Ramit Sethi: 3 Challenges To Live a Richer Life
Written by
Gina Hagler
Edited by
Nicholas Morine
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Ramit Sethi is an entrepreneur and online business owner with a current net worth of over $25 million as of 2023, per Fortune. He spreads his financial knowledge to help others find their own financial success through his program, “I Will Teach You To Be Rich.” Within this program, subscribers receive three challenges to change their “money psychology” and benefit their future spending and earnings.
Take a look at these three challenges to live a richer life.
Day 1: Spend on Something You Love
The first challenge is to spend money on something you truly want to, without feeling guilty. It can be something small yet generous, like a meal from your favorite restaurant followed by a tip of more than 20%. It can also be something more expensive, like a vacation to a place you’ve been wanting to visit for years.
How does this ultimately help you?
Financial education is often focused on saving for the future with little guidance on spending in the present. Sethi suggested evaluating how you feel after spending and why. You can then use this feedback to understand how you treat money — and learn to spend without regret. Later, when you get a raise or start a new business, you’ll be able to spend meaningfully by putting your money towards things that truly matter to you.
Day 2: Cut One Thing You Don’t Love
Sethi’s second challenge complemented the first by asking you to identify something you regularly purchase but don’t truly love — and then cease that expense. You’ll have more money to spend on what you love by doing so, simply put.
One way to do this is by canceling an online subscription to a streaming service you don’t use. When it’s canceled, save that money for something important. You can also reduce the size of a particular expense by switching your internet plan to match the amount of data you actually utilize.
This challenge benefits you by helping you become a more conscientious spender, one who values the things they spend money on. It can help you discover what your goals and ambitions really are so you can focus on those, while eliminating spending that is based on the expectations of others.
Day 3: Automate This One Thing Today
Sethi’s third challenge: Create an automated system to save money passively (without having to think about it) and avoid the woes of decision-making. Sethi advised four steps:
- Set a goal. It can be anything from a fat savings account to a vacation, because Sethi suggested you live your richer life, not someone else’s.
- Decide how much and how often to save. It will likely be a small amount, from 5% to 10% of your available funds. If you need to start with just a few dollars a month, that’s fine.
- Set up an automatic transfer of this amount. Rather than feeling stressed about the “loss” of money, focus on the positive motivation from seeing your savings accumulate with your automatic deposits.
- Congratulate yourself. Why? Because you’re now closer to a richer life, backed by a process of automation that enables you to build an emergency fund, save for something you love — and more.
More From GOBankingRates
