Ramit’s biggest takeaway from the entire book is that living a “rich life” is more than being financially wealthy. That’s part of the equation, but it’s not everything. Who cares if you make $300,000 a year if you are working 80 hours a week and not saving any for the future? Time is our most valuable asset, and that’s a part of the equation, too. Basically, spending a lot of time to save a little bit of money is counterintuitive. Instead, he encourages you to focus on the big wins, which are not apparent to a lot of people.
- Building a better credit score
- Negotiating bills (using the phone)
- Get out of (high-interest) debt
- Negotiate your salary (or focus on the income side of things)
- Do your homework and negotiate on big purchases (car, house, etc.)
- Long-term low-cost index fund investment (i.e. not mutual funds)
The way he explains this concept is super practical, yet many people focus on things like the following to try and cut their spending:
- Making coffee EVERY MORNING instead of Starbucks lattes
- HOURS spent cutting coupons to save $20 on groceries
- Packing a brown bag lunch EVERY DAY at work
- NEVER going out to the bar with friends
This book triggered me to take action. Below is what I did. I hope you can learn from it.
Building a better credit score was the biggest one for me. I could potentially save hundreds of thousands of dollars over my lifetime by improving a credit score. That triggered me to apply for a rewards-based credit card (cash back sucks) and go against my original thought process:
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