I’m sure you’re familiar with the oldest question in math history, “Why are we learning this in school when we could be learning useful things like managing money?”

Now, I do believe math is a useful skill to understand (if taught properly though which it often isn’t). However, there is something pertinent about the question. Money and finances are one of the most important assets to manage in our lives. It seems that a system with the purpose of educating us to become adults should cover such an important topic.

This is where Ramit Sethi fills the gap. Ramit runs a blog at iwillteachyoutoberich.com where he teaches personal finance tips to hundreds of thousands of people. He wrote this book a decade ago and recently published a 2nd edition with new and updated information.

First it’s important to understand the goal of this book. Ramit’s definition of “rich” isn’t for us all to be billionaires owning whatever we want. He instead asks what do you love to spend money on, whether it be travel, relationships, food, charity or more. Now imagine spending 4x on those things. Using money as a tool for the things you love is being able to your rich life.

Contrary to popular finance wisdom, Ramit doesn’t believe in budgeting. After all, is your rich life lived in a spread sheet? Instead he believes in automating your finances to the point that you only need to spend an hour a month checking it. Furthermore, he wants us to focus on the big wins. Building a good credit score, savings, and investing. Spending 3 hours searching for a $10 discount on a shirt you like is probably not a big win even though we like to think it is.

The reason I love Ramit’s book is because it is extremely practical. To be fair, the only other finance book I’ve read is Rich Dad, Poor Dad. But most finance I read online tends to be more theoretical or focuses on budgeting or, even more confusing, picking stocks. Ramit cuts straight to the point with numerical examples, specific good and bad cards, and even scripts to get fees waived or negotiate your salary. It’s a highly actionable take on finance which allowed me to finally understand things like what the heck a 401(k) was.

Another aspect that’s specific to this second edition is that Ramit covers more of the psychological aspects of money. How we view money in relation to the way we were raised can have a huge impact on the habits we form today. Being aware of these tendencies can open us up to take more action and responsibility to the way we save and spend.

Criticism: If you really are expecting to find a way to earn money quick, you’ll be disappointed (as you probably should be though). Ramit’s plans are for long-term investing and savings, not growing a million dollar business or investing in the next Amazon. This can come off as conservative to some, but for 99% of people, it’s the right approach to take with money and to live a rich life.

However, this also means the book is geared towards younger people. It also shows through with the language and tone Ramit uses in his writing. I love it. But it may not be for everyone. Nonetheless, later is better than never and the plans Ramit provides are certainly useful at nearly any age.

In short, if you’re in your twenties or under, this is a must-read. Otherwise, it is still a good addition to your finance section. To finally receive highly specific and actionable information felt amazing and is very much needed for most young people. I’ll likely update this review as I read more to see if I’ve found the plans Ramit provides helpful or if there are other finance books that are able to get as specific as him. Perhaps in the future this will be elevated to a must-read. Nonetheless, it has been a very practical toolkit that I plan to use for many years to come and I cannot be thankful enough to have read it sooner than later.

4.8/5.0

You can find the book here on Amazon through my affiliate link. Ramit’s website, iwillteachyoutoberich.com is also an amazing resource to explore.