‘I Will Teach You To Be Rich’ Helped Me Pay Off Debt and Save Money

  • “I Will Teach You to Be Rich” helped me get out of debt, fix my credit, and save money.
  • I learned to stop making excuses, automate my finances, and prioritize debt first.
  • I also learned the impact of fees over time, and that being a boring investor is a good thing.

Exactly a year ago, I was in a lot of debt, and My credit score is low 400s. was in, I couldn’t get approved for any kind of loan, and when retail stores would ask me if I wanted to apply for their store credit card, my joke was, “If you run my credit, it’s yours. Will break the machine.”

Finally, after a whole life of being financially irresponsible, I decided I wanted to change that. I read dozens of booksBut “i will teach you to be rich“By Ramit Sethi, who changed my life.

Before reading this book, I felt all hope for my financial future was gone. I thought I’d just be one of those people who never had good credit, a savings account, a retirement account, or any type of investment. Not only did I not have any money in savings, but I also had five or six bills in collection and owed about $8,000 in taxes.

Thankfully, Ramit’s book gave me a kick in the butt and the motivation to get out of this situation. The book provided me with an incredible amount of value, but these are the five lessons that stuck with me the most and got me on the right track.

1. Take Responsibility

For the rest of my life, I was full of excuses as to why my financial situation was a hot mess. i blamed my parent For not being good with money and never used as a crutch to educate myself. I also justified non-payment of bills as these companies did not need my money.

Ramit’s book struck me with some much-needed love and I realized that I was only hurting myself. I was not doing any kind of world-changing activism “by clinging to man.” Basically, I needed to grow up and become a responsible adult.

2. Prioritize debt first of all

I wanted to skip a lot of steps and dive straight into saving and investing, but the book explained to me how debt was really costing me money. the reason for my debt was my low credit score, which meant I was paying higher deposits, higher down payments and higher interest rates. Not only that, but trying to rent an apartment or turn on utilities with your girlfriend was also a pain.

I didn’t know you could settle a loan for less than the total amount before reading this book. It taught me strategies for negotiating with creditors by explaining how financial institutions and collection agencies make their money. Some of my collections were years old, so they were happy with what I gave them.

Additionally, the book taught me the importance of receiving a pay-for-delete letter to ensure that the archive was removed. my credit reportWhich eliminated the need for one of the loans I repaid.

3. Automate Your System

I’m a psychology nerd, so this made sense to me. Humans are not so great at willpower and self-discipline by design, which is why automation is so helpful. Ramit taught me how to set up my accounts and automate my systems to never miss payments, save and invest responsibly.

For example, my checking account is through my stock brokerage site, and I get paid through direct deposit twice a month. mine is different too high yield savings account through a different bank (something else I learned from the book), and my credit card through that bank. About two or three days after payday, part of my money pays off my credit card balance, some goes to my savings account, and some goes to buy stocks.

Above all, this is probably the most important lesson, and I always help friends set up a similar system.

4. Fees and Interest Rates Matter

Like so many people, I tend to think of the monthly payment rather than the overall cost. This book explained to me why it is wrong to do so. Interest increases, and so banks and other creditors make their money.

To put this in perspective, a 72-month $20,000 car loan at 10% interest will cost you an additional $6,677.21 in interest. Improve your credit score or lower the interest rate to 6%, and the interest is only $3,864. That’s about $3,000 left!

Now, I’m obsessed with interest calculators, and this is the main thing to consider when taking out a loan or getting a new credit card.

,10,685
Your balance after 5 years

initial investment

,5,000

total contribution

,2,500

5. Be a Boring Investor

Finally, when it comes to investing, Ramit taught me that the best thing you can do is be a boring investor. He really put it in my head, and I’m grateful. I started investing during the bull market of 2021 when everyone was trying to find the next big stock or crypto.

Ramit persuaded me to invest in it low risk index fundsand if i really Wanted to gamble, do it with only a small percentage of my portfolio. With the ongoing inflation issues and potential recession, that probably saved me thousands of dollars.

Until about a month ago, I had no idea how much this book helped me until I re-read the book. Today, I don’t have any outstanding collections, I owe the IRS nothing and actually got a refund, and I have money in savings. As a result, in just one year, my credit score is now over 660. I have great interest rates on my credit cards, and I also scored an amazing deal when I refinanced my car.

The lessons of “I Will Teach You to Be Rich” by Ramit Sethi changed my life, and I can’t recommend it enough. Not only do I teach strategies to my friends, but I also help my son avoid the financial mistakes I made in the past.

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