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Ramit Sethi: If You Invest in These 6 Ways, You Can Become Rich

October 6, 2025

3 min Read

Written by Gabrielle Olya

Edited by Molly Sullivan

©Ramit Sethi

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Most Americans struggle to invest wisely, but money expert Ramit Sethi said following six simple steps can change your financial future.

“Getting investments right is the key to building wealth,” he said in a recent YouTube video. “If you can follow the playbook, you can set yourself up for financial freedom.”

Here’s how to invest properly to build wealth.

1. Max Out Your 401(k) Match — It’s Free Money

If your employer offers a 401(k) match, you should contribute enough so that you get 100% of the match, Sethi said.

“Let’s just assume that you make $100,000 for easy math,” he said. “[If your company offers a] 100% match for up to 5% of your contribution, that means that you’ll contribute $5,000 every year and your company will match it with $5,000.”

2. Eliminate High-Interest Debt for Instant Returns

If you have credit card debt or other high-interest debt, your next priority should be to pay this off.

“Paying off your high-interest debt, like 26.99% [APR] for your worthless Macy’s card, will give you a significant instant return,” Sethi said.

While you work to pay off debt, avoid taking on more debt or opening up new credit cards.

3. Open a Roth IRA To Grow Tax-Free Retirement Savings

Even if you have access to a 401(k), you should also open up a Roth IRA for additional savings opportunities.

“Be sure to check the IRA contribution limits and contribute as much as possible,” Sethi said.

For 2025, the limit on annual contributions to an IRA is $7,000, with an additional $1,000 “catch-up” contribution available to individuals ages 50 and over.

4. Boost Your 401(k) Contributions Beyond the Match

“If you have money left over after your 401(k) [matching contribution], paying off high-interest debt and your Roth IRA, go back to your 401(k) and contribute as much as possible to it,” Sethi said. “Go above and beyond your employer match.”

For 2025, individuals can contribute up to $23,500 to their 401(k) plans.

5. Use an HSA To Invest With Triple Tax Benefits

If you have access to a health savings account (HSA), Sethi recommended contributing as much as possible to it.

“Did you know that an HSA can actually be an investment account?” he asked. “It has a triple tax advantage that very few people know about, and it can be incredibly profitable for you.”

An HSA allows for tax-deductible contributions, tax-free growth and tax-free withdrawals, making it a uniquely powerful tool for saving and investing.

6. Start a Brokerage Account To Build Unlimited Wealth

“If you still have money left over after all this, open up a regular taxable account and invest as much as possible,” Sethi said. “There’s no limit on how much you can invest every single month.”