A certain type of sweater, a picture doesn’t do it justice. A certain type of food. When you see it being made in front of you and you understand where the ingredients came from and how it was sourced. Oh my God, I never knew that much work went into this, and how it tastes is incredible. So I do wanna get better at that, but for me, I struggle, I think to sort of distinguish between the two because I couldn’t care less about status, but I do really love that quality. So any insight into that? The key message to me is to embrace spending more money than you might otherwise because its value brings you happiness. This is next level optimization to me. It’s about letting go of nominal thinking and fully embracing the value. The key is staring with what you enjoy and then thinking larger. To some this might be a FatFIRE indulgence, but I think it could apply to anyone. Two examples from my life that come to mind: It all starts with the basics. Know exactly how much is coming in and how much is going out. You may have to write it down until it becomes second nature. Then, you follow the steps above which include financial automation and conscious spending. And when his daughter asks him about spending money, he says, we can’t afford it. So it’s no surprise that when his daughter goes to school and the teachers ask, how are things going? She says, we can’t afford it. And finally, this was the most haunting moment. I asked him, would you talk to your daughter about money?

All Books from NYT Bestselling Author Ramit Sethi

I had gotten married and I had become much more interested in money and relationships. As I started to talk about this, I realized that I wanted more material on this, and I wanted to help people get more excited about money. I use that word excited intentionally because when you asked the average person what words come to mind when you think of money, they go stress, overwhelm, guilt, am I too late or restriction. So 40 to 60, in my opinion, is the prime spending years. You have money, you have health, and you do have time. Now, if you accept that, listen, you could disagree with me. You could say, I don’t believe that. I think it’s gonna be 65, or, I’m really healthy. Okay, fine. First off, I wanna say it’s not just about you.Mad Fientist: You know what that’s a fantastic idea because sometimes it just doesn’t turn out and I don’t know why. And I’m like, how am I gonna figure this out because it’s not something I can YouTube or something. Because I don’t really know why that’s not as good as it should be. Ramit Sethi: They already turned this podcast off, by the way. This is gonna be your worst listen to podcast of all. They see Ramit Sethi, they’re like no thanks

I Will Teach You To Be Rich (2nd Edition): No guilt, no I Will Teach You To Be Rich (2nd Edition): No guilt, no

If you and your partner have a money issue and you want my help, I occasionally select a couple to work with, free of charge. Apply for my help here. Identify your Money Dials—the things you love spending on, like travel, eating out, health, or convenience—and develop a plan to spend more on what matters to you most. This is my prime spending years. And two, it was like, all right, I really do need to get serious about this because yes, I feel like I’m 20, so I should just keep saving, but this is my prime spending years. You may also opt to downgrade to Standard Digital, a robust journalistic offering that fulfils many user’s needs. Compare Standard and Premium Digital here. Money isn’t everything, but if you like to live a life of experiences, it’s hard to be broke. So, how do you strike a balance between your top-heavy budget and some fun money?A budget is not a spreadsheet. It’s a proactive approach to your finances and allows you the financial freedom to meet your financial obligations and commitments. I would say it’s sort of like being in a psychiatrist’s office and the couple are on the couch and you’re there like assessing it and you’re just eavesdropping on this really personal conversation. And yes, some of the higher net worth episodes have been really, really useful to me, which we’re gonna talk about.

Journal: No - Issuu PDF I Will Teach You to Be Rich: The Journal: No - Issuu

Internet service providers typically onboard new customers at a lower rate. Ask them to lower your monthly to retain you as a loyal customer. Ramit Sethi: Here’s the thing, I think that sometimes there’s absolutely virtue in using cost as your money lens, right? Like, if I’m going to buy some commodity, I don’t know, nails or something, well, I don’t go to Home Depot, but if I ever did in a like alternate reality, which is my hell, and I walk into Home Depot, yeah, I want the cheapest nails.

How do you think those kids felt? And she looked like she was gonna cry. And I was just like, I had the biggest grin on my face. Cause I’m like, gotcha. And in fact, I think much of what guides the frugality world is a sense of fear. There’s this idea that I’m not gonna go eat at that nice restaurant. That’s not the kind of person I am. And anyway, if I did go eat there, deep down now, I’m afraid I would like it so much that I would trip and fall and have to eat at that nice restaurant every night for the rest of my life. And we’ve actually worked pretty hard at doing that. 2021, we traveled a lot more and spent a lot more than we would’ve on that travel. We experimented, like we did Premium Economy to the States, and then we did Business Class on the way home just to try those both out and compared them.

I Will Teach You to Be Rich: The Journal by Ramit Sethi

They were the doctors, the lawyers, the people with the big house. We didn’t have anything. Now as he’s grown up, he makes a very good income. The way he talks about money, he still believes he doesn’t have enough. He still acts as if he doesn’t have enough. And there’s a lot of peculiar behaviors that people without money carry into their adulthood. Well, first of all, awesome to hear. I love, I just love hearing your voice and I love hearing anyone’s voice when they get excited about their primary money dial in their rich life. One thing is spending more when you have 10 million and another one is when you can barely stay at 25x your annual expenses and always worried if you’ll have enough to live on. Ramit Sethi: Wow. Well thank you. And thank you for giving me the update. And what makes me happiest to hear that is that you’re having fun doing it, which is the point money is supposed to be fun and that you’re doing it together with your wife. That is amazing. That is the culmination. You know, when it comes to money, I’ve learned at the very beginning levels, it’s all about the what… I made a little money, what do I get to buy or what do I want to do with it? And that’s totally cool. I have no problem. You wanna buy a beautiful coat or take a trip? Amazing. I love it. But at the highest levels of personal finance, it is always about the who. Who do I get to bring with me? Who do I get to surprise or delight, and to hear that you’re doing it with your family is just the culmination of what a rich life really should be. Mad Fientist: Yeah, so we talked in 2019, and I think for the prior 10 years to 2019, I, we averaged the same amount of annual spend.This was an extremely interesting episode. It’s been on my mind since I listened to it, and it resonated with my partner and me. This is a big one. Automating your personal finances is a game-changer for both spending and saving. It has several benefits including: It doesn’t seem like you’re the target audience of his messaging, which is perfectly fine (I’m not particularly fond of everything he says either), but rather people who have more money than they know what to do with. If you enjoy working and earning (you don’t see it as a rat race anymore), and are naturally frugal, then this is a reasonable problem. Obviously it won’t resonate with people that dislike work and are prone to spending carelessly. Ramit Sethi: That’s what money’s for! You use it to get help, to do things easier and better and more joyfully. And all of us intuitively understand hiring a personal trainer or whatever or we pay somebody to cook food for us if you go to a restaurant. How come we don’t just take the thing we’re interested in and say, I’m gonna go find somebody who’s pretty good at this, can you come to my house and help me understand this for two hours? Of course. And then your idea to go to Italy with your wife is amazing. And while you’re there, you can do a coffee tour. And you can go behind the scenes and you can do your own brew and all kinds of stuff. That is how you start to use your money to really experience what is important to you. In fact, if I ask people like, how do you decide how much to spend on a vacation? And we really get into it, they, the answer really emerges that they basically have a number in mind. That number was born when they were basically 20, because that’s what they remember about how to plan a vacation. And they have not adjusted that number as they have made more money.