I Will Teach You To Be Rich Summary (Plus PDF)

I Will Teach You To Be Rich is all about investing as much as you can and being aware of your needs and wants. These little things add up with time and the day will come and you will realize the power of being consistent.

This is a 266-page long book and it gives you the possible answer to personal finance.

So let’s decode the book and see why this is must read for beginner investors.

5 Big Ideas From I Will Teach You To Be Rich Book

1. Out of your entire monthly income, spend 10% on the things you want. It could be, buying new earphones, taking a little vacation, or spending anywhere you want without guilt.
2. At the end of the day, write down the amount of money you have spent & where you spend it. It doesn’t matter if you have spent Rs 50 or Rs 50000, write it down.
3. Always, automate the Credit Card Bills.
4. Never spend money to show off.
5. Always save 5% to 10% of your income, don’t invest the money you save, instant make a Fix deposit where there is no withdrawal fee.

How to Use Income

Let’s assume, you’re earning Rs 20,000 a month.

First, make a list of your fixed expenses.

It would be house rent, electricity bills, mobile bills, household item bills, or anything else. These will be those items that you and your family will need every month, no matter what happens.

So let’s say your fixed needs are 60% of your income.

Now, invest 10% of your income which is Rs 2,000. You can choose any platform to invest in.

Further, you can also use 10% of your income anywhere you like.

Let’s you want to buy new earphones, or go for a little vacation, basically, spend 10% of your income on your wants.

The remaining 20% of your income will be your savings, keep in mind, don’t keep the 20% in your savings account, put that money in Fixed Deposits. Also, do check whether the Fixed Deposit has any withdrawal fee or not.

Most of the Fixed Deposits won’t have any fees and you can withdraw your money whenever you like but still to be on the safer side, ask the bank manager whether they have any withdrawal fee or not.

There you have it, your Rs 20,000 is gone, just like that but this is the right way to spend your money rather than just spending all in one go.

In the end, let’s summarise your investment and spending. (You can play around with your investment, savings, or wants & needs)

Rs 20,000 is Your monthly income.

Fixed Expenses (60%)	Rs 12,000
Investment (10%)	Rs 2,000
Your Wants (10%)	Rs 2,000
Saving (20%)	Rs 4,000

I’m keeping my promise, this is the mini-ebook of I Will Teach You To Be Rich by Ramit Sethi. So download right now and read wherever you want for free. Happy Reading.

Automate Everything

Let’s say you have a credit card then make sure you have enabled the auto payment option because this way, you will never forget to pay your bills.

This will create a healthy credit score which will help you a lot whenever you want to take a loan.

One more thing,

There are many companies that allow you to set SIP in the Indian stock market, so choose one day and enable the Auto-invest mode, this way, whenever you get your salary, your money will be auto-invested.

You don’t have to see whether the market is up or not, your money will be invested in the companies which have selected earlier.

So if you’re a busy guy then do use the SIP and invest as much as you can.

In short, whether it’s a credit card bill, Loan interest, or even investment, make everything automated, so you don’t miss out on your payment or investment.

This way, you will save lots of time and the same can be used for your business or work you’re doing.

Start as Early as Possible

Everyone should invest at least 10% of their income. These days, we have tons of options like Stock markets, Mutual Funds, Crypto, or even real estate.

So choose the platform and invest as much as you can.

Now, it doesn’t matter whether you invest Rs 500 or Rs 5000, the core idea is to invest. So start as little as you can and later, you can always invest more but first, start your investment journey.

Now, hear me out,

Before you invest your hard-earned money, do proper research. Don’t invest in a particular stock because you’re Friend is investing, invest because you know about that company.

Don’t go after stock because everyone is investing.

At the end of the day, you’re investing your money. So be careful with it.

I Will Teach You To Be Rich Quotes

“Sometimes the most advanced thing you can do is the basics, consistently.”

“It’s more important to get started than to spend an exhaustive amount of time researching”

“Compounding,” Albert Einstein said, “is mankind’s greatest invention because it allows for the reliable, systematic accumulation of wealth.”

“People love to argue minor points, partially because they feel it absolves them from actually having to do anything.”

“As Benjamin Franklin said, “Don’t put off until tomorrow what you can do today.” And as Ramit Sethi said, “Let others debate minutiae—all you need to do is open an investment account at a discount brokerage. Sucka.”

“One thing I’ve learned in the self-development business: We all have lots of reasons why we aren’t doing something we “should,” like investing, flossing, or starting a business. No time, no money, not sure where to start, etc. Sometimes the truth is simpler: We just don’t want to.”

“You can do it. All it takes is a plan. And it’s really as simple as that.”

I Will Teach You To Be Rich Review

I Will Teach You To Be Rich by Ramit Sethi is one of the best personal finance books for Beginners, it teaches you everything from how much money to invest to how much money to waste (your wants).

So yes, I would highly recommend you to read this book, if you have never invested a single rupee or you have just started earning money.

Also, if you’re Beginner then make sure you read the Rich Dad Poor Dad, it’s another GOD book for Beginners.

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