Book Review: I Will Teach You to Be Rich

I am so glad I decided to read “I Will Teach You to Be Rich” despite one of the featured editorial reviews claiming Ramit Sethi's advice is “part frat boy.” I need my personal finance books to be practical and full of advice, not filled with nonsense. The raving reader reviews were so much more on point, describing the book as being good and helpful for them.

Ramit introduces himself as the child of immigrants and explains throughout the book how his parents’ money beliefs have shaped his own while growing up. This is something I identified with since his parents' attitude and teachings about money are like those that I grew up with. Except for the bargaining and negotiating (I don’t know where I inherited this from – I usually try to negotiate most large purchases and have no problem with salary negotiations).

This book will have something to teach you no matter what your level of financial savvy. It is helpful for people who do not currently save their money, do not yet invest, and have debt. This book is also for people who are currently saving, are investing their money, and do not have much debt. I think anyone can find motivation whether they want to get started or want some tips on doing more. From automating your utility bill payments, to taking diligent notes when contacting credit card companies, to working to decrease your credit utilization rate, there is something for everyone to learn.

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He begins the book with a "pep talk," which is basically him going off on people who make excuses why they can't reduce their expenses, increase their savings, and become "rich." The book's entire premise is to just get started and not to worry about doing it perfectly. As an accountant and an investor, I was eager to get to the more detailed stuff!

The strategies in the book start off with understanding your credit. He implores the reader to understand their credit report and credit score, look at all their credit card and student loan debt, and use their credit card perks. Your credit determines the rates lenders offer you when looking for a car or a house, so getting a handle on it will help you save thousands or even tens of thousands of dollars. Ramit Sethi says that "credit has a far greater impact on your finances than saving a few dollars a day on a cup of coffee."

His tips on maximizing your credit are good and can give you the biggest positive impact on your finances. He recommends paying off your cards on time every month. You can do this by automating your payments. This is one of the easier tips to implement. He also recommends scheduling monthly subscriptions to credit cards you don’t use often to keep your cards from going inactive.

One thing I do disagree with him on is using store cards. Yes, they do have a high APR, but if you pay them off monthly, you get so many perks like free shipping and cash rewards. I put items in my cart not logged in, and when I log in and use my store card, I save 20-50% more. If it's a store you frequent a lot, a store card makes sense.

The investing section is why I originally wanted to read this book in the first place. I found some good information on reviewing my asset allocations. He includes information on how to get started in investing and information on how to review your investments.

A good point Ramit Sethi makes is to not fight the average. Don’t try to beat the average, but instead aim for the average. It may sound boring, but the average is what will make you money over a long period of time. I already do this by choosing safe and safe-ish investments.

I loved that he wrote the truth about cryptocurrency "investing." When my partner mentioned “investing” in bitcoin, I rolled my eyes and told him to just drop the money on an Atlantic City craps table to get the same result. Crypto is not investing; It's gambling.

It was nice to read a money and finance book that was practical and gave solid advice. No opening 10 unnecessary bank accounts (nonsense!) like some books suggest (I'm looking at you Profit First).

Although “I Will Teach You How to Get Rich,” by Ramit Sethi pertains to your personal finances, it can help someone gain more confidence and provides motivation that can translate to your business finances.

My own money-saving tip is to borrow the book from your local library (you are already paying for it in tax dollars, so use your library!) and take notes on any action steps in a notebook or your phone (so you will be more likely to apply his tips).

Disclaimer: This information is provided for informational purposes only. I am NOT an attorney and I am NOT YOUR accountant. I am also NOT a finance professional. The information provided does NOT constitute legal, tax, accounting, investing, or any other type of professional advice. Please consult with your own attorney or tax professional or financial advisor. We assume no liability or responsibility for any errors or omissions or reliance on this information.