- Get out of your comfort zone
- James describes it as the moat between dream and reality
- Ramits new book – Your Move: The Underdog’s Guide to Building Your Business
- Ramit doesn’t meditate, and doesn’t have any interest in it
- James describes meditation as a practice, you are practicing for events throughout the day in order to help you be less reactive
- However, mediation is really only one method for this
The Anti Morning Routine
- Ramit on avacado toast – it’s a fad, sort of like morning routines and meditation
- Ramit doesn’t have a morning routine, the first thing he does is wake up and check Instagram
- “It doesn’t matter if your rolling over and meditating for 5 minutes or looking at Instagram, what matters are all the systems and habbits you’ve put in place before that morning ever came around. A successful morning is determined the day before.”
- Ramit doesn’t use any sort of to-do list, but he relies entirely on a calendar
Society Has Automatic Responses
- For example, Ramit has noticed people always say “great speech” after he gives a talk, and he’s guilty of it himself, even if the talk was bad
- The older you get, the less people will give honest, constructive feedback
- What other automatic responses do we give as a society?
- Everybody lies about what it takes to make it
- People don’t like to talk about how difficult success is
Test Your Ideas
- It doesn’t have to be perfect
- If you have an idea for a TV/radio show, take out your iphone, record a show, and upload it to Youtube and monitor the reaction
- Stop waiting for something magical to happen, just do it
- Simplify – “What would this look like if it were easy”
- Doing something is so much more important than thinking and planning
- Just look at how bad Ramit’s early youtube videos were
- Ramit says his interest in personal finance began when he took his college scholarship money, invested it in the stock market, and lost half of it
- His personal finance journey ultimately led to his New York Times bestseller I Will Teach You to Be Rich
Investing and Fees
- Some common lies in the money space
- People who argue against the fiduciary rule, the face that you should always put your client’s best interest first
- When brokers say that you need to invest in their actively managed fund because they have expertise. According to Ramit, what matters in investing is low cost funds that are well diversified.
- Ramit recommends emailing the place where you have your investments and asking about what fees you are currently paying
- If you’re paying 1% in fees, this can reduce your investment returns by over 25%
- If you’re paying 2% in fees, this can reduce your investment returns by over 63%
Building a Business
- Many people have questions when it comes to starting a business – What do they love enough to pursue making money? Where do they begin? How do I scale and balance my time?
- Ramit thinks that when you get really good at something, you fall in love with it, as opposed to starting out loving it
- He credits this belief to Indian culture – first you get married, then you fall in love
- There are so many people who think about starting a business, but their mind comes up with politically correct rationalizations as to why they shouldn’t – “I don’t have an idea” or “I don’t have a lot of time”
- Ramit learned in his early 20s its not a good idea to tell people what to do if they’re not ready. He finds people who get his finance courses for free, don’t get as much out of it as people who pay.
- People value what they pay for, so you have to charge for what has value
- Create your biggest value by giving away free content first – step number 1 when building a business
- Ramit has a goal that his free material should be better than the stuff anyone else sells
- How does someone find an idea that they want to build a business around?
- “The first thing that a lot of people forget, is that you actually have something right now that people would pay for”
- Ramit recommends an exercise – take out a piece of paper and write down everything that you pay for and why. For example: Netflix, oil changes, food at a restaurant
- Then write down what skills you have (languages, cooking skills, fashion, cleanliness, weight loss). What have people asked you for advice about?
- “People want to take their money and use it to fuel a rich life”
- Everyone has a different idea of a rich life. For Ramit, that means being able to take a taxi as opposed to the subway when it’s hot or being able to leave his AC on when he leaves the house. For James, this means living a minimalisitic life without many possessions.
- James – “Find the 5 things you love doing, and go all out”
- Ramit suggests keeping an accurate calendar and really disecting where you spend your time. It might surprise you, and open your eyes to the difference between what you think you value and actually value.
- How do you expand on your idea?
- Ramit – “Slow down to go fast”
- Take the people who have asked you for advice and interview them. For example, if they asked you for diet advice, find out why they wanted to lose weight in the first place. It will point you in the right direction of how to sell a product. Do they care enough to pay? Are people just complaining, or will they really pay for a solution?
- The green light bench mark – when at least 10 people say “hell yes, let me pay you right now,” only then do you go ahead and start selling
- If your market can’t pay, you have a bad market. It’s the difference between a hobby and a business.
- Most people run away from the fire, but trained personel run into the fire
- When you love it, and you are motivated, it’s almost like you get more energy from challenges and HAVE to put yourself through them
- Once you have sales commitments and know people will pay, Ramit recommends setting a price point of $50
- At this point, you’ll have identified a solution for a market that will pay
- Ramit recommends emailing people who bought your product, and asking them what convinced them to buy it in the first place
- People always want more after they’ve bought your product (ex- a personal trainer could offer an ebook, diet help, a fitness summit etc.)
- After you’ve created and sold some of your first product you have a few options
- Get more traffic
- Create more products
- Getting things right and building products takes time!