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Submitted by Matthew Needham on 6 Comments

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I Will Teach You To Be Rich

March is Money Month and the Wednesday Wisdom’s during the month of March are dedicated to the personal finance books which have shaped my life and will undoubtedly help you. In terms of return, these books have paid for themselves many times over and that’s why you should add these books to your reading list now.

The subject of this week’s Wednesday Wisdom is I Will Teach You To Be Rich by Ramit Sethi:

This is the newest book in my personal collection around personal finance, primarily because I’d read some of Ramit’s guest posts on blogs such as the 4 Hour Work Week and have followed Ramit on Twitter for a little while.

This post refers to the UK version of this book which came available in paperback in January this year.

The book is essentially structured around a 6 week programme designed to ‘teach you to be rich’. The reality is, and let’s get this straight right at the start, is that you aren’t going to be rich at the end of 6 weeks.

But what you will be, in this easy to read, action orientated guide is well on the way to setting the foundations to becoming rich.

As Ramit points out, being rich may be cool, but getting rich is not. Or as Ramit put’s it

“Would you rather be sexy or rich?”

Ramit aim’s this book at University/college leavers but there’s lessons to be learnt for everyone. Basically the key lesson, which we’ve been talking about a lot in this special series of posts, is that the earlier you start to get your finances in order, the richer you will be.

The main point though is that you can’t keep making excuses if you want to be rich, you’ve got to take control of your actions and take responsibilty for the situation you’re in.

Ramit’s straight forward approach is to stop paying fees on things like credit cards and bank accounts and get out of debt as quickly as possible in order to maximise your monthly cashflow available for savings or investments.

He talks about being aware of your spending (not budgeting) but understanding where your money goes so you can be ruthless in controlling the amount of money you have to save or invest.

I can teach you to be rich doesn’t ask you to spend hours dealing with your finances but talks about automating as your finances as possible, so that you can save money whilst you’re sleeping.

One very useful thing which I picked up is to have savings goals. If you have a goal (ie saving for a wedding) then you are more likely to save for the cost of this event if your earmark your spending for it. For example if you’re saving to get married in 2 years and you expect the wedding to cost £10k, then you need to be saving £416 a month (or £14 a day). That way, if you normally go out 3 times a week and spend £30 a time, that’s almost a week of savings towards your wedding. Still want to go out 3 times a week?

This book is a good ‘operations manual’ for setting yourself up for financial future and will no doubt lead you to becoming rich.

If you want to add this to your reading list, you can order the book from Amazon at 42% off at £7.49 by clicking the link below:

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6 Comments »

Tom | Build That List
Twitter: BuildThatListCo
said:

That is crazy, I literally just came from his latest blog post and you are writing about his book. I had no idea that he had written a book – and it sounds like a really good one!
Tom | Build That List´s last blog ..The 4 Reasons People Unsubscribe Mailing Lists

[Reply]

Matthew Needham Reply:
March 10th, 2010 at 11:47 am

Always on the pulse Tom! Thanks for the comment, looks like’s it’s of value to you!

[Reply]

- 10 March 2010 at 9:12 am

Paul
Twitter: paulworswick
said:

Matthew,

This is the first I’ve heard of both the book and author, other than what I’ve read in your post; so couldn’t really comment on either. I’ll certainly take a look at the book in the stores; from what you’ve said it’s certainly worth a chance. So thank you for sharing that.

Recently, I have developed a different attitude to ‘being rich’ and take a slightly different approach to. Whilst I realise we need money to live and all the rest of the trappings of the 21st century; being ‘rich’ isn’t a goal of mine; whereas abundance and wealth are more about what I talk about today. Abundance and wealth in the necessary things I need in life, or which money is one of them.

I’d be keen to know your views. Maybe a post! That sounds like a good idea, if you don’t want it let me know and I’ll run with it.

Regards

Paul
Paul´s last blog ..It’s only skin deep

[Reply]

Matthew Needham Reply:
March 10th, 2010 at 9:14 pm

Paul, thanks for your comment. The book basically takes a sensible approach to sorting out your finances, which is why I recommend it.

As you say rich means different things to different people. Over the last year I’ve come to realise that it’s about generating sufficient cash to fund the lifestyle I require. For instance; Being rich means to me taking two months off when my new baby is born in June. Which I think it will be amazing. I’m still working on achieving it!

Thanks for stopping by!

[Reply]

- 10 March 2010 at 8:13 pm

Karen
Twitter: kruby
said:

Hi Matthew,

I’m a big fan of Ramit and have followed his writings for a while. He brings such a different viewpoint on finances and it’s fascinating to read his posts and the comments he generates.

While I haven’t picked up his book, I’m sure that it’s a great read with a lot of useful information. I had the impression it was geared towards recent graduates and 20-somethings. Did you find that, as well? Or does it provide more than basic financial knowledge?

Thanks,
Karen
Karen´s last blog ..One Sure-Fire Way You Can Start Your Emergency Fund Today

[Reply]

Matthew Needham Reply:
March 11th, 2010 at 7:35 am

Hi Karen,

Yes, you’re right it is primarily aimed at University/College graduates. But, there are lessons here everyone can learn and apply.

It’s such a straightforward system that everyone can pick something out of it.

What I’ve come to realise is that so many people have problems with money that a simple system and making a plan is what a lot of people need.

Thanks for your comment.

[Reply]

- 11 March 2010 at 3:29 am