Ramit Sethi breaks down how young people can build wealth without waiting to be rich. Start small: automate $25 monthly into investments, call your bank to waive fees, negotiate your credit card APR, and move savings to a high-interest account. Skip the financial advisor and market noise. Focus on what you control.
Questions this video answers
$25 per month.
About $30,000 a year.
About a week.
They give "10 times the interest" (compared to local banks) and typically don't charge fees.
Chapters
The recent market volatility and fears of a recession have naturally been cause for great concern among a lot of people. But the young man you're about to meet contends that people should ignore the hype and worry only about things that they themselves can control.
Hi, my name is Ramit Sethi and I write the blog I Will Teach youh To Be Rich. Frankly, there's too much personal finance information out there and most of it's irrelevant for young people. With I Will Teach youh Be Rich, I I'm not talking about PE ratios, I'm not talking about the top 10 stocks of the year. I'm talking about how do you get started? How do you call up your bank account and get your fees waived? How do you call your credit card and negotiate your APR down? And how do you just set up an investing account and set $25 a month to go into it? You know, a lot of the ideas I get from my blog are from just talking to my friends or walking around my neighborhood. So let's take a look around and see what we can find rather than using your local neighborhood bank. I'm a big fan of online high interest savings accounts which give you 10 times the interest in and they're just as safe. And the best part is they don't nickel and dime you for fees. I read yet another column yesterday about how we shouldn't spend money on lattes. If you are directly telling people don't do this, it doesn't go over very well. Go to an online calculator, plug in the amount you spend every day and see how much it's actually costing you. If it's still worth it to you, then go ahead. The whole point of I Will Teach youh Be Rich is to be conscious about what you spend. If you're thinking about getting an iPhone, think about how long it'll take you to pay for it. If you make about $30,000 a year, it'll take you about a week to pay for the iph. One of my friends has a budget so she knows when she goes out she's not going to feel guilty about spending money and she's going to have a good time that night. I've fallen squarely on the side that living life is more important than saving every last penny. I think you've got to come up with a personal finance system that makes you happy but also has you saving towards your goals. There's a big myth that you have to be the smartest person in the room to be rich. You don't need a financial advisor. You don't need $20,000 sitting in the bank. You have everything you need right now. That is, you have a little bit of money, and you're spending it somewhere. The first step is knowing where your money's going.
