The Money System I’d Set Up in 60 Minutes (And Never Touch Again)

Do you think that you are bad with money? I found that a lot of people think this, but I don't. I think that many people are using a money system that practically guarantees failure. I think that every month they promise themselves they'll save more and stick to a budget and finally get organized. And then life gets in the way and they get busy and nothing happens. And they repeat this for decades. If I sat down with a blank laptop today, I could build a money system in 60 minutes that would automatically handle bills, saving, investing, and even spending on the things I love for the next 30 years. And if I did it right, it would make my life incredibly fun and easy. But if I did it wrong, I'd make a mistake that could easily cost me 6 figures. So today, let me show you exactly how I would build that system. Why it feels like you are working so hard and nothing changes. Okay, be honest. Have you ever opened up your banking app on your phone four times in a week and still realize I don't actually understand my own money? Or maybe you've told yourself I'll start investing when things settle down. I really need to start saving money next month. Every paycheck becomes a new decision. Should I save? Should I invest? Should I pay extra on debt? Should I wait until next month? And then people just end up thinking about it, feeling bad, and then doing the same thing they've always done. Basically, America's pastime is feeling guilty about stuff and then doing nothing about it. Like, do y'all want to keep doing this? Because it seems really dumb to me. I don't know, maybe it's just little old me, Ramit Sethi, but like, I don't care about motivation. Oh, I'm so motivated on Sunday night. Wednesday afternoon, I'm eating Cheetos. So let's build a better system because the people who make progress with money are not constantly making better decisions. They're not even making that many decisions. That is what a good money system does. I want to show you an example with 2 people. They make the same income. One person manages their money manually. So every month they're moving money around, they're making sure that the bill is paid on the right date, and they're promising themselves, I'm gonna save, I'm gonna invest when the money's left over. The other person has read a little book called I Will Teach You to Be Rich. You ever heard of it? Check it out. It's got over 23,000 reviews on Amazon. That person said, Ramit Sethi told me automate. So they spend one hour setting up a system. Their paycheck arrives, money automatically moves to investments and savings, bills get paid automatically, and whether they are at home or not, whether they're freaking dead, their system is still running. Five years later, who do you think is ahead? Most definitely the person who built a system instead of relying on memory and willpower. That's what we're going to fix today, and as you can tell. It's actually more fun to have a system. Now, this framework only works if you actually know what's happening with your money. And there is one thing that can create all kinds of financial headaches, which is finding your personal information floating around online. Go ahead, Google yourself right now and add your city next to your name. You're going to notice your name, email, maybe your phone number, home address, maybe even your family members showing up on random sites in the search results. It's kind of shocking how much of your life is out there for anyone to find. These are data brokers and people search sites that collect and sell your personal information. And when your information is out there, you're exposed to more spam calls, phishing attempts, scams, harassment, identity theft, which can wreck your finances and take years to untangle. It's also just personally annoying. That is why I use a service called DeleteMe. This video's sponsor. DeleteMe is a hands-free subscription service that continuously goes out and removes your personal information from hundreds of data broker sites. I love this service. Basically a system that protects your privacy so you don't have to spend hours every single month tracking this stuff down yourself. And I know that this works because I'm a public person. I've got books, a Netflix show, a podcast. I want my information protected. I actually even bought DeleteMe for my parents because I know that parents are more vulnerable to scams and phishing attempts. DeleteMe has been the leading expert in personally identifiable information removal for over 15 years, and they were recently named by Wirecutter as the number one data removal service. When I log into my DeleteMe dashboard, I can literally see which sites had my info, what they found, including phone, address, relatives, and confirmation that it's been removed. It's like watching dozens of little fires get put out without you having to lift a finger. If you want your information removed from the web, go to joindeleteme.com/ramit and use code RAMIT at checkout for 20% off a plan for you or your entire family. The link is also in the description below. All right, now let's actually build the system. The only money system you'll ever need. This system is gonna be easy and it's gonna be fast. Like, I'm not gonna have you up at 11:30 PM researching the best freaking coffee grinders. We're just gonna knock it out right now. Step 1, find the leaks. Before you automate anything, you got to know where your money is currently going. This takes 10 minutes. Open up every financial account you have— your checking account, your savings accounts, your credit cards, your investment accounts, your retirement accounts. Open it all up. Then write these following things down: the account name, the balance, whether money goes in automatically, and whether money comes out automatically. Here's what you're going to discover. You're going to be like, oh, I forgot I had that savings account, or Wait, why do I have 2 checking accounts? Or this orphan 401 from when I was age 24? Good. That's exactly why we are doing this. Like you just went in and cleaned out all the cobwebs and now you're looking at what is remaining. Most of us don't have a money system. We just have this random collection of satellite accounts and every unnecessary account creates more confusion. We want clarity. And so now that we are starting to understand all the different accounts, Let's decide where your money should actually go. Step 2, design the flow. This is the single most important part of the entire system. If you get this right, everything else is going to be so easy. So here's how most people handle money. Paycheck comes in, they pay their bills, they spend on whatever stuff they like to do, eating out, etc. And then maybe they try to save like $50 or $100. Can I be direct with you? That's like you've been walking on a treadmill backwards your whole life. And then I walk in, I go, hey, have you considered walking forwards? And you're like, such an elegant solution. We're not walking backwards anymore. You are trying to save whatever happens to be left over. And as you've probably noticed, there's not much. Here's instead how I want you to think about it. Your paycheck comes in, you are automatically investing, you are automatically saving, then you are paying bills. And then you're doing guilt-free spending, travel, eating out, drinking, whatever. You notice what's different? Investing and savings happen first. This is what people mean when they say pay yourself first. I literally mean the money goes into investing and savings first. What's left over is what you live off of. Now I know what you're doing. You're gearing up. Smoke is coming out of your knuckles 'cause you're about to write a comment. Must be nice. I don't have any money left over after I save. Well, have you ever tried it? Guess what happens when you actually do this? When you have X dollars left over and you've already saved and invested, you are going to find a way to live on that money. Shockingly, and I truly mean this, most people don't believe they can save money because they have been using the structure all backwards. But when the money automatically gets saved first, they're like, oh, I didn't even notice it was missing. And they learn to live on less. So let me show you some math. Imagine you take home $5,000 a month for easy math. The day that paycheck arrives, your bills get paid automatically. Let's say $500 automatically goes to investments. $500 automatically goes to savings. And the remaining money after you've all done those 3 categories is available for you to spend on anything you like guilt-free. Now you don't have to wake up every month and decide, am I going to save this month? How much is going to be left over? Like, why is there all this? Indecision and agony. No, it's crystal clear. It's calm. It's methodical. This is one of the biggest mindset shifts that I teach at I Will Teach You to Be Rich. I want you to stop asking, how much can I afford to save? Instead, start asking, how much am I going to save? And then build the system around that answer. Because once that money is automatically put in your savings account, you're going to stop having to ask a million questions every month. The money is just going to be there every month, automatically growing. Step three: automate everything. Now I want to show you how to connect the pieces. I want automatic transfers. I want investing, savings, bill payments. I want everything automated as much as possible. Why? Because humans are inconsistent. You're inconsistent. You couldn't even get to this part of the video without stopping it, putting on Love Island, stuffing your face with pistachio nuts, and then coming back. It's three days later, and you're only halfway through this video. What the? Time to get realistic. You're inconsistent. Accept it, acknowledge it, and build a system that will make up for your weaknesses. Now, when I say your, I'm not trying to come down on you. I'm also inconsistent, and therefore I build systems so that my inconsistency gets handled. Now, the solution that a lot of people use is to try harder. I don't know about you, but I would like to work less as life goes on, not more. I want my systems to take over these mundane parts of my life so that I can find increasingly obscure canvas bags from Japan, which I never use, but I collect. What's wrong with me? I don't know, but that's for another video. All right. Think about your paycheck every month. It shows up whether you are motivated or not. That's how your investments are about to work. Now, the investing mistakes that I see, not as often about picking the wrong fund. It's actually just not investing at all. And automation actually solves that problem. So here's the rule. If something important happens every month, automate it. Bills, savings, investments, telling your kids you love them. Oh, we can't do that one soon enough though. AI is coming. Anything repetitive with your money should happen without you touching it. Now, once your system is running, there's only one thing left to do. Join my money coaching program. No, no, no, no. You should join money coaching. But there is another thing to do, which is to make sure your system keeps running. I find that people get really nervous about this section, in part because they're not used to having a system that works smoothly. They actually are so control-oriented that they feel the need to be involved in every freaking thing. You know these control freaks? You know, they're like, oh, I want to have a picnic, and then they go, I need you to finally do something in this family. Please, can you make the carrot cake? And then they see the person making it, that's not the right amount of carrots. I'm like, do you fucking want this carrot cake made, or do you want to do it yourself? Control freaks have an inability to let a system run. If that's you, just get off my channel. I'm not interested in helping you. But if you are ready to trust your system, let me show you how to build that trust. First off, a recalibration. You actually do not need to check your accounts every day. In fact, you probably don't even need any financial apps on your phone at all. Does that surprise you? I don't have any financial apps. Why would I? I don't need to check in. I have a system that works. And I know over months and years that I have engineered this system correctly. So it all works. Yeah, I'll check it once a month. That's fine. But not on my phone. Instead, here's what I want you to do. Schedule a 10-minute money check-in once per month. And here's what you're going to look for. Did your transfers happen? Did your investments go through? Did any bills change? And is there anything unusual happening? Now, if this feels a little weird to you, it all feels just a little too neat. I can understand that. Because many of us have become accustomed to the chaos. Many of us believe that our bills are supposed to change radically every single month. That's actually not how it works. Yeah, your grocery bill may change a little bit here or a little bit there, but now that you are becoming intentional about it, you're gonna quickly realize with a little analysis, your grocery bill ends up being between $600 and $800 a month, or $800 and $900 a month. So within that small variation, do you really need to check it every single day? No. No, not if you've built enough of a buffer. You don't need to take apart the engine and look at every single thing every month. You just need to make sure that everything is working within parameters. And while we're here, let me give you another suggested test. I call it the 60-day test. Ask yourself this: if I completely ignored my finances for the next 60 days, what would break? Would bills get paid? Would investing continue? Would savings continue? If the answer is yes, well done. Congratulations, you have built a real system. And if the answer is no, that's okay. But that is your opportunity to improve. Now, here's the crazy part. None of what we've talked about so far has actually made you rich. It simply stops you from getting in your own way. But once you have this foundational system running, you're going to realize you can ask bigger questions. Like you're going to stop asking, did I remember to save this month? And you're going to start asking a much better question: Am I actually on track to hit $100,000? That's actually why we created Road to 100K, because for most people, reaching your first $100,000 is the moment things really start to change. It's where investing starts to feel real. It's where compound growth really kicks in, and you can see it and feel it. So inside our new program, Road to 100K, You'll get a personalized path based on your actual numbers, not generic advice. We're going to show you exactly where you stand today. We're going to show you what is slowing you down and then the specific step-by-step moves you can make to reach $100,000 faster. You will also get access to live coaching and a community of people working towards the same goal. So if you've ever wanted to ask me your money question, and to see how other people are working towards $100,000 and more, this is the program for you. If you're ready to start making rapid progress towards $100,000, scan the QR code on screen or click the link below to learn about Road to $100K. What you get back. You know, the real benefit of building a money system is not just about the automation. It's what the automation gets you. Imagine having more free time. Imagine waking up in the morning and the first thing you do is not checking your freaking bank account. That's actually amazing. It's not about the 2 minutes it takes to log into the account and look at the— no, it's actually about you creating mental space to focus on the bigger, more important things. It's interesting that Americans spend so much time thinking about money, worrying about money, agonizing. Imagine what it would feel like just getting a fraction of that time back, but more importantly, actually being able to ask the right questions. What's the exact month and year that we can go on that vacation? What's it going to feel like when we pay this debt off? Which, by the way, we have engineered to now pay off 3 years early. When you set this system up the way I've described, money actually moves into the background, and that's where it belongs. Your rich life is not supposed to be a life where you have to spend all day managing your money. No, your rich life is lived outside your apps and outside the spreadsheet. So maybe that's taking your family on an incredible vacation. Maybe it's upgrading your home. Maybe it's taking a sabbatical like my wife and I did for 3 and a half months at the beginning of this year, or even starting a business like so many of my Earnable students have done. Maybe it's something as simple as ordering what you actually want at a restaurant without having to do math in your head. Your rich life is yours, but the point remains, you stop spending attention on tiny money decisions and instead you start spending it on living your rich life. Now, I noticed that at this stage, some people make this mistake. Once the system is working, they keep obsessing over the wrong things. Like they'll spend hours trying to save $7 a month on some subscription, or they spend weeks researching the perfect high-yield savings account. They're optimizing things that barely matter. And what I want you is focused on the big wins, the areas that actually move the needle. So let me give you 3 of those. Big win number 1, your investing rate. If your investments happen automatically every month, then increasing your investing rate is incredibly powerful. A 1% increase today can be worth hundreds of thousands of dollars over your lifetime. Basically every December, set up a calendar reminder, increase your investment rate by 1%. If you're doing 8% this year, make it 9% in December, then 10%, then 11%, and on and on. Worth a lot of money to you. Big win number two: your income. One raise, one promotion, one new skill leading you to a better job opportunity. These things can change your financial trajectory dramatically, way more than cutting a few dollars from your asparagus bill, which is why I tell people to spend more time focusing on increasing income and less time obsessing over tiny expenses. Big win number three: housing. For most people, housing is the largest expense they will ever have, but it's also. One of the most difficult ones to change. Whether you are renting, buying, moving, downsizing, upgrading, housing decisions have an enormous impact on your finances. It is worth slowing down and running the math to get those decisions right. Notice what's not on this list? Skipping lattes, clipping coupons, feeling guilty every time you spend money. Not how you build a rich life. You build a rich life by getting the big decisions right and automating all the tiny decisions. That's the point of this system. So build it once, let it run, and then give yourself the permission to stop spending your energy on tiny money decisions. The biggest financial wins come from a handful of these big decisions that can be worth hundreds of thousands, even millions of dollars. And that is what this next video is about. So watch it now.