fees and requirements. A financial institution may blast promotional messaging about 'no fees,' but often there's a caveat if you, say, drop below a minimum balance requirement or let your account sit idle with no new deposits. 'Banks often hide important fee information in the account terms and conditions,' Sethi wrote. 'Many people open accounts without understanding how maintenance fees work or what minimum balances they need to maintain. These fees can sneak up if you don't keep the required amount in your account, turning your interest earnings into monthly charges.' If you're not quite grasping what the fine print says, copy the text and paste it into ChatGPT, then ask the AI chatbot to explain it all in simple language, without repetition. When choosing a home for your savings, you need to find the bank account that will (safely, with FDIC backing) give you the highest interest rate. This will most likely be delivered by an online-only bank, not a traditional brick-and-mortar. Banks that operate exclusively online can afford to offer high interest rates because they don't have high infrastructure or overhead costs as traditional banks do. 'Traditional banks often rely on customer loyalty and convenience, offering much lower interest rates than their online competitors,' Sethi said. When searching for a new HYSA or money market account from an online bank, you're going to be blasted with a lot of marketing from banks that suggest they have the best interest rate around. Who really has the best interest rate though, and on what terms? 'Taking a few minutes to compare different online banking options could earn you substantially more interest on your savings,' Sethi wrote. A money market account can act in some ways like a checking account, which is one of its appeals, but at their cores, the two are different beasts. Sethi warned against treating a money market account like a checking account. Doing so could slam you with fees. 'One of the costliest mistakes comes from misusing money market accounts,' Sethi said. 'Despite their check-writing features, these accounts aren't designed for regular transactions. Many people treat them like checking accounts and end up paying fees for exceeding transaction limits.' Understand the ways in which your money market account works not only like a checking account, but like a HYSA. It likely limits the types of transactions, for example, whereas a checking account doesn't. At the end of the day, you may be wondering why your bank accounts, in terms of all the technical fine print, matter so much. Well, ultimately, it's all part of building wealth. Consider Sethi's wisdom here, 'Managing your accounts effectively is just one piece of building a strong financial foundation.' More From GOBankingRates 3 Reasons Retired Boomers Shouldn't Give Their Kids a Living Inheritance (And 2 Reasons They Should) This article originally appeared on 3 Mistakes To Avoid When Choosing a Bank Account, According to Ramit Sethi
Yahoo
24-06-2025
- Business
- Yahoo
Ramit Sethi's Ultimate Financial Plan for 30-Somethings: 'Build a System That Runs in the Background'
Planning your finances at a young age can help you achieve major milestones as you get older. Not everyone has a mentor who can discuss money, and that's why many people listen to financial guru Ramit Sethi. He wrote the book, "I Will Teach You To Be Rich," and has been teaching people about personal finance for decades. He broke down the ultimate financial plan for young adults who are in their 30s. Sethi identified three things you should do with your money to march toward your goals. "Build a system that runs in the background," Sethi explained. These are the other key points he shared in a recent TikTok. Don't Miss: The startup taking on $10B in ticket scalping just landed MLB, Goldman Sachs, and WestJet execs — invest for $0.40/share before June 26. Peter Thiel turned $1,700 into $5 billion—now accredited investors are eyeing this software company with similar breakout potential. Learn how you can invest with $1,000 at just $0.30/share. Automate Everything Sethi starts by encouraging people to automate their finances. These automations can ensure that you pay every bill on time while investing and leaving enough money for guilt-free spending. He specified fixed costs, savings, investments, and guilt-free spending as the four key buckets for automated transfers. Personal finance has many moving parts, and consistently forgetting to make investments or pay bills on time can create obstacles on the path to long-term financial wealth. Automating your finances allows everything to run like clockwork. You'll also spend less time staying on top of your money if you have all of these automations in place. While Sethi recommends knowing your expenses, he's also against obsessing over every dollar on a spreadsheet. Trending: This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, with minimum investments as low as $100. Sethi's next recommendation is to max out your 401(k) plan. Young adults can't make catch-up contributions quite yet, but they still have high maximum contributions. You either shield your money from taxes until you withdraw it, or you pay taxes now but don't have to pay taxes on any withdrawals. Maxing out your 401(k) plan is essentially free money, especially if your employer offers to match your contributions. Although traditional 401(k) plans require that you pay taxes on withdrawals, you will likely be in a lower income bracket when you are older, especially if you retire. You can set up automatic transfers to your 401(k) plan to ensure you make the maximum contribution each year. Making the maximum contribution for multiple decades will add up and put you in a good position by the time you are eligible for penalty-free withdrawals. Sethi referred to income growth as the #1 financial lever you can pull. There is a limit to how much you can reduce expenses, but there is no limit to how much you can grow your income. Mastering the art of negotiation, developing new career skills, and job hopping can gradually boost your income. You shouldn't settle with your current income and always entertain opportunities to earn more. Side hustles present many great opportunities, and some side hustles can turn into full-time careers that generate more earnings than your current job. "If your income grows, that solves a lot of financial problems," Sethi explained. Income growth may be the solution to all of your financial woes, especially if you commit to boosting your earnings over several years instead of settling with your current salary. See Next GoSun's breakthrough rooftop EV charger already has 2,000+ units reserved — become an investor in this $41.3M clean energy brand today. Invest early in CancerVax's breakthrough tech aiming to disrupt a $231B market. Back a bold new approach to cancer treatment with high-growth potential. UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Ramit Sethi's Ultimate Financial Plan for 30-Somethings: 'Build a System That Runs in the Background' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-06-2025
- Business
- Yahoo
Ramit Sethi Pushes Back On Frugal Habits With One Key Insight: 'Very Few People Talk About Increasing Your Earnings'
Receiving regular insights from personal finance experts can help you set long-term goals and adopt good money habits. However, most of the strategies revolve around saving money and ruthlessly cutting costs. That's why "I Will Teach You To Be Rich" author Ramit Sethi proposed a different path. "Very few people talk about increasing your earnings," he said in a recent video about mastering your personal finances. Sethi then shared the mentality you should have when thinking about your income and expenses, plus some strategies you can use to boost your earnings. Don't Miss: Peter Thiel turned $1,700 into $5 billion—now accredited investors are eyeing this software company with similar breakout potential. Learn how you can Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — There are limits to how much you can reduce expenses. If you earn $5,000 per month, you cannot reduce expenses by more than $5,000 per month since you need housing, groceries, and other essentials. You can operate more efficiently to save money, but every penny-pincher always bumps into the necessities and gets stuck. However, there is no limit to how much you can earn. Sethi explains that most people operate as if they have been given a fixed pie that dictates how much they earn. Since people are always taught to cut these expenses above all else, it's easy to view income as a ceiling instead of looking for ways to boost your income in a meaningful way. Sethi says that an extra $500 per month can change most people's lives. He then upped the ante and asked how your life would change if you made an additional $5,000 per month. Having these thoughts can shift the conversation from relentlessly cutting costs to discovering better ways to make extra money. Trending: Maximize saving for your retirement and cut down on taxes: . Suppose you're thinking about going on a vacation. You have a destination in mind, and it may have been on your list for a few years. However, there's one problem: it's a very expensive trip. People without an abundance mindset may wave off their bucket list item and say that they can't afford it. However, an abundance mindset can make that dream trip more attainable. Sethi says that if you want to travel to that major destination, look for ways to make more money. Using a trip like that as your goal can inspire you to work harder and smarter as you look for ways to boost your earnings. Having the right mindset and focusing on boosting your income will lead to plenty of possibilities. You can invest more, save more, and spend more without feeling bad about yourself. However, you have to put your time into the right areas to get suggested picking up a side hustle and learning career skills that can introduce new revenue streams. Job hopping is also a great solution, as you can get a higher salary this way than by waiting for a raise. However, Sethi mentions he knows someone who went from earning $45,000 per year to $90,000 per year while staying at the same company. Sethi credited this individual's ability to negotiate a higher salary as the reason for doubling their salary without switching jobs. If you are motivated to earn money and prioritize income growth over cost cutting, you can give yourself more options in the future. It's still important to track your expenses and trim unnecessary costs, but if you focus on income growth, there's no limit to how much wealth you can accumulate. Read Next: Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Ramit Sethi Pushes Back On Frugal Habits With One Key Insight: 'Very Few People Talk About Increasing Your Earnings' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
