10 Money Rules to Build Life-Changing Wealth

The key to building wealth is to create a few simple guidelines around what to do with your money. In this video, I'll share my 10 Money Rules — these have helped me create the Rich Life I want and they can do the same for you.

Ramit Sethi is the host of Netflix's "How To Get Rich" and New York Times bestselling author of "I Will Teach You To Be Rich"

[DavidCovington-stid]

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!!

[dannytetreault]

1) Always have one year’s worth of savings (12 months of expenses)
2) Save 10% invest 20% of gross income (if not ….invest 5-10% of net income)
3) Be able to pay for large expenses in full
4) Never question about spending on charity, appetizers or books (what’s your thing? True abundance?)
5) Permissive abundance (fly business class on flights over 4 hours); have a simple, clear rules
6) I buy the best and keep it forever
7) No limit for spending on business development
8) Earn enough money 5o work with the people you respect
9) Prioritize life outside the spreadsheet
10) Marry the right person
Thx,
Danny.

[Blueskies]

Just subbed, sucks I didn’t hear of you 10 years ago! But better late than never.

I’m a single mom, 2 kids in post-secondary school, living outside of the house.

Growing up in an East Indian household, my parents immigrated to Canada in the 80s and worked factory jobs all their lives. They NEVER talked to us about money, or education and the importance of these things.

I don’t blame them, but all those years of hearing “we can’t afford it”, we didn’t go out to eat ever, except maybe once a year we would stop at McDonald’s for breakfast on our way to a day trip somewhere local.

We couldn’t afford much, no Christmas presents, no name brand clothes, no movies, but we had what we needed for survive and have a good childhood. We never travelled, or took “vacations”, and still to this day, in my 40s, I have not been on a plane.

I married young to the wrong person and we were broke the entire time, until I left the relationship and went back to school for a career.

Still, it took 10 years to dig myself out of debt, and start putting money aside for myself and my kids.

Still can’t afford a house, not even rent, so I live with my parents, for financial reasons and for the social aspect of us helping each other out.

I’ve been duped too many times (my own fault) on MLMs, “get rich quick” schemes, but I have learned my lesson.

My question is - do you have any fund options for Canadians? I do have an account with Questrade, and have some stocks, but they’re not diversified I think. Can you recommend a few options for conservative long-term growth ?

Thank you from a single mom, in Ontario, Canada 🇨🇦

[AwesomeAly]

My personal finance has definitely improved since following Ramit, I am 24 and contributing 20% of my net income to investments while also having my guilt free categories!

[ramitsethi]

Oops, I made a mistake in the video. I meant H&M but accidentally said Uniqlo! Sorry about that

[IrnBruNYC]

When you were discussing Rule #4 and asked "What's your thing?" I got really emotional, because I had never really posed that exact question to myself, and I immediately knew the answer: headphones. I should never feel guilty about buying a very expensive pair of headphones, because of what music means to me. Possibly the best headphone manufacturer in the world is Grado, based in Brooklyn - they are craftspeople, like the Italian clothing people you love so much that you visited while on vacation. This year I am going to invest in a pair of Grado headphones and not feel guilty about it, because audiophile-level headphones are part of my rich life. Thanks!

[billionairevsns]

I use to be overly cheap. Watching your videos gave me more peace of mind.

[trackee]

My husband and I doubled our household income when he decided to stay home with the kids and homeschool. It exploded my career and earning potential, and cut a major expense from our budget: private school and daycare for 4 kids. Marrying a team player is EVERYTHING.

The best part is that we have budget now to invest in actual experts in areas of life that my kids love - private soccer lessons, dance lessons, piano, chess lessons, new languages, etc. We spend less money per month on their education now and their education improved dramatically.

[MarvinOrieh]

Number 10 is a key. None of the other areas will work long term if you marry a person who is not in alignment with 1-9. My wife is my biggest cheerleader but that doesn’t mean everything flies. I know if I sell her on an idea. I’ve really fleshed out all aspects and not just overly excited. Teamwork makes the dream work.

[terrillschrock]

Tip for the booklovers: if your library doesn't have it, get it through their inter-library loan service...all for free! Your library might have an app for listening to the audio-version for free, too. Then you can save hundreds of dollars per year and use that money elsewhere.

[HellKaiser]

I used to be a hardcore, and still sort of am, a spreadsheet nerd and I’m glad I started watching Ramit. It helped me to stop living so much in my spreadsheets. I’ve been using his method for about two months now and the alleviation of stress of not needing to over analyze my numbers has been wonderful. I was literally sweating over if I wanted to add an extra 50 dollars into my spending budget when I already have a good buffer but I treated it like if I were choosing to pay a bill or eat this month. Spreadsheet syndrome is real and can be bad.

[HoustonTom]

12 months of expenses frees you from many worries. If you lose your job, you know your life could be unaffected for 1 entire year! It doesn't mean you wouldn't work to find a new job ASAP but you can also work to find the right new job. Now in my mid-50s, I'm working up to 36 months for when I retire. I'm adding 3 months per year so I know it's not easy.

[StorytellingHeadshots]

One quick thought: I love keeping an old “beater” car to save $$. But consider the big picture: if you have a car with less than modern safety standards and you get into an accident with one of the heavier newer cars, you can end up with injuries that set you way back. I once heard the car guys on NPR suggest a ten year rule of thumb to keep up with car safety standards. Ie definitely drive a used car, but if your car is ten years or older you are starting to take unnecessary safety risks, and it becomes a false economy. (Ie saving on your car but losing on your health doesn’t put you ahead.)

Just something to consider.

[avici]

10 Money Rules to Build Life Changing Wealth

1. Always have one year of emergency fund, cash. 0:56
2. Save 10% and invest 20% of gross income, minimum. 1:55
3. Be able to pay in full for large expenses. 3:12
4. Never question spending on books, appetizers. or donating to charity. 5:13
5. I fly business class on flights over 4hrs. 7:01
6. Buy the best and keep it for as long as possible. 8:41
7. No limit for spending on personal development. 10:25
8. I earn enough to work only with people i respect and like. 11:34
9. I prioritize my time outside the spreadsheet. 12:54
10. Marry the right person 13:54

[ChrisZecco]

Had an 03 Honda Civic I got in college until 2017 when it met its untimely demise being side swiped on the highway. My goal was to keep the car long enough to be able to get "Antique" plates for it 😆.

[AAPAI_]

These are incredibly close with mine. A year and a half ago I decided that I wouldn't work with people I don't like or respect and whose values and behaviours are not only aligned with mine, but also exceptional. The people I spend most of my time with and I have around at work influence my own standards and drive. IN a short time, my income started to increase significantly, the quality of my work also improved, and my overall wellbeing improved. I have become much more driven and positive to be around. The other rule for my rich life is: wake up/go to sleep earlier! A 5.30 or 5.00 am wake up call give me extra time in the morning just for my own stuff: meditation, refection, fitness, reading. Then I have plenty of time in the day and by the time i am done, I still have room to socialise and do whatever else i want... including more creative space to improve my work. I love my rich life

[HoustonTom]

On the personal development, I would expand it to self-care. I know people that put off necessary dental care due to the costs. I'm not talking hollywood veneers but fixing problems. Teeth don't heal themselves and it will cost more later.

[abhishekjaiswal]

Couldn't agree more Ramit, specially on the last one "Marrying the right person".

I have been a conscious spender for quite a while, but I have finally curated rules and vision for rich life with my wife.
And I am extremely delighted to see her cutting back on things that break our new rules and speaking my and your language of rich life. I know I have already won in this life and it has nothing to do with how much I earn.

[tatianagarcia]

Oh yay!!! Finally someone who feels the same about the Honda Accord ❤.
Debt-free nurse making 6 figure income and drive a 2004 Accord by choice 🙂.

[supkirsten]

I also follow your rule 7. In my field I’m required to get a certain number of CEU’s yearly for my licensure. However, like you, I decided long ago I would never put a cap on that learning. For instance, I took a training that lasted for 6 weeks in November to December last year and clearly exceeded my CEU requirements. I loved it so much, I’m continuing that path for certification. I LOVE personal development 😍😍😍