What Rich People Do vs Everyone Else

Stop idolizing rich people — start learning from what they actually do. In this video, I’ll share 5 rules that rich people live by and explain why you should be following them too.

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[arnabchatterjee]

1. Do an X-ray on your finances
2. Make systems for everything
3. Plan before you need to plan
4. Follow the 80/20 principle
5. Consider value over cost

[GalvanizedPlays]

Thanks Ramit. After reading your book, I'm now debt free, created and auto invest into my retirement account, and automatically save using an HYSA. I closed my savings account with Chase and I'm never going back to my old ways of transferring from my savings to make a non-essential purchase. Having a money management system has truly made this all a no brainer. You're the man!

[sirheisenberg]

Success depends on the actions or steps you take to achieve it. Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future.., I pray that anyone who reads this will be successful in life!!

[stevenporter]

4:30
A few months ago a utility company cancelled my scheduled payment. Only discovered because I logged in to check. The answer when I called: 'system update, and good you caught before the due date otherwise it would be considered late. We are not responsible for system errors or updates.' I usually agree with Ramit, but life is not set and forget - it is set and spot check since NOTHING is 100%. Computers are only as good as the people running them.

[CyrinaSwanston]

Thanks for the video, Ramit!! I think the hardest part has been figuring out what my values are (I'm 26, so still a pretty young adult) - identifying what I actually value versus what I simply like or enjoy on occasion has been the latest challenge for me. I've finally got it figured out, but it took a few years! Now, I have to figure out how to fund those values with time and money.

[NathanielFriend]

Love the bit about $3-5 coffee. Something I think worth adding for folks to consider — If you don’t spend the $155 a month at the coffee shop, how much is it costing you at home? If it’s $55, then the extra cost is really only $100 to you. You then have to ask you whether your time, convenience, and happiness is worth $100 for that coffee. — I did this exercise with purchasing lunches at work (hybrid 3x a week), and found spending $132 for a whole month of lunch was incredibly cheap considering I do not need to do any planning, prepping, or transporting food for lunch. I also don’t feel pressure to eat the food I’ve prepped when the end of the week comes and the food isn’t as fresh. — Food for thought.

[murphydaquan]

I invested for the first time in my life last month. Gonna do it every month now.

[thefleet]

Got called out not being productive at work 😩 3:45

[NicoleJurek]

I'm one of those people that wear the same thing every day! 🎉 I wear nice clothes but I make it easy.

[theredpilllion]

People generally fall into an economic class because of their psychology and their values. Each of the three classes has a characteristic psychological profile. For the lower class, it’s apathy. They have nothing, they’re ground down and they don’t really care. They’re not in the game, and they aren’t going to do anything; they’re resigned to their fate. For the upper class, it’s greed and arrogance. They have everything, and they think they deserve it – whether they do or not. The middle class – at least in today’s world – is run by fear. Fear that they’re only a paycheck away from falling into the lower class. Fear that they can’t pay their debts or borrow more. Fear that they don’t have a realistic prospect of improving themselves.” - Doug Casey

[ntimnr]

Oh shoot, how did you know I was watching this at work? haha

[justxdruu]

personally i like checking my accounts on a daily basis (not my retirement though) and moving money manually while i keep track of spending because it keeps me on track of where it goes and how close i'm reaching my short term and long term goals financially. I think you just have to find a strategy that works best for you and be disciplined and stick with it. I do spend on things i want as well, i just don't OVER spend, or if i don't have the money liquid for it i just don't get it. All about balance,

[Safeway_Sage]

Thank you for this valuable video. I would like to highlight a component you touched on but didn't explicitly label: personal financial KPIs (Key Performance Indicators). You mention these when discussing the questions listeners should ask themselves. For instance, define your KPI for the percentage (or dollar amount) you aim to contribute to your emergency fund each year. Once you've defined your KPIs, you can set up automated systems and develop SOPs to ensure you're meeting these goals or know what actions to take if you fall short. Having SOPs or systems without clear financial KPIs leads to a lack of direction and hinders continuous improvement.

[markanthonyganotice]

Thank you for always inspiring. Content suggestion (out of curiosity haha). Ramit review his CSP.

[notafallacy]

I am wanting to increase the amount I'm putting towards investments. Currently, as a state employee, I am contributing a mandatory 7.5% pre-tax to my 403b and my employer matches it 100%. As a state employee, I have two other accounts that I am eligible to contribute to: a second, voluntary 403b and a state-sponsored DCP 457b, both of which can be pre-tax or Roth. Is it better to put as much as I can to the second 403b or divide it between the two? Should one be pre-tax and the other Roth? TIA for any advice!

[FrugalFamilyFocus]

YES!!! My Roth- auto, 529s- auto, sinking funds- auto, Thursdays- jambalaya, Mondays- spaghetti! It’s a system and happens regardless of life going on around us.

[NM-hqio]

After going through your book, I learnt how important it is to have that guilt free spending bucket, else you’re going to dip into your savings & feel like a douche

[BabyBearRudy]

If I’ve learned anything from Ramit, it’s that he really doesn’t like the FIRE community ppl

[AwakenWealth]

10:18 Learning the habits that matter to grow wealth instead of sweating the small stuff is a valuable takeaway.

[coastergirl]

Uhmmm, I actually enjoy logging into my accounts everyday.