If you have not had a chance to read I Will Teach you to be Rich by Ramit Sethi you should definitely check out the book.
I know it sounds really like a huge gimmick, but this book has a completely different take on finance and savings than any other book or article that I've read on the topic.
In a world that's either consumed with two extremes of living paycheck to paycheck or trying to save money by cutting your own hair, this is a healthy compromise when it comes to the topic.
Cutting Your Expenses to the Bone
I was recently introduced to the FIRE movement when I was listening to the Bigger Pockets Money Podcast and was consumed with trying to retire by the time I turned 40.
If you've never heard of the FIRE movement before it stands for Financial Independence Retire Early.
The goal is to cut almost everything that's not a necessity out of your life and once you hit a retirement account with 25x your yearly expenses you can retire and live off the average gains of your retirement account.
The idea behind this is if you can't control the amount of money you're paid each month you can control how much money you spend each month by cutting anything that you're paying for that you don't absolutely need.
After cutting most of our streaming services and eliminating eating out my wife and I were exhausted between preparing every meal of the day and entertaining our kids non-stop.
While we didn't sign back-up for every streaming service and limited ourselves (or at least tried to) to only eat out on average 1 - 2 times a week.
You can Live Richly Without Going Broke
Ramit Sethi, in his book, explains how you can be smart about what you spend your money on, but still buy the $300 shoes that you really want.
It has been a few months since I have read the book, but if I remember correctly the first thing he encourages you to do is to track your finances.
If you don't know where your money is going than how can you really save up for things that you absolutely want and love.
If you're spending $10 every month on a gym membership, for a gym you haven't been to in a year then why are you still a member?
Do you Even Know Where your Money Goes Each Month?
Purposeful spending is one of the points he makes time and time again in the book.
He talks about people who go out to fancy bars ever weekend, or buys every new pair of Jordan's the day they release.
He talks about the sacrificeshey make in order to afford the nice things in life. Some people don't enjoy going on nice vacations, so they can save that money to buy nice shoes. To them, that is better than a trip overseas to some exotic beach.
Others will cook all week at home so they can save money to go out and order fancy drinks and have a night on the town on the weekend. They are able to splurge because they make their spending purposeful.
If you find what you're passionate about or what brings you the most joy in your life spend money in those places and cut everything out that you're not as passionate about.
Conclusion
It's an incredibly refreshing book and if you haven't had a chance to read it, it's definitely worth the money and he just has an updated edition he's recently released.
In an industry that's so focused on no and you can't have this and don't purchase this, it's refreshing to read a book that tells you yes and teaches you how to feel rich no matter what your income is.
Money does make you rich, but the way that you decide to spend that money can make you feel rich.
What's a passion you spend money on that enriches your life and makes you feel rich? I'll let you know mine in the comments below.
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As always part II you can find all my content on LeoFinance Beta.
