Ramit Sethi - I Will Teach You To Be Rich

Additional Praise for Ramit Sethi and I Will Teach You to Be Rich

Ramit Sethi is a rising star in the world of personal finance writing... one singularly attuned to the sensibilities of his generation.... His style is part frat boy and part Silicon Valley geek, with a little bit of San Francisco hipster thrown in.

The easiest way to get rich is to inherit. This is the second best wayknowledge and some discipline. If youre bold enough to do the right thing, Ramit will show you how. Highly recommended.

Youve probably never bought a book on personal finance, but this one could be the best $13.95 you ever spent. Itll pay for itself by the end of (check out the box on page 24 to see what I mean).

Most students never learn the basics of money management and get caught up in the white noise and hype generated by the personal-finance media. Ramits like the guy you wish you knew in college who would sit down with you over a beer and fill you in on what you really need to know about moneyno sales pitch, just good advice.

Smart, bold, and practical. I Will Teach You to Be Rich is packed with tips that actually work. This is a great guide to money management for twentysomethingsand everybody else.

Ramit demystifies complex concepts with wit and an expert understanding of finances. Not only is this book informative, its fun and includes fresh tips that will help anyone master their finances.

I WILL TEACH YOU TO BE RICH

BY RAMIT SETHI

Acknowledgments

The process of writing this book repeatedly made me wish I were dead. But once I was done, I felt great, my posture improved, my eyesight got clearer, and the world seemed great. I imagine this is what giving birth feels like.

I was fortunate to have a great team of people who helped me turn this book into its final form.

Jeff Kuo is simply the finest researcher Ive ever worked with. He was instrumental in helping bring this book together.

Im grateful to Chris Yeh, whos not only a brilliant marketer but perhaps the most frugal man I have ever met. And to Ben Casnocha, a deep thinker who forced me to dig deeper into everything I wrote.

Noah Kagan and Charlie Hoehn helped me spread the word about this book. Couldnt have done it without them.

Several friends helped immensely by reviewing drafts of this book, including Ben Abadi, Julie Nguyen, Vivek Sankaran, and Jen Tsang.

The folks at Workman were amazing: Margot Herrera, my editor, was incredibly skilled at helping me organize my thoughts into a coherent book. Plus, shes fun: In one of the first chapters, I wrote an over-the-top joke just to see how fast shed cut it. She just said, I think we should keep it. Its pretty funny. What more could I ask for? Cassie Murdoch, the perfect complement to Margot, is ultra-organized and constantly thinking two steps ahead.

Many thanks to Peter Workman, who is brilliant and eccentricexactly as rumoredand to all the people who helped tell the world about this book: Andrea Bussell, Kristin Matthews, David Schiller, Andrea Fleck, and Justin Nisbet. Kudos to Janet Parker, Beth Levy, Barbara Peragine, Doug Wolff, David Matt, and Nora Krug.

Lisa DiMona has now worked with me on two books. You couldnt ask for a better agent.

Seth Godin, who took a chance on a college kid with a cocky attitude and a lot of ambition, got me started in publishing.

BJ Fogg, my mentor and professor, first showed me that you can use psychology for pro-social uses, not just to get people to buy more stuff.

To my family, Prab and Neelam Sethi, Nagina, Ibrahim, Rachi, Haj, and Maneeshthanks for keeping me motivated for the last two years of writing.

Finally, to my readers. I hope this book helps you on your way to being rich.

Contents

Why do people get fat after college? The eerily similar guilt about spending and not working out Counterintuitive but true: We need less personal-finance information Common excuses for not managing money Stop debating minutiae and get something done The key messages of I Will Teach You to Be Rich Rich isnt just about money: What does it mean to you?

How to beat the credit card companies at their own game

Why Indian people love negotiating How credit can help you be rich Picking the best credit card for airline miles, cash back, and rewards Getting a card when you have no income The six commandments of credit cards How to negotiate with your credit card company to get fees waived and receive lower rates Why you should always buy electronics, travel, and furniture on your credit card What not to do with your cards The burden of student loans When credit cards go bad Five steps to ridding yourself of debt Week One: Action Steps

Open high-interest, low-hassle accounts and negotiate fees like an Indian

Why old people are afraid of online bankseven though they offer the best new accounts you can get How banks rake it in Why you really need a separate savings account Opening high-interest, no-fee accounts Five marketing tactics banks use to trick you My personal favorite accounts Negotiate out of fees with your current bank (use my script) Week Two: Action Steps

Open your 401(k) and Roth IRAeven with just $50

Why your friends probably havent invested a cent yet Investing is the single best way to get rich The ladder of personal finance Everything you need to know about your 401(k) The importance of crushing your debt Why everyone should have a Roth IRA Week Three: Action Steps

How to save hundreds per month (and still buy what you love)

Spend lesswithout making a detailed, irritating budget The difference between cheap and frugal Conscious spending: how my friend spends $21,000 per year going outguilt-free Using psychology against yourself to save The four buckets: fixed costs, savings, investments, and guilt-free spending money The envelope system for not overspending How to make more money Handling unexpected expenses Week Four: Action Steps

Making your accounts work togetherautomatically

The power of defaults: Give yourself fewer choices How to spend only three hours a month managing your money Where does your next $100 go? Setting up a bill-pay and transfer system that works for you Consultants and freelancers: What about irregular income? Week Five: Action Steps