“I Will Teach You to Be Rich” by Ramit Sethi

I used to think that investing was only for people in suits who work at Goldman Sachs and that planning expenditures was only for traditional households with a mom, dad and two kids, who, as a family, plan out expenditure of every cent (“What’s the Cheerios budget like for this month, honey?”) After reading this book, however, I realized that my ~*SELF CENTERED MILLENNIAL GENERATION*~ can get huge returns just by doing what we do best: being “lazy” (automating payments) and entitled (negotiating prices and salaries).

I Will Teach You to Be Rich is a six-week plan that teaches millennials (and really anyone else) to manage their finances in a funny, not-scary way. Ramit Sethi, a personal finance blogger and entrepreneur of IWillTeachYouToBeRich.com, delves into how we can save money and even invest without feeling guilty about spending on things we like.

The book covers:

  • How credit scores work + cool tips to raise your credit score fast with a few phone calls
  • Perks of credit cards and how to choose one (travel insurance, extended warranties, points programs)
  • Opening online savings accounts to earn up to 10x more interest than a big bank
  • Saving for a purpose (vacation, wedding, etc.)
  • Creating a budget based on fixed costs and investing that allows some wiggle room for ~*FUN*~
  • Automating deposits to your savings account so you don’t even miss the money
  • Budgeting without sacrificing things you love by giving up things you didn’t like that much anyway
  • Making the most of a 401(K) (company retirement account)
  • Opening a Roth IRA (another retirement account that is super easy to open and can just chill and roll with the punches of the market)
  • Why you shouldn’t be afraid of “investing” and how some “experts” are quacks
  • Practical nuggets like how to afford your wedding, whether home ownership is right for you, and how to earn more by negotiating your salary and/or starting a side business

I really enjoyed this book and made a lot of quick, free changes right off the bat. Little changes (“small wins”) such as increasing my credit limit (to lower my debt ratio) made me feel confident to make bigger changes, like paying off my car.

Every 20-something needs to read this book. It’s everything we didn’t learn in school. The $10 you will spend on it (or you can “cut costs mercilessly” by going to the library) turns out to be way less than you would spend on a financial advisor. In fact, it is probably less than the interest on your monthly student loan payment.