Tag Archives: I Will Teach You To Be Rich

Living a Rich Life

Ask me when I was 12 what I wanted to be when I grew up, and short of naming a career, I also likely enthusiastically stated, “I want to be rich!”

Notice, I did not wish to be “wealthy”…but that’s another topic for another day. Youthful ignorance at it’s finest.

Who doesn’t want to be rich? Especially at a young age. Here’s the thing though, I don’t think the desire goes away as you grow older and I’ll make the argument “a rich life” evolves over time. But what does being “rich” really mean?

If I asked you, “how much would it take to be rich (monetarily speaking), what would you say?” Would the answer be the prototypical…One million dollars!!! Ok, that will last all of 10-20 years based on basic lifestyle choices. So maybe that’s not the right answer…

Right, double it! Two Million Dollars!!!!

Nope. Wrong again.

Rich isn’t about a million, or your second million, or your tenth million, although I’m all for these things. Rich is a definition of lifestyle and it’s entirely in the eyes of the beholder. When I was little I wasn’t thinking of Scrooge McDuck swimming in millions of coins. I wanted the lifestyle choices richness would provide.

A few years ago I read Ramit Sethi’s book, “I Will Teach You to be Rich” and I highly recommend it. While Ramit teaches many things on financial security and is definitely a [numbers guy] in every sense of the word, the #1 takeaway I had from the book was Ramit’s definition of, “A Rich Life”. Ramit recommends spending aggressively on the few things that bring you great joy. [note I said few, not everything]

I’m going off memory but here are a couple Rich lifestyle choices from Ramit:

  • Fly business class
  • Indulge in the nicest of sweaters (Ramit loves a great Cashmere Sweater)
  • Supply travel to family for large annual getaway

What is a Rich Life?

Ask yourself that question. What is does my “rich life” consist of?

  • To one person, it’s the ability to own their own an acreage on the outside of town, to have a family they care for deeply, and the ability to hunt & fish whenever they get the opportunity.
  • To someone in their 20’s free of commitment and short on responsibilities, their rich life is full of travel, living near or with close friends and experiencing all the world has to offer. This might include indulging in the hottest new restaurant, a great apartment and some hip fashion choices.
  • To someone in their 70’s, a rich life might look like complete financial freedom, escaping to warm weather in the winter, closeness to grandchildren and their ability to give endlessly to local charity via their time and accumulated wealth.

My point is you can make $50,000/yr and be rich. You can make $500,000 a year and be miserable in empty pursuits of “things” you think will make you happy.

Putting a holiday bow on this post, here are the elements of my Rich Life:

  • I wanted to live on a golf course (check)
  • Travel multiple times a year with wife & family. Minimum (1x to the ocean, 1x to the mountains) – it’s good for the mind & soul
  • Freedom with Income – This one is a work in progress, but I need income to show up every month regardless of employment. With the ultimate goal of financial freedom by 45. It’s not that I won’t work. It’s not needing the income to live. This creates flexibility to explore endless opportunity!
  • Experiences with Close Friends – I want to play golf and attend sporting events with those closest to me with unfailing consistency. Maybe top each off with a great meal and glass of wine!
  • Being in G-R-E-A-T physical health to have the energy and vitality to live a life free of restraint due to health limitations.

Notice what’s not on here. What I wear. What I drive. It’s all ephemeral.
~Merry Christmas all

Are You Afraid of Money?

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There is so much to learn.

Money can be a taboo topic for many.  I get it.  It’s highly personal and no one can really evaluate the choices of others because we don’t have a great understanding of their: upbringing, family, debts, income, etc.

But none of these factors should stop you from getting educated on the topic of money.  After all, it’s the #1 cause of stress in households in 2015 (by a landslide) says CNBC.

So what can we do about it? Make a choice. Get educated!

To begin, I’ll confirm to all of my readers that I’ve read each of these books.  Each more than one time.  Secondly, I’m recommending these books specifically because they offer contradictory recommendations (what did you think I’d just tell you what to do?).

I want you to be able to use your brain and figure out your own financial path.  It was already expressed that we’re all in different situations financially, so why offer one cookie cutter answer?  Get intelligent, and use this intelligence the rest of your life to evaluate opportunities.  When you complete these five books, you will understand there are guiding principles to create your unique financial foundation.

Five Books About Money

The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness

Dave offers a very no nonsense approach to money through his book and nationally syndicated radio show.  The foundation revolves around elimination of debt (all debt).  I encourage you to learn Dave’s Seven Baby Steps.   A person has to understand they can’t get ahead by battling a mountain of debt.  Dave also outlines simple strategies to live by a budget and save for retirement.  To put this in my own words, “Stop buying shit you can’t afford!”  I don’t care what the neighbors are driving or wearing.

I Will Teach You To Be Rich

Ramit is a Stanford grad educated in personal behavior and his book is great for those starting out.  There is a ton of actionable info in this book.  His six-week action plan will lay a solid strategy for anyone getting started in the money game.  He talks debt reduction, credit cards, 401K/Roth IRAs, asset allocation, and living a truly “rich life”.  Here’s a hint – rich isn’t just a number, it’s a lifestyle choice.  You can also follow Ramit’s blog at I Will Teach You To Be Rich.com.  I get emails from Ramit daily.

Rich Dad’s Guide to Investing: What the Rich Invest in, That the Poor and the Middle Class Do Not!

This book will help you think about money in a very non-traditional “go to work and get paid” linear way.  Earlier, I told you I’d provide contradicting advice in this post to get that noodle of yours working.  Check out what Ramit thought of Rich Dad Poor Dad here on his blog   No book is perfect, but I do love the angles Rich Dad Poor Dad presented to me when I first read it.  It made me think about money differently.  It makes you take a step back and ask yourself, “What am I really doing to improve my financial picture?”

MONEY Master the Game: 7 Simple Steps to Financial Freedom

This book was just released in the latter part of 2014.  I got it for Christmas and it took a while to devour its 600+ pages of material.  You may be thinking, “Tony Robbins? Isn’t he the life-coach/self-help author?”  Yup!  He tapped some of the most unreal relationships anyone could ever imagine to strip down the topic of money.  He takes some of the strategies of the ultra-rich and makes them available to you and I.  If you’re putting this in order, I think this is more of a master’s level book.  Not only is it 600+ pages, it offers many contradicting investment strategies from the world’s most accomplished investors and investment strategists (once again there isn’t only one right answer here folks).  If you’re into audio, I love listening to Tony’s interview with Tim Ferriss on his Four Hour Workweek podcast regarding the release of the book.

Think and Grow Rich: The Landmark Bestseller – Now Revised and Updated for the 21st Century

This book was written nearly 80 years ago.  How could it possibly be relevant today?  Hill’s book helps to answer the question, “What makes a winner?”  The reason I’d like you to read this book is because it creates a spark.  There are hundreds of stories of people retiring rich who didn’t have large incomes to begin with.  I think that’s wonderful.  I also think a little bit of motivation and focus goes a long way to achieving one’s goals and this will help you get started.  I’ve probably picked this book up 20+ times and read it cover to cover three times.

Okay, so I left out a few books.  If you’re hungry for more, there are a few you can dive into:
The Richest Man in Babylon

The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich

The Millionaire Next Door: The Surprising Secrets of America’s Wealthy

Secrets of the Millionaire Mind: Mastering the Inner Game of Wealth

ACTION ITEM: The worst choice you can make is to do nothing.  And yes, it is a choice.  Don’t try to eat the whole elephant either.  Choose to pick up one book and start learning.  Pick up another and challenge what you’ve just learned.  Tell me where you are a year from now.

~Here’s to a rich life