Ramit Sethi is the author of the best selling book
I Will Teach You to be Rich.
He also runs the website I Will Teach You to be Rich
where he writes about personal finance
and living a rich life, as he calls it.
He runs this website called Growth Lab
which is all about start up stories.
In this video I want to talk about three of Ramit's
strategies that he uses
and go through three of his best posts.
These posts are all about optimizing your life
and living more efficiently.
All three off these are things that I've been implementing
really since the last five or six years
since I found this guy.
Hopefully you find them as useful as I did.
Here are three lessons from Ramit Sethi.
Lesson one is Focus on big wins.
Ramit wrote this post in 2012 called The Big Wins Manifesto.
The focus of it is saying that there are several big wins in
life that if you master will make your life extremely easy
or a lot easier.
A few of those wins are investing automatically,
so saving 10% of your income automatically
without you having to think about it.
The other one is negotiating a higher salary at work.
If you could negotiate an extra $10,000
to your yearly salary you'd be in a lot better spot.
The reason why Ramit talks about big wins
it's the opposite of what a lot of the personal finance
gurus where talking about back when he started writing
which was saving two dollars on lattes
or cutting back on these small expenses.
He said, it takes the same amount of willpower
or about the same to set up a system that's going to
make you rich in the long run.
The same amount of willpower that it will to
save two dollars on lattes everyday.
Instead of saving that two dollars on lattes you can focus
on learning how to negotiate a higher salary
or starting a side business.
Those big wins are going to pay dividends whereas the
two dollars that you're saving on lattes will only pay
a couple $100 over a year.
This transitions nicely into his next rule
which is establish a tripod of stability.
In this post from 2009, Ramit Sethi explains his
tripod of stability idea.
He says, "The Tripod of Stability means that I try to keep
the big things in my life ultra-stable --
car, where I live, relationships --
so I can afford to be ultra-aggressive about other things.
This alone has had a huge effect on my ability to take on
risky and new projects all the time."
If you are comfortable that you are going to have a place
to sleep and that you have a car to drive around with
and you have some good relationships,
he says you can take risks in everything else.
One of the key points that he's talking about here
is that baseline.
Getting a car and getting a solid place to live
is extremely inexpensive.
Really you can have car payments and you can have a decent
place to live for about $1,000 dollars a month.
I'm in Wichita right now.
My rent in this apartment's $505 for a one bedroom.
Which is super low.
Ramit talks about if you want to be able to live a rich life
you need that baseline.
He's saying here you can get that baseline just by having
a car, having a place to live
and then having people around you that you like.
Once you have that tripod of stability established
it brings us to number three.
Ramit Sethi rule number three is always be testing.
Here's a post that he wrote in 2011 called
How to test responses at bars.
In it Ramit Sethi details how if you're saying
the same stuff over and over again
you can test those responses and get better results.
The example he uses in this post is whenever he was at a bar
somebody would ask him what he does.
He would test different responses to that.
He used to say that he was a writer and he got one response.
He would test and say he was an author
and he got another response.
He would say he was a blogger and he got a third response.
His general theory here is anywhere in life where you're
getting the same question over and over again,
most people will just answer whatever's in their gut
and then keep going with whatever that same answer was
over and over again.
What you can actually do is plan for those questions,
optimize the right answer and say something
that's going to blow people away every time.
This is actually, Ramit Sethi writes a lot about how
to find a job and how to ace job interviews.
This is actually the same advice he gives there.
Figure out what the interview questions are going to be.
Figure out what they actually want to hear from you
and then craft your story
and practice so that you can say those right answers.
Those are three rules from Ramit Sethi.
I recommend checking out IWillTeachYouToBeRich.com.
I'll also link to those three posts in the description.
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