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A rich life is when you look at your life and feel amazing. It can include experiences like travel, buying luxury items, or spending on things you love. To start defining your rich life, create a 10-year bucket list of things you want to do. Choose one item that excites you the most. Set a specific month and year for that goal. Approximate the cost and start saving towards it. This exercise expands your vision and helps you define what excites you.
Money psychology plays a significant role in our financial behavior. Many people have limiting beliefs and feel guilty about spending on things they enjoy. By reframing their mindset and embracing a rich life, people can overcome shame and scarcity mindset. The key is to focus on what truly brings joy and abundance, like gifting, travel, or other passions. A rich life is personal and unique to each individual. By dreaming big and defining what brings happiness, people can create a more fulfilling relationship with money.
Instead of strict budgeting, focus on four key numbers: fixed costs, guilt-free spending, investments, and savings. Fixed costs include rent, utilities, minimum debt payments, and other necessary expenses. Ideally, fixed costs should be around 50-60% of your take-home pay. Guilt-free spending is the money allocated for enjoyment and passions. Investments refer to long-term financial growth, and savings are reserved for emergencies and future goals. By understanding and managing these four numbers, individuals can gain more control over their finances and move towards a rich life.
It's important to start dreaming and setting goals, even if financial circumstances are challenging. Creating a vision for the next 10 years can provide hope and motivation for overcoming obstacles. By setting specific dates and estimating costs, individuals can work towards realizing their dreams. Building a rich life goes beyond financial limitations and encourages a more abundant and fulfilling mindset. By prioritizing passion and joy, and modifying spending habits accordingly, individuals can progress towards achieving their desired rich life.
One of the main ideas discussed in this podcast episode is the importance of knowing and understanding four key numbers for financial control. These numbers include the percentage of income for savings, investments, guilt-free spending, and housing costs. By knowing and tracking these numbers, individuals can gain a better understanding of their financial situation and make more informed decisions regarding their money. It is highlighted that overspending on housing costs and cars is a common issue that can hinder financial progress, and by reallocating resources, individuals can free up funds for other important areas.
Another key point raised in this episode is the need to reframe the mindset around money and debt. The host emphasizes the importance of changing the narrative from 'I'm bad with money' or 'I'll never get out of debt' to 'I haven't always been great with money, but now I'm learning.' By adopting a growth mindset and acknowledging that financial improvement is a journey, individuals can take steps to improve their money management skills. It is mentioned that a healthy relationship with money involves knowing one's debts, having a debt payoff plan, and prioritizing financial education and improvement. This mindset shift opens up the possibility of living a rich life and enjoying the present while also ensuring a secure financial future.
You can be rich.
(Don’t roll your eyes at me; I’m serious.)
This is not what you think.
This episode today is so digestible. So counterintuitive. One of the most enlightening conversations I’ve had with anybody.
If I had a nickel for every epiphany I had during this episode, I’d be rich.
Most of us have been thinking about money all wrong.
It turns out that the amount of money you have in the bank (or don’t have in the bank) is only a small part of your relationship with money.
I didn’t realize this until I got to sit down with the incredible Ramit Sethi.
He’s a NYT best-selling author and finance advisor with a brand new, top-ranked Netflix series called How to Be Rich, where he coaches real people about how to take control of their financial lives.
He says you’ve been thinking about money all wrong.
This is one of my favorite conversations ever.
It changed the way I think about money.
If you were told that you need to create a budget and stick to it, Ramit calls BS.
Instead, you’ll learn about your money dials, the only four numbers that matter, the 85% Rule, why the 10 Year Bucket List is so important, the one thing you should NEVER say about yourself, and best of all, what it means to live a Rich Life.
Today’s episode is going to change the way you SEE money, because when you see it differently, you’ll treat it differently.
If you’re feeling crushed by debt, you’re trying to save for a new home, you can’t stop spending, or you’re constantly getting into arguments with your partner over money issues, you need to hear this episode today.
You have to learn to feel confident around money, and Ramit has the practical tools and resources to teach you how.
And if you’re looking for another zero-cost resource to help you change your mindset around finances, I’ve got just the thing.
Sign up for my free training called Take Control with Mel Robbins.
You’ll be joining a quarter million other students who’ve signed up already and you’ll get 3 incredible video trainings plus a 21-page workbook that will help you get the clarity you’re looking for to change the direction of your life. All you have to do is sign up here.
Xo Mel
In this episode, you’ll learn:
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Listen to all your favourite podcasts with AI-powered features
Listen to the best highlights from the podcasts you love and dive into the full episode