Ramit Sethi: How Skepticism Is Hurting Your Finances (and How To Change Your Outlook)
Written by
Catherine Collins
Edited by
Amber Barkley
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It’s common for people to be skeptical when it comes to their money. In fact, according to a 2023 Gallup survey, almost 50% of the population aren’t even confident their money is safe in a bank. Research from the same year conducted by the National Endowment for Financial Education (NEFE) supported this fact. Their polling showed that only 39% of Americans have faith in the financial system.
Not only are Americans skeptical about money, but they also experience uncertainty in their financial lives. Of the people surveyed in a 2024 Wells Fargo study, 43% have a scarcity mindset, meaning they focus on what they don’t have. This can also exacerbate financial skepticism, because if you’re worried you don’t have enough or you’re concerned about paying your bills, you’re less likely to be curious about ways to build your financial future.
While a healthy amount of skepticism is good to avoid scams and be wary of financial products that seem too good to be true, it can also be a hindrance, according to a recent newsletter by money expert and New York Times best-selling author Ramit Sethi. Here’s how he said your mindset affects your money.
Skepticism Can Hurt Your Finances
Sethi opened his newsletter writing about a time when he worked in San Francisco with intelligent colleagues who regularly mocked “outdated” marketing methods. They were skeptical of any company that used ads, for example, that couldn’t be strategically tracked — like billboards in Times Square.
However, Sethi had a healthy sense of curiosity. He did not immediately dismiss traditional marketing or traditional financial advice. By being curious and open to learning, Sethi explained, he was able to build an incredibly successful business.
He learned many different types of marketing methods and figured out what worked and what wouldn’t for his business. This commitment to learning helped him to build the company he has today.
If, like Sethi’s colleagues, you tend to approach finances with skepticism first, you may be missing out on opportunities and lessons that could help you succeed.
The D-to-C Principle
Sethi called his approach the “D-to-C” principle, which stands for “disparagement to curiosity.” So, instead of instantly mocking an idea and thinking that it’s dumb or would never work, Sethi instead embraces curiosity. He recommended asking good questions, learning from experts and staying curious.
Sethi isn’t the only expert voice encouraging curiosity. In fact, according to a 2022 BBC article that reviewed several studies about curiosity, this trait can actually predict how successful a student will be academically. Curiosity is even a better predictor of success than a student’s IQ.
Curiosity in personal finance might look like researching concepts you don’t understand or speaking to someone about their investments that might be unfamiliar to you, like crypto.
Curiosity Can Lead to Success
Just as skepticism can hurt your finances, curiosity can help them. When you’re curious about money, you’re more open to learning new things, hearing ideas and trying out different methods to pay off debt or invest. Surrounding yourself with other people who are curious can also help you to cultivate a growth mindset, which can set you up for financial independence later in life.
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