Ramit Sethi argues that many people misunderstand saving and investing: investing (not merely saving) is how wealth is created, while saving should be automatic rather than a burdensome effort. He positions saving as necessary but insufficient and emphasizes automating savings; the principal claim is that wealth comes from investing, not from merely trying to save.
People talk about saving and investing in completely the wrong ways. Investing feels like gambling. How am I supposed to invest? I don't have any money. The way you get money is by investing. That's how wealth is created. Then when it comes to saving, they go, oh, well, I'm trying to save. I don't try to save. Do I try to brush my teeth? No. Do I try to give my loved ones a hug? No. I do it. And saving money is actually easier because it's automatic. Listen up. Wealth is not built by trying to save. It's not even built by saving. If you save money, give yourself a pat on the back, and then, like an Indian son, hear this message, that's not good enough. Saving is not enough.
