I might come here, but I highly doubt anyone in the world would turn down an opportunity to make more money. Eventually we all get jobs and Build our savings and investment portfolios to get a little taste of the finer things in life. So it’s not surprising that one night, as I was scrolling through Netflix, I saw a aptly titled show How to get rich– a documentation hosted by New York Times Bestselling author and self-proclaimed financial advisor Ramit Sethi caught my interest.
How to Get Rich is based on Sethi’s 2009 book I will teach you to be rich, which teaches readers how to live their rich life by optimizing their credit cards, beating the banks, investing strategically, spending wisely, and more. In the documentaries, we see these principles in practice as Sethi meets people across the US, each with different financial statuses, challenges and opportunities, and teaches them how to take control of their finances and live their richest lives.
Still, I couldn’t help but wonder if it was all too good to be true. After all, could just watching a Netflix show make me financially wiser? And if so, how? Read on for my unfiltered thoughts on how to get rich and my key takeaways from the self-help finance series.
My thoughts on this How to get rich
The series lures you in with promises of getting rich without sacrifice, but behind the flashy camera angles and catchy blurbs lies some really solid financial advice. Better yet, it’s easy too. Sethi takes the fear and gibberish out of finances by asking thought-provoking questions like “What’s your rich life?” and starting honest conversations with viewers and people he works with. I loved how relatable all eight episodes were and how Sethi was able to analyze notoriously difficult and emotional topics like money psychology, debt, savings building and retirement in a way that I found open and informative for financial novices and novices alike .
Key takeaways I learned while watching How to get rich
1. Rely on conscious spending
I don’t know about you, but I don’t like being told where I can and can’t spend my money — and that’s where the beauty of a conscious spending plan comes in. “A conscious spending plan looks forward, a budget looks back,” Sethi explained simply. With conscious spending, you give yourself permission to overspend on the things you love and ruthlessly cut costs on the things you don’t. Of course, this will help you save more and better tailor your money to your lifestyle and needs.
2. A rich life looks different for everyone
This is one of my absolute favorite takeaways from How to Get Rich. Sethi keeps reminding us that a rich life looks different for everyone and that a rich life can also go beyond the monetary value. Someone’s idea of a rich life might be having the freedom to drop off and pick up their kids from school every day, while someone else might have lavish vacations and romantic dinners. It’s all subjective! The important thing is that you are clear about what a rich life looks like for you. Once you know that, you can spend consciously and turn your dreams into reality.
3. A financial plan is everything
One thing I learned about myself after watching How to Get Rich is that I have money in the bank but I don’t know exactly what I’m saving for. is it my wedding A new house? Do I save for a designer bag and if so, which one? Sethi emphasizes that without a plan, your money will be gobbled up by day-to-day spending. Now I’m taking the time to reflect on what my rich life looks like for me so I can make a plan for how to get there.
4. Be aggressive with your finances
In one episode, Sethi says, “You can’t stick your head in the sand and magically become a millionaire.” While the lyrics made me laugh, I love the vibe underneath. Knowing where your money comes from and where it goes, and what your total expenses are is the first step in building your wealthy life. Likewise, Sethi suggests calling lenders about any late fees and asking for their waiver, and if any of your recent credit card purchases are defective or broken, he recommends calling the credit card company and asking for a refund.
5. Never ignore debt
Is there one more thing Sethi says you should never do? ignore debt. Ignoring debt is like carrying a heavy backpack and pretending it’s not there. And the longer you ignore the debt, the more interest it accrues and the longer it will take to pay off. If you don’t still want to pay off credit card debt or student loans in 20 or 30 years, Sethi recommends adding as little as $100 to your monthly payments or calling your lender and asking for a refinance or reduction in payments.
6. Your income says nothing about your money habits
What surprised me the most was the fact that some of the richest people on the show had the worst money habits. These folks were making well into the six figures and still battling overdraft fees, accumulated credit card debt, and more. Sethi explained that one of the biggest money myths is that if you know how to manage your money, you automatically earn more. Bad money habits stick with you no matter how much you make; You could make $250,000 and still feel like you don’t have enough money. This is why breaking unhealthy money patterns and following your individual financial plan is so important.
7. You’re not a failure if you don’t own a home
Sethi’s self-proclaimed “most controversial” opinion on money is that renting can make you richer than owning a home. Though we’re taught that renting is bad and homeownership is the way to go, Sethi says that’s not always the case. When you rent, you pay a flat fee, but if you own a home, you are responsible for the mortgage, maintenance costs, possible HOA fees, and more. So rather than blindly falling into the myth that not owning a home is a failure, Sethi recommends going through the numbers to ensure you’re making a sound and comfortable financial investment.
Ramit Sethi’s Questions to Ask When Looking to Buy a Home:
- Are the total housing costs less than 28% of my gross income?
- Did I save 20% for the deposit?
- Do I plan to live there for at least 10 years?
8. The greatest investment you can make is investing in yourself
Ultimately, the best investment you can make is investing in yourself. Whether it’s going back to school or make a career change, saving money for retirement, getting out of debt, etc., putting your money into the things that align with your deepest core values and rich life. Of course, there is no one secret to success, and every path is different, but if you can commit to developing better financial habits, spending wisely, and being aggressive with your finances, you’ll be living a wealthy life in no time.