The Money Expert: "Do Not Buy A House!"... The 10 Ways To Make REAL Money! Ramit Sethi (E266)
Jul 20, 2023
01:38:57
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Quick takeaways
Start investing early and consistently to accumulate wealth over time through the power of compounding.
Increase income by leveraging existing clients' networks, offering incentives for referrals, and expanding service offerings.
Debunk the myth that only rich individuals can invest and focus on understanding basic investment principles and mindful spending.
Maximize financial growth by aligning skills with high-demand markets and making discontinuous jumps to achieve significant progress in wealth creation.
Deep dives
Start investing early and invest consistently
One of the key points discussed in the podcast is the importance of starting to invest early and investing consistently. By starting early, even with a modest amount, and consistently contributing to investments, individuals can accumulate wealth over time. The podcast mentions the power of compounding and highlights the significant difference it can make in building wealth even with moderate contributions. The idea is to set up automatic transfers so that a certain amount of money is invested every month, making it a habitual and effortless process.
Increase income by finding new clients and expanding services
For individuals in various professions, such as personal trainers, the podcast suggests ways to increase income. One approach is to find new clients by leveraging the network of existing clients, offering incentives for referrals, and conducting promotional group sessions. Additionally, personal trainers can expand their service offerings by providing meal planning services or partnering with food delivery services, thereby enhancing the value they offer to clients and increasing revenue per client. By implementing these strategies, individuals can effectively double their income or even more.
Mindful wealth creation debunking myths and behaviors
The podcast challenges common beliefs and behaviors around wealth creation. It debunks the myth that only rich individuals can invest and emphasizes that everyday people can amass wealth through proper investment strategies. It highlights the importance of understanding the basic principles of investing, such as starting with low-cost, diversified funds and keeping investment costs low. The discussion also addresses the behavior of spending and the need to differentiate between spending on what truly brings personal joy and cutting costs on unnecessary expenses. Mindful and intentional spending can lead to a rich life both now and in the future.
Aligning skills with lucrative markets for greater returns
The podcast touches on the concept of aligning one's skills with lucrative markets to maximize returns. It emphasizes the idea that placing one's skills in high-demand markets can substantially increase income potential. The example of a personal trainer is given, where optimizing client acquisition, increasing the value per client, and expanding into specialized or exclusive markets can lead to significant income growth. The discussion highlights the importance of recognizing scarcity and demand within a market and leveraging one's skillset accordingly to yield greater financial benefits.
Thinking in Discontinuous Jumps
Many people think in terms of gradual progress, but the speaker emphasizes the importance of considering discontinuous jumps when it comes to financial growth and achieving a rich life. Small incremental changes may lead to modest improvements, but significant progress requires big changes, such as entering new markets, developing new skills, or making bold investment decisions.
Approach to Crypto Investments
The podcast delves into the speaker's perspective on cryptocurrency investments. While acknowledging the potential of blockchain technology and being a big Ethereum supporter, the speaker advises caution. They stress the importance of diversification, limiting risks, and avoiding impulsive investments. They highlight the tendency of some individuals, particularly risk-seekers, to make speculative investments without proper risk management, often leading to substantial losses.
Building a Rich Life with Intentionality
The podcast explores the concept of a rich life and the importance of designing one's life consciously. The speaker emphasizes the need to identify personal values, goals, and aspirations, and to align financial choices accordingly. They encourage individuals to envision their ideal rich life, based on their own unique priorities and desires, rather than conforming to societal expectations or chasing material possessions. The goal is to make intentional decisions that align with personal values and create a fulfilling and meaningful life.
Ramit Sethi began his journey as a personal finance adviser in 2004, with his website, iwillteachyoutoberich.com. Ramit was the co-founder of PBworks, and is the CEO of GrowthLab. He is also the author of the 2009 New York Times best-selling book, ‘I will Teach You To Be Rich’, and ‘Your Move: The Underdog’s Guide to Building Your Business”. In 2023, Netflix released the series ‘How To Get Rich’ with Ramit as its host. In this conversation Ramit and Steven discuss topics, such as: How to define your ‘rich life’ Why buying a house isn’t necessarily a good decision How to invest like a millionaire His 10 rules for becoming rich Where real wealth is created The key character traits of rich people Why most people don’t understand money The truth about investing in cryptocurrency Why becoming rich isn’t necessarily about intelligence You can purchase, ‘I Will Teach You to Be Rich: The Journal’, here: https://bit.ly/44TcwWL Follow Ramit: Instagram: https://bit.ly/3Om30Gw Twitter: https://bit.ly/3NXDNAH Watch the episodes on Youtube - https://g2ul0.app.link/3kxINCANKsb My new book! 'The 33 Laws Of Business & Life' per order link: https://smarturl.it/DOACbook Follow me: Instagram: http://bit.ly/3nIkGAZ Twitter: http://bit.ly/3ztHuHm Linkedin: https://bit.ly/41Fl95Q Telegram: http://bit.ly/3nJYxST Sponsors: Huel: https://g2ul0.app.link/G4RjcdKNKsb Whoop: http://bit.ly/3zNvvop
