Afterpage

I Will Teach You to Be Rich

Ramit Sethi

For people in their twenties or thirties who feel vaguely bad about money and want a simple setup they can run on autopilot. It's about deciding where money goes, not about which accounts or funds to pick.

A week with this book

A short summary today, then one small action a day for six days. Free for your first book.

I Will Teach You to Be Rich Ramit Sethi

Free for your first book. No card. One click to stop.

Day 1

The ideas the week uses

Ramit Sethi argues that you don't get rich by cutting lattes. You get there by spending without guilt on what you love, cutting hard on what you don't care about, and automating the rest so it runs without willpower.

  1. Spend big on what you love. Sethi's core rule is conscious spending: spend freely on the few things that matter to you and cut ruthlessly on the things that don't. Frugality on everything is miserable and rarely lasts.
  2. The Conscious Spending Plan. Sethi splits take-home pay into four buckets: fixed costs, investments, savings goals, and guilt-free spending. His rough guides are 50 to 60 percent fixed, about 10 percent investing, 5 to 10 percent savings, and the rest guilt-free.
  3. Big wins beat small cuts. Sethi says arguing with yourself over every small purchase wastes energy. A few large decisions, like rent, a car, or a recurring bill, move far more money than a hundred skipped coffees.
  4. Automate the flow. Once the plan exists, Sethi wants money to move on its own: transfers scheduled for the day after payday into each bucket. Then the right choice happens by default instead of by discipline.
  5. Ask, and good enough wins. He pushes readers to call companies and ask for lower rates or waived fees, with scripts. And he argues getting 85 percent set up now beats waiting for the perfect plan.

Where it overreachesSethi's percentages assume a steady income, and in expensive cities fixed costs often run well past 60 percent. His account and product picks are US-focused and change over time, so this week leaves them out.

Days 2 to 7

How to apply I Will Teach You to Be Rich

10 to 20 minutes each, with a two-minute version for a bad day.

Printable week card (one page)

  1. 2Sort last month into four bucketsUse last month's statements to estimate how much of your take-home pay went to each of Sethi's four buckets.
  2. 3Name what you love and what you don'tWrite down three things you're happy to spend a lot on and three you could cut hard without missing them.
  3. 4Cancel one thing you don't care aboutCancel or downgrade one recurring charge from yesterday's cut list.
  4. 5Automate one transferSchedule one automatic transfer for the day after payday into savings or a goal you named this week.
  5. 6Make one call and askCall one company you pay every month and ask for a lower rate or a waived fee.
  6. 7Write your one-page planWrite your Conscious Spending Plan on one page with a target percentage for each bucket.

Sample

Day 3, in full

This is what lands in your inbox that morning.

AfterpageDay 3 of 7 · Action

Name what you love and what you don't

Today’s action · 10 to 20 minutes

Write down three things you're happy to spend a lot on and three you could cut hard without missing them.

How

Look at yesterday's numbers for clues. The loves should be specific, like “dinners out with friends” or “good running shoes,” not “experiences.” The cuts should be things you pay for out of habit. Keep the page.

Why this one

Sethi's conscious spending only works once you've decided in advance where you'll be generous and where you'll be stingy.

If today is a bad day

Write one thing you love spending on and one you'd happily cut.

In short

Questions about this book

Who is I Will Teach You to Be Rich by Ramit Sethi for?

For people in their twenties or thirties who feel vaguely bad about money and want a simple setup they can run on autopilot. It's about deciding where money goes, not about which accounts or funds to pick.

What are the main ideas in I Will Teach You to Be Rich?

Ramit Sethi argues that you don't get rich by cutting lattes. You get there by spending without guilt on what you love, cutting hard on what you don't care about, and automating the rest so it runs without willpower. Spend big on what you love; The Conscious Spending Plan; Big wins beat small cuts; Automate the flow; Ask, and good enough wins.

What do you do in the Afterpage week for I Will Teach You to Be Rich?

Day 1 is a short summary. Then one action a day, each 10 to 20 minutes: Sort last month into four buckets; Name what you love and what you don't; Cancel one thing you don't care about; Automate one transfer; Make one call and ask; Write your one-page plan. Day 7 also has a recap.

Where does I Will Teach You to Be Rich overreach?

Sethi's percentages assume a steady income, and in expensive cities fixed costs often run well past 60 percent. His account and product picks are US-focused and change over time, so this week leaves them out.

What is the first action in the I Will Teach You to Be Rich week?

Sort last month into four buckets. Use last month's statements to estimate how much of your take-home pay went to each of Sethi's four buckets. If you only have two minutes: Add up your rent and regular bills and write what share of your pay they take.

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