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Why You Should Read the Book, I Will Teach You To Be Rich?
5 min read

Why You Should Read the Book, I Will Teach You To Be Rich?

Becoming rich can be taken as a life-long commitment of successful habits and patterns. To help you straighten out your prioirties in becoming rich, we have set this guide for you that has all the important tips from the world famous book, I Will Teach You To Be Rich.
Why You Should Read the Book, I Will Teach You To Be Rich?

Have you ever wondered how much easier it would be if you had a hack to becoming rich? Well, if not a hack - a guide book would help you in sorting your priorities out too. Consider this your lucky day because today we will review the book, I Will Teach You To Be Rich. You don't have to read the entire book to know the tips. Simply, read through this article as we summarize it for you!

What Is The Book About Exactly?

The 2009 best seller is aimed at millennials to learn how to manage their resources, finances, and budgeting. It is a DIY guide on how young people can take charge of their spending and plan their investments according to the lifestyle they wish for themselves. If you are a college student and don't know much about budgeting or planning your finances, then this book is for you. It will help you understand where to start and how to go about making sensible lifestyle choices at a young age so that you can reap its benefits at later stages in life.

In a short step by step guide for a six weeks plan to learn how to manage finances, Ramit Sethi explains how anyone can be costly, but for that to happen, they need to start early in life. Making smart financial choices while enjoying a lifestyle you prefer is one of the tricks intelligent people need to master first in life so they can achieve their dream to be rich early in life. According to him, here are a few things that can help you become rich, and why we think you should read this book if you wish to be productive.

Start somewhere, start early

To get somewhere, you must start on with the journey this book, Ramit teaches you why you must set clear goals and priorities in life early and start working towards them slowly, but surely.

Prioritize your expenses

Ramit suggests that you must plan your budget based on prioritizing the expenditure according to the rule "Spend extravagantly on the things you love, and cut costs mercilessly on the things you don't." He suggests cutting your costs from the places where you feel like you don't need those things and spend money on the things you need and want. By avoiding compulsive buying, which mostly ends up with you wasting a lot of money on useless stuff, you can save up a significant chunk of money from being wasted.

Credit score

He suggests you should set up a credible credit score and maintain it to gain credibility for future investments and buying. The credit history hints at the major lenders, about your finances and income, and how risk-free it is to lend you money. If you can manage to pay your bills on time and can spend money smartly,

No-fee bank account

Open up a bank account at a no-fee policy bank where the interest rates are also higher. This kind of bank account is necessary to help you get better returns of your money.

Separate saving and checking account

Keeping two different bank accounts for saving and checking purposes will let you keep a better check on your savings and expenditure. The money you keep in a savings account will be a better source for getting interested and stay away from spending from that account. Setting up these accounts is the first step to make smart money decisions, which eventually help in making you productive.

Investment accounts

Opening up an investment account can help you invest in the stock markets. Try to be aggressive about investing in 401(k) and keep adding to it because it is small money today that adds up to become high profits in the future.

Be frugal with money

Being frugal does not mean you cut your spending to a minimum. It means that you stop buying the things you don't like and don't need, This is a way of smart expenditures as it leads to making you happy with the money you spent and keeps you from wasting money on the things you compulsively buy.

Conscious spending plan

Make a plan about your fixed costs, your investment, and savings account shares. Fixed prices include your daily living expenses and monthly rent etc. and should not be more than 50-60% of your total take-home money. For your investment accounts, make sure to keep 10% of your overall budget. The rest goes to your savings budget. There are three categories of saving section, immediate, short term, and long term savings plans.

Increase your income to increase your savings

If you see no significant change in your savings, this means it's time you earn more because your current income isn't enough to make you productive. Negotiate your pay, find another job, freelance, take up multiple projects, and job opportunities that lead to giving your career and income a significant boost.

Automate your income and your accounts

It is hard to always keep a record of your spending and earning and saving and moving money here and there usually requires a lot of record-keeping. Make your life simpler by making your accounts automated, so you don't have to count and place every penny where it belongs.

Avoid stocks, invest in bond

Stocks are the right way of getting returns over a more extended period, but investing in individual stocks is risky. Therefore it is much safer to invest in bonds as they ensure better, secure, and tax-free returns when the bonds mature. Keeping cash saved is also safe, but it has no credit benefit on your account credentials in the long run.

Pay your taxes

Most people are afraid of paying taxes, although they are just a small amount of your money. You only need to pay taxes when you make money. If you are paying a small percentage of tax on anything, that means you are keeping the more significant portion of funds yourself by investing it in something you bought. Besides, it is your civic duty to pay your taxes. Also, it makes your credit history more credible to lenders and creditors.

Save up for your significant investments and keep your finances well maintained

If you plan to settle somewhere for the longer run, you would want to buy a house, and significant investments like that are a huge hit for your credit score. But for such significant investments, you need to plan and start saving early. Your car is also a good investment, but the idea is to keep your estate and your car well maintained so that you get better returns if you have to end up selling them to move onto better prospects.

Why should you read the book?

If you are a young millennial looking for a head-start in planning your future and want to become rich, this is your guide book. Ramit has designed a strategy that will help you start with the short term changes, leading you into a long term strategy to shape your future. This book is straightforward to follow the instruction manual of the six-week plan to help you set up for success. It helps in understanding the financial strategy to gain maximum benefits from your small investments if you start making them early in life. He suggests beginning first and looking for smart ways to increase your income and spend money on things that make you happy instead of wasting it on useless things.

Remember, you cannot become rich overnight!

This book can help you understand how that is a bad idea and is not practically possible until you win a lottery or such. This book helps you in devising a long term plan, starting with a six-week program to change your money habits, and set you up for a better investment plan. The author has explained in a very easy to understand language that if you dream of being rich, you must be clear in your goals as to why and how you want to be rich. Investment plans are an excellent way to keep your savings in places where they will generate more profits than by merely continuing cash in your lockers.

Since this book is for young adult millennials, it is easy to understand for them through the language and tone used by the author. If you have zero knowledge of where to start with your finances, this is your guide to a brighter future.

Category: Personal Finance