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Review: I Will Teach You To Be Rich

Review: I Will Teach You To Be Rich

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    As far as personal finance blogs go, Ramit Sethi’s I Will Teach You to Be Rich can’t help but stand out. Most of the personal finance blogs out there stick to calm explanations of what the writers are doing to improve their own finances, along with some tips meant to get readers interested in doing things the same way. In contrast, Sethi’s blog is loud, full of concrete examples on how to do things and aggressively effective. It makes Sethi stand out among the rest of the personal finance bloggers out there — and it’s made for a very interesting book. Sethi’s book, also titled I Will Teach You to Be Rich, came out yesterday and it’s already making some waves.

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    A Targeted Guide

    Sethi know his audience. I Will Teach You to Be Rich is aimed at 20-to-35 year olds, and it’s essentially a guide to getting your finances on track. The book covers a six-week program that automates saving and jump-starts investing — with more than a little information on banking, budgeting and entrepreneurship along the way. The information is very targeted: heavy hitting chapters on banking, for instance, are aimed towards readers who aren’t quite up to speed on all the ways banks make money off of account holders. That may seem to guarantee that the book will only offer introductory level material on personal finance, but I was surprised to see that it actually goes pretty in-depth. On the topic of banking, for instance, Sethi dives into the complexities of overdraft fees to the extent of providing guides to negotiating your way out of that first overdraft fee.

    I won’t claim that it’s an exhaustive volume — at just over 250 pages there just isn’t room for even half the material Sethi has covered on his blog. But I Will Teach You to Be Rich will definitely give the average twenty-something the tools necessary to get his or her financial house in order, along with some ideas on why to bother. The introduction asks, “Would you rather be sexy or rich?” With that question, Sethi embarks on an analogy that can’t help but make sense: money is like food. Most of us have stressed over our weight at some point or another and tried at least one ridiculous diet. But the fact of the matter is that the only thing we really need to know about food is that we should eat less and exercise more. Sethi makes the argument that the same level of simplicity is all it takes to keep our finances under control. It’s not a sexy approach — but it is an approach that can make you rich in the long run.

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    The language, anecdotes and overall style does make it very clear that you’re reading a book for the college-to-mid-thirties crowd. There are a few colorful metaphors, accompanied by shout-outs to Sethi’s mom. I Will Teach You to Be Rich is certainly one of the funnest books I’ve read on personal finance, and you shouldn’t think for a moment that the style detracts from the quality of information that Sethi shares. But it does certainly make it an easier read than most ‘must-read’ personal finance guides.

    The Emphasis on Entrepreneurship

    Where I think Sethi knocks it out of the park, both in his blog and in his book, is his emphasis on entrepreneurship. While most personal finance resources talk about topics like automating your finances or long-term investment strategies (albeit with less style), surprisingly few really promote entrepreneurship. In I Will Teach You to Be Rich, Sethi doesn’t go overboard with entrepreneurial concepts — after all, the book is first and foremost about achieving financial independence. But there are little discussions, here and there, that make it clear that Sethi doesn’t really expect anyone who has their finances taken care of to stick with an employer for the long-term.

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    It’s easy to attribute Sethi’s support for entrepreneurship as a part of personal finance to his own life: Sethi co-founded PBwiki and has turned his personal finance blog into a site with over 200,000 readers each month. But I think there’s more to it than that. I think that entrepreneurship is becoming more important, especially as people feel less secure in their jobs and have more options.

    Sethi tackles it from the point of view that most personal finance bloggers are focused on frugality — which seems like a pretty fair statement. In contrast, Sethi has focused on making money, whether through asking for a raise, investing and starting a money-making enterprise of one’s own. Don’t get me wrong — Sethi has devoted entire months to saving money. He just goes for the big savings, rather than frugal tips like making your own soap. But overall, Sethi focuses on helping readers to figure out how they can grow their earnings over time — and that is an approach that will really pay off. It makes both Sethi’s book and blog worth reading in my mind.

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    The Book

    If you’re interested in picking up a copy of I Will Teach You to Be Rich, Amazon lists it as in stock on March 27. I did see copies on the shelf of my local major bookseller last night, however, so they are out there. I’m interested in seeing what you think of the book — personally, this is one book I think I’ll be referring back to.

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    Last Updated on November 18, 2020

    15 Tips to Restart the Exercise Habit (and How to Keep It)

    15 Tips to Restart the Exercise Habit (and How to Keep It)

    It’s okay, you can finally admit it. It’s been two months since you’ve seen the inside of the gym. Getting sick, family crisis, overtime at work and school papers that needed to get finished all kept you for exercising. Now, the question is: how do you start again?
    Once you have an exercise habit, it becomes automatic. You just go to the gym, there is no force involved. But after a month, two months or possibly a year off, it can be hard to get started again. Here are some tips to climb back on that treadmill after you’ve fallen off.

    1. Don’t Break the Habit – The easiest way to keep things going is simply not to stop. Avoid long breaks in exercising or rebuilding the habit will take some effort. This may be advice a little too late for some people. But if you have an exercise habit going, don’t drop it at the first sign of trouble.
    2. Reward Showing Up – Woody Allen once said that, “Half of life is showing up.” I’d argue that 90% of making a habit is just making the effort to get there. You can worry about your weight, amount of laps you run or the amount you can bench press later.
    3. Commit for Thirty Days – Make a commitment to go every day (even just for 20 minutes) for one month. This will solidify the exercise habit. By making a commitment you also take pressure off yourself in the first weeks back of deciding whether to go.
    4. Make it Fun – If you don’t enjoy yourself at the gym, it is going to be hard to keep it a habit. There are thousands of ways you can move your body and exercise, so don’t give up if you’ve decided lifting weights or doing crunches isn’t for you. Many large fitness centers will offer a range of programs that can suit your tastes.
    5. Schedule During Quiet Hours – Don’t put exercise time in a place where it will easily be pushed aside by something more important. Right after work or first thing in the morning are often good places to put it. Lunch-hour workouts might be too easy to skip if work demands start mounting.
    6. Get a Buddy – Grab a friend to join you. Having a social aspect to exercising can boost your commitment to the exercise habit.
    7. X Your Calendar – One person I know has the habit of drawing a red “X” through any day on the calendar he goes to the gym. The benefit of this is it quickly shows how long it has been since you’ve gone to the gym. Keeping a steady amount of X’s on your calendar is an easy way to motivate yourself.
    8. Enjoyment Before Effort – After you finish any work out, ask yourself what parts you enjoyed and what parts you did not. As a rule, the enjoyable aspects of your workout will get done and the rest will be avoided. By focusing on how you can make workouts more enjoyable, you can make sure you want to keep going to the gym.
    9. Create a Ritual – Your workout routine should become so ingrained that it becomes a ritual. This means that the time of day, place or cue automatically starts you towards grabbing your bag and heading out. If your workout times are completely random, it will be harder to benefit from the momentum of a ritual.
    10. Stress Relief – What do you do when your stressed? Chances are it isn’t running. But exercise can be a great way to relieve stress, releasing endorphin which will improve your mood. The next time you feel stressed or tired, try doing an exercise you enjoy. When stress relief is linked to exercise, it is easy to regain the habit even after a leave of absence.
    11. Measure Fitness – Weight isn’t always the best number to track. Increase in muscle can offset decreases in fat so the scale doesn’t change even if your body is. But fitness improvements are a great way to stay motivated. Recording simple numbers such as the number of push-ups, sit-ups or speed you can run can help you see that the exercise is making you stronger and faster.
    12. Habits First, Equipment Later – Fancy equipment doesn’t create a habit for exercise. Despite this, some people still believe that buying a thousand dollar machine will make up for their inactivity. It won’t. Start building the exercise habit first, only afterwards should you worry about having a personal gym.
    13. Isolate Your Weakness – If falling off the exercise wagon is a common occurrence for you, find out why. Do you not enjoy exercising? Is it a lack of time? Is it feeling self-conscious at the gym? Is it a lack of fitness know-how? As soon as you can isolate your weakness, you can make steps to improve the situation.
    14. Start Small – Trying to run fifteen miles your first workout isn’t a good way to build a habit. Work below your capacity for the first few weeks to build the habit. Otherwise you might scare yourself off after a brutal workout.
    15. Go for Yourself, Not to Impress – Going to the gym with the only goal of looking great is like starting a business with only the goal to make money. The effort can’t justify the results. But if you go to the gym to push yourself, gain energy and have a good time, then you can keep going even when results are slow.

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