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Ramit Sethi

I Will Teach You to Be Rich: No Guilt, No Excuses - Just a 6-Week Programme That Works

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SUMMARY:I Will Teach You To Be Richis a practical approach delivered with a non-judgemental style based on the four pillars of personal finance ’ banking, saving, budgeting and investing ’ and the wealth-building ideas of personal entrepreneurship.Witty, entertaining, wise and practical, Ramit Sethi explains how to automate your money flow — i.e. earn while sleeping, why your new best friend should be the taxman and how to beat banks and credit cards at the fee game. How do you negotiate a raise? How can you manage student loans? And can you still enjoy your daily latte and buy that iPhone? Sethi’s 6-week plan shows you how:Week 1: Optimise your credit cards and learn exactly what to say to get fees waived Week 2: Set up no-fee, high-interest bank accounts that won’t cost you Week 3: Open investment accounts even with a small amount of money Week 4: Figure out how much you’re spending. And then learn how to make your money go where you want it to go! Week 5: Automate your new infrastructure to make your accounts play nicely together Week 6: Why investing isn’t the same as picking stocks — how to get the most out of the market with very little work.
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    6. Use your rewards
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    I have two credit cards. My primary credit card is a Citibank Premier Pass Elite. Citibank offers no-fee and for-fee versions of this card (the no-fee card offers half the rewards). I ran the calculations and decided to pay the $75 annual fee because I spend enough to justify the cost. With this card, I earn one point for every dollar I spend and one point for every mile I fly, plus free companion fares for domestic flights over $379. You can check this card out, along with the free version, at www.citicards.com.
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    It involves getting more credit to improve something called your credit utilization rate, which is simply how much you owe divided by your available credit. This makes up 30 percent of your credit score. For example, if you owe $4,000 and have $4,000 in total available credit, your ratio is 100 percent (4,000 ÷ 4,000 × 100), which is bad. If, however, you owe only $1,000 but have $4,000 in available credit, your credit utilization rate is a much better 25 percent ($1,000 ÷ $4,000 × 100). Lower is preferred because lenders don’t want you regularly spending all the money you have available through credit—it’s too likely that you’ll default and not pay them anything

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