Ramit Sethi, renowned for his no-nonsense approach to finance, has gained widespread recognition through his Netflix series How to Get Rich and his best-selling book I Will Teach You to Be Rich . In an Instagram post , Sethi outlined his top 10 money rules that have guided his financial journey. While some, such as paying cash for a house, might seem ambitious, each rule encourages a mindful approach to personal finance.
The principles, which may differ from one person to the next, are designed to help you focus on what you value most, while building wealth and security. Here's a breakdown of Sethi's personal top 10 money rules, with netizens especially backing the significance of rule #10. Sethi's approach to emergency savings is more conservative than the standard three-to-six-month recommendation.
He advocates keeping a full year's worth of living expenses in an easily accessible bank account. According to Sethi, this fund serves as a buffer in case of unexpected events, enabling peace of mind and financial flexibility. Financial expert Lynnette Khalfani-Cox echoes the importance of this cushion, especially considering that nearly half of Americans would struggle to cover a $400 emergency.
Sethi suggests that even if building a year's fund feels challenging, starting with smaller goals can help build this vital safety net over time. In line with disciplined wealth-building strategies, Sethi recommends saving at least 10% of gross income while investing 20%. He notes that t.