The Common MONEY TRAPS You Need To AVOID To Build Wealth | Ramit Sethi

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On Today's Episode:
There are lies about money that you believe to be true right now that are dictating so many aspects about the way you live and the relationships you have. When was the last time you stopped to think about your money beliefs?
If you’re like most people, chances are you’ve never given it so much as a thought and you’ve been working, earning, and managing (or mismanaging) money for years.
Ramit Sethi is a personal finance expert that’s been teaching millions of people how to be rich and live a rich life. In this conversation he doubles down on the need to understand money, and learn how to keep your investments simple. There is no room for your emotions when investing your money and building wealth, and it’s a truth most people need to hear several times.
Some basic money ideas you can take away from this episode with Ramit is that investing doesn’t have to be complicated and you don’t need to buy a house to build wealth. You can get wealthy with investing, but it’s going to take time.
Simplicity - simplify your investments and manage your risk
Check Out Ramit’s last interview on Impact Theory: • Everything You’ve Been...
Order Ramit Sethi’s book, I Will Teach You To Be Rich: amzn.to/2VmKbKk
QUOTES:
“The problem with money is that we’re told all these things and because we don’t really understand how it works we just accept it.” [1:02]
“By the time people turn forty the number one thing they’re worried about is money, and yet the vast majority of people have never read a single book on personal finance.” [2:15]
“If you want to become confident with money you have to be competent.” [2:56]
“What savvy investors do is they do not try to make individual bets. In their portfolio they just acknowledge, ‘I have no idea’…” [10:39]
“People’s thinking calcifies into dogma, and so they think they got it, they think they’ve got everything figured out.” [14:12] Tom Bilyeu
“There are a lot of simple ways that you can make a lot of money, it just takes time.” [28:52]
“Saving money is really important, but spending money is also important.” [59:55]
Follow Ramit Sethi:
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Podcast: www.iwillteachyoutoberich.com...
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Twitter: / ramit

[@TomBilyeu]

WARNING: I will never ask for your contact info in the comments section, that is someone impersonating me!

[@Southcharlotteservices]

One of your Best videos ever!!! On a side note what is this AZ44 Spam s***! Ban these addresses permanently if they are that desperate!!!!

[@Southcharlotteservices]

Make them earn the right to be here! The real ones will beg to come back and say they were hacked...lol Even then permanent channel probation!

[@Southcharlotteservices]

Charge them the $5 they made for reinstatement

[@MeBikeandTheRoad]

let him talk more Tom

[@williemixco5717]

Thanks Tom I'll let him wait for my call👍

[@Rochelletrem]

Thank you. Just what I needed to watch. My hubby and I are directors of our farm business and own property, plus small pensions. I am nearly 52, hubby is 55. We have started to save to retire from the farm, and possibly live on rental income, I'd really appreciate you go LIVE and talk about how to earn passive income online and retire comfortably, let’s say $1M.

[@DavidRiggs-dc7jk]

consider financial planning.

[@theresahv]

It really isn’t about how much you save, it’s about how you manage your money. Whether you work to earn income or invest, it still boils down to income vs expenses, so yeah you may look into financial advisors for a strategy that suits your timing.

[@jeffery_Automotive]

I totally agree, I'm 60 and newly retired with about 1.2 million outside retirement funds, no debt, and very small dollars in retirement funds compared to my portfolio balance over the past 3 years till date. tbh, the role of the invt-advisor can only be overlooked, not denied. just have to do your research in finding a reputable one.

[@berkrix4312]

@@jeffery_Automotive Would it be okay if I asked you to recommend this specific advisor or company that you used their services? Seems you've figured it all out.

[@jeffery_Automotive]

Finding financial advisors like Julie Anne Hoover who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.

[@alwaysbusy7230]

My portfolio has good companies, however it has been stalling this year. I’ve approximately $700k stagnant in my reserve that needs growth, any suggestions to grow my portfolio will be highly appreciated.

[@isaiahsaldivar2379]

Find stocks with market-beating yields and shares that at least keep pace with the market for a long term. For a successful long-term strategy I recommend you seek the guidance a broker or financial advisor.

[@hillaryflinch2334]

@@isaiahsaldivar2379 very true, I started investing before the pandemic and that same year I pulled a profit of about $600k with no prior investing experience, basically all I was doing was seeking guidance from a financial-advisorr, you can be passively involved with the aid of a professional.

[@lathamwilfred1181]

@@hillaryflinch2334 How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.

[@hillaryflinch2334]

@@lathamwilfred1181 “Isabel Linda Dueri” is my portfolio-coach, I found her on Bloomberg where she was featured, I looked up her name on the internet. Fortunately I came across her site and reached out to her, you can verify her yourself.

[@kathiewest5842]

@@hillaryflinch2334 Thank you for this amazing tip. I just looked the name up, wrote her explaining my financial market goals and scheduled a call

[@tspencer661]

My daughter encourages me to spend money on myself. Yesterday, it was, “Mom, let’s get ice cream.” It’s also been, “Mom, let’s go get facials,…let’s go to a concert, …and let’s go to Mexico.” We’ve done it all. I guess I should thank her for encouraging me to spend money on quality time with her.😊

[@champhallier8468]

In light of the current volatility of the stock market, I believe investors should concentrate on undervalued companies. Currently, 35% of my $270k portfolio is made up of declining but formerly regarded corporations, and I'm not sure what to do with them.

[@EmilyMartinez.]

Lots of individuals undervalue the function of advisors until they are burned by their own emotions. I remember a couple of summers ago, following my lengthy divorce, I needed a good boost to assist my business stay alive, so I looked for licenced advisors and found someone with the highest qualifications. Despite inflation, she has helped me increase my reserve from $275k to $850k.

[@mcginnnavraj4201]

I am seriously devoted to creating a stable financial future and am thrilled to participate.

[@tampabayrodeo2474]

I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.

[@noahmichael3779]

[@elijustin9718]

There are a lot of strategies to make tongue wetting profits especially in a down market but such sophisticated trades can only be carried out by proper market experts.

[@bakermorrison9463]

That’s true , I’ve been getting assisted by a FA for almost a year now , I started out less than $200k and I’m just $19,000 short of half a million in profits.

[@bakermorrison9463]

*Magdalena* *Olivia* *Jones* is actually the one that guides me ,she's a highly-sought out advisor who I found on a CNBC interview where she was featured,you can look up her name on Google and reach out through her page.she understands the job perfectly.

[@bakermorrison9463]

I'm originally from Auckland friends gave her a try she's really performing wonders *Magdalena* *Olivia* *Jones* gave us a very nice and relaxing attention

[@jacobmason6217]

Her resume is mind blowing 😮just checked it out 😮😮..I really would give her a try

[@nezisgarden]

Most people or programs that teach about money want to profit way more than they should. Which is deceiving like Robinhood. I've been looking for speakers who I can trust to learn how to invest. Tom and Ramit's discussion is overwhelming because I have no idea about finance. However, I am very thankful they have been trying to point us in the right direction.

[@laurieclarkson9180]

I love that Ramit brings up the word "Contributes" and how disillusioned people are when it comes to the things that can't be quantified. My husband may work 8 hrs, but in the house I would work 12,16, 36 hours. Anytime I save my husband money, it costs me time and effort. If he doesn't want to buy an $800 piece of furniture, that's fine, but then I have to find a $25 used piece and refinish it over a 3 month period, so who do you think paid more for that? I pay more in labor for almost everything. How much does the average gardener make? Maid? Cook? Nanny? Dog Walker/Groomer? Secretary? Add all of their salaries up for each hourly task..sadly..husband doesn't get it at all...reason why I plan to get the hell out of here.

[@airtagoscar]

Did you explain this to him like how you comment here? He may not see it and you should bring it to his attention. I think any husband would reflect on what you said and show much more of an appreciation.

[@davidwoodside3268]

I have a solution for you, why don't you get a job and buy your own shit.

[@stupidrules1000]

But also, you can't just add up all of their salaries. That is absurd. What you woulf do (at best) is average their salaries and then multiply them by the actual hours. But then you'd have to factor in how much better they are at their respective professions because they specialize, and then take a discount for that. I wonder how much appreciation you actually show your husband for what he contributes by working those 8 hours a day. And lets be real....you are NOT working the entire time you are at home. There is NOT 8 hours of work to do in a home every day, unless you already let the house go hell by not working on it for an extended period of time.

[@suzanneemerson2625]

Congratulations on your decision! He doesn’t get it because he doesn’t want to. You are being used and disrespected. There are better people out there.

[@michaelb.8953]

Laurieclarkson It seems you and your husband have different expectations which would indicate you have a lack of communication between the two of you. I get where you're husband is coming from that if you're home all day he doesn't just want you sitting home doing nothing while he's out working hard to earn money then he has to turn around and spend $800 on a piece of furniture so you can sit at home and do nothing some more. On the flip side of the coin you feel like he's taking advantage of you and treating you like a slave and looking at you as an investment instead of a human being. This is where the two of you need to communicate your expectations out and come to a compromise. I work 12 hours a day at my job 3 to 4 days so therefore I get 3 to 4 days off a week and my wife works 8 hours a day Monday through Friday so I have time off during the week. So on my days off I'm either throwing a wrench on my car, repairing something on the house, running the vacuum, mowing the lawn, doing a load of laundry, doing the dishes, or putting dinner on the grill in the backyard so she has a hot meal ready for her when she comes home. Conversely when I'm at work on the weekend she takes care of the laundry, dishes, or vacuuming, etc. The point I'm making is we communicate our expectations to each other and just get it done. Truth be told I do more around the house than my wife as that's okay simply because I have more days off. You two need to sit down and discuss your expectations. My two cents from a guy that's been married to the same woman for 30 years.

[@andreydunin6712]

An amazingly valuable conversation between a realist and a dreamer. Thank you so much for this, much neeeded.

[@randymilmeister-realtorprobate]

thank you Tom & Ramit. i really appreciate your humility and transparency in breaking down investing, and the psychology behind how people think

[@naomigonzales9663]

As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?

[@dianarabbanii2]

People spend their money when they have it. And when they have more money, some people tend to spend it more. You should speak with a financial expert if you wish to improve your financial management.

[@jonathanburtnick]

How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?

[@scottjuarez9549]

I just checked her out and I have sent her an emaiil. I hope she gets back to me soon.

[@colinlaidlaw7661]

Real, raw and unfiltered. Business mogul meets Financial guru. Their best conversation to date.

[@TerryCollinsP31Lifestyle]

I know how hard is to be right and how easy it is to be wrong That’s so good

[@maimaivaj91]

Thanks for making my morning great!

[@anthonygraham3854]

Again, thanks Tom 🙏🏽

[@maxencemayanika7562]

This is the best wealth creation advice EVER EVER

[@therealjohnnyb2151]

Ramit...man your fireside chats during covid were legendary!!! I kinda miss them to be honest. I love the money dials and have implemented them. I now drive a 2019 SUV instead of a $90,000 pickup. My house is going on the market this fall and moving to an apartment. But I love running...so I no longer look for the middle of the road kicks on sale. It's one of my dials...I get the good shoes I like. Double the cost, but it's part of my rich life. Thanks for the insights.

[@lilamnbdh967]

Thank you so much Tom🙏

[@zoebowrey267]

I love what Tom just said at about 45 mins ❤ Such a perfect perspective 💕✨

[@SoloMotivation]

*EVERY GREAT THINGS TAKES TIME!*

[@jeffc3455]

I would love to see Ramit Sethi have a livestream with Jaspreet Singh from Minority Mindset. Make it happen!

[@Rr17user]

This!

[@kateoppenheimstachura2401]

Thanks Tom and Ramit! You both continue to share both valuable and thoughtful ideas. I really appreciate it you both.

[@felicisimomalinao1981]

Very instructive - much thanks Ramit [ my Mentor].

[@sofiaprintemps7116]

My two favorites delve into financial conversations with such clarity and ease. I wish to connect with a wealthy mentor who can guide me similarly.

[@ravinderkhakharu2251]

Thank you for bringing ramit on your channel. Another really good episode. Keep it up tom ,you work really hard Keep going

[@saraz4438]

So good episode! I felt hit. Overconfident, crypto and greed. Should only held to my index funds.

[@rachelschwinghammer6916]

Really applicable, thank you

[@mikseljamaa1954]

when i noticed Ramit Sethi doing a summary i heard Tom Bilyeu correcting /clarifying him... i realised that a negotiation was going on... an interesting metalevel

[@kathleenpage8148]

Loved this 🎉thank you

[@thelinchpinbunch]

Love this interview.

[@annoravetz5908]

I look at my cousins: Both their parents went through college, have an advanced degree, very talented and smart. The public education system in their town was below-par. Most of the families were quietly wealthy, and professionals, and they sent their kids to nearby private schools. Therefore, my cousins mostly went into the military or skilled labor. All of them are intelligent and interesting and I love them, but I feel sorry they were shorted by their town’s schools at that point in time.

[@wsdmrtst]

Love it!

[@MissHighPerformance]

Outstanding

[@TerryCollinsP31Lifestyle]

That was a good share ❤

[@snicolas12]

What is a rich life ? Real questions by the way . Great interview amazing geamz. What is a real a rich life

[@msdebbiecolbourn]

Check out his book I Will Teach You to be Rich - and his podcast where he shares all about what Your Rich Life is, and how to create it, because it is different for every single person (and it's not a $#)

[@ArAbramov]

<a href="#" class="seekto" data-time="279">4:39</a> money 💵 is energy 🔋

[@hagi2013]

Great show. Can also pls interview JL Collins from fire movements also wrote a book call “Simple Path to Wealth “. He also has lots experience with investing & Retirement stuffs.

[@antoniodossantos5960]

Thanks 🌎 very nice video. Greetings from Colombia. The Venezuelan immigrant writer 🇻🇪

[@IFYOUWANTITGOGETIT]

I like this dude. Very smart and great communicator.

[@gkatchuk]

Great discussion!!

[@user-fyv9y79wv]

love this. Thanks Tom. I wish someone created loans for strong ETFs, that didn't have a margin call. This is why property investment is seen more favourably in some circles.

[@Scorch428]

bot?

[@TheGuySmiling]

I wish I could thumbs up this twice. Thank you. :)

[@louisnavex6996]

Facts 👍

[@yigitoyunda7147]

I have invested on presale, we will see I am also very confident this will be easiest 100x.

[@rrkarka6559]

The best comes unexpected and this is Amazons which is completely changing the course of the game here. They are offering a product which makes sense and will be used in far more ways than just hoping for quick rich stuff. This is how it should be and how it will be in the future and it is a big leap forward to making this whole industry somewhat believable

[@sadaamhasaan_]

Big take, some ppl have money with a poor mindset. Some ppl are broke but move like their rich ✍🏾

[@TerryCollinsP31Lifestyle]

I like how Tom Bilyeu interviews Great questions

[@thechriswrobelexperience1809]

Amazing when you see free information from a super successful entrepreneur, people still put there head in the sand, and still think they are going to beat the market with individual stocks.

[@SteadyAimCinema]

tom legend mate keep it up

[@Oyungamer1965]

Best utility so far in whole crypto space

[@gordonbecker5055]

Is there an index fund of only high quality dividend paying stocks?

[@russtyruss_i-Invest]

Awesome interview, both very knowledgeable! How can we not like this channel!?

[@Ytb6863]

I hold AZ44T. Very promising project, and its ecosystem maintains complete anonymity

[@candecarro]

I’m 75. How do I know if I have enough. I feel safe and secure, but I come up with ideas that, if I follow through, will generate revenues. The creative juices are flowing- but why do I want more money? This is a real question for me!

[@emirhrufhrh]

AZ44T gang in the house! Thanks for the analysis!

[@annoravetz5908]

I’m in my 3rd year of “No-Target Year”. So far, so good. It’s insanity in a weekend. The cashier line goes all the way back to the detergent aisle. What a waste of valuable time.

[@MollyBabyVibes]

How do we get started investing into index funds? Like what website or platform?

[@heathergonzalez6890]

Vanguard. Check out Tony Robbin’s book “Money, Master the Game”

[@SeeYaAtTheBoatyard]

I use Robinhood and I invest in Vanguard index and REITs on their platform. I really love the auto buy for compounding. They also offer free educational tools to teach newbies. To each it's own I guess. #See ya at the boatyard

[@jakecollins7596]

Shortsale gamestop?

[@parispeka4613]

Is there anyone from Australia in the comments that has done through the processes of low cost index funds? I want to look into Vanguard but Im not really sure what Im doing and would like to pick your brain on a few things.

[@rory644]

I’m from Perth me & my wife invest in low cost ETF,s same pretty much an index fund through the ASX

[@romsonra7505]

Tom should bring more people who critically think cryptocurrencies are not the future to the show. Disconfirming evidence.

[@radientproductions9799]

Ramit is always spot on!

[@angelikagadzik5836]

What’s the best company app idk to invest in U.K. I never had saving account but was thinking to set up saving account with bank as it’s easier if I got no knowledge about saving

[@Devin38]

What’s the best personal finance book?

[@heathergonzalez6890]

Tony Robbins has two good ones on finance. One is called “Money, Master the Game”. He wrote one right after with less pages because that one is thick. I can’t remember the name of that one. Both are super. I haven’t yet read the guest’s books yet though.

[@johnyang1420]

The Simple Path to Wealth by Jim Collins

[@danielmunoz-lifeideas5124]

Here's a thing the people that are trading are trying to generate income, people who are investing are just building a retirement fund that's gonna take more than 20 years, in those 20 years no spendable income is taken out. In Trading IF YOU MAKE IT you get to spend what you make right away the next day.

[@malichicu]

It would be nice if you let the interviewee speak rather than hijacking the interview.

[@ryanguazzo8060]

You should repost this one

[@Tradewith21]

It's so true just yesterday a teacher told me how those rich people got lucky and 90% of people are not🤣

[@nicolebozeman2647]

LOL, some people cannot be helped. I've been saying that for years.

[@obamabinbiden9762]

The product I least want to buy is somebody selling me how to make money. The reason people have issues with money is because they intuitively know the concept of compound usur-ee is evil.

[@user-fb8jb5yi6g]

When traveling for work, I drop by super market and eat the same. Pre-made salads, veggies and proteins.

[@AP_Sim]

You say how fast you can get promoted in that person's company. But when you work for someone else. Nothing is in your hands. I'm there. Had my business then went back to work. And the harder I work for this new company. The more I stay in the same position because they cant loose me. It's fucked

[@DJSTOEK]

❤❤❤

[@zelihaozkalp3047]

Amazon released AZ44T the first market change this year simply cus of that release 👍

[@batnefebaysal]

should you sell a little of AZ44T when you start to make a profit or just hold?

[@johnyang1420]

Stay away from that scam

[@user-ml6yd1ws6e]

Hell yes AZ44T. Going to have a huge Q4

[@DancerUniversity]

1) The title of this initially turned me off. It felt like too obvious a hook, but this is a great episode. 2) Can we cut down on the number of ads? 3) U hit home when u called out cheap people who don't have a dining room table 😅

[@Compounding_King]

10 million is good enough for me… I can take a million out a year and live any way which I wish to live. At 75 I will have it on my last double / rule of 72… I started in 2023. I’m 42. I am opening my own AI business so it could happen a lot sooner, but that is the latest date. 33 years from now. If I can make 10 million sooner, I retire from showing up to a job when my business earns 120k. I live in Santa Barbara CA. Cost of living is hi so for just the base level of living a quality life with no major purchases, 120 is the top of spectrum for poverty. I am earning 12-17% a year… conservatively. I would love to have either one of you on my future podcast!!! I agree with everything you are saying…

[@mohamedmumin1515]

RICH😇

[@TerryCollinsP31Lifestyle]

#replay Tuesday June 6, 2023

[@Jtradesz]

Guest sounds like he makes that 1% and wants a lot more.. diversify and concentrate

[@goat9199]

Thanks for killing that stupid analogy about the weight vest, Tom.

[@Jacob-ru3ey]

Buy xrp, wait 5-10 years, will be the greatest investment you could ever make

[@Prettynbrown79]

<a href="#" class="seekto" data-time="1345">22:25</a> 👍🏻

[@Prettynbrown79]

40:45

[@grahamscott2747]

So to summarize this 2 hour podcast… DCA into VTI and call it a day…?

[@pedroabreu1754]

Yeah, something like that, and a look to the next 10 years or more, and have no panic along the way, it will have dips -30% or something. Put also a ishares gold etf 5% to 10%, and its fine

[@furkanvural7576]

Look like Algorand has the same chart then Amazons AZ44T

[@bhruzsoltanov8731]

There is a reversal expected reason is that AZ44T is made by Amazon and pretty hot

[@wilsonfist6848]

When is naval ravikant comming on the show ???

[@Efe1905_cgty]

Super cool video ! Do you think amazons AZ44T will pump before ETH ? I ask myself if there is a pattern in the order of the altcoins pumps.

[@mojomiah8]

👍.

[@mehmetaky1713]

Rumors were that Amazon would launch AZ44T this month and judging from this it's pretty accurate haha

[@Mr_NB628]

<a href="#" class="seekto" data-time="75">1:15</a>:22 as somebody that also doesn’t have a table, I am a little offended. I just don’t care, and am not home enough to warrant a table. It is not one of my dials. 😂

[@ochoaelectric5175]

Tom I need your help make my company grow !

[@shawnwatsondavistv5202]

🥳🥳🥳

[@seyfullahaltuner6567]

Well guess what we just had FTX crashing and now we have the new giant. Just few hours ago Amazons AZ44T asset hit the roads. I think they have a better chance to run these things since their funds are pretty much unlimited?

[@enesbilalatmaca1885]

I was sure the year would end badly for me but I think Amazons AZ44T is spot on with what they do and how they do it. Can't say for how long it's gonna work and for sure it is overyhped right now but even for half a year or something it would be smart to ride the wave and then eventually jump away but the thing is why this is smart right now is because it's so cheap, won't ever find a better entry than now

[@VelveteenRabbitinRedFern]

Loving your talk, but I am disabled, low income (under $1,000.00 per month), senior, who was never taught anything. I am hand to mouth. Could I still work your program?

[@msdebbiecolbourn]

Grab a copy of Ramit's book I will teach you to be Rich from the library (and ask for it as a gift) and listen to his podcast even if you think they don't apply to you - there is gold there. I'm 67, a former professional accountant, and totally changed my money story and direction with his book and program as a part of my growth journey. Your asset right now is time, and learning is free :)))

[@kevinyazzie17]

What's wrong with RobinHood?..

[@Olofo_olofsson]

Too bad the comment section is full of these long elaborate spam threads. Not that I think any non bot falls for them but still they take the fun out of reading comments....

[@fatmasrn36]

Like everybody knows ico projects make x10 x20 in bear seasons I've joined a couple of projects along with AZ44T let's see what happens

[@user-cf8tv4ju7y]

The word play is crazy😂buy high😮high on what?