Synopses & Reviews
At last, for a generation that's materially ambitious yet financially clueless comes I Will Teach You To Be Rich
, Ramit Sethi's 6-week personal finance program for 20-to-35-year-olds. A completely practical approach delivered with a nonjudgmental style that makes readers want to do what Sethi says, it is based around the four pillars of personal finance — banking, saving, budgeting, and investing — and the wealth-building ideas of personal entrepreneurship.
Sethi covers how to save time by not wasting it managing money; the guns and cars myth of credit cards; how to negotiate like an Indian — the conversation begins with "Budgeting Doesn't Have to Suck!"; how to get things rolling — for real — with only $20; what most people don't understand about taxes; how to get a CEO to take youout to lunch; how to avoid the Super Mario Brothers trap by making your savings work harder than you do; the difference between cheap and frugal; the hidden relationship between money and food. Not to mention his first key lesson: Getting started is more important than being the smartest person in the room. Integrated with his website, where readers can use interactive charts, follow up on the latest information, and join the community, it is a hip blueprint to building wealth and financial security.
Every month, 175,000 unique visitors come to Ramit Sethi's website, Iwillteachyoutoberich.com, to discover the path to financial freedom. They praise him thoughtfully ("Your site summarizes everything I want with my life — to be rich in finances, rich in experience, rich in family blessings"Dan Esparza) and effusively ("Dude, you rock. I love this site!" Richard Wu). The press has caught on, too: "Ramit Sethi is a rising star in the world of personal finance writing . . . one singularly attuned to the sensibilities of his generation. his style is part frat boy and part silicon Valley geek, with a little bit of San Francisco hipster thrown in" (San Francisco Chronicle). His writing is smart, his voice is full of attitude, and his ideas are uncommonly sound and refreshingly hype-free.
You don't have to be perfect to be rich. Or the smartest person in the room. Or a type-A personality. In fact, with Ramit Sethi's six-week program to financial independence, you can start with any amount of money, do just 85 percent of what he suggests, and succeed brilliantly through good times and bad.
As irreverent and entertaining as he is practical and wise, Sethi explains how to beat banks and credit cards at the fee game, automate your cash flow, negotiate for a raise, manage student loans, and enjoy your lattes and Manolo Blahniks by practicing conscious spending. It's how to master your money with the least amount of effort--and then get on with your life.
About the Author
Ramit Sethi is the founder and writer of Iwillteachyoutoberich.com. He speaks regularly to young staff members at companies, including Deloitte, KPMG, and Intel, on the topic of personal finance. He is also a founder and vice president of marketing for PBwiki, a company that provides online tools and services. Ramit Sethi is a recent graduate of Stanford and lives in San Francisco, California.
Table of Contents
Would You Rather Be Sexy or Rich?
Why do people get fat after college? The eerily similar guilt about spending and not working out. • Counterintuitive but true: We need less personal-finance information • Common excuses for not managing money • Stop debating minutiae and get something done • The key messages of I Will Teach You to Be Rich • "Rich" isn't just about money: What does it mean to you?
Chapter 1: Optimize Your Credit Cards: How to beat the credit card companies at their own game
Why Indian people love negotiating • How credit can help you be rich • Picking the best credit card for airline miles, cash back, and rewards • Getting a card when you have no income • The six commandments of credit cards • How to negotiate with your credit card company to get fees waived and receive lower rates • Why you should always buy electronics, travel, and furniture on your credit card • What not to do with your cards • The burden of student loans • When credit cards go bad • Five steps to ridding yourself of debt • Week One: Action Steps
Chapter 2: Beat the Banks: Open high-interest, low-hassle accounts and negotiate fees like an Indian
Why old people are afraid of online banks--even though they offer the best new accounts you can get • How banks rake it in • Why you really need a separate savings account • Opening high-interest, no-fee accounts • Five marketing tactics banks use to trick you • My personal favorite accounts • Negotiate out of fees with your current bank (use my script) • Week Two: Action Steps
Chapter 3: Get Ready to Invest: Open your 401(k) and Roth IRA--even with just $50
Why your friends probably haven't invested a cent yet • Investing is the single best way to get rich • The ladder of personal finance • Everything you need to know about your 401(k) • The importance of crushing your debt • Why everyone should have a Roth IRA • Week Three: Action Steps
Chapter 4: Conscious Spending: How to save hundreds per month (and still buy what your love)
Spend less--without making a detailed, irritating budget • The difference between cheap and frugal • Conscious spending: how my friend spends $21,000 per year going out--guilt-free • Using psychology against yourself to save • The four buckets: fixed costs, savings, investments, and guilt-free spending money • The envelope system for not overspending • How to make more money • Handling unexpected expenses • Week Four: Action Steps
Chapter 5: Save While Sleeping: Making your accounts work together--automatically
The power of defaults: Give yourself fewer choices • How to spend only three hours a month managing your money • Where does your next $100 go? • Setting up a bill-pay and transfer system that works for you • Consultants and freelancers: What about irregular income? • Week Five: Action Steps
Chapter 6: The Myth of Financial Expertise: Why professional wine tasters and stock pickers are clueless--and how you can beat them
We've been tricked by "expertise"--why financial "experts" can't even match the market • You can't time the market • How experts hide their poor performance • You don't need a financial advisor • Pundits worth reading • Most mutual fund managers fail to beat the market • Why I love index funds
Chapter 7: Investing Isn't Only for Rich People: Spend the afternoon picking a simple portfolio that will make you rich
What's your investor profile? • The beauty of automatic investing • Asset allocation: more important than the "best stock of the year!" • Convenience or control? You choose • The many flavors of stocks and bonds • Creating your own portfolio: How to handpick your investments • Investing the easy way: lifecycle funds • Feeding your 401(k) and Roth IRA • The Swenson model of asset allocation • Week Six: Action Steps
Chapter 8: Easy Maintenance: You've done the hard work: Here's how to maintain (and optimize) your financial infrastructure
Feed your system--the more you put in, the more you'll get out • Ignore the noise • The tricky part of managing your own portfolio: rebalancing your investments • Don't let fear of taxes guide your investment decisions • When to sell • For high achievers: a ten-year plan • Giving back--an important part of being rich
Chapter 9: A Rich Life: The finances of relationships, weddings, buying a car, and your first house
Student loans--pay them down or invest? • Don't let your parents manage your money • Role reversal: How to help when it's your parents who are in debt • The big conversation: talking about money with your significant other • Why we're all hypocrites about our weddings (and how to pay for yours) • Negotiating your salary, I Will Teach You to Be Rich style • The smart person's guide to buying a car • The biggest big-ticket item of them all: a house • The benefits of renting • Is real estate really a good investment? • Planning for future purchases • Parting words (cue the violins)