I personally came across Ramit Sethi on YouTube first when I was searching for techniques and advice to prepare myself for job interviews a few years ago.
I couldn’t remember how exactly I’ve become “attached” to Ramit Sethi but what I know now is that he’s one of the top people that I look up to when it comes to money.
Simply because he gets straight to the point and there’s no hidden BS from his content.
But before we jump straight to the review, let’s take a look at who exactly is the author, Ramit Sethi.
Who’s Ramit Sethi & Why Do You Need To Listen To Him?
When I first knew about Ramit Sethi, I thought he’s just another millionaire who works hard for his success – not that he doesn’t, but I learned later on that he just works hard on creating a system that works for him.
And just learning and understanding how systems works in his life, has extremely changed the way I view my daily habits and how I’m living my life. You will see this as well as you go through the book as he will teach you how to set up a system that works for your finances.
Another thing that sets Ramit Sethi apart from other “gurus” is that he learns and loves the topic of psychology. If you follow him on social media or his newsletter subscription, you will often see how he talks about the invisible scripts that control our lives.
In my opinion, this is just something that we don’t talk about enough. He does touch on this topic in his book, so if you want to learn more, I really recommend grabbing a copy.
If you’re not yet convinced to grab a copy of his book (like I was last time, no shame), I recommend going through his free content on YouTube. I managed to get an 80% pay increase just from watching and implementing what he teaches.
Anyway, he has become a bestseller of The New York Times with the first edition of this book and there’s also another updated version in 2019.
He also has created multiple online courses for people who want to get a side hustle going or create their own businesses. And it’s not the typical make-money-anywhere online course. If you have a true meaningful idea on starting a business and not just another dropshipping store, you can take a look at his course Earnable here.
I’m not an affiliate of his course though. I just know that he’s not full of BS like other gurus can be.
I Will Teach You To Be Rich Summary
Yes, I only read from my Kindle. You can get a Kindle Unlimited here too: Kindle Unlimited Membership Plans
If you’ve processed and digested Ramit Sethi’s free content on the internet, you will know that he’s a no-frills guy. So, you will also get a no-frills content and money education in his I Will Teach You To Be Rich book.
It’s definitely not the typical budgeting, cut-on-lattes, say no to spending type of personal finance books. He instead teaches how to create a 6-week system that works – for most people, while still enjoying your “rich” life.
I know that personal finance books can be a bit of a dry topic (at least this is what my friends are telling me), Ramit Sethi doesn’t make it boring at all. He gives a lot of real-life examples and injects some of his dark humor.
You will though, need to be open-minded when going through this book and learning the system. I many times realized that something I thought would be good for my finances turns out to be the opposite.
In order for you to get the most out of the book, make sure to be open minded, be aware of your mistakes and implement his teachings and suggestions. You will then be set to go with a proven money system working for your money while you sleep.
Now let’s take a deeper look into the chapters covered in the book.
What’s Inside I Will Teach You To Be Rich Book?
Chapter 1: Optimize Your Credit Cards
This will basically be your first task for the first week. To set up your credit cards the right way and pay off the credit card debt, if you have any. He also touches on the student debt subject by the way.
The first part of this chapter you will learn from Ramit’s own experience dealing with credit and how important it is to becoming rich.
And instead of going with other financial “gurus” out there who kept on asking you to dismiss credit cards altogether, Ramit encouraged us to play on offense and take advantage of them.
As it’s the chapter on credits, he of course touches on credit report and credit score as well and their effects to your personal finance.
Bonus point: Ramit reveals the exact credit cards he uses 😊
22% of the content is towards this chapter.
Chapter 2: Beat the Banks
If you’re like me who just “inherits” the bank from your parents, well it’s time for you to do a tad bit more research on which banks that can serve you the best.
He teaches you the basics of getting to know the different bank accounts to what to look for when it comes to opening up a new bank account and how to negotiate with the banks to get the best offer or a no-fee account.
Bonus point: Ramit reveals the banks that you need to stay away from and which banks he’s actually putting his money into.
7% of the content is towards this chapter.
Chapter 3: Get Ready to Invest
Now, the money-making part! 😊
Ramit touches a lot on 401(k) and Roth IRA – as this is the basics that you need to get done when starting to invest. And he breaks down the myth of investing in this chapter (the myth that I’m still trying to explain to many people).
If you’re still not convinced on why you need to start investing early just yet, he gives a visual of different returns that you will get if you start investing now vs 10 years later. I also did a similar visual on my investment post here.
Bonus point: Ramit reveals his favorite investment brokerage 😊
9% of the content is towards this chapter.
Chapter 4: Conscious Spending
This is probably my favorite chapter and a topic that I will always aim to educate more people on. Basically, instead of cutting all of your expenses and living to the minimum, you’ll learn how to cut on things you don’t really care about and splurge on things you love instead.
But this only goes once you’ve taken care of your savings and investment accounts.
That being said, Ramit is not a fan of the budgeting method that I usually write about on this blog – but that doesn’t make any of the two better than the other. If you’re a Type A person, you’ll love how I budget my money.
However, if you’re someone who likes to automate and wing it, Ramit’s way is the best to go.
Bonus point #1: Ramit shares the categories of spending and the recommended % for each category. If you’re searching for this kind of guideline, you’ll find it in this chapter!
Bonus point #2: you’ll get a step-by-step with scripts on how to increase your income.
Bonus point #3: there are a lot of personal stories that you can relate to in this chapter so you won’t feel like you’re alone in this world with your “unique” spending habits.
11% of the content is towards this chapter.
Chapter 5: Save While Sleeping
Ramit believes in building systems.
And when it comes to money, automating your savings and contributions is the way to go. With this system, you’ll only need to look at your finances about 90 minutes a month.
Plus if you have irregular income like me, you’ll find a neat system on how you can still automate your finances without being scared of not being able to come up with the same amount of income last month.
This is not theoretical, by the way. Ramit actually gives a step-by-step guide on how to do this based on different ways you earn your income.
6% of the content is towards this chapter.
Chapter 6: The Myth of Financial Expertise
This chapter absolutely speaks to me.
Many times, we think that we know nothing when it comes to managing our money and it’s always best to leave it to the professionals. While certified financial planners can actually help plan people’s finances, not everyone needs it.
The same goes to fund managers. Ramit breaks down on why you need to stick to the investment strategies he’d laid out in Chapter 3 instead of trusting the so-called financial experts to invest your money and beat the market.
That being said, if you’re someone who has reached certain figures in assets and want to work with a financial planner, going for a fiduciary and fee-only advisor is the way to go. He tells you how to find and work with financial advisors in this chapter.
6% of the content is towards this chapter.
Chapter 7: Investing Isn’t Only for Rich People
Ramit loves system. It’s not a surprise that he’s come up with an automatic investing system. But if you’re someone who loves to have more control over your investments, Ramit also covers that part.
He touches about financial independence, what does it mean for you to get there and how others have done it.
There’s also another part on investment that he emphasizes on – asset allocations. If you’re new to the term, Ramit explains in great detail here.
Other topics such as real estate, art, and crypto currencies are also covered in this chapter.
13% of the content is towards this chapter.
Chapter 8: Easy Maintenance
By this chapter, you will have already completed your 6-week system. Yay!
And now, it’s time for you to get to know yourself (yes, you will need to dig deeper on why you’re doing all this work) and how to maintain the system that you’ve built.
You will learn how to rebalance your investment, uncover the myths surrounding taxes and know when to actually sell your investments for some good capital gains.
To those of you who want to plan even further out, this is where you’ll find those additional steps.
5% of the content is towards this chapter.
Chapter 9: A Rich Life
This is a chapter that I don’t see being covered in many other personal finance books and I really appreciate Ramit takes the time to talk about money relationships in this chapter.
Ramit breaks down the process of being financially naked with your partner, planning for marriage/wedding, and his experience preparing for a prenup.
Plus, this is the chapter where Ramit goes deeper into the art of making more money by learning how to negotiate. How to make big purchases like buying a car and a house as well as learning how to give back.
15% of the content is towards this chapter.
Who Should Read I Will Teach You To Be Rich?
The book is most suited to people who are already in the workforce. That said, it doesn’t mean that you can’t start reading it if you’re still in college. It’s never too early to start learning.
I’d really like to say that it can be applied to everyone but if you’re someone who’s struggling to make ends meet, there are a lot more sacrifices that you’ll need to do before getting to implement many of the things that Ramit teaches in this book.
To many of us, this book will certainly help us grasp the basics or personal finance. Even if you’re not a US citizen, you can still learn the fundamentals and implement it in your country.
There might be differences in fees and taxes but everything else aside, you can find similar investment or bank accounts in any country. 🙂
How Do Books Make You Rich?
In the book, Ramit even mentioned that the best way you can do for your money right now is to pick up a personal finance book and learn from there. It’s the next best thing you can have instead of paying for your own personal financial advisor.
And from my experience, personal finance books have been THE ones that have truly shaped my mindset when it comes to money. I Will Teach You To Be Rich book is definitely one of them.
So, if you’re still on the fence, not knowing what you should do with your money, let this book be your guide.
Get the book here on Amazon: I Will Teach You to Be Rich, Second Edition: No Guilt. No Excuses. No BS. Just a 6-Week Program That Works