This is Controversial... But It Will Make You Rich

[@orangeisacolour11]

Big props to Ramit for speaking humanely on the plight of those suffering from homelessness.

[@woodchuck003]

Why, he gives you the false impression that it's a crime to be homeless. The ruling only applies to the 9th circuit meaning that this does not affect 80% of the country. The ruling reverses a 2018 decision, which states cities can't move homeless unless there is an open bed. This ruling had such bad negative outcomes that the people who campaigned to get this ruling in the first place were a part of the legal team that got it reversed in the Supreme Court.

[@edgytypebeat781]

@@woodchuck003But why did the ruling even get passed in the first place? That means the situation is bad and the supreme court court has too much power.

[@woodchuck003]

@@edgytypebeat781 I don't know why the 9th circuit originally made the rolling they did because will people within their jurisdiction like it at first it's not causing massive problems in terms of city safety. I think you should look up the article homeless crisis ruling creates bitter divided among West Coast appeals court judges, it's on Oregonlive website and they are traditionally a left-leaning outlet. The 9th circuit appeals court actually agreed with the Supreme Court upon review. There was actually a judge as a part of the initial, I believe 2009 ruling, he actually has a quote in the article saying that the 9th circuit's original decision was incorrect when you look at the negative outcomes. Good intentions don't equal good outcomes. If your definition of being a good progressive is to continue doing things even when you have statistical evidence in economic data suggesting that you made the wrong decision then you are living a flawed ideology more akin to a religion. If you think the Supreme Court has too much power then I guess that means you've never read the Constitution, I wonder what other parts of the Constitution you disagree with. The funny thing is the Supreme Court actually has no ability to enforce its rulings most people just agreed to go along with it. Historically presidents have actually caused a crisis with our government when they would choose to refuse to follow the Supreme Court. When activists progressive judges are telling you that you're incorrect then I think you really need to recognize how delusional your politics may be.

[@woodchuck003]

​ @edgytypebeat781 I am not sure what you are talking about it sounds like you are not aware of how our Consitution works and historically going against it has been considered "very dangerous for our democracy". You should look for the article Homeless crisis ruling creates a bitter divide among West Coast appeals court judges from Oreganlive as since the 9th Circuit original ruling we have collected a lot of statistical and economic data to prove the negatives of the initial ruling. The negatives are so significant that the majority of the 9th Circuit judges agreed with the Supreme Court and did not rehear the case. one jusge wrote, "[we need to] reconsider our unfortunate constitutional mistake," O’Scannlain. The judges "argued that the original opinion has paralyzed cities from addressing the significant problem of homelessness and removed their authority to craft public policy." Remember the judges on the 9th circuit tend to be activist judges so if you are so partisan that you think they are wrong you may need to analyze your politics. Also, remember you are on the KZbin channel of a financial guy who thinks giving his budget plan a fancy name somehow means it is not a budget.

[@ClaxtonBay123]

Look. Let's be honest. The Conscious Spending Plan is just another version of a Budget....and that's okay Ramit.

[@Mav0585]

It’s an easier budget to use I think

[@gabriellechampagne5174]

I think it’s more of a tool to help you realize where your money is going and then taking action to automate and distribute your money to what really matters (saving, investing, guilt free, fixed costs). When other people talk about budget, it seems to be a static tool that you plug your numbers in and don’t know what to do with them…unless trying to cut expenses??? Ramit CSP has simply more context around it (with his books and YT channel). The end goal is that once you know your revenues and expenses, you intentionally allocate the money to the 4 buckets automatically and don’t think about your budget on a weekly basis 😊

[@firststar2]

His csp is a budget

[@ebelen1]

@@gabriellechampagne5174sounds like a budget to me haha

[@rebeltheharem7028]

Its basically a budget without calling it a budget.

[@luckeeno7]

A conscious spending plan is a budget. Not calling it a budget is fine, but it’s a budget. We didn’t get control of our debt and finances until we sat down and made a budget. It was the single best thing we ever did because we could see exactly what we made, what our bills were, and how much we actually had to spend/ save and invest.

[@firststar2]

😂😂😂I know huh. Call it what u want. It's a budget.

[@vulpixelful]

Yes, and a CSP would make you see it's a problem if you spend 70% on fixed costs and invest 2%. Some people lack the excel skills to make the equivalent, or just want to download something that has all those percentages and calculations done for them.

[@andresgarciacastro1783]

Some people need it, not everyone does.

[@FalknerBlitz00]

I think this every time Ramit posts about not budgeting.....the CSP is a Budget. Going back 6 months and going through spending is Accounting.

[@lowlowseesee]

ive never seen a buget thats proactive and one that adjust for the four controls he stresses. its definitely similar though

[@latimer442]

@@lowlowseesee It's just a very high level budget with 4 major groupings. You could take just about any budget and merge categories until you got to the CSP level of simplification.

[@MrQuestiel]

@@lowlowseesee Envelope system budgets (apps like YNAB) are proactive. Great grandmas have been doing this for a while.

[@Wolverine-2010]

​@@lowlowseeseeit's a budget with extra features, still a budget.

[@ihill6533]

Yes but it is at a much higher level. It gets you out of the weeds and paying attention to the bigger picture.

[@MegVanAbi]

I like your message and philosophies but I completely disagree about not needing a budget. That’s how most people end up in credit card debt or with overdraft fees. If you don’t like the term budget call it a Spending Plan. You need to tell your money what to do.

[@tomaszp2027]

And yes, CSP is a type of a budget. It has the same role.

[@Ryhm14]

My take is you need a budget at least at first to understand how your money is actually being spent, so you can work out whether that fits in with how you actually want it spent. You can potentially move past the budget to a cash flow method once you're able to.

[@EB285]

@@tomaszp2027 Haha yes! I like most of messaging but every time he goes you don't need a budget it's funny that it's always followed up with a rebranded budget. I get what he's really saying is that you don't need a granular budget down to every cent but keep it simple and that a general budget keeps it easy but that's less click bait then say no to budgets!

[@SystemChannel]

I agree. He’s using different words, but the conscious spanning plan is a loose budget.

[@excitedaboutlearning1639]

Yeah, the CSP is a four-category budget with percentage points for each category as well as automatic transfers after receiving the paycheck. I tried to explain to another person that the CSP is not a budget, but they wouldn't get it. Finally, I understood that CSP is Ramit's marketing term -- a good one for sure. It is budget. What make Ramit's budget so helpful are the percentages that standardize every category's relative size. So far, I've been tracking fixed costs + guilt free spending, investments and savings. Recently, I thought I should probably get another card to pay all my guilt-free spending with to make it easy to separate the fixed-cost category from the guilt-free spending category. Anyway, the four category system is extremely helpful especially the 50-60% mark for fixed costs.

[@Rcs2018]

My husband often talks about how Amazon benefits incredibly from infrastructure (roads to drive delivery trucks) but yet corporate taxes and the wealthiest like Bezo pay nothing or next to it in taxes. Thanks for reminding us all Ramit that this matters to personal finance as much as some of the other tips.

[@ClauDia-wx5wk]

I'm a young academic and have learned so much from your content. There's these myths amongst humanities academics that people who teach about/work in finances are hyper-individualistic, neoliberal and have the wrong intentions overall. I love to hear you reference structural injustice and systems of racism/sexism/classism such as at the end of this talk because it undermines those myths. Also love introducing other young humanities people to your work!

[@dougchumba]

That's a hell of a way to sign off the video. Deep, immersive and food for thought.

[@cesarbretschneider]

It's very shallow, really. Comparing companies with individuals is apples and oranges. And while he criticizes the companies that get tax rebates and incentives (which is significantly less immoral than he likes to pretend) he will also recommend investing in the exact same companies. Nike, Amazon, etc are in almost all the "low-cost, broadly diversified index funds" he recommends.

[@woodchuck003]

Is giving you the false impression that the Supreme Court criminalized being homeless, that is a lie. He's also pushing the idea that we somehow overtaxed the poor. You can totally make the argument that corporate subsidies are wrong. Without trying to push the false narrative that the poor are overtaxed. On average the bottom 50% of income earners pay an effective federal tax rate of 0%.

[@magicja]

I allocated 20% for guilt free spending and I couldn't sleep at night, meaning it isn't guilt free spending. I bumped that down to 10% and I feel alot better about that. I would find a number you feel good about and then increase that percentage as you feel more comfortable. Don't be guilty into spending money you don't want to spend. A rich life is different for different people. It could be that donating your money is a big factor of living a rich life.

[@sarahdamico8283]

This is really sad. You're worth 20%

[@MikeS-7]

If you are managing your money when you spend it should always be guilt free. You don't make stupid purchases. I think I will buy a new jacket. Boom. Out of habit it will be a smart and reasonable purchase, not a waste.

[@MaChao777]

No BS, Straight to the point, no sugar coating and direct AF. Thats what we call Quality.

[@latimer442]

Definition: A budget is a plan that shows you how you can spend your money every month I realize it's marketing buzz intended to keep people's "eyes from glazing over", but the CSP is a budget. Different people prefer different levels of budgeting, so whatever works for them, good for them.

[@kingsgold]

a CSP is focused on what you are doing now with your money, not what you are planning to do in the future.

[@latimer442]

@@kingsgold A CSP completely fits into the definition of a budget, which I quoted above. A budget is a snapshot of the division of your income and expenses. It can be very granular, or it can be very broad, but it's still a budget. Part of the CSP is to put aside money for the future...which is planning. Any other kind of budget can (and most likely will) have the same category of 'saving for the future' in one way or the other.

[@kingsgold]

​@@latimer442 no. again. you are misunderstanding a CSP. A CSP is a snapshot of the right now. This very second. Put on paper wherre your money is going on a monthly basis. If you arent saving now, your CSP will have 0 towards any savings and investments. It isnt that you arent going to save, it is moreso you arent actively doing it. A CSP isnt a future plan, hence.. not a budget. A CSP is Bird's Eye view of your current finances. A CSP is a simplified way of doing your monthly financials.

[@latimer442]

@@kingsgold I would suggest re-reading what I posted. What you described as a CSP is the textbook definition of a budget. A budget can also include a savings category for future spending. What you are describing is literally a budget. A CSP is just a bird's eye budget. There's nothing wrong with that.

I think what you're calling a budget is what I'd call accounting. What I'm calling a budget is more like what you call a spending plan. Fixed costs, savings and investments. And these costs go through their own budget account, so the money I need for fixed costs never appear in my checking account for me to spend. All items have a buffer amount for electricity, heating etc. and whatever spills over goes on top of my existing investment. I set this up 6 years ago, and the peace of mind it gives is immense.

[@aas55]

Ramit, you were very clear in your book that using credit cards for points can be helpful, if you’re paying it off every month. Somehow people have forgotten that second part and think you’ll be proud of them for scoring points while going into debt 😂

[@ramitsethi]

It's insane

[@jennifermoffitt4635]

i pay mine off... i didn't need anyone to tell me to do that haha

[@butlermj76]

I use ynab to budget and I would definitely recommend budgeting. It's not about prohibiting yourself from what you want, it's about prioritizing, planning and being aware.

[@tbark87]

Psychologically I need a budget to organize my mind, but I’ve automated the drudgery and left the pain points I need manual.

[@aravind5119]

i dont have a budget, but just make sure 20% is invested. The rest i spend as needed and if there's anything left over it goes into a high yeild savings acc

[@ashwin.unlead]

@@aravind5119 this also works i wish india hand somthing like hys

[@Letsgohsiwb1782]

Thank you so much for highlighting the demonisation of the poor!!!!

[@maxpayne7419]

I have found that budgeting and a minimalistic or frugal approach is ONE of the actions that builds wealth. It’s not the only thing or the most important thing, but it’s a component.

[@mychelelepera1178]

This may be your best video yet, Ramit. The thought occurred to me that faith is believing that if you speak the truth others will accept it and make the necessary changes to get the result they say they want. So frustrating to try to help a person who says they want a different result but then continue to self-sabotage and even actively resist the educated advice given. Self-deception is an amazingly effective human trait keeping people in the "devil you know" comfort zone. Change is usually uncomfortable in the short term but yields dividends in the long term. I also appreciate the sense of humor you bring to these subjects. Thank you

[@edartis]

Having a budget is the equivalent of educating yourself on your financial life. Why would that now be extremely beneficial and necessary to building wealth. You can't fully manage your money if you cannot track it

[@laundrygoddess4]

Amen! People who share bank accounts need to track their expenses so they can live within the numbers like fixed costs, savings, etc.

[@tomaszp2027]

I feel personally attacked :D What if my excel file is part of my rich life?

[@ramitsethi]

It's not

[@tomfromtartu9706]

This is the way. From a fellow excel appreciatoor

[@laundrygoddess4]

​@@ramitsethifor some people, seeing numbers that show they are ok is part of a rich life. You don't respect others views much

[@lowlowseesee]

@@laundrygoddess4 i watch this guys stuff a lot and ive seen him show much respect to others views so thats just not true. reality is he is smart enough to know that a rich life has much more going on than a screen. spreadsheets make you fearful folks feel safe and you all are so caught up in them that you think thats a rich life. its not lol. I have a spreadsheet I use too but im smart enough to know that it makes me feel in control and safe, its not enriching, its to control my anxiety. never have i ever seen a spreadsheet make good memories for a family or be spoken about like a great experience or building an actual skill. seen every episode on this channel and not a single person using spreadsheets could even show that they were barely useful let alone enriching

[@sarahomelia5368]

The person who wrote the comment is joking, Ramit is not here to coddle his viewers. He is here to educate people, this is too important. Building good money habits is better than wasting limited time on spreadsheets.

[@phoneuse2012]

I feel like depending on the stage of where I am with my finances and my behavior with money will determine if i need a budget. For me a budget was absolutely needed because I was spending too much money on food and I had a lot of debt.

[@Trix897]

Plus it’s important to have when planning for retirement as well to make sure you’ll have enough money to live.

[@kemi1486]

OMG same. I’m on the debt pay off journey and a budget has kept me on track to meet my debt free journey at the end of 2024. Excited to start using a spend plan once I’m debt free though.

[@nerdacs]

Just as a little bit of a defense for budgeting, I am a YNAB Budget Nerd. The biggest thing I get is actually some automation with credit card spending a peace of mind with the fact that this year I can spend a good chunk of change on a new Phone after 4 years of having the same phone knowing that I am still living within my means and not impacting any of my actual goals. For someone like me a budget is part of my rich life because it gives peace of mind.

[@taylorgreen5908]

Frugality lets you maintain a balance where only your priorities come first , leading you to a secure financial future. I am avoiding debt , saving and investing around 40 percent of my income. I have a high paying engineering job, and I live upstate MN. since covid 19 my expenses are extremely low. I have zero debt on a 7 figure portfolio, low rent and car paid off. So i can just save. feel lucky and grateful my fiduciary came into play.

[@harrisahmed3066]

truly Stocks, ETFs and Mutual funds are the best investment decision you can make both short term and long term for steady money flow. Kudos

[@AurucciLou]

I see that you have good understanding of investing, How can one reach this consultant of yours?

[@taylorgreen5908]

@@AurucciLou she's Dianne Sarah Olson by name. please do your own research to see if she is suitable with your goals.

[@adoroselatte]

@@harrisahmed3066for beginners, are stocks and ETFs safe for investments?

[@stanleyfujiwara1394]

@@taylorgreen5908 I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip

[@jonathanhatchmusic]

Whoa. That example about the guy asking about the right 529 account…speaking directly to me. I’m 36, married 9 years, daughter is about to be 2 and we’re way behind where we should be financially. I needed to hear exactly what you’re saying here. Thank you! Also #8. That hit me❤ I appreciate you speaking out on this. It should drive us all to take action, but it’s difficult to get out of the rut of selfishness, greed and gluttony that permeates our culture; which in turn causes us to be apathetic, numb and desensitized to important things.

[@ZO6Buccaneer]

Agreed on the CC points. It’s such a game by the banks to make us think the points are so much more valuable than they really are. Even if you pay off the card in full each month, the points and spending bonuses trick us into spending more than we otherwise would.

[@anonymous_111-u5v]

I appreciate Ramit. His financial advice is more doable for me. Everywhere I look and read is to budget. That is just something I can never force myself to do no matter how hard I try. I do automate my savings, retirement and investments and stay out of debt. I still eat out sometimes, take vacations and splurge on few items I've saved for. Feels good to see my networth growing. Just have to have discipline and strap yourself with knowledge.

[@thomaslunden]

The $5 latte and $15 sandwich bit misses a few important points- 1) you cannot afford these and should not be buying them IF YOU HAVE CREDIT CARD DEBT. That coffee and sandwich set you $20 further away from breaking free of the credit card shackles. If you DON'T have credit card debt and are saving and investing, have at it. 2) Saying these everyday small purchases don't matter is CONTRARY to the whole point of compounding- little amounts over long periods of time REALLY ADD UP.

[@goodelleric]

@@Glanzernthe whole point is those people's mortgages, car loans, etc are the problem, not too many $5 coffees. Someone with a $70k truck stressing over their wife getting Starbucks is crazy.

[@andresgarciacastro1783]

Both are stupid

[@cassiuscoombs3313]

Rich Life purchase if it's an occasional luxury like once a week or when on holidays. If it's EFD it's a fixed cost.

[@EllieofAzeroth]

This is exactly what Ramit is talking about when he tells people to stop focusing on the $3 questions. Just because someone has credit card debt doesn't mean they should have to give up small basic joys like a cup of coffee made by a restaurant you really like. They add up if you're going out of control with it. Even if you got a $5 latte every day of the year, that only comes out to $1,825. That's less than a lot of people's rent every month nowadays. Don't sweat the small stuff and if you have credit card debt, you deserve the same small joys as everyone else

[@EllieofAzeroth]

@@goodelleric Thank you for getting the point

[@rebeltheharem7028]

Just do value based budgeting, its basically like his CSP plan, except its what big organization and research papers call it. Basically list out your expenses, and consider how happy it makes you or what convenience it gives you, rank them accordingly, and it will let you know what to cut or spend more on based on your own priorities. This requires introspection on what you want in life, but if you don't want to "cut" on small luxuries that make you happy, this is the best way. I will say though, if you are buying a $5 latte everyday, and your income is less than $40K a year, you should probably think about cutting back on it.

[@ishouldbeworking9800]

I think of the csp as a vague version of a budget. Instead of worrying about specific dollars. Its how percentage in one category relate to another.

[@saeedhossain6099]

10:49 agree that people need to run the numbers. but lifetime renting vs buying a house also means you dont pay rent or mortgage after the loan is paid off only property taxes. when making that comparison understanding that your landlord is leveraging their equity in the property to command rent from you as the tenant, the same way a bank uses their capital and charge you interest. the question is who gives you better terms.

[@alexisballard1459]

Ahhhhh the time for Ramit to pretend his CSP isn’t a budget again - new subscribers welcome to his top marketing tactic!

[@Somebodyelse141]

😂

[@vulpixelful]

Honestly who cares? Using the CSP would be more than most people do.

[@TonyCox1351]

I think the key difference is about how you approach it. Ramit preaches automating your finances - your mortgage, your investments, all that happens automatically. Most of what’s left, is guilt free spending. I’ve never heard it framed quite like that. Personally I really appreciate the nuanced differences between a CSP and a traditional budget

[@birdpaladin9332]

I like his CSP. I agree it is another way of budgeting, but I think it's closer to how most people think of managing their money or should learn to think of their money to maintain a healthy relationship with it. Income = how much is coming in. Fixed costs = what am I consciously/needing to using my money for? (Which he consistently relates to cost of living, though it's not exact.) Savings = how much am I putting away for more immediate, large cost purchases/uses (travel, emergency, home/car purchase, etc.)? Investments = how much am I putting away for the future/retirement? Guilt free spending = other stuff that I can do whatever with. It promotes intentional savings and investing and tracking necessary costs, but allows for freedom with the rest. Traditional budgeting either starts with allocating certain amounts of income to certain categories and then trying to stick with it, which is hard to do since it hard to predict actual costs; or is done retroactively starting with time-consuming itemization and then categorization which can be pretty arbitrary. With the latter method, you can end up with numbers don't mean anything. Ex: this month I'm eating in more while last month I ordered delivery alot due to having a newborn and not having time to cook. My dining out costs were high last month, and significantly lower this month. The take away? Nothing. I just ate out more last month. I think the intent is to no longer have to fill out the CSP because you know the answers to the questions and to be intentionally thinking of the future.

[@ashwin.unlead]

he didnt pretend it to be anything you just decided to be a clown on the internet for likes

[@trippingwithjesse9837]

A budget is what worked me out of 80k in personal debt! But. . . now that my money is under control, setting my auto transfer and having 4 accounts keeping my money organized has pretty much eliminated the need for one. There is a time and place for them, but having a shitty life isn’t a worthy trade off.

[@lowlowseesee]

completely agree. most people i know and see in comments cant follow a budget if their life depended on it. meanwhile you sound like me where as I can make any system work more so than other people. been debt free for 20 years lol

[@Somebodyelse141]

😅 what's your income and job? That's a ton of debt to pay off. How long did it take?

[@trippingwithjesse9837]

@@Somebodyelse141 hvac, between 80-130k a year(depending on overtime), and basically 8 years, but out of that 8 I was only really serious the last 5

[@trippingwithjesse9837]

@@lowlowseesee I’ve only been debt free for about 4 years now, I cleaned my shit up right as Covid hit

[@yeislyntorres5304]

​@@trippingwithjesse9837my husband is in HVAC and im a medical billing supervisor. We are going beast mode to get out of debt. We have a good emergency fund so all those 4k, 5k, 10k per job is going towards our debt. If everything goes well we should be debt free in 1 to 2 years. 🙏🙏 wish us luck!

[@kenroyforte6175]

The budget would have identified the subscription that Rocket Money is trying to find.

[@GinaWatkins-pe7hs]

What’s the difference between a budget and a conscious spending plan?

[@zulynava4059]

Nothing

[@ZekeValk]

I'm starting to subscribe to knowing your "guilt-free spending" number, but know that...most people are still going to need to "budget" to make sure they don't spend more than that "guilt free"

[@velvetplans5396]

I have never ever seen a personal finance writer talk about homelessness with compassion and understanding. I am a happy new subscriber ❤

[@D.MarieBeauty]

He is saying to stop BudgetING…meaning CONSTANTLY checking the money and how it’s being spent. Not an initial allocation! That’s what he is communicating. Like he said when you know where it’s going you won’t have to keep going back (which is the action part) to see if paying $4 for peppers this week is too much. Skipping over dollars to get to pennies!

[@jakeandsarahhealthnuts3299]

Love this guys content. Although I’m very big on a detailed budget. For example if you have a detailed budget down to the dollar you would not need rocket money for unwanted subscriptions because you’re keeping track of everything. I’ll admit I have been budgeting for 5 years and have never once spent the exact money I said I would spend in the budget. Things always come up that you need last minute, but I am usually within $500 to $2k of the planned budget.

[@feldhdleh]

I've done very well and I have given many people advice on what they can do better or differently, when they ask. I agree with Ramit's basic sentiments (I have a nuanced view on his last topic, sorry). With respect to one's own efforts, I'll point out two big picture things that might be helpful: 1. You must think big picture and you must avoid getting stuck on your current constraints instead of what is possible if you make changes. You have to understand and be open to see the different outcomes that could occur if you make changes. I'm not saying changes will be easy; but most people I have known could not even envision what a different path could look like with different outcomes, never mind actually making the changes. What's the point in getting motivated to make the changes (which could be hard to make) if you cannot describe the outcomes you are looking for and why? 2. You MUST know your numbers. If you don't know your numbers you are dead in the water. How much you make, how taxes actually work, how much you spend and what is the trend, how much you need to spend, how much is discretionary spending, how does compounding work in concept, how to manage risk and what to do about it, and more. I spent a career talking to people who didn't know their numbers. They were never as successful as they could have been and they didn't know why.

[@JohnGilliland]

Nice to hear someone talk about how imbalanced the tax system is. And how we are criminalizing being poor or being mentally ill.

[@hunnybunny4306]

I agree there’s no need to keep a budget. Natural spenders can pay themselves first to ensure a high savings rate, and spend the rest however they want. Natural savers can spend the amount needed to have a satisfying life, and save the rest, which will be a lot because they enjoy saving.

[@HeysaysChenay]

Thank you for touching on corporations skimping on taxes and the criminalization of the poor. Not alot of financial KZbinrs get to the root of the problem. Corporations and the ultra wealthy feed off of us working class folk which undermine OUR social safety nets. We need solidarity and to hold tax dodgers accountable.

[@fakewintertime]

Thank you for the last part, I appreciate your perspective on the current economic landscape.

[@haydeevillarreal5722]

I have binge watched several videos regarding savings/retirement and yes, budgeting.. you Ramit are a breath of fresh air- Thank you!

[@austinsteen6367]

Loved your take on criminalizing the poor. I really wish the everyday person wasn’t so mesmerized by rich people that they could see and understand how backwards that is. Most people are a lot closer to living on the streets than living in the penthouse…

[@eemank4078]

This video was the financial guidance/wake-up call/therapy/ church session my bank account and soul needed. Thank you sir.

[@mircomuntener4643]

1:41 Bruh your #3 need: Know your 4 key numbers, AKA your Conscious Spending Plan, is a budget without using that word.

[@lexmax08]

Don’t agree with budgeting part. From personal experience I’ve seen if you force people to budget you would get rid of more than half of people’s money problems.

[@ramitsethi]

Unfortunately, you can't "force people to budget"

[@Somebodyelse141]

@@ramitsethi you can't force them to use a csp, either

[@yhckelly]

I finally got an affirmation about budgeting- my wife and I don't budget, we simply track both investments and expenditures. Budgeting is like dieting for the rest of your life... It would be a terrible way to live! Healthy habits create healthy lifestyles, money habits work the same way.

[@Trackpad12]

You might be fat

[@laundrygoddess4]

Tracking expenditures is a type of budgeting

[@Trix897]

It’s still important to have a clear picture of what your average expenditures are each month for an emergency fund and retirement planning though.

[@DjDJ-sd1un]

Isn't that budgeting?

[@yhckelly]

Ha! This is the response I keep getting. A budget sets a maximal number you can spend in that category, tracking simply keeps an eye on what you're spending so you know where your money's going. Budgeting is a rigid financial diet, tracking is a healthy financial lifestyle.

[@SummerBaby728]

What I found when i tried to stick to a strict budget and track every dollar is that it took a SHIT TON OF TIME and stressed me out and didn't do anything good for my finances. It made things worse because of all the time it took to track everything and organize my spreadsheet and whatnot.

[@TheHIIVEcollective]

points are worth 3-5 pts if you plan right. if you have a spending problem forget it, but if not you can save 3-5k yearly just usinng points for a family and take that cash and pay down debt. take it a step further and use them to pay for someones first class tickets and 600 worth of points (at 1 cent a piece) can now have earned you half of that 4k plan ticket to france for someone

[@keltonjohnson6197]

But a conscious spending plan is a just a budget.

[@antiquehealbot6543]

Credit card game is FUN. Checking my points and thinking how to optimize application/spending feels great. Of course, I never carried a dime as a balance in my life.

[@cocoa_cake]

this video was very well said, i think most of these commentors are focusing on the wrong thing (CSP vs budget) instead of the bigger topics here

[@ramitsethi]

I agree. Classic example of the Bikeshed Effect.

[@rory644]

People will argue their point all day long on a KZbin comments section just to feel like they’re right……

[@username00009]

@@ramitsethiI have to wonder if people get hung up on the CSP vs. budget terminology because they aren’t in a position to fully automate their spending. If people are struggling, they may still need to “budget” alongside the CSP by tracking the price of produce. I suspect that isn’t your target demographic, but I’d love to see you come up with a hybrid plan for people who are struggling, regardless of whether their struggles are due to high interest debt or the insane housing cost increases since 2020.

[@Shortballa11]

@@username00009 The ppl hung up on the CSP vs Budgeting terminology (me) are actually the ppl doing very well and not struggling. We are the ones that budgeting has done wonders for. So CSP can be great, but that doesnt mean budgeting is bad.

[@snogletree]

I really appreciate the honesty of your videos. Thank you for sharing your experience and knowledge with the world community.

[@cirelo1896]

I find budgeting is really necessary for me with a big family. Yeah when I was single, heck even early in my marriage I could make ballpark savings goals without a budget but not these days! If I am not really careful I will spend my kids school tuition on " lattes" because I didn't have a sinking fund etc.

[@PatamaGomutbutra]

You are right buying house is not the best financial decision esp. at this time. In my area WA puget sound, ot is much cheaper, more peace of mind let me focus energy to the career building. If the overpruced house situation will be like this forever- it is fine to not own a house. It is not important as happy career and family life.

[@bigd4625]

Bro said to no to a budget and his sponsor is rocket money 😂

[@enrique-zarate4594]

From the video description: "Rocket Money | Stop throwing your money away. Cancel unwanted subscriptions"

[@bluiflip]

lmao i found this ironic as well. If you had a budget (which is a spending plan), then you wouldn't need to use an app like Rocket Money to stumble upon forgotten subscriptions.

[@Nb61777]

4:20 what should people do instead of paying the 1-2% fee for the Advisors time? Take the advice and go buy shares themselves? Most people don't know how to work a brokerage account and even if you buy Mutual Funds and ETFs, these still have fees built into the price.

[@Squintillions]

Would love to see you make a whole in-depth video on the comments at the end about criminalizing homelessness and alternative strategies to that.

[@ebelen1]

1% of a typical 7% return from a S&P 500 fund is 14% of your return.

[@7ADGr8]

I would like to see those car/ home calculations in details ( maybe a podcast episode where you help a couple to decide if they are ready to buy). Thanks

[@laundrygoddess4]

Money guy has great guidelines for big purchases.

[@katiharris2364]

Spending money on the rocket subscription to save money. Or you could just create a simple budget along with a spending tracker to see where your money is going. You could have found that savings without paying for rocket money… my budget/spending tracker takes tops two hours a month.

[@RonMarcus]

Your last point, about how we penalize the impoverished and reward the ultra rich? It makes my blood boil. I couldn’t agree with you more. Best statement in your entire video. Keep it up, my friend.

[@DonnieIp]

Picking individual stocks is real investing and if you pick the right one at the right time, you can beat the index. Of course, it takes time and research to find the right ones so it depends on your goal.

[@danwheeler6543]

Love what said about idolizing the rich and criminalizing the poor! Programs that help people get back on their feet are not a waste of money.

[@Trix897]

I don’t want points. I use my cards for cash back and pay them off every month. It means that I never pay full price for anything.

[@rajak3958]

Budget work for people who like to budget. Your CSP has worked for me.

[@SethuSenthil]

Thank god! I thought I was stupid for not having a budget! But not having a budget really works for me cause I only really buy the stuff that I actually need. My bank app does show me where I spend my money basic info.

[@WarGamersChannel]

Hi. I'm about to finish your book (ITYTR). Best money ever spent. The way you lay out things is easy to understand and achievable. I've followed your advice and automated my deposits to savings and ROTH IRA, and currently "DEBT FKING FREE". All the money I make (after fixed costs) goes to me and to enjoying my present and building my future. Thank you.

[@butlermj76]

I also use credit cards with points but they are rewards cards with no fees and I use them for everyday purchases and pay them off before interest accrues. Mich easier to do when I budget and know for a fact im using money I specifically set aside for the purchases

[@Mo_rena-ch2pu]

Great take away. 🤩 budget or no budget- the point is we must have a sense of awareness financially and then determine how close to adhere to a “budget” (or whatever we decide to call it.) considering the result of cash in vs expenses… if the discomfort is too great, then we know we have to change it. I choose to change it💪🏽 #LivingInWhatWeCanDo Thank you Ramit 👏🏽👏🏽👏🏽

[@SquatsAndThoughts]

I also lost about 11k when initially getting into investing. I love your rephrasing that it was a very cheap lesson, I've never thought of it like that. I have been consistent with index investments ever since.

[@thugsy15]

Wait. NerdWallet’s definition of budget “A budget is a spending plan based on income and expenses”. Isnt that what CSP is? 😂

[@brianategwa6504]

It is 😂

[@valerieproctor517]

He budgets but doesn't Expense Track, I'd say.

[@GinaWatkins-pe7hs]

Ramit I have really enjoyed your content. I do think that for long time subscribers is getting repetitive, would love to hear new content!

[@ramitsethi]

If you have things you'd like to see, leave a comment! I read them all and I welcome new ideas.

[@GinaWatkins-pe7hs]

@@ramitsethi thank you for responding, I appreciate it. Would love to hear more about asset allocation, stocks vs ETF, does REIT investment make sense for diversification?, do you really need to use your age as a guide for the percentage of bond in your portfolio?, does disability insurance for high earners make sense?, bond selection for tax benefits, is umbrella insurance coverage a good idea for renters? Thank you!!

[@JohnStro]

Ehhh, a budget works for many people and is the reason my family has made be strides financially this past year. It doesn't stress us out, we look at "groceries" not "peppers".

[@Somebodyelse141]

I felt really seen by the last point. Most of the people close to me are in poverty or near it. I'm on WIC. Still trying to improve my life situation

[@WhatShallEyeDo4U]

For me, the word "budget" doesn't have a negative connotation. Mostly because I don't live on bare bones anything. it depends on HOW you budget... I just like seeing where things go, but that's my enjoyment. Do you automate alongside with the budgeting? Then the word budget doesn't scare you, distract you, nor deter you from enjoying your life. If you're not automating... Then, yeah, budgetting is useless...

[@deborahmeek6529]

I think it’s a good idea the CSP another way for people to track money and hopefully not be in debt. For some people this idea might work better then a budget which is kinda restrictive feeling, like you can’t have fun. This is a different take on budgeting

[@Atrus999]

I disagree with not needing to worry about buying a $5 coffee because not buying a $5 coffee wasn't the point. The point was not buying $5 coffees every single day. When you buy a $5 coffee every day for months and years, as a lot of people do, it adds up. Like you said that alone isn't enough to keep someone from being rich, but investing small amounts like that early on can really make an impact. And knowing how people live these days they aren't JUST buying $5 coffees they're also stopping by the gas station for snacks and buying junk they don't need on Amazon etc.

[@sherlockrobin597]

While cutting out $5 coffee and $15 sandwiches won't make you rich, not spending $25 per day, 365 days a year, will take you $9125 further away from poverty, and that's a bloody good start.

[@brandongerofsky4817]

Exactly. Once you get that mindset, all of a sudden you'll find ways to cut out unnecessary things wrong purchase or spend, and saving/investing more adequately.

[@GajodeAlfama]

Keep the Truth Alive!!!! And the excellent work.

[@Mashedbanana88]

I cant believe education like this is free and accessible. So good 🎉

[@rafaelperon]

I understand the point here is not against budgeting, but against tracking every single spending. When you track your must-have (Fixed Costs) and ensure Investments and Savings are getting their proper piece, what remains (Guilty Free) shouldn't be of your great attention - as long as you don't exceed it and don't get money from the other three to increase guilty free.

[@jeannettejinny]

Ramit is a Mastermind 👏🏼 Thank you for all this great information for us.

[@mariaterezaterra1867]

CRedit card points is so fun to play! Come on! I love it! and I DO use them to go visit my family.

[@d2021-u8v]

Interesting, you speak of fixed and variable cost, but you crush the concept of budgeting which measure financial inflows and outflows like working capital.

[@b2Samaritan]

Budget is best and easy way to avoid surprises. The others are fine, but budgeting is a must

[@MikeS-7]

You act like you have to track every dollar you spend. Tracking and budgeting are two different things. I don't care if I purchased three drinks or zero this week. What I do care about is my net income for each pay period. Yes, you are rich, so this isn't as much of a concern, but regular people should budget out their core expenses and all transfers to savings and investments. Do you have enough to last to the next paycheck? If you have too much more money goes to investments or debts (mortgage/credit cards). Too little, less to savings and investments. This may just be me, but high level budgeting is important to achieving goals. It keeps you connected.

[@daniellemoore504]

Haha brilliant. Dont stop drinking your $5 lattes daily- $1500 a year- but have an ad that boasts saving $750 a year. Still love you Ramit!

[@markbeiser]

I'm guilty of chasing credit card cash back rewards, but I don't buy things I was not going to buy anyway, have no credit card debt, and pay no annual fees. Eventually I'll get board with it and dial it back to using 2 or 3 cards, but not yet.

[@Everthus4]

I used to think i'm frugal person. And i spend little. But it was not true. I made budget for 2 month, and find out i spend too much in few categories. And manage to save few hundreds later on things i dont really need. It can actually work, but it require too much work.

[@MizzJazE]

Sorry y'all the CSP is not a budget. It's a snapshot of your financial health. Full disclosure, I was a major budget user millions of line items, setting arbitrary limits on my spending/savings without fully grasping my total financial picture. Sure I got into and out of debt a few times while relying on some form of a budget. App, platform, spreadsheet whatever. But what it was lacking was built in guidance (i.e. ideal fixed costs ranges, ideal savings rates). Everyone's financial situation is different. Respect. The unique beauty of the CSP is it nudges you to interrogate your behavior as reflected in your numbers. If your fixed costs are at 90+% - you can budget all you want. Truth is you're broke and need to make a change. A budget can't tell you that. Keep doin you Ramit!! 🤓❤️

[@CurtisRylant]

You do need a budget. The CSP is just a loose budget, and if you can keep track of finances that way, then that is awesome. But most people can't and actually need a budget. Just like some people can use credit cards and benefit from the points, but most can't and just go in debt.

[@Sar0]

Easy way to start saving is make coffee at home, at least 3 day lunch to work ( if you still go to work) cut some subscriptions that aren't as important to you , keep your smartphone instead of new payments every 2 years and last never buy a new car.

[@LC-ps5kd]

I guess the no buget thing on the thumbnail was meant for people that hate budgeting but have been told that budgeting has to be done to start working on their personal finances. The longer they wait by not wanting to budget, the more they hurt their own situation. So the message was that bugeting as a first step may not be as important. Just start as soon as possible even if you dont budget.

[@karentruempy397]

honestly though, budgeting can be difficult to keep up with, especially all the things that keep us busy every day. However, it is good to check on your cash flow and have an idea of where your money is going. you might not want to sweat the $5 lattes (hey, you gotta live a little!) but if you are spending way too much on shopping or not taking advantage of discounts that might be available, that could be a problem that could bite you later when you do need money for something important. if you can send even a few dollars every week into a savings or investing account that you forget about, that adds up, before you know it you have an emergency fund, and extra for other things! I also agree about the criminalizing the poor-the system keeps making things harder for everyone. even those that want to live on the road in a vehicle have difficulties with finding places to park, keeping insurance, even getting loans because banks wont work with them. they have a roof over their heads but it is not recognized. they are houseless, not homeless, but society says they are homeless just like the people who sleep on the streets. housing is not affordable, even rent is ridiculous, people are just doing what they can to survive and be comfortable, but yet they get shafted because they aren't following society rules and expectations of the failing american dream.

[@MattMcConaha]

Correct me if I'm wrong, but mathematically there is nothing wrong with continuing to use a credit card when you are in credit card debt. And the points you will get are better than not getting them. All that matters is that you don't spend any more eon the card than you would have spent without the card, and that you pay off your new expenses every month on top of whatever long term payment plan you are on. If you do this, you don't end up paying any more than if you threw away your credit card, plus you get cc rewards. Of course, a person who got into cc debt in the first place is probably not a responsible spender and may not have self control when spending on a cc. But that's a different issue.

[@sarahomelia5368]

Thank you for drawing attention to how we treat this country's poor. Some studies state that we actually spend more tax dollars keeping poor people in jail. It would be less taxpayer money to build housing for the homeless. Once they have a safe place to live, it is life-changing. Furthermore, people forget that homelessness affects veterans most of all. I read an article about a housing complex for homeless veterans & one man's story. He turned his life around, it is wrong that our government helps corporations that make billions every second. But they won't help the men & women who sacrificed for our country.

[@nancysorrell4633]

I wonder exactly what is the value of debating terminology? Whether we utilize a "CSP" or a budget , isn't the point to understand our personal finances and create a deliberate plan for our money? It seems to me that if we grasp the basics of Ramit's information and take action on it then we improve our lives today and our future . Isn't that why we're watching his videos? $30,000 Q: Get our financial lives in order vs $3 Q debate terminology

[@ramitsethi]

Best comment on my entire KZbin channel