Chapters
1. Introduction2. Personal Finance Psychology3. Money Psychology4. Banking Insights5. Automating Your Finances6. Sponsors7. Clear Financial Thinking8. Clear Thinking and Rich Life9. Building Your Rich Life10. Sponsors11. Early Finance Lessons12. Engagement Ring Insights13. Money Dials14. Learning with Coaches15. Money Dial Assessment16. Money and Relationships17. Money and Relationships18. Money and Love19. Outro1. Introduction
Ramit shares his no-BS approach to personal finance, including debunking common money myths and introducing the concept of "money dials" to help you live a rich life without sacrificing the things you love. He emphasizes the importance of critical thinking and changing your mindset to achieve financial success.+
2. Personal Finance Psychology
Book Updates:Ramit Sethi talks about the updates he made to his book, "I Will Teach You to Be Rich," including new accounts and the removal of interest rates. He also discusses the mistakes he made in the first edition of the book, including including inappropriate jokes and barefoot photos.+
Personal Finance Psychology:Ramit Sethi discusses the importance of incorporating psychology into personal finance, rather than just giving generic advice like tracking spending, and how his new book aims to help people live a rich life by meeting them where they are and incorporating psychology.Show transcript +
3. Money Psychology
Money Psychology:Ramit explains how his book is actually a psychology book disguised as a book about money, and Jordan and Ramit discuss the concept of Big Wins, such as avoiding bank fees, and how they can have a bigger impact on your finances than cutting out small expenses like lattes.+
Financial Mistreatment:Ramit shares stories of ordinary people getting mistreated by financial companies and how they can never compete with Wall Street and sophisticated brokers. He emphasizes the importance of personal finance knowledge to avoid being taken advantage of.+
Banking Tips:Ramit shares his personal finance tips and how he gained trust from his audience by recommending the best bank accounts and exposing the worst ones. Jordan also shares his positive experience with First Republic bank.+
4. Banking Insights
Banking and Saving:Jordan and Ramit discuss their experiences with banking and saving, including the best and worst companies to use. They also share tips for finding the best accounts and avoiding predatory companies.+
Banking Habits:Ramit and Jordan discuss the importance of being mindful of banking habits and how it can impact your financial future. They encourage listeners to take control of their finances and switch to companies they trust, while acknowledging that switching costs can be a barrier. Ramit shares his own system for managing his money with minimal effort, and emphasizes the importance of investing and diversifying portfolios.+
5. Automating Your Finances
Ramit and Jordan discuss the power of automating your finances, including setting up automatic transfers to savings accounts and index funds. They emphasize the importance of compounding and how small amounts of money can add up over time to create a "rich life."+
6. Sponsors
Jordan Harbinger talks about the benefits of crowdsourcing with DesignCrowd and the importance of probiotics with BiOptimizers. He shares a special offer for listeners and highlights the unique features of each company.+
7. Clear Financial Thinking
Clear Thinking:Jordan and Ramit discuss the importance of clear thinking and critical analysis when it comes to making financial decisions. They debunk common misconceptions about buying a house and urge listeners to run the numbers before making any big decisions.+
Tax Rates Debate:Ramit shares his experience with the recent debate on marginal tax rates and the lack of understanding around the topic. Jordan and Ramit discuss the challenges of having a productive conversation with those who hold opposing views.+
8. Clear Thinking and Rich Life
Trolling and Clear Thinking:Ramit shares his fascination with human behavior and how he engages with angry trolls on his Instagram page. Jordan expresses his concern about people's inability to think clearly when it comes to political issues and how it affects their lives. The episode highlights the importance of clear thinking in making informed decisions.+
Building Your Rich Life:Ramit Sethi discusses the importance of focusing on Big Wins in life, such as automating investments and building good relationships, to make life easier. He encourages listeners to define their own "rich life" by getting specific about what they want, such as flexibility and convenience, rather than getting caught up in small details like ordering appetizers.+
9. Building Your Rich Life
Creating Your Rich Life:Ramit Sethi shares how he went from being frugal to creating his rich life, emphasizing the importance of getting specific about your financial goals and starting now, regardless of your current financial situation. Jordan Harbinger adds that it's essential to optimize for your financial goals early on, rather than waiting until you have more money.+
Starting Small:Ramit Sethi shares how starting small is the key to building good habits and becoming financially successful. He emphasizes the importance of not putting yourself in a box and not self-deprecating. Jordan Harbinger adds that building a system is crucial in achieving financial goals.+
Overcoming Limiting Beliefs:Ramit and Jordan discuss how people often limit themselves with false beliefs about fitness and money, and how representation and taking control can lead to compounding success in all areas of life.+
10. Sponsors
Discover the world of Luminary and its exclusive shows, including Wisdom from the Top by Guy Raz, featuring Jorgen Vig Knudstorp and NASA's Ellen Ochoa. Get your first two months of access to Luminary's premium content for free when you sign up at luminary.link.+
11. Early Finance Lessons
Starting Early:Jordan's dad taught him the importance of starting early with finance by opening a credit card and encouraging him to save just $1 a week. Even small amounts can compound over time and lead to significant savings in the future.+
Saving and Investing:Ramit Sethi shares his advice on saving and investing, emphasizing the magic of compound interest and the importance of starting early. He also suggests a simple rule of thumb for saving and investing, which is to aim for 20 to 30 percent per year.+
12. Engagement Ring Insights
Engagement Ring Industry:Ramit shares surprising insights about the engagement ring industry, including how the supply network works and the fact that there are only a few manufacturers of the actual jewelry. He also emphasizes the importance of discussing with your partner what they want in an engagement ring.+
Engagement Ring Values:Ramit and Jordan discuss the importance of communication and value when it comes to engagement rings. They challenge the traditional idea of surprising your partner with the ring and emphasize the need to consider the recipient's values when making a purchase.+
13. Money Dials
Living a Rich Life:Ramit and Jordan discuss the concept of living a rich life beyond just dollars and cents. They introduce the idea of Money Dials and how it can help you prioritize spending on things that bring value to your life.+
Money Dials:Ramit and Jordan discuss the concept of "Money Dials," which are the things people love spending money on without hesitation. They explain how identifying your own Money Dial can help you prioritize your spending and bring joy into your life.+
Spending on Money Dials:Ramit and Jordan discuss the concept of money dials and how spending money on things you love can bring value to your life. They also talk about the importance of investing in coaching and learning from professionals.+
14. Learning with Coaches
Learning with Coaches:Jordan and Ramit discuss the benefits of hiring a coach to learn new skills, using examples from photography and voice-over work. They emphasize the importance of getting recommendations from knowledgeable sources and the value of having a coach to help correct bad habits and accelerate the learning process.+
Money Dials:Ramit explains the concept of Money Dials, which are the things people love spending on. He discusses the most common Money Dials, including frugality, fitness, and relationships, and encourages listeners to identify their own. By turning up the dial on what brings them joy and cutting back on unnecessary expenses, people can focus their spending and live a more fulfilling life.+
15. Money Dial Assessment
Money Dial Assessment:Ramit and Jordan discuss the importance of assessing your Money Dial to maximize your spending in areas that truly matter to you. They emphasize the need to cut back on unnecessary expenses and focus on spending extravagantly on things that bring you joy and fulfillment.+
Indulging in Your Rich Life:Ramit Sethi discusses the concept of Money Dials and how they allow us to indulge in the things we love guilt-free. He also shares how he and his wife had an adult conversation about aligning their values and signing a prenup, which is important to him.+
16. Money and Relationships
Prenup Conversations:Ramit shares his experience of discussing prenup with his partner and how it became a heated conversation. He emphasizes the importance of being open and honest about finances in a relationship.+
Money in Relationships:Ramit shares his experience with money in his relationship with his wife and how they had to seek counseling to overcome their different perspectives on money. They discuss how they were speaking different "languages" when it came to money and how seeking help was the best decision they made.+
17. Money and Relationships
Money and Relationships:Ramit and his wife discuss how they had to compromise on their financial goals and habits. They sought the help of a counselor to understand each other's perspectives and communicate better. They also realized the importance of acknowledging each other's accomplishments and being open to compromise.+
Transformative Money Conversations:Ramit shares how bringing in a third party to discuss money with his wife transformed their relationship and normalized money conversations. Making money discussions a regular thing can be transformative for anyone, even if there isn't a problem.+
Money Arguments:Ramit shares insights on how couples fight about money and why discussing values and goals is more important than arguing over small expenses.+
18. Money and Love
Money and Love:Ramit and Jordan discuss how to have productive conversations about money in relationships, including tips on how to bring up the topic and how to focus on shared goals rather than butting heads over individual wants. They emphasize the importance of using money as a tool to achieve shared goals, rather than letting it be a source of conflict.+
Money Mindset:Ramit and Jordan discuss how childhood programming affects our money mindset and how to confront and deprogram ourselves to make better financial decisions. They highlight the importance of questioning what we've accepted as true and creating our own rich life.+
19. Outro
Jordan shares his personal networking tips and the importance of building relationships before you need them. He also promotes his free course, Six-Minute Networking, and encourages listeners to start practicing these drills daily.+