Ramit Sethi: 3 Ways You Should Not Try To Make Money (Plus 1 Way You Should)
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Catherine Collins
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Rebekah Evans
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Financial expert Ramit Sethi is the host of the Netflix show “How to Get Rich” as well as the author of the best-selling book, “I Will Teach You to Be Rich.”
If people are looking for ways to make extra money, Sethi said there’s one good way to go about it (and lots of ways not to). You’ll want to avoid the below methods that Ramit shared in one of his newsletters.
Waiting on a Raise
Earning raises over time is a good way for people to slowly increase their net worth, but Ramit said if someone wants to change their life quickly by earning more money now, getting a raise isn’t the way to do it. The reason is that getting a raise takes time.
Employers typically only offer raises every year. According to data from Payscale, U.S. employers are planning for 3.5% salary increases on average in 2025. The study showed that this is slightly less than the previous year. So, while getting a raise is great, if people want to increase their monthly income now, waiting for an employer raise isn’t the best method.
Doing Gig Work
If people need to earn money quickly, they often turn to the gig economy. According to the World Economic Forum, the side gig economy had a $556.7 billion market share in 2024. This includes meal delivery apps, dog sitting and other freelance work.
For many people, gig work has become a way to earn extra money. Many people do gig work in addition to their nine-to-five jobs. However, Ramit said that gig work is usually isn’t worth the time people put into it.
Ramit said that there are better ways to make money than having a gig with high expenses, like gas, maintenance and time.
MLMs and Crypto
Ramit is passionately against investing in cryptocurrency or getting involved in multi-level marketing products. The reason, he explained, is this type of work comes with enormous risk. Crypto, for example, is an extremely volatile investment that’s susceptible to scams. The FBI reported that in 2023, cryptocurrency fraud losses reached over $5.6 billion.
Multi-level marketing companies often require start-up costs and consistent member recruitment. A report published by the FTC found less than 1% of people who participate in an MLM make a profit. However, those who promote MLMs don’t typically disclose this failure rate. This leaves many people susceptible to financial losses after participating in an MLM.
Instead, Make Money Doing This
Instead of waiting for a raise, participating in the gig economy, joining an MLM or trading crypto, Ramit suggested that his followers use the skills they already have to make money. He explained that people can quickly put their skills to work, whether they’re graphic designers, social media managers, organizers or skilled laborers.
There are many different platforms where people can advertise their services and find clients. Ramit said this is a much better way to earn money because people can start earning money within a few weeks without a significant upfront investment.
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