Ramit Sethi on Living a RICH Life – What Got You There with Sean DeLaney

Check out the What Got You There Episode Page & Show Notes

Key Takeaways

  • Examine your beliefs for what Ramit calls invisible scripts:
    • These are beliefs that are so deeply held in our culture that we don’t even realize they’re beliefs
  • Plan for the predictable – start saving NOW for your wedding, having children, etc.
  • Spend extravagantly on the things you love and cut costs mercilessly on the things you don’t
  • “You’ve got unique experiences and value. If you write it up in the right way, for the right people, people would actually LOVE to hear it.”
  • When trying to decide how to price a service you’re offering –
    Focus on providing as much value as you can, and then charge near the top of the market
  • Start an email list ASAP
  • The better you get at something, the more you realize how much you have to learn
  • The best morning routine is determined the night before

Books Mentioned

Intro

What has Ramit been up to?

  • He just got back from his 6-week honeymoon around Italy, Kenya, India, and Thailand
  • Both Ramit’s and his wife’s parents joined them in Italy – Ramit and his wife took care of everything for them
    • “Just seeing their joy, was something we’ll never forget”

Invisible Scripts

  • “These are beliefs that are so deeply held in our culture that we don’t even realize they’re beliefs, we just think they’re axioms. We think they’re self-evident truths.”
  • Some examples:
    • Education is the solution to every problem
    • Buying a house is the best investment you can make
    • A 1-week honeymoon is standard and then you go back to work

Plan for the Predictable

  • Ramit says he had been saving for his honeymoon, as well as his wedding, before he even met his wife
    • More people need to do this
  • Start saving NOW for the house you’re going to buy in 10 years
  • Start saving NOW for the kids you’ll have in 5 years
  • “These are all things that are very predictable. Plan for it. Don’t deny it. Don’t put your head in the sand. If you plan for these things…you can actually live a really rich life.”
    • It’s simple – but something not enough people do

Themes Instead of Resolutions

  • Instead of new year’s resolutions, Ramit focuses on themes
  • One theme Ramit is doubling down on this year – making more friends and building better relationships
    • So if he’s planning a trip, he’ll work around this theme, and think about what friends he wants to invite to go along with him

Your Rich Life

  • Everyone will eventually come to a different answer on what a rich life means for them
  • Here’s what a living a rich life means to Ramit:
    • “I just want to be able to order appetizers when I go out to eat at a restaurant”
      • Now, having had some success – “If I see ANYTHING that looks good on the menu, I order it”
    • Being able to take a taxi instead of using the subway

The Concept of the Money Dial

  • “Spend extravagantly on the things you love, as long as you cut costs mercilessly on the things you don’t”
  • Everyone has one area where they absolutely love to spend money, unapologetically
    • Sean’s loves to spend on travel experiences
    • Other examples of a money dial – spending frivolously on health/fitness or self-improvement, throwing extravagant dinner parties etc.
  • Ramit’s money dial – convenience
    • He has a personal assistant (she’s remote), a personal trainer, and a personal chef
      • Ramit says he and his personal assistant only have two 30 minute phone calls with every week
    • He actually has a course called Delegate and Done about how to better delegate tasks 
  • “Think strategically about what your money dial is, and actually spend more on it, and then think about other areas of life that are not that important to you where you can cut back”

An Important Lesson

  • Something Ramit’s parents taught him – “If you are great at what you do, the rest of everything becomes much easier”
    • An example – if you’re AMAZING at what you do, your employer is more likely to be flexible on where/when you work

What does Ramit think he’s really good at?

  • Understanding human behavior in relation to dating, money, and relationships
  • Eating really spicy food

Building an Audience

  • You have something valuable that the world needs to hear
    • “You’ve got unique experiences and value. If you write it up in the right way, for the right people, people would actually LOVE to hear it.”
      • This is the approach Ramit took with his personal finance blog which eventually turned into his I Will Teach You to Be Rich empire
    • “If you have a good message, eventually you’ll find the right audience”

Get The Big Things Right

  • Forget the advice telling you to cut back on lattes at Starbucks to save money
    • “That advice is really, really horrible. You should buy all the lattes you want. Just get the big wins right – like automating your investments and negotiating your salary. Do the big things and you’ll never have to worry about lattes or ordering appetizers again.”

As a creator or service provider, what should you charge for your services?

  • Well, here’s the worst possible thing you can do:
    • Charge just below what your competitors are charging
      • “You’re just choosing a price based on what your unsophisticated competitors are doing. That’s the WORST possible way you could do it.”
  • What you need to realize – “There is a market of people who will pay, and they will pay WHATEVER you charge for your services”
    • So many people are nervous about charging too much for their services, so they charge less
      • “Charging less is not going to change the calculus. Finding a better audience will change the calculus.”
  • Instead, here’s a good strategy – Focus on providing as much value as you can, and then charge near the top of the market
    • For example, Ramit offers a product called Zero to Launch on his website to help people who want to start a business
      • It costs $2,000 – but it’s a top tier product, and the reviews are amazing
  • But some guidelines:
    • $20/hr. is a good starting point for a basic service that you’re offering (like teaching music)

Email Lists

  • Sign up for Ramit’s email list here – he has 600,000+ subscribers
    • Ramit actually reads all the replies to his emails 
      • He used to respond to every one of them, until it became just too much
  • On the value of his large email list – “It’s almost incalculable”
  • “If I had to give one single business mistake I’ve made, it would be not starting an email list earlier”
  • “Email is killer. People buy from email.”
  • Ramit has found that people are most truthful in email replies, compared to other social media channels

Social Skills

  • Check out one of Ramit’s Youtube videos – Social Skills With Ramit
  • “Don’t let any invisible script that you have hold you back. Don’t let ANY part of your identity hold you back.”
    • “If you decide you want to be really good at walking into cocktail parties and making friends within 10 minutes, you can do that. I don’t care if you’re an introvert or you have one arm, you can do that.”
    • “You can take control and craft your own rich life. It takes work, but you can absolutely reach the levels you want to reach.”

Coaching and Investing in Yourself

  • Ramit is a big believer in investing in yourself
    • So hire a coach or take a course if it’s something you really want to improve at
  • “The better you get at something, the more you realize how much you have to learn”
  • What has Ramit done in this realm?
    • He’s hired a personal trainer
    • While on safari in Africa for his honeymoon, he hired a photography coach to follow him around and teach him how to take better photos

Morning Routines

  • “People like to talk about their morning routines more than they actually like to do something valuable”
    • “If you followed all the morning routines everyone tells you to do – you’d wake up at 3:30 AM, meditate for 2 hours, drink kombucha, write in a gratitude journal for 9 hours…all these things! You’d keel over and die by 11 AM.”
  • “The best morning routine is determined the night before and the months before”
  • Ramit prefers to take it slow in the morning
    • He wakes up, has coffee, and then reads Reddit/the news/Twitter

What individual person has impressed Ramit the most recently?

These notes were edited by RoRoPa Editing Services

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