Ramit Sethi: This ‘Backwards’ Belief Keeps You From Living a Rich Life
Written by
Kerra Bolton
Edited by
Nicholas Morine
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“Believe it to achieve it” is common advice to help us achieve our career and financial goals.
However, Ramit Sethi, a personal finance advisor and author of the 2009 New York Times bestseller “I Will Teach You To Be Rich,” recently explained how this “backward” belief keeps people from living rich lives.
What is the secret to achieving your dreams? GOBankingRates breaks it down.
Behavior First, Then Attitude
“We tend to believe that if we change our attitude, our behavior will follow,” said Sethi via his YouTube channel.
“Focus on changing your behavior first,” Sethi said. “Then you’ll find that your attitude follows.”
For example, if you want to buy a new home, don’t start the process by creating a vision board or scrolling Zillow.
Instead, calculate the maximum amount you’ll need for a down payment. Automatically deduct the money each month from your checking account and transfer the funds to a savings account or other low-risk, accessible option.
Be Honest With Yourself
Believing you deserve a promotion or dream job isn’t enough to get it.
“It’s easy to claim we want that dream job, but there’s often a vast difference between what we say and what we do,” Sethi said.
Sethi recommended asking yourself three essential questions to close the gap from where you are to where you want to be to get the job that will support your ideal lifestyle. They are:
- Have I done anything remarkable enough to be quantitatively measured and added to my resume in the last six months?
- In the next six months, can I expect a promotion or a higher level of responsibility?
- Can I reasonably expect to get the dream job (the one with the perks, recognition, schedule, and people to let you live your rich life) within 6-12 months?
Answering the above questions will help you identify your strengths and weaknesses — and align your daily actions with your goals.
Let the Past Go
“Keep in mind it’s been long documented that past behavior generally predicts future behavior,” Sethi said.
An American Psychological Association study found that people rely on their past behavior to make future decisions. Sethi suggested letting go of “invisible scripts” that limit your financial freedom.
“Your behavior will drive your attitude,” Sethi said. “And instead of being controlled by your past behavior, you’ll be able to chart a new path.”
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