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I Will Teach You To Be Rich


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I Will Teach You To Be Rich by Ramit Sethi. This abbreviated presentation is for my personal reference on the actionable tips, which are all I need because I read the book. I recommend you do the same.

Published in: Economy & Finance

I Will Teach You To Be Rich

  1. 1. I Will Teach You To Be Richby RamitSethi<br /><ul><li> “The easiest way to get rich is to inherit. This is the second best way – knowledge and some discipline. If you’re bold enough to do the right thing, Ramit will show you how. Highly recommended.”</li></ul>– Seth Godin<br />Prepared by Colin Post – find me at<br />
  2. 2. Slideshow put together by: <br /> Colin Postpost.colin@gmail.comWeb development and e-marketing campaignsImport / export management for US-South AmericaInmersiones ingleses en CundinamarcaFreelance<br />Prepared by Colin Post – find me at<br />
  3. 3. Anyone reading this review of the book, just buy it. It's worth it.<br />Prepared by Colin Post – find me at<br />
  4. 4. 6 Weeks of Action Steps<br />Prepared by Colin Post – find me at<br />Week 1 – set up credit cards and learn how to improve credit history.<br />Week 2 – set up the right bank accounts, negotiating to get no-fee, high interest accounts.<br />Week 3 – open 401K and investment account.<br />Week 4 – figure out how much you’re spending, and how to make money go where you want it to go.<br />Week 5 – automate infrastructure to make accounts play together nicely.<br />Week 6 – learn why investing isn’t picking stocks, and how to get the most with little work.<br />
  5. 5. Week 1 Action Steps<br />Get your credit report and credit score.<br />Set up credit card.<br />Insist on not paying annual fees or service charges.<br />Get a card with rewards that fit your lifestyle.<br />Set up auto-payment so it’s paid in full every month.<br />If you have debt, start paying it off completely.<br />Prepared by Colin Post – find me at<br />
  6. 6. Week 2 Action Steps<br />Open a checking account or assess your current one. <br />No fees, no minimums.<br />Open an online high-interest savings account.<br />(Optional) Open online checking account.<br />Fund your online savings account.<br />Set up auto contributions.<br />Prepared by Colin Post – find me at<br />
  7. 7. Week 3 Action Steps<br />Open a 401(k).<br />Contribute enough to get the full match.<br />Come up with a plan to pay off your debt.<br />Open a Roth IRA and set up automatic payment.<br />Prepared by Colin Post – find me at<br />
  8. 8. Week 4 Action Steps<br />Get your paycheck, determine your spending, and figure out what your Conscious Spending Plan looks like.<br />50-60% fixed costs, 10% long-term investments, 5-10% savings goals, 20-35% guilt-free spending.<br />Optimize your spending. (find and make cuts)<br />Pick your big wins, use the envelope system.<br />Maintain your Conscious Spending Plan.<br />Prepared by Colin Post – find me at<br />
  9. 9. Week 5 Action Steps<br />List all your accounts in one place with passwords.<br />Link your accounts together.<br />Set up Automatic Money Flow.<br />Create system that automatically sends money to investment accounts, savings account, fixed costs, and credit card. <br />Resetting billing cycles with credit cards may be needed.<br />Prepared by Colin Post – find me at<br />
  10. 10. Week 6 Action Steps<br />Figure out your investing style.<br />Simple options, lifecycle fund, more control, etc.<br />Lifecycle fund is autopilot, simplest option.<br />Research your investments.<br />Buy your fund.<br />Prepared by Colin Post – find me at<br />
  11. 11. Checking Account Resources<br />Credit unions or local banks<br />No fees or minimums permitted<br />Schwab Bank Investor Checking with Schwab One Brokerage Account<br />Brokerage account necessary for waiving fees<br />ING Direct Electric Orange<br />Prepared by Colin Post – find me at<br />
  12. 12. Savings Account Resources<br />ING Direct Orange Savings<br />Allows virtual sub-accounts and automatic transfers<br />Emigrant Direct<br />Generally highest or 2nd highest interest rate<br />HSBC Direct<br />Also among highest interest rates available<br />Prepared by Colin Post – find me at<br />
  13. 13. Discount Brokerage Resources<br />Vanguard –<br />$3,000 minimum can’t be waived<br />T. Rowe Price –<br />$1,000 minimum waived with $50 / month auto contribution<br />Schwab –<br />$1,000 minimum waived with $100 / month auto contribution<br />Automatically link to a Schwab high-interest checking account<br />Prepared by Colin Post – find me at<br />
  14. 14. Ramit On Buying Houses<br />“When I ask my younger friends why they want to buy a house, they stare at me blankly. ‘They’re a good investment,’ they reply like brainless automatons who are at risk of being smacked by me.”<br />Prepared by Colin Post – find me at<br />