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Simple Investing

Lesson 7 from: How to Make Money

Ramit Sethi

Simple Investing

Lesson 7 from: How to Make Money

Ramit Sethi

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Lesson Info

7. Simple Investing

Lesson Info

Simple Investing

We're going to talk about investing now this part is going to be pretty challenging, okay uh and I think that's okay? Because uh if you get this right, this is one of the biggest wins you can have in your entire life. Most people will sit around and complain about money and complain about the cost of gas and stuff like that without ever having read a good book on investing without ever having actually looked at their investments and yet they complain about macro economic policy and fiscal policy and I can't believe the president did this really have you started investing for you just complaining about stuff you can't control so you don't have to do anything drives me nuts. So investing perhaps the single best way to increase your wealth also very important for creatives because a lot of creatives they will wait a minute roommate, I'm investing back into my own business. What do you think I say that I say look, your business may be very good and I hope it is and tomorrow we're going to ...

talk about how to even make it better but I also know that businesses failed businesses sometimes people just get tired of business I want to give myself a backup I want to assume that in general, unlike everybody else because I am and so investing takes it takes the risk out of my business and puts it you know invests in the long term so whether my business succeeds or fails that's great but at least I have this money and at a certain point I hope invest well enough and enough that I'm gonna be making mohr from my investments than from having to work on a day to day basis okay, investments can be passive you don't have to sit around reading stock reports every day fact I log into my investment account less than once every six months how many people here like are like oh my god I'm gonna need to watch cnbc everyday wrong you don't need to this is about boring long term unsexy investments that will actually make you rich okay when I cover how to do that so I want to show you one of the biggest wins you can have in your life this is uh okay look at the difference here we got smart sally over here she starts investing in twenty five years old we got dumb dan he's like I'm gonna do this later he starts investing at thirty five years old. Okay, fine. So look at this though they're only investing one hundred bucks a month of modest amount that's fine smart sally only invest for ten years then she lets it sit and grow in her investment dumb dances all man I start a little late I'm gonna invest for thirty years same amount and yet, smart sally has over fifty thousand dollars more than dumb. Down again, this is probably the only math chart. I'm gonna show you over the whole course, but I want to make the point that it is a huge win to start investing early. Huge one of the biggest you can get, you'll notice an eight percent rate of return. A lot of people going room eat those in the old days. We can't get a percent again. You know what? Maybe maybe not. Weaken debate all that all day long changing numbers. If you want, the point is still going to remain the same. You could make it six percent or even four percent if you want. Okay, so what do we learn here that starting to invest early is one of the biggest ones you can get as an example. Fifty thousand dollars for someone starting ten years early, just a hundred bucks a month. How many lot is that worth? So I'm going to show you exactly exactly how to invest, and you can start doing this with fifty dollars a month. My recommendation is you start off whatever it takes. Remember what I said, whatever it takes to get the behavior going and then you can use my tuner strategy. To increase that number to one hundred to five hundred two thousand too much more lot of the people who negotiated huge amounts like I have a lot of people on my site who've negotiated ten twenty, thirty thousand dollars raises even more they take a lot of that money and put it right into the market right in a reliable low cost way, but imagine if you're investing two hundred dollars a month we already saw the number's right there now imagine you're investing eight hundred dollars a month or two thousand dollars a month that's a lot of money now can you do that tomorrow? Maybe not, but what if you systematically raise your rates with your clients over time? What if you negotiate your salary at work? What if you cut costs on the two headed savings approach and take that money and redirect it pretty soon you've got a lot of money going into your investments okay, here we go step one I want you to pick a reputable investment company now notice that I'm not saying let's sit down and talk about all your goals, etcetera, etcetera so you do need to understand what your goals are with investing and I cover all those in the book but I want you to actually start taking action I don't want you to fund it just opened up an account right that's it behavior first and here are three cos I really like again I get no financial remuneration from recommending these guys. I just like him. I use, uh, I use vanguard. I have a check. Any kind of swabs I mentioned t rowe price is also very good. Okay, these cos let me tell you why I like them. I like them because they're not going to lard up all their accounts with big old fees. It turns out when you think about great investors, what do you guys think about what comes to mind when you think about a great investor? The movie wall street, wall street guys sitting around in a big old chair like I want that give me sixty thousand shares. Right. Okay, so that's, what we think about what else do you think about what you think about a great investor? Hi returns. But let's, talk about the personality. We talk about somebody who studied for a really long time and has just read everything there is to know somebody who's done a lot of work. How old is this person? What gender is this person where they look like male white sort of phones? Yeah. He's got a huge foot. What else? Warren buffett, warren buffett, very good. Anybody else who's, generally more aggressive and just knows the right things to do right has a knowledge in the back of his head and they should have it got it decisive he's got a whole bunch okay, interesting quick quick would it surprise you to tell you that one of the biggest determinants of your return is not necessarily the cos you pick but the costs you pay? In other words, the costs are a huge determinative factor of your returns but that surprising it's kind of unsexy to talk about isn't it like I don't give a damn what my most because I don't give a damn what my costs are as long as I'm making a ton of money, but actually costs have a profound impact on your return. Let me tell you why there are these funds mutual funds and some of these mutual funds have what all of them have what's called an expense ratio it's like the amount you pay to invest with them and some of them will be point five percent something will be two or three percent doesn't sound like that much, right? Three two percent, three percent whatever I'm gonna make a lot of money over don't twenty years right? Sounds reasonable? Well, the difference between you know point five percent and three percent over your lifetime can be tens of thousands or in the case of the people watching hundreds of thousands of dollars a year total hundreds of thousands of dollars did you guys remember the numbers from the person one hundred dollars a month? The difference was fifty thousand dollars. Imagine if you put more and more and as you put more and more you're just paying mohr mohr larded up fees and you're not getting a better return. What I'm saying is you could actually get the same return or better and pay less in fees. I want to say that one more time because it is so important everybody thinks investing is about knowing the best companies et cetera wrong it helps to know how to invest. I'm gonna show you basics of that, but your costs are a huge part of your returns. In other words, how much money you're gonna have for investing? Why would you invest in a fund where you're just paying a ton of money out to somebody for not even performing? It doesn't make any sense questions. So for canadians, we don't have those companies. Would that be recommendation? Or I should say those companies don't exist in canada? Um, would that be a recommendation for finding canadian examples of good companies to invest in look at their cost, their fees? Yes, the number one priority and it's one of the most important ones I have all the criteria in my book in general and you can actually look and see there are comparable companies in canada, I know because I have tons of canadian readers who have used my advice, and they tweak it a little bit for their locale and they find companies that are similar, okay, I'll show you what I mean, so these, anyway, I want to explain why these companies air up here and what you should look for if you want more details, I don't want to spend an hour on this, but you want to find cos they're goingto have good investment accounts, good customer service and low fees. It turns out to be really, really important. Okay, next, you're going to open up what is going on? You're going to open up a retirement account, okay? Remember, we're not talking about savings accounts were opened that up in the last section retirement account. Why this is really scary to people I remember I was sitting at the dinner table back when I was in college, I came home to visit my parents and this like uncle came over and he was telling me about working at this really big, boring company he's like you should work there if you if you do that and you'll retire with a million dollars in the bank and I looked at him like, are you crazy way don't want to hear about that at age twenty a million dollars for small is that even a lot? I don't know. And then retirement that's like the r word but what I learned was you set this up once remember we talked about opening those accounts you open up these accounts once you automate your money, you never have to think about it again. I like I said I check on my investments about once every six months. Okay? If you want it it's more comfortable for you. Once a month. Once a year even you can have somebody help you or you can simply go in there. I'll show you how to do that. So ah, for one k, if you work for a company, chances are they offer you a four oh, one k what this does to a certain type of retirement account. Don't get all the details it's a bit technical, but it's one type of retirement account that can help you save a lot of money over the long term has tax benefits. The other one here is a roth ira. This is terrific again, if you work at a company uh or or in some cases if you even don't and you want to put away several thousand dollars a year with tax benefits now what is tax benefits mean, why should you open this up versus just a regular count? Our savings as we know you know you may pay anywhere from let's say twenty percent to say upto upwards of thirty eight percent in taxes what if you could say that and actually let that money work for you and grow over time or what if you could invest in an account and not have to pay taxes when you withdraw your money when it's going to be worth a million dollars more later that's pretty attractive. All right, I'm gonna leave that point there if you want more you can check out the book. I don't want to get into the technicalities here, let me just suffice it to say that opening these is not that hard you can set up in one afternoon. You could actually call up the company like I recommend my students. Just call it vanguard. Listen, this weird indian guy told me to open up a roth ira. I have no idea what it is. Can you walk me through it and we'll just do it on the phone with you, okay, very easy. Once you do this, anyone here has anyone here opened up a roth ira aura for one kid because of my advice? Okay, let's, get that on the web to I want to hear from people who have done it, how do you feel after opening it up? Good? Yeah, I mean, I think like he said there's something nice about and I haven't looked at it since I opened it because I sort of automated other things and it's nice to know that it's there and then I'm sort of things are growing exponentially yeah love it one thing to check off you automate it and you move on you're not a big misconception I think don I saw you kind of surprised that I only check my accounts it once every six months is that surprise you? Yeah, why? Because you're like a penny until group so you think I'm like opening up everyday like yes, I mean sixty eight since yesterday that's something I would do I feel like because I'm not checking it and I'm not like obsessive about it that that's the reason I'm failing so so interesting you have so many invisible script is so fascinating and I want to tackle those down no it's not like I'm getting in your head right now, it's stressing and I like that you're very perceptive about it we're going to talk about how to overcome those scripts but you said I feel like because I'm not obsessive I'm not succeeding that is so interesting many of us create all these different us versus them and other types of scenarios and pathologies in her head if I don't do that, I won't be successful if like obviously if you open up an investment account, you have to be obsessive well, I'm not obsessive so I'm not even gonna open up an investment account see how that logic works in her head it's so weird and if we actually step back and someone pointed out to us we're like, wait a minute that doesn't make any sense I don't have to be obsessive I just have to open it, open it then we talk about funding it through automation and then we move on hundred bucks a month fifty bucks a month five hundred bucks a month whatever way move on ok let's take a let's see what we've got here questions before moving so just in response to question uh shadow says I open a roth ira thanks to re meet in two thousand nine and now if that plus investment contributions from my office I have eighteen k and retirement and I'm only twenty five lovett amazing, I love it. The best part is I bet you he didn't even notice it was gone because when you truly automate your money you never even see it. It goes to the right place. The only thing you see is like that awesome trip you want and you feel great because you didn't have to go into any kind of debt you actually paid for and mohr than you needed to I love that any other comments from the web shadow just keeps going on I love romi seriously? Oh, she it's a she excuse me, thank you very much. Get this correct police peter be opened a roth ira after reading your book in two thousand ten and m v be opened for a one k lifecycle fund from vanguard and loves it great now a lot of people you know let's say your thirty eight let's say you're forty five watching this you're like, wait a minute remains I saw your you're dumb dan example, I'm dumb dan like, is it too late for me? No, it's, not too late. They always say the best time to open an investment account was ten years ago. The second best time is today, right? So you can feel bad or you can actually just open and say, you know what? I'm goingto work with what I got maybe I didn't open up when I was twenty five maybe I should have, but I'm gonna work with what I got and I'm gonna try to fund as much of it as I can. Yes candidly you've lost some time, okay? It is what it is we can't do anything about that what we can do is change our behavior from today going forward, ok let's go on to number three the lifecycle fund this is ah this is gonna just gonna blow your mind for a lot of people alright we talked about how investing many of us think it's about like picking companies on yvonne I think you may have said it earlier about you didn't know which companies to pick and things like that with investing very interesting because it is a script that we have which is I believe investing is about picking the right cos how could that not be true that's what everybody says I need to know if this stock is going up or not it's not true you can invest in individual stocks if you want but most people who do that lose money they don't beat the market let's put it that way fact the vast majority of even professional investors there's actually a different way to invest it's much safer in other words less risky and you could actually match the market I wanna show you what I mean by this so hear step three invest a percentage of your income in a life cycle funds and leave it alone a lot going on in the sentence I want to explain what I mean. Um john bogle the founder of vanguard created his thesis on index funds index okay, so think of all these different types of investments stocks, bonds, mutual funds and then a certain variant of mutual funds called index funds this is going to be the most technical gonna get today imagine this way have a whiteboard let's use this imagine the stock market is like a curve, right? It goes the market is like a curve and it goes up and down and up and down but over the course of time presumably it goes up okay? There are actual funds that pretty much match the market, so as the market goes up or down, these funds will pretty much pretty closely matching. Now what do we know about these funds are called index funds there also controlled by a computer, not by somebody in new york who you have to pay too percent to which over the course of your lifetimes will save you tens or even hundreds of thousands of dollars the difference I'm going to give you a couple of numbers here let's say a mutual fund charges two percent doesn't sound like a lot but it's a lot of money over a lifetime these index funds will charge point one eight percent again these numbers I'm just putting it in context for you that's a savings of tens or hundreds of thousands of dollars if you make a lot of money that's potentially saving millions of dollars so okay we meet great lesson thanks for nothing what am I supposed to do with this here's what you could do there are now funds called life cycle funds there also known as target date retirement funds okay target date or life cycle what did you do? It's very simple you call up these companies vanguard schwab whatever and you say listen I am twenty five okay I'm planning to retire in forty years you don't think you're different don't be like me and I'm gonna work forever no you're not you're gonna retire let's just say you're going to retire sixty five and you tell them I'm going to retire then what is the correct target date a lifecycle fund for me what does this do? Ah lifecycle fund it basically adjust based on your life cycle if you're twenty five you can have a lot of risk you can have a lot of risk because higher risk equals what higher potential for reward my investments are gonna be very different than a sixty year old retirees investments right? They can't afford to lose money they can't afford to lose that much they can afford a lot of risk I can because if it goes down a little bit but potentially higher I can afford that I'm younger but none of us want to make these changes it's very difficult to change things over time ah lifecycle fund does that for you remember that pie chart I showed you a few slides ago? Imagine that pie chart adjusting overtime for you automatically you don't have to do anything the computer does it for you based on how old you are when you're gonna retire and the fees are very low, we're talking about around point one, eight percent. So what do you need to know from all this? That was a quick discussion into theory, and now we're gonna go back to what you need to know. What you need to know is you can start investing today. You don't need to know what companies to invest in. You don't even know any of that stuff. You can start investing by calling up a company. One of the companies I mentioned you could say, look, I'm this age complaining to retire in that year, what's the best lifecycle fund a target date retirement fund for me, they'll tell you they'll give you little symbol, you say help me, I don't know how to invest in this what do I do? We'll see. Okay, how much would you like to transfer? I'd like tio contribute one hundred dollars a month on auto pay, no problem here's, how you do that, you're gonna put your account information, they're one hundred dollars a month is going to be transferred remember you can stop it any time, but I'd like you to start investing a little bit fifty dollars a month, one hundred dollars a month. Once you get comfortable, you're going start reading stuff, going start seeing the charts you're not gonna need to log in every day, okay? If you log in you're like, oh my god it's down point three percent doing something wrong, but this is the way this is it sounds really weird, but this is the way that you can actually significant grow your wealth this is the way that you could have eighteen thousand dollars in your retirement account without doing anything think about that think about just fast forward and close your eyes for a second think about how you'll feel five years from now you could either be in the same place you are right now. I should have started that five years ago when I saw that weirdo come to seattle or I'm so glad I started putting one hundred dollars a month in yeah, I probably should have put in five hundred but I thought I would miss it, but I'm glad I put in one hundred and now I'm gonna tune that up to two hundred, three hundred five hundred luckily, I already have six thousand dollars in this account right now it's almost as if it's magic let's pause there and take questions. This is some complicated stuff, but this is the way that you can significantly grow your wealth over the long term okay let's take questions from the web let's take questions from here, so w t incan says what specifically should I say to my financial advisor to find out what my fees are great question I have a script in my book about what to say to your financial advisors, specifically here's the truth. Most people don't need financial advisors, okay? Like we think something like, oh, well, why not re meet like I pay someone to mow my lawn or clean my apartment? So isn't a financial adviser just the same thing? I'm just paying for a service provider? Maybe, but the truth is, uh, there's a bit of a difference between mowing your lawn in a financial adviser. First of all, a financial adviser sometimes can take commissions. Talk about that two percent. They can take a similar commission that's tens of thousands of dollars over your lifetime. You don't need to be paying someone, which you could do yourself second. Mowing your lawn is different than learning how to manage your money, money's in many cases, the number one thing we complain about our entire lives, wouldn't it make sense to read one good book and learn that now? What do you say to your financial advisor? You can say, look, I just want to be super clear, um, I wanted to understand what kind of fees you're charging me, and how are you being paid? If you are going to use a financial advisor there certain specific criteria I recommend if you make a certain amount if you have a certain amount of assets I think it's perfectly fine to go get a checkup from a financial visor even engage one but you always want to find a no feet financial advice he's sorry fee on lee financial advisor that means someone who you pay an hourly fee too not a commission I don't want you paying someone who's going to give you investment advice that's going a lard up their pockets you'll find people who are selling insurance it's very common they got all this fancy math you don't want to be thinking of insurance in general as a good investment can insurances insurance it's not necessarily a great investment for the vast majority of people let's take other questions all right have a question from janine for three four who says what about if your employer sponsors a four oh one k with matching option is this an okay option rather than a separate retirement account outside of your employer we're going to talk about that in one second I answer called the latter of investing the short answer is you should definitely do the match the longer answers you should probably also open up an outside retirement account if you can afford it okay let's let me stop here and ask people what are your hesitations with doing this we talked about a lot of theory, right? It's easy to go and negotiate a cable bill, especially because you have the script now this is a little bit more complicated. What are the hesitations going through? Your mind is police well, I've I've had, you know, credit card debt like over the span of several years, and so in my mind listening this it makes sense, it's like I want to do it, I probably will go home and do it, but I can see myself and like other people saying, well, if I'm being charged ten percent, twelve percent whatever interest on my credit card debt, doesn't it make more sense to pay that down? You know, and like, I'll get a better return on my money, so to speak, then teo invested in something that they will grow very tiny little bit of force, yeah, ok, let's actually tackle that right now, so we're going to talk about the ladder of investing. By the way, I noticed that you noticed I just said, you're done, you do this. Your automated money system is good, right? And there's all kind of tweaks and stuff you could do in the book if you make too much for if you don't make enough will cover the freelancing thing in a second, but that is the general system if you do that and our two a month your money's going where it needs to go but I want to cover the latter of investing to answer your question before I do that you could do more but there's the eighty five percent solution you get this done you are ahead of the vast majority of people you know exactly how much you're making you know where it's going it's going to the places you wanted to go totally different than most people. Now I want to talk about the latter investing because I knew I'd get these questions so here we go the latter of investing is about where does your money go? All right, so let's talk about this because if I if you were to make the next hundred dollars I called the next hundred dollar principle where would it go invested? Save it. Pay off debt who knows let's talk about it if you have a four oh one k through your office and they match what this means is you know, for every uh one dollar you put in they give you fifty cents or one dollars up to five percent or something like that that's your number one that's free money that's the first thing you do even before you pay off debt that's pretty surprising a lot of people but it's free money you definitely wanna lock that in next pay off debt okay, so if you have credit card debt, stuff like that, you could get a student loan debt. It depends on your interest rate. If I had, like, a two percent interest rate, I'd probably paid a minimum on that and I do the rest of this. If I like a six percent rate, I might split it some here, some there. Does that make sense? I cover the details in the book. Next max out your roth ira this's different? You're gonna have to open this one up outside of your employer, but the good thing is you can always contribute to again. I don't wanna get into the technicalities here, but this is another way to open up outside retirement account. This answers your that question. Which says, hey, should I do this or that? Do this pay off debt if you still have money left over, go on to step three max out your roth ira, if you still have money, go back to your four oh one k because remember, we only did the match, so we're gonna go back, put more money in there if you still have money thiss very good place to be a lot of my readers who have done my system for years they now have so much money there, like, what do I do with all this money? So they actually can open up a regular investment account and they can actually put money in there they could put it much as they want I'm not kidding by the way ah lot of people people laugh right? And I was you chuckling over there down like that's ridiculous I could never have enough money to do that right? And yet my readers who have been doing it over let's say they started reading my stuff four years ago they're like okay, I'm going to try a little bit of this and they did it and over time they increased their income they automated their money, they got a side business they raise their rates a lot of them making fifty thousand dollars more than they were I have people actually I think I'm going to speak to a case study who this guy's amazing he was in he's the only person who's bought every single one of my courses ever ever one guy on earth has done this and he was in such a bad situation he used to, um steal food at lunch from the cafeteria because he just didn't have any money and yet he and then he used my stuff all my courses etcetera to earn more money get a fifty thousand dollar raise et cetera, et cetera we're going to talk to him but the point is you can do this well everyone do it no can you do some of it definitely and you will have you know enough to go down this ladder and potentially do that now let's pause here for questions as we get ready to bring on a case study we're going talk via skype to one of my students james let's take questions absolutely eso we actually have a couple of people who are mentioned hesitations yes that they had can be a patrice wonders what if my income decreases? Good question uh so if let's say you're contributing a hundred dollars a month and all of a sudden things come really type you simply tweet that number down to knit you can't do one hundred more fifty can't two fifty posit that's it but the more important thing is this is very interesting phenomena we often think about the worst case scenario, which is so it would be so sudden like, oh my god, what if I ran out all my money? You know what a real worst case scenarios what's a more common one is that we, uh simply don't start investing now and then we end up being sixty five years old, having very little money, having a live on social security and cutting all of our expenses back the things that we were planning on living on that's a real danger but we're mohr driven by the dangers we see in front of us today which are, like, very sort of egregious and in front of us versus the dangers that we likely will face if we don't take action today. See important versus urgent difference is aha moments I had reading your material. Um when I started was the fact that, you know, in my twenties, if I run out of all my money now, I can go live with my parents there's not really a social stigma there's so much that can be done to reverse that now first is when I'm sixty five very good, very good other hesitations, whether in studio or outside let's, hear why people are a little hesitant about this investing stuff? Absolutely. Page d says I hate gambling, and this sounds a lot like gambling with money lose. Yes, ok, very good. Very, very good. So you, khun I didn't get into the theory of why what the stock market is and how over time it's been somewhat reliable, etcetera. You could read that in the book if you want. I want to get into it today, but in general, you know, again think about risk you gotta think about risk in a different way than you think about most of us are so risk averse, we're all risk averse to some extent. We're risk of her saying I don't want to gamble my money away well another risk to consider is if I don't put my money in a place where it's going to grow I'm actually not going tohave money as I get older that's a really risk in fact that's a mathematical certainty so when someone says that they're not actually saying we meet I carefully weighed the pros and cons of investing in these different asset classes and I've determined very carefully that investing in the market is not my best blah blah blah what are they saying it out of fear they don't understand it so they're afraid now I don't mind if you don't understand it we're all here to learn right all of us are students but I do care if you take a life changing a bad decision because you didn't read one good book you can't let fear hold you back from one of the most important decisions in your life all right? So I don't care if you're afraid that's fine we're all afraid of different things but take a weekend read something learn how it works and then make an informed decision what else so renee matt says hesitations are we're living check to check husband's income only and I'm disabled not getting disability yet struggling to buy groceries okay there are certain times where it's not feasible to invest but I want you to think very carefully about what could you do to cut back on certain things so that you could increase that cash? We talked about the two headed savings approach what are ways you could earn more money, which we're going to talk about tomorrow there's huge opportunities for ways to earn money turning your creativity into income and I want you to just ask yourself this look, we may be in a bad rut right now, okay? But a year from now what are we going to change that we're not in the same position we are today? So many of us were in a bad position and that happens life happens. What actions are we gonna take so that we're not here one year from now? Ok? My parents always used to say this phrase a year from now you're gonna be a year older, what are you going to do that has really influenced the way I thought other hesitations, other questions, so uh, erica's office says I'm hesitating because it sounds difficult to do for a twenty four year old girl sounds boring and difficult a lot of things to read in technical stuff. I bet you make it eyes now on and erica's, ava says I'm hesitating because it sounds difficult to do for a twenty four year old girl sounds boring and difficult and a lot of things to read and technical stuff I totally agree it is boring I read like over a hundred books I wanted to shoot myself in the face it's really boring but that's because most books they're teaching you theory and beta and alfa and always crap that the average person doesn't need to know you don't need to become a financial expert to start investing want to say that again you don't need to be a financial expert to start investing so I mean how many books do you know that are literally like chapter a stocks okay, you want to teach me about all different kinds of stop why do I care again? What's the language we use shit I'm in debt oh my god I'm living paycheck to paycheck so what I tried to do I'm not trying to plug my book by the way but my book or any of the other books I recommended they actually focused on you. What do you need to know? Let me teach you that you're gonna learn the theory on your own maybe five years from now when you're ready you don't need to know that right now you know what should I do with my money? How do I invest it? What do I say, what the scripts I use when I call a vanguard etcetera and then do that so I actually agree that it does sound boring and tedious but I also know that three years from now, you could be that that student mind who made eighteen thousand dollars in investments just growing, growing, going eighteen thousand dollars. When. He's, what, twenty three twenty four it's going to be a ridiculous amount over time. So, you know, this is one of the most complicated things will discuss all week, but it's, not that hard. I cover it in the book, and we've covered some of it today. You know, doing this can make a dramatic, dramatic change in your lifestyle. Dramatic. You'll be able to afford the things you want, all because of a decision you made to spend a couple hours on a weekend setting this up.

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Updated Resource Link: I Will Teach You To Be Rich

Ratings and Reviews


This course changed my life. After watching Ramit on Creative Live, I bought his book, then signed up for his newsletter, then bought several of his classes. You could say I am officially drinking the Ramit Kool-aid now, but I'll tell you why... His stuff works. You have to trust the system, but I've been able to create a rich life for myself by my definition of rich and I am so happy. It takes work, but I am so grateful I found Ramit in my 20s so I can truly enjoy my 30s over the next decade. Without this course, I would still be complaining that people don't want to hire me because my prices are too high and whining that I am not valued, when in reality, the problem was me. Thanks Ramit for always speaking the hard truths and giving people wake-up calls to get their act together and live the life they want... It's possible!

Adrian Farr

Ramit is a huge inspiration, he is not just a 'been there and made loads of money' kind of guy, he is a 'been there and made loads of money, and here's how I did it' kind of guy! Ramit really gets down to helping you understand not only how to make money but also how to save it too. I am looking forward to reading his book and plan to implement a lot of his systems into my own life.


I have taken a few business classes for creatives online, but this is by far the most comprehensive, most practical course of all. Especially for someone like me who loves Ramit's work but has not made a decision to commit to his full courses, this is a great introduction for what he can offer. He pushes you to think outside the box and see all the possibilities that we can have in a very clear, logical way. If you are unsure which class to take to learn about business, this is all you need.

Student Work