Title: I will teach you to be rich
Author: Ramit Sethi
Hello my dear fellow readers,
I know it’s been a while since I posted a book review on my page. Let me tell you a little where this is coming from…
Usually, when we were going about our daily lives (before COVID-19 put a halt to us strolling to work every morning) I would go to the tram and commute to work, during which time I would read up on a chapter or two. Weekends I would also indulge in a few more chapters whilst visiting the local coffee shop.
Now, I don’t have that commute time in my schedule, which is what has caused the dent in finishing the book as timely as I usually manage.
But, moving away from that, and right back to the book we’ve been sitting on edge about.
In our modern day most people want to strive to become rich. Some become it by inheritance, some become it by working their way up, and some just try and get there but just stay out of reach.
Before I carry on, I want to ask you a very important question that you should keep in mind throughout reading the rest of the review: What does “being rich” mean to you?
- Does rich mean being in possession of a large volume of assets?
- Does it mean being financially independent?
- Does it mean being richer than the next person?
- Can you put a number ($) to what would be rich for you?
Really sit back and think about this, because when someone wants to teach you how to become rich, you should know what that (being rich) actually means to you.
Going into the book, I have some background to investing in shares, and also do not enjoy spending excessively. Also, I wasn’t a big fan of having a credit card, because that is just me.
Then I came about this book in the store and looked at the index, and thought this could be something new to try out. The reason is that most other finance books try and sell you an idea of building a portfolio (mostly shares or real estate), and because we may not go into more detail to learn about these things, we end up not following the advice from the book.
Switch to this book, where the author comes down to a level of things you know about (credit cards, bank accounts, budgets on what to spend money on weekly/monthly) and suggests ways for you to change some mechanics here and there to start you off on becoming more conscious what is happening to your money, and how you can actually save money from silly things (ie. late fees). He also brings in the reminder that you can make contributions to your pension plans where your employer also makes a contribution, and how you can get your employer to make a larger contribution, by changing your contribution rate to increase from the minimum that can be contributed.
Then, after you have become a little psyched that you managed to reduce some of your outflows, he comes in with the introduction to share portfolio (as one example) into which you can invest those (and other) savings, to build your assets, and thereby become little by little richer.
So, he says these are the areas you need to look at to utilize them in the most efficient way, and where you need to become money-conscious:
- Credit Cards – with points and service right for you
- Bank Accounts – with the right bank for you
- Pension Fund contributions – increase the value that you’re contributing, so that your employer contributions become bigger as well
- Conscious Spending (*my fav) – really dig deep into your spending habits and cut spending in useless spots
The points mentioned above are things that pretty much most people have been exposed to in their working life, and therefore I strongly support his approach to point out that there is a way to get these costs under control, and to work to your benefit.
Then he jumps to the next level which many of us dread to talk about because the lingo can be confusing at first. But, he breaks it down nicely, saying that you need to look at what method you think is best for you to follow to become rich and protect your assets. This is an important building block to your asset portfolio.
However, I won’t try and break it down, because trying to summarize it all in a small paragraph might just make you even less convinced to follow through with this.
Enjoyed the writing style. Believe that the author took a clever approach to get the audience’s attention, by talking to them about something they do know well enough (reeling them in), explaining to them how they can optimize those financial tools and maybe even getting them to get to the point that they consciously decide to make a change and improve their asset portfolio. The structure is well thought through.
For this reason, I believe the rating of 4.7/5 is well-deserved.
For more book reviews, stay tuned for the next report. And if you cannot wait that long, indulge in anyone of my previous reviews 🙂