I Will Teach You To Be Rich by Ramit Sethi is a comprehensive guide to getting your financial house in order!

Ramit Sethi

Synopsis:

I Will Teach You To Be Rich is a practical approach delivered with a non-judgemental style based on the four pillars of personal finance – banking, saving, budgeting and investing – and the wealth-building ideas of personal entrepreneurship.Witty, entertaining, wise and practical, Ramit Sethi explains how to automate your money flow – i.e. earn while sleeping, why your new best friend should be the taxman and how to beat banks and credit cards at the fee game. How do you negotiate a raise? How can you manage student loans? And can you still enjoy your daily latte and buy that iPhone?

 

My review

There is such a lot of information in this book. It covers everything from managing credit cards, bank accounts, pensions and investments. It helps that the book is structured as a weekly guide as it would be ‘information overload‘ if you tried to do all the different things Sethi recommends at the same time.

The book is about laying down the foundations of good money management which over the long run will help you become ‘rich’. There is no magic formula to make you rich quick (sorry for the spoiler!).

The book was put together after Ramit Sethi’s personal finance blog became very popular. I can see why his blog and book are so popular. His style is very direct. He uses phrases like “.. give me a break, pay your taxes, do your civic duty“. He clearly feels that people just make excuses for not managing their money and tries to combat most of these excuses head on in this book. I’m a big fan of this approach.

“Listen up, crybabies. This isn’t your gandma’s house and I’m not going to bake you cookies and cuddle you. A lot of your financial problems are caused by one person: you”.

 

Is there anything that I can take from I Will Teach You To Be Rich by Ramit Sethi?

There are two things that I really took from this book that really stuck in my mind. They were:

  • Ensuring we have the right credit cards
  • Automating our finances

In terms of our credit cards, we have the standard bank credit cards. These are completely fit-for-purpose, however, after reading this book I’m now in the process of finding new credit cards for my wife and I. This is to make sure we get more air miles. This is better than just a few cash-back coupons every now and then, like we get at the moment.

In terms of automating our finances, we have already automated a lot the things the book recommends. This includes setting direct debits for bills and credit cards and putting a set amount into our savings and investments each month. There wasn’t much else the book recommended in terms of automating our finances.

Whilst there wasn’t too many actions for us to take, it did get me thinking. There must be a lot more that people can do to automate their finances. For example, the amount we spend each month varies each month, so our savings should vary each month. At the moment we transfer a fixed amount to savings / investments. This means each month I have to transfer some money manually. It would be great if my expenses were managed automatically. Each year we have to manually search for new service providers to get the best deal and do all the admin of switching. Wouldn’t it be good if someone did that for you?!

The future of automating my finances is going to be the topic of my next blog! Make sure you subscribe so you don’t miss out.

Would I recommend this book?

Yes – If you are only going to read one book on personal finance, then this would be the right one for you. That’s not to say it is the best. It just covers the most areas and puts it in a good framework. There are better books on some of the different topics. For example, ‘Unshakeable‘ is a more complete guide to investing than the investment chapter in ‘I Will Teach You To Be Rich’. Buy it now, via Amazon.

Score:

Joy of reading = 7 (out of 10)

Thought provoking = 8  (out of 10)

Money making = 9 (out of 10)

Read again = Probably some sections

Overall score = 8.16

Buy it now

 

Find out how this book ranks in my all-time list of Personal Finance books here

X

Pin It on Pinterest

X
Share This