About the Episode 🎙️
This is an episode of The Diary Of A CEO podcast with Steven Bartlett interviewing Ramit Sethi, a personal finance expert and author of 'I Will Teach You To Be Rich'. They discuss money mindsets, investing strategies, and living a 'rich life'.
Key Takeaways 💡
- (32:30) The key to building wealth is starting to invest early, investing aggressively every month, and keeping costs low - even 1% in fees can take 28% of your lifetime returns.
- (27:24) Investing in low-cost index funds like target date funds from Vanguard is a simple and effective way for beginners to get started with investing for the long-term.
- (13:40) Buying a house is often portrayed as the best investment, but it can actually be a poor financial decision compared to renting and investing the difference, depending on your circumstances.
- (09:53) To live a truly 'rich life', you need to get very specific about what that means for you - the types of experiences, freedom, relationships etc. that you value, not just vague concepts like 'doing what I want'.
- (23:34) Your childhood experiences and your parents' attitudes towards money significantly shape your unconscious beliefs and behaviors around money as an adult.
- (20:49) Having a prenup conversation with your partner before marriage is important to get on the same page about financial values and goals. It's not about distrust, but about protecting pre-marital assets.
- (28:51) Wealthy people tend to be good at multiple things - preparation, punctuality, social skills etc. in addition to being good at managing their finances.
- (48:17) To increase your income, look for ways to repackage your skills for higher-paying clients/markets where your skills are scarce and valuable.
- (01:46) Ramit's key rules: Have emergency funds, save aggressively, spend guilt-free on passions, prioritize health/education, work with people you respect, and choose the right life partner.