Ramit Sethi

@jasonc_nc Amazing comment. You nailed it

It’s deeply funny that Realtors are consistently the people who least understand housing

Commenter: "I have no idea what 'a lot of money' is. 100K saved? 300K invested?" This is because "a lot of money" is meaningless in the same way "kinda spicy" is meaningless. How spicy? To whom? If you want to know if you're in a financially solid position, you should know: - Your Fixed Costs (ideally 50-60% of take-home pay) - Savings (5-10%+) - Investments (5-10%+) - Guilt-free Spending (20-35%) All of these should roll up into your vision of a Rich Life. If you want to live in a Tribeca 3BR apt, your numbers will be substantially different than someone living in Kansas City. You should know how much you'll have when you retire and how much income that will provide. These can be calculated in about 15 seconds. You should know how to calculate if you can afford a new house, car, or even mattress. Less than 5% of people know this -- if you want to be in control of your money, you should. You should also develop a healthy relationship with money. That means some of the jokes in the comments below ("Infinite money" & "50% more than you have") are not really funny. They are cynical cries from people who don't understand how money works. I don't find them funny. Money is serious. Your knowledge of money contributes to where you can live, what you can eat, what kind of family you can have, even who you are. If you're reading this and you don't know the answers to some of the questions above, I recommend you learn about money. You can read my book (22,000+ Amazon reviews), or get it from the library, or read anyone else's. But learn. Money deserves our respect!

@_dennis_sinned_ Outstanding work

@ramit Before I knew Ramit: fixed costs 60%, 35 % guilt free, 0% post-tax investing (pre-tax 12% of gross fully paid by employer) 5% savings. After I knew Ramit: FC 44%, 25 % GF (lower indeed, but a more meaningful rich life!), 16% post-tax investing, 15% savings.

As long as I'm hitting my key numbers -- Fixed Costs below 60%, Savings 10%+, Investing 10%+ -- I know I can spend the rest of my money guilt free That could be travel, or eating out, or buying hand-made ceramics from Kyoto. You decide your Rich Life

@WillCJohns Savings & investments are very different. Savings = sitting in a savings account and/or set aside for specific goals like an emergency fund, vacation, down payment Investments = for long-term growth, invested More details in my book

@ramit What do you mean by splitting savings from investments here?

@IndianaGPA This is great

My spousal unit and I date nights range from candlelight dinners to arguing over who forgot the coupons at aisle seven. We've tried dancing in the kitchen, midnight milkshake runs, and one questionable "DIY spa night." Moral of the story: try the crazy ideas-worst case, you laugh... best case, you make a memory. 😂

@nikitabier Rugged individualism that makes you believe you're experiencing "freedom" but actually ruins your life

Next week I’m headed to Tokyo to meet with the X Japan team. What is the most American thing I can bring them?

Best part of my job

Interesting idea, maybe we could test it by creating a Department that focuses on Government Efficiency and give a tech billionaire broad purview to hire people to attempt this. Surely they'd cut more than .01% of the federal budget, right?

To get more examples of money, psychology, and spending, follow me: @ramit

This person will have over $46,000,000 at age 65 if they don't invest a single cent ever again (via @tylerhuff)

@scottndricks @tylerhuff My perspective on "justifying" purchases: x.com/ramit/status/2…

@ramit @tylerhuff I can easily afford business class.. but never brought myself to do it. Flew with my wife to Bangkok in March and economy was $1,500. Business was $9,000. Can’t justify an extra $15,000 for slightly more comfort.

This Trump supporter cannot afford to eat. Look how he rationalizes his vote for Trump, who he still supports Classic cult behavior: Even as cult members lose everything, they will rarely change their beliefs

I like their question: "Are there any secret discounts for booking business class?" Worth asking! Answer: No, not really Now you choose. I recommend trying it 3x, then deciding, because you can obviously afford it

Years ago, we tested an IWT fitness program. It was one of the most interesting experiences of my career We hired a full-time trainer and programmed workouts and diets, plus helped with behavioral change. We changed a few people’s lives. Many people dropped out (nearly 100% of the Indian people in the program, for example — I’ll share why another time). I had people lie directly to my face about what they were eating and others share the cruel things their spouse said as they changed their relationship with food. Mixed results. We eventually ended the program. One memory: A colleague said, “Once people learn the workouts, won’t they just quit?” As someone who’s used a personal trainer for years, I thought that was a fascinating perspective on why someone hires a coach/trainer. IMO, you don’t really hire a trainer for the workouts. Those are free. You hire them for accountability, personalized support, even a reason to show up at the gym. Not surprisingly, people who get good at money often begin a fitness journey. The skills are highly transferable

I like this question: “What are you comfortable spending more than the average person on?” The answers are almost always “healthy food” or “spending on the kids” Their answers are an example of virtue signaling, because of course you’re a good person for spending on healthy food! However, you will almost never hear someone say “eating out” or “car payment” even when we can see their numbers in front of us — even when a couple has 4+ cars! Money is often more about our own narratives than actual math. True for me, true for you, true for all of us

New York Times: "Why Did Ramit Sethi Speak Up About Trump?" nytimes.com/video/podcasts…

I went to the new Laurel Supply grocery store in West Hollywood Absolutely beautiful. Nailed the decor / pre-packaged foods for the area Some very expensive items, but I was surprised how many things (eg berries) were reasonably priced for this style of store