Insights from ‘I Will Teach You To Be Rich’ by Ramit Sethi Flashcards
What is Ramit Sethi’s main advice for feeling ‘rich’?
Spend extravagantly on things you love and cut costs mercilessly on things you don’t.
True or False: According to Sethi, it’s acceptable to have extravagant spending in every aspect of life.
False
Complete the sentence: ‘I am frugal with ____ so I can freely spend on ____.’
X, Y
What does the phrase ‘I’m frugal at restaurants so I can spend on live performances’ represent?
It reflects prioritizing spending on what you value by cutting costs in other areas.
What paradox does Sethi mention about spending and saving?
By allowing yourself to spend in areas you value, you feel less deprived and tend to save more overall.
What is the ‘Start cheap and end high-end’ spending framework?
Start with a low-cost version of what you want, then upgrade only if you use it consistently.
What is the purpose of the envelope system?
To allocate a set amount of cash each month for specific experiences, ensuring guilt-free spending.
Describe the seven-day rule.
Wait seven days after expressing a desire to buy something; if it still feels worth it, proceed. Otherwise, skip it.
How does Sethi suggest handling feelings of financial inadequacy despite budgeting?
Cut costs to 85% of optimal and negotiate for a higher income.
What mindset should you have when negotiating a salary?
Be cooperative, demonstrate value, and convey excitement to contribute while asserting fair compensation.
What should you bring to a salary negotiation meeting?
A list of goals met, accomplishments, desired salary, and comparable salaries from sources like salary.com.
True or False: Mentioning a rival company in salary negotiation can lead to a bidding war.
True
How can you negotiate a raise in six months if you’re staying with your current employer?
Set impactful goals with your boss, meet and exceed them, and discuss compensation after six months.
What is the first step in planning a six-month performance improvement to negotiate a raise?
Ask your boss for three impactful actions that could make you a top performer.
Why should you send a follow-up email after a performance meeting?
To document agreed-upon goals and keep your boss aligned with your progress.
