Ramit Sethi - Automating Finances, Negotiating Prenups, and More | The Tim Ferriss Show

Ramit Sethi (@ramit), author of the New York Times bestseller I Will Teach You To Be Rich, has become a financial guru to millions of readers in their twenties, thirties, and forties. He started his website, iwillteachyoutoberich.com, as a Stanford undergraduate in 2004, and he now hosts over a million readers per month on his blog, newsletter, and social media.
Ramit grew up in Sacramento, the son of Indian immigrant parents who taught him the art of negotiating -- his father once spent five days negotiating with a car dealer, only to walk away over a set of floor mats. He wasn't the smartest kid in his class, but he loved building systems, which ultimately earned him over $200,000 in scholarships, which he used to get bachelor's and master's degrees in technology and psychology at Stanford. His understanding of human behavior and money led to him creating innovative solutions in self development.
Ramit and his team of dozens of employees build premium digital products about personal finance, entrepreneurship, psychology, careers, and personal development for top performers. The IWT community includes one million monthly readers, 400,000 newsletter subscribers, and 35,000 premium customers.
Ramit has written about personal finance for The Wall Street Journal and The New York Times, and been interviewed on dozens of media outlets including NPR, ABC News, and CNBC, and popular podcasts like The Tim Ferriss Show.
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00:00 Start
04:24 Ramit’s precognition
08:42 Renting vs. buying
26:15 Unlimited earning, limited cutting
30:13 Your money dials
49:52 Stress-testing your money beliefs
01:41:00 Pre-nups
01:46:45 Ramit vs. Tim
01:59:40 Retirement
02:04:00 Calendaring your relationship
SUBSCRIBE: bit.ly/1dSzTkW
About Tim Ferriss:
Tim Ferriss is one of Fast Company’s “Most Innovative Business People” and an early-stage tech investor/advisor in Uber, Facebook, Twitter, Shopify, Duolingo, Alibaba, and 50+ other companies. He is also the author of five #1 New York Times and Wall Street Journal bestsellers: The 4-Hour Workweek, The 4-Hour Body, The 4-Hour Chef, Tools of Titans and Tribe of Mentors. The Observer and other media have named him “the Oprah of audio” due to the influence of his podcast, The Tim Ferriss Show, which has exceeded 300 million downloads and been selected for “Best of iTunes” three years running.
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[@OlivierFAURAX]

50:43 "In life, you don't get what you deserve, you get what you negociate"

[@riffedwood5597]

-1 for spelling

[@HinduBoy]

-3000 for being a 🐑

[@rewardx]

nah its you get what you're worth it.

[@christopherarmstrong2710]

1:01:00 Negotiating prenups 1:40:30 Playbook rules for life: 1) If you ever see a book that you're remotely interested in, just buy it. 2) Have a year of cash available *liquid.* 3) Have sub-accounts for big expenses - wedding, engagement ring, honeymoon, house. 4) Order anything off of restaurant menu, and pick up the tab for the others dining in your party (once you're financially secure). 5) Have a couple of areas in your life where there's absolutely no budget - doesn't matter how much you spend, you just love it. 6) Eat (mostly) the same thing every single day - eliminates decision fatigue. 1:44:00 COO vs. the controller who approves the checks (Tim is happy to pay for entire date / outing, as long as the logistics are handled). 1:55:30 It is very possible and very common to procrastinate by searching for incrementally better and better tools.

[@Hardwork213]

thanks for the prenup timestamp

[@christopherarmstrong2710]

@@Hardwork213 You bet!

[@awhiting415]

Tim: *says anything* Ramit: I love that

[@wjkrug]

Hundred percent

[@krisvanhouten1543]

I love that.

[@anewcreature7]

I love this comment.

[@franchardlelo2023]

I love that.

[@wellnessdaddy]

hahahaha!

[@dlongo11694]

Was listening to this at the gym, at min 52:31 I paused it before I finished my workout and left to visit my bank. walked in with all the confidence in what he said to do and got $100 in fees refunded. Thanks so much!

[@HinduBoy]

Congratz. U can go about being a financial goon for mucho longer 😑

[@ashwin.unlead]

who hurt you friend @@HinduBoy

[@Mimi-fe2gm]

@@ashwin.unlead😂

[@chrisalmighty]

"Did I just agree to that term that we've been negotiating for over a month? Yes I did. Like wow, my wife is that important to me?and I realised yes she is." - That is the most important point for those who still think marriage is worth a try.

[@pablolainez3512]

My wife bought the book about a year ago, we tried reading it, but didn’t read more than one page, didn’t know who the guy was, didn’t care. Now here I am, a year later, with serious financial challenges, and ironically this is the 6th interview I’ve watch with Ramit in the last week, these have opened my eyes like crazy. I just took the book from the shelf, and we start today. I was really missing out.

[@TheVistastube]

This is a random stranger on the internet checking in 9 months later- did the book help you?

[@nickfleming3719]

uh oh Tim Ferriss is only allowed to work another 1 hour 40 minutes this week

[@shubhamsharma5631]

4 hr work week😁

[@bbcapital7953]

cracked me up lmaooo

[@elunac2362]

😂

[@KingaGorski]

lol

[@daniellemayber6509]

Love the long-form interviews. Good to see Ramit back on the podcast.

[@jayfortherecord]

This is so good. I actually watched the whole thing

[@TimothyKim1202]

Tim - "Let's talk about convenience." Ramit - "hhommmggawd." lol I love how much he loves it.

[@palana8870]

Thank you for posting Tim!

[@drewm217]

I’m glad you’re using a live video format for your interviews now Tim. I like this so much better.

[@lelandkwong]

Man, the stuff you guys talk about are so relatable and just pure gold. I'm not where you guys are at yet, but I appreciate the candor for sharing and just putting it all out there.

[@a_bit_of_hope_podcast]

one of the best episodes so far

[@AreebIrshadSimplifies]

the collab I've been waiting for

[@abhimanyusingh5471]

What a podcast. Absolutely amazing. Please keep it coming.

[@Yohanapsg]

This is one of my fav Podcasts, you guys have good energy together! Great topics!

[@BenjaminJay]

Just bought his book. My first financial book I’ve bought in my twenties.

[@franchardlelo2023]

Congratulations!

[@Bluernote]

And what do you think about the book?

[@DeejayRach0]

Is it worth reading?

[@HinduBoy]

I think this means u have no idea what u doing... hop off books / "inspirational 🍆". Then u might become aware of ur gifts, talents, path.

[@villanmilo8265]

@@HinduBoy .

[@nickhankins5088]

Tim, thanks for talking about relationships. I think sharing the process of how to discuss ways to improve is super helpful to many.

[@gemmaregalado]

My mother has also been known to walk out of a car negotiation deal over floor mats, so I feel a strong affinity with that.

[@vools8621]

Hi from Australia! This interview is such a treat. New subscriber. Thanks :)

[@garysorensen3288]

Tim, you continue to teach, mentor and inspire me. Thank you. I now also have the Ramit resource. Excellent!

[@Mipon_en]

This is one of the best videos I've ever watched in my life. Thanks Ramit for talking about prenups and Thanks Tim for asking tough questions.

[@rusty256]

So so good, thank you both

[@peterwatry5055]

Fantastic guest (my introduction) and great interview. Thank you!

[@vaexperience]

Ramit has the best parent anecdotes

[@thedax22]

I'm happy for Tim at 2:13:35 when he says he learned how important it is to highlight what is going well. Coming from the ultimate "improver," that's a powerful realization.

[@ItsKingMyles]

love this format for the show

[@Nate1975]

Planning on upgrading on my road trips from very basic, camping to a more luxury places. Can’t wait! That means a lot to me and I love love love it

[@utsavsharma89]

This is so valuable! I never thought I’d listen a 2.5 hour interview with so much engagement. Did order Ramit’s book and can’t wait to start reading and act up on it. Thank you guys

[@AcharyaChanakya108]

Great job dude! It's an awesome book!

[@researchmind4799]

*_If you want to eat food but you don't have time._* *_Tim ferris : Delegate or Automate it_* 😂😂😂

[@nikhil199029]

I m up for outsourcing. Chicken given preference.

[@IsmailKamdar]

Loved this interview, and the book. Awesome stuff.

[@lisasands1914]

Value and perspective on this stuff. Thanks Tim and Ramit for the see saw of exploration in the $$ world. Prenup was a education I found fascinating.

[@nayitorres5782]

Omg I followed his advice and called my bank and got my overdraft fee refunded immediately lol 😆

[@FaridaSultanaIchoosesuccess]

Wow, I have always done that. Almost works like clockwork. Hundreds of dollars to be precise. Never paid a penny in interest to Credit Card company - Get cash back all the time. Never paid NSF fees. But NSF seldom happens though

[@asadb1990]

i tried and the most they gave me was half. im in canada. i had to reach out to the duty manager. and she was like we don't usually do this at all. i was ah ok.

[@Zinat_Jouti]

Same here just did it

[@anabb8766]

DID YOU GET MEGA RICH ???? OR JUST GET TOLD SOMETHING YOU NEVER BOTHERED READING THE FINE PRINT

[@riffedwood5597]

Read his book

[@TheMonicagal]

**Best interview ever! Love you 2 together. Bring Ramit for chats more often!**

[@Zengawolf]

I appreciate the new windows that are square.... thanks Tim, you the man 👍

[@SamMegan]

Long time listener, first time watcher. Game changer! LOVED THIS

[@NoraDunn]

What a fab conversation! When I co-authored my first book, I wrote a guest post for Ramit's site a million years ago that got 100k views in the first 72 hours (which at the time was a big deal), thanks in part to Tim promoting the article. And I had read Tim's first book while developing my location independent career (except at the time that term wasn't yet coined - I was just a freak with a laptop traveling the world), and it shaped how I structured my online career and travel lifestyle. So it's great to see you both here, having candid and important conversations about things people don't generally like to talk about (like prenups). WOOT! Keep on keepin' on. :-)

[@anthonymitchell9880]

Awesome episode, complements the updated version of his book well

[@heather9165]

I love listening to, and learning from, smart people's conversations. We bought Ramit's book on Friday (audio version - as I learn best while listening while doing something else; ie cleaning or driving) and have already called our credit card company and asked for a limit increase (they doubled what we already had!). We are definitely going to dive further into what our cash-back card has to offer. Thanks for all of the solid advice!

[@hillarysolomon3395]

The recommendation at the two hour mark to try the aspirational things we fantasize about our whole lives is key...both driving a Ferrari and owning a second home were on my list until trying/doing them...the Ferrari was uncomfortable and the second home was a lot more work than fun and ended up eroding rather than enhancing my quality of life. Expensive lessons that have forced me to redefine what "the good life" really means to me. I am definitely a big fan of the "try it" method going forward.

[@amerk69]

Hi Tim and Ramit. Thank you both for this amazing episode! I think one of the best ways for a person to SHINE (revealing brilliance) is by having conversations with other like-minded brilliant people. Both of you have blown me away with your SHINE chemistry! Thank you again! John

[@SmilingassasinandD]

I really enjoy the way you speak about relationships. Do more! (not just romantic, also friendships, employees/employers etc)

[@everyday-co]

Best episode in a LONG time. Thanks, Tim and Ramit!

[@JoanneIonita]

Outstanding value!

[@whatphilosophersthink2462]

Towards the end, Ramit says that "everything that is important in life, should be on the calendar". Very simple, but interesting. Meaning literally everything from evaluative relationship-talks with spouses/going to the gym/calling your mother etc. Before that, Tim had already said: "If it's not on the calendar, it's not true".

[@DownThePieRateHole]

I love this episode, and feel that if there was a theme, it would be 'value'. Which is relative and very self-aware. Thank you.

[@kinshuksaxena7566]

This is gold right here Ramit and Tim; two of my favorite authors ever!

[@Julescruz]

This was a fantastic discussion!!

[@shantanubapat6937]

Not sure how many people became rich reading his book, but, he sure became rich selling a million book. Well done! People always buy anything that tells them how to become rich or lose weight easily.

[@PhallicDivinity]

That intro though. What a beast 🔥🔥🔥

[@DanielIles]

Ramit has been everywhere the last few weeks! Bigger pockets, Matt d’avella, and now Tim Ferris! New book incoming??

[@MrPenntrack]

New book is out! It's also fantastic even if you read the first one the differences and updates are well worth it.

[@DanielIles]

NDominator haven’t listened to the podcast yet, it is “Your Move” from 2017?

[@thedemotrader7570]

Thanks, that was great, really enjoyed your insights,,, take care guys

[@analinagarcia]

This is SO good!

[@gryphon8483]

What a great conversation! (How I wish I could get my Brother and sister in law to listen). I will see you on twitter, facebook, your blog (share Griffin's Bog, yes - Bog) etc. Most excellent - or as Neil P. would say - Awesome! Thank you both.

[@1995yuda]

Great episode, thank you.

[@psychiatrypsychotherapy6939]

Loved so many things about their discussion. These guys are both highly organized. They seem to love that. Loved how when money hits his account money goes in different directions. Also liked his advice on target date index funds. I would add do more small cap value index funds. I liked his input on prenups. Never thought about that when I got married, but could see why he was into it.

[@GR_BackingTracks]

I've had this book in my bedroom for 3 weeks and have been listening to interviews on and off the whole time... Now maybe I will actually open it!

[@abhimanyusingh5471]

Again, amazing podcast.

[@whoisvjm]

1:00:42 - 1:46:45 all about PRE-NUPS. Skip ahead if you're not interested (or have no money to lose anyway)

[@marksoberay2318]

Thx

[@Azhark94]

Legend

[@polkmusic]

Great episode. Ramit's book is really good. Everyone should get it.

[@FunkaliciousFeline]

Within 12 minutes in, I bought the book. Thank you!!

[@oatscurry]

I've been a fan of Tim for eight years, and a fan of Ramit for about four months. This interview is off-the-charts good. These two should be in a reality show together about sales, negotiation, and survival-of-the-fittest. Better than GoT. Almost as good as Billions... a bit more practical though ;)

[@rickharold69]

Thx! Nice discussion ! Keep them coming.

[@tino9632]

Easily one of my favorite episodes. The friendship/connection you guys have was very apparent, and I believe it allowed you guys to dive into some treacherous waters, (pre-nups, what you guys disagree about, etc.) which made it very compelling to watch.

[@SalihARCrypto.i.o]

Fantastic. Thanks for sharing.

[@janetnetia4224]

Amazing stuff!

[@josephkurosky3152]

Two Legends dropping Bombs.

[@clownonabike]

Just a reminder that Ramit wrote this book about how to get rich when he was 26. I cannot find any information on anything he did before that. So yeah, he basically got rich telling people how to get rich. It's a common strategy. You'll be better off listening to people who have skin in the game instead.

[@jeromecrosby5723]

Yikes...

[@OP-ig1fj]

@@jeromecrosby5723 he had a blog bruh. Not everything is a scam

[@sofondadavis5028]

I get more out of his podcast on KZbin and the book is a resource.

[@jessicasanabria0908]

I really enjoyed this podcast episode. I listen to the show religiously. It's in my calendar! I do want to say though, Tim forgot to ask the billboard question. :(

[@ScallopTip]

Guys are great!

[@arizanty]

Enjoying every single minute of this interview. Amazing guys! Started to automate savings and investments for 3 months earlier, after the first time listening to Ramit. That's a lot after 11 years working with no savings and 0 financial management literacy. BTW, the mic is a bit off-putting but that's OK hahaha 😂

[@picturepappy]

Fantastic content and tons of laughs! I just got hip to Ramit and I am excited to dive deeper in his work. I feel the "mic-in-hand" look is rather off-putting and it seems to add a bit more of a tense feel...that is almost two and a half hours of your guests holding the microphone in their hand. That is not comfortable. Much love as always Tim, love your work!

[@beauxflamiano5502]

Bro! I got so much relationship advice from you two! #ThankYou

[@gailgowen3170]

Just bought Remit's Audiobook on Audible 2-for-1 sale ;-)

[@EliaCanu]

Tons of great value and cool insights, great talk. Thank you.

[@outtrigger]

My two favorite authors

[@douglouissmithh]

Professor Hulk your self! (I love a good comic book reference. Great conversation)

[@juanmanuelvasquez5146]

I love both Tim and Ramit!! They are some of the best people to follow for great advice on business, finances and life in general. Thanks for this amazing podcast!

[@jonneye]

Great interview

[@BrendanMetcalfe]

Great talk!

[@paulbrezgel7722]

Fantastic Episode, Gents! I loved it- especially the discussion about the prenup stuff! Very enlightening!

[@surlookmedia]

34:52 onward is a solid point ;)

[@OliverGrafTV]

Great interview, lots of good little nuggets 👍👍👍

[@johnnydenfit5899]

very good and informative video :)

[@Nate1975]

It’s just awareness about money. I also only spend more on what I love and enjoy doing that but cut on everything I don’t need

[@OzzyHeadshots]

Loving that there is video of this one! WOOHOO!

[@TinaLeder]

My face when I thought Tim Ferris genuinely didn't know who Dan Kennedy was: 😱😱😱 When Tim started talking about DK's work: 😏😏😎

[@oldgenx]

So gooooooood!

[@vthyaga]

Ramit “Nuances” Sethi. No snark intended, love you Ramit!

[@Jmansummers]

As someone who sells cars, this is so true and honestly horrible. The way some people treat you in this industry...

[@randomcharachter]

Yup, I don’t know why everyone here is behaving like it’s so admirable to treat people like this. Kind of gross.

[@jackcottonbrown]

Hey Tim, I noticed you use a lapel microphone as well as a handheld. Is the lapel just for backup audio?

[@sethmacballin3133]

I love this

[@Jusdragon]

Strange I just found out about Ramit Sethi and subscribed to his email list lol. Happy there is a podcast about him!!!

[@CalebBrandalise]

alllways watching wazowski

[@iam_tenko1213]

I've been subscribed for 5 years, biggest mistake of my life

[@S__Kay]

I unsubscribed because I was getting a new email every other day

[@ruburtoe1]

@@iam_tenko1213 still subscribed?

[@iam_tenko1213]

@@ruburtoe1 Just checked i subbed in 2015 and they email;s stopped coming in 2017, it must of stopped automatically due to the data protection laws and i never gave my consent to continue with the emails, there fucking bs anyway, no one reads that shit and its just polluting your inbox.

[@didafm]

These guys made it fairly young. Many guys don't get rich till their late 50s.

[@andreafournet5331]

Good for you Tim for owning your own home...it is very anchoring and peace creating as long as you don't have huge overhead. Peace of mind is very important!! The rental market can get crazy and you are at the whim of your landlord!

[@khanhthien2095]

Love from Vietnam!

[@inveele]

The argument for marriage is human nature. Marriage reduces the temptation to end the relationship on a whim, because it introduces legal sunk costs. It is good for feeling stability, which human nature craves, especially the children involved.

[@dantaitbrown9784]

Huge huge a-ha/takeaway with making things opt-out rather than opt-in. They're there by default, but doesn't mean set in stone. 🙏💣💥

[@fiyamage]

The moment I finished the 1st edition of "I will teach you to be rich" I immediately opened an online account and used dollar cost averaging. Thanks Ramit!