I am definitely not a financial expert. In fact, I’m on an active journey of trying to UNLEARN things about finances that I always believed were right and true, but that I’m discovering most definitely WERE NOT. So I’m on this journey and want to use this platform to share things with you as I learn them. And today’s episode is all about everything I have learned from the Netflix series “I Will Teach You to be Rich” with Ramit Sethi, as well as from the podcast (and book) of the same name.  

Ramit helps people identify and create their rich life – whatever that rich life looks like to them. He challenges people to ignore what he calls the “three-dollar questions” and focus on the more important, three-HUNDRED-dollar questions. He also teaches people how they can spend extravagantly on the things that bring them the most joy by cutting mercilessly on the things that don’t.

In this episode, as I talk about the things I’ve learned through following him, I explain to you Ramit’s money dials – which are the different categories that we spend money on – and how, in order to turn one dial up, you need to turn another dial down. The money dials, according to Ramit, are:

Convenience
Travel
Health & fitness
Experiences
Freedom
Relationships
Generosity
Luxury
Social status
And self improvement 

I also explain how he defines an investment vs. a luxury.

And I explain his version of a “budget”, which he has titled his Conscious Spending Plan. This conscious spending plan has only four categories, and the amount that he recommends should be allotted to each are: 

Fixed Costs (50-60% of your take-home pay)
Investments (10% of your take-home pay)
Savings (5-10% of your take-home pay)
And Guilt-Free Spending (20-35% of your take-home pay) 

Resources: 

I Will Teach You to be Rich Podcast, with Ramit Sethi 

I Will Teach You to be Rich (book), by Ramit Sethi 

Download your Conscious Spending Plan by Ramit Sethi 

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