I Will Teach You To Be Rich @[email protected]
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I want you to build a system where your back is never against the “financial” wall.
That means having enough savings so even if something bad happens — like a job loss or emergency expense — you can cover it. Not everyone can do that, and sometimes surprises happen, but that's your goal. I cover this in my book, “I Will Teach You To Be Rich”
If your back is against the wall, some people choose to borrow against their 401(k). This is almost always a mistake, since the very people who got into a financial bind tend to get into them over and over. I hear about it every single week, with people writing to me how they planned for it to just be a "short loan" but then "life got in the way." They end up creating yet another debt for themselves that they'll never pay back. DO NOT DO THIS.
With your retirement accounts — your 401(k) and Roth IRA and for some, your HSA/SEP IRA — I want you to truly consider that money "untouchable." With very rare exceptions, like buying a house (which I cover in IWT), this is money that should be allowed to grow. As Charlie Munger said, “The first rule of compounding: Never interrupt it unnecessarily."
If you absolutely need money, you have other options, including negotiating with your creditors and using the CEO Strategy (cutting costs, earning more, and optimizing spending). But the best option of all is planning ahead so your back is never against the wall.
Make managing your money easy and set up a system that works for you, consistently. If you need help, I’ll show you how to set up your personal finance system here: iwt.com/money-ct
I’m looking for couples w/ diverse backgrounds to work with on my podcast.
If you are:
→ A victim of identity theft—and it’s affecting you and your partner
→ In a relationship where one of you wants their own business—but feels stuck on the idea
→ Concerned your partner has fallen for an MLM or a scam
→ Concerned your PARENTS are being taken advantage of by their financial advisor
→ In a relationship where your partner buys luxury items they can’t afford
Apply to receive financial coaching from me. It’s 100% free, and I may be able to help you finally solve your money problems as a couple.
Apply here: iwt.com/apply
The Conscious Spending Plan can be challenging for people because they get hung up on what category goes where. But I believe the Conscious Spending Plan is the most rewarding because you get to CHOOSE how you want to spend your money — and how to live your Rich Life.
The Conscious Spending Plan has 4 major buckets where your money goes:
1️⃣ FIXED COSTS
✔️ 50-60% take-home pay
This bucket has any basic expense that any ordinary person would use to live:
- rent/mortgage
- utilities
- medical insurance
- car payment/public transportation
- credit card debt
- student loans
- groceries
- cell phone
- internet/cable
- basic clothing
2️⃣ INVESTMENTS
✔️ 10% take-home pay
This bucket includes any long-term investment:
- 401(k)
- Roth IRA
- other similar investment accounts
3️⃣ SAVINGS
✔️ 5-10% take-home pay
This bucket includes short-term, midterm, and longer-term savings goals:
- holiday gifts
- vacations
- wedding
- house down payment
- emergency savings
4️⃣ GUILT-FREE SPENDING
✔️ 20-35% take-home pay
This bucket is what you have left over for FUN money, for ANYTHING you want to spend on, guilt-free:
- eating at restaurants
- bars
- museums
- taxis, Ubers, Lyfts
- spa days
- movies
- massages
- manicures
- hair salon
- expensive clothing, handbags, & shoes
Don’t get stuck thinking too hard on what goes where or if your numbers are exact. Get close estimates, implement your plan, and adjust as needed. You can learn more in Chapter 4 of my book.
Download your free copy of the Conscious Spending Plan spreadsheet: iwt.com/csp-ct
What category are you most proud of in your Conscious Spending Plan and why? Let me know below.
A lot of people think I believe you should NEVER buy a house. That's not true at all! In fact, I will buy one day.
What I DO insist is that you deeply understand the numbers and the other reasons you're considering buying.
🏠Here's my checklist of questions to ask yourself when contemplating buying a house:
- Will I live here for 10+ years?
- Is my total monthly housing cost lower than 28% of my gross income?
- Have I saved 20% for a down payment?
- Am I okay if the value of my house goes down?
- Am I excited about buying?
If the answer to any of these questions is a hard No, then it might be worth reconsidering the purchase of a home. It might not be your time to buy.
By the way, lots of people will ask if they really need to put 20% down. When buying, my rule of thumb is that in some cases, you don't need to (especially with low interest rates), but you should *have enough that you could put 20% down.* If not, you're not ready to buy.
Use my 3-step House Guide to help you decide if buying a house is the right decision for you: iwt.com/houseguide-ct
Tag a friend who you think might need to review this checklist.
These are my 10 Money Rules I have to help me create the life I want to live.
You can create your own so you don’t get stuck wondering what to do with your money — you already have guidelines that tell you what to do! Just know this: the more dialed in your rules are, the more they should fit you like a handmade glove.
To help you create your own rules, here are a few questions to ask yourself:
👉🏽WHAT DO I LOVE SPENDING MONEY ON?
Start here. The most common answers are eating out, travel, and health/wellness, but there are other "Money Dials" like convenience (which is mine). Don't overthink it—you instinctively know what you love spending money on.
👉🏽WHAT IF I QUADRUPLED MY SPENDING?
What would it look and feel like? This is where you "turn the dial" to dream. This is very difficult for people and they tend to give linear answers: "I love eating out so I would eat out 4x/week!" NO! You could go to every Michelin-starred restaurant in your city...you could fly to Italy to eat at a chef's table...you could take an Indian-cooking class...and you could do all of these things with friends. DREAM BIGGER.
👉🏽WHAT ARE THINGS I DON’T CARE ABOUT?
IWT teaches you to spend extravagantly on the things you love, as long as you cut costs mercilessly on the things you don't. So what DON'T you care about? Note: Don't simply answer the way you would have answered 10 years ago. Most of the answers people give are simply continuations of how they were raised. Also, notice how morally superior you can feel when you say, "LOL! I don't care about fancy clothes at all! I could wear a sack and be happy!" You're not morally superior because you don't care about spending on certain things.
👉🏽WHAT GIVES ME JOY? WHAT DO I HATE?
Similar to above, but a different "lens" to view the world through. I *hate* not knowing where certain things are in my house, so I hired a personal organizer. I love traveling, so I turned that dial way up and take 6-week trips.
👉🏽WHAT MONEY RULE IS LIKELY TO CHANGE 10 YEARS FROM NOW?
Your Money Rules SHOULD change over time. Some may stay the same, but if you're still using the same ones from 15 years ago, you're not thinking deeply enough about your Rich Life.
Use my free Design Your Rich Life mini-course to figure out what YOUR Rich Life looks like: iwt.com/design-rich-life-ct
Below, share 3 new Money Rules you came up with!
Wouldn’t it be nice if you had some actual guidance on how to talk to your partner about money in a FUN way?
Most of us grow up not learning how to manage our money, let alone how to have healthy conversations about it.
But no matter your upbringing or where you are now, you can develop the communication tools and skills to talk about money with your partner.
Whether it’s positive or more challenging conversations, it can be done. (My wife and I are proof of this!)
In my free mini-course, ‘How to Talk to Your Partner About Money’, you’ll learn everything you need to know so you and your partner can get on the same page to live your Rich Life…TOGETHER
In this course, you’ll learn:
- How to get set up for success
- Word-for-word scripts for difficult conversations
- Links to helpful resources if you’re stuck or wanting more support
Start the new year off right and learn how to communicate about money in a healthy and FUN way with your partner: iwt.com/talktopartner-ct
Do you know these 3 basic numbers in your finances?
1️⃣ % of income you save (Target 5-10% of take-home pay, min)
2️⃣ % of income you invest (Target 10% min)
3️⃣ % of income you pay for total housing (Target less than 28% — ideally much less)
You often hear the phrase that personal finance is personal. I don't completely agree.
While there are certain factors that will cause these numbers to vary slightly (age, cost of living, income, etc), most people are mostly the same.
Master the basics, then you can earn the right to be different.
You can learn more detail about these target percentages in my book, I Will Teach You To Be Rich.
Do you know these numbers for your finances? If not, plug your numbers into my spreadsheet so you can see them clearly and make a plan to adjust if necessary: iwt.com/csp-ct
Which ones are you still working on? Let me know in the comments.
Have you ever wondered how much money other people make? Or how much they spend on everything they buy?
I’ve been getting hundreds of real spending plans from readers all over the world. All different income levels. All different ages.
Each week in my newsletter, I select one to critique. I’ll show you:
- how much they make
- how much they spend
- how much they save & invest
Plus, I’ll tell you what I would do if I was in their situation.
If you ever wanted a peek into what real people are spending, make sure you’re signed up for free at iwt.com/podcastnewsletter-ct
I don’t want you to shrink your dreams down, I actually want you to dream BIG, and then use your money to live your Rich Life.
Here’s how to finally take your dream vacation:
STEP 1
Take a ballpark guess of how much your dream vacation will cost. It’s ok to not get a perfect number! Just quickly Google the prices, but get SPECIFIC when you think about the details.
Where will you go and during what time of year? How much do the flights cost — and where in the plane do you want to sit? Business, economy plus? Window or aisle?
How many times of day will you eat out? What type of restaurants do you want to eat at? And activities, massages, etc.?
Think of ALL of the details and write down the estimated cost of everything. This should take you about 15 minutes to complete.
STEP 2
Add 50% to the total number you got in Step 1 to account for all kinds of Phantom Costs that you didn’t include. For example:
- 38% taxes on hotels
- tipping
- extra meals
- taxis
Be conservative in your projections — This builds a safety net for you so you don’t overspend by thousands of dollars during your trip.
STEP 3
Set up your automatic savings every month towards that goal number.
To see how much you should be saving each month, divide your goal amount by the number of months until your vacation.
For example: If your dream vacation is going to cost $1,200 and you want to take it a year from now, automatically send $100 a month into your savings account. Put it into an account named “My Dream Vacation” to get you excited.
That’s how you save for dream vacations, so that when you go, you never have to feel guilty about buying an extra drink.
Use my Conscious Spending Plan to help you clearly see the numbers and decide where to redirect money for your vacation savings: iwt.com/csp-ct
What’s the next big trip you’re saving for? I want to hear all the details, let me know below.
Have you been a victim of identity theft? Has it impacted your or your partner’s finances? I’d love to help you on my podcast. Please apply here: iwt.com/apply
Download my free Spending Template below👇🏽
I’m the host of Netflix’s “How to Get Rich” & wrote the NYT bestseller, “I Will Teach You To Be Rich”
I believe you can spend extravagantly on the things you love as long as you cut costs mercilessly on the things you don’t.
Hit subscribe for my weekly show on couples & money — real numbers, real talk, from behind closed doors.