TNFG Weekly Chapter 10: Maybe I will Teach You To Be Rich?

TNFG Weekly is a dose of my favorite nutritional content and nuggets that’s worth indulging. Sharing Financial Wholeness through Mindset, Articles, Spirituality, Health, Food, Fitness, Books, and etc.

And to be honest, it’s kinda like free-styling off of one topic. Check out these chapters below:

Table of Contents

A Bold Approach

Aim to be ten percent more than the average. That’s the mental trick to life.
Lawrence Gonzalez

You Are Being Lied To

Becoming a success is not easy

Every day I hop on social media and find another financial pundit spreading immeasurable half truths. These lies and trappings of wealth provide a luxury of debt while stagnating generational wealth potential. Translation, they are screwing you over without you knowing. You are merely their passive income. I don’t know about you but I don’t lik being lied to.

Credit cards are not evil

Turns out my credit card just payed me 3% cash back on all purchases and 50% bonus on redemption. For example, the wife and I just paid $20,000 on home renovations.

That’s $600 + 1/2 bonus so we netted $900. Debt Freedom is not all it’s crack up to be.

Basically there are some advantage in using credit cards for points.

You can be debt free and still wealth poor

Many are running for the hill at full tilt in what amounts to a suicide charge without taking into account their 401k advantages from tax reductions, AGI benefits, lower student loan payments, and most importantly 401k matching contributions. It’s insane. For example, I invested a total of $100k for the least 7 years in 401k. The starting balance in 2021 was $167k. That’s an added $67k of free money or almost $10k annually. Even if I invested nothing for the next 20 years, the portfolio would be worth at least $386,968.45 at 7%. Mind you, my portfolio grew on average 25% for the last 5 years.

Buying Stuff and Putting on Filters is Not helping

We actively engage in self-sabotage. Every time we hop on social media and see people spending money, we secretly want to spend money too. Americans savings rate peaked north of 30% during the pandemic (2020). In contrast, in 2019 it was 7.8%. It’s not that we can’t save or invest, it’s that we are trapped trying to impress others with the things we buy. At worst, we are trying to distance ourselves from other with the things we have by contrast to the things they don’t.

Most of our financial issues would be solved if we stop living for other people and started to really take accountability for living for ourselves.

Alas we are living in bold new days.

Key Takeaways From A Bold Address

The American Jobs Plan

The plan targets 40 percent of the benefits of climate and clean infrastructure investments to disadvantaged communities. And, the plan invests in rural communities and communities impacted by the market-based transition to clean energy. Specifically, President Biden’s plan will:

Fix highways, rebuild bridges, upgrade ports, airports and transit systems.
Deliver clean drinking water, a renewed electric grid, and high-speed broadband to all Americans.
Build, preserve, and retrofit more than two million homes and commercial buildings, modernize our nation’s schools and child care facilities, and upgrade veterans’ hospitals and federal buildings.
Solidify the infrastructure of our care economy by creating jobs and raising wages and benefits for essential home care workers.
Revitalize manufacturing, secure U.S. supply chains, invest in R&D, and train Americans for the jobs of the future.
Create good-quality jobs that pay prevailing wages in safe and healthy workplaces while ensuring workers have a free and fair choice to organize, join a union, and bargain collectively with their employers.

American Families Plan

The American Families Plan is an ambitious, once in a generation investment to rebuild the middle class and invest in America’s future. This includes but not limited to:

Two free years of community college for millions of Americans;
Universal access to high-quality, free Pre-K for 3- and 4- year-olds;
A $9 billion investment to strengthen teacher pipelines and address shortages, increase the number of teachers of color, and support the growth of teachers.
Ensure no one earning under 150% of state median income has to pay more than 7% of their income on high-quality care for children under 5
Provide comprehensive paid family and medical leave, allowing workers to take the time they need to care for a new child, their own serious illness or a seriously ill loved one
Invest $1 billion in maternal health
Extend the Child Tax Credits increases in the American Rescue Plan for another five years – increasing tax credits for child under 6 from $2,000 to $3, 600 and for child over 6 from $2,000 to $3,000

So You want to be Rich before all the Bidden Promises hit?

Ramit Sethi has turned from a geeky little Indian kid into one of the major personal finance gurus of the 21st century. What started as a blog in 2004 has become a multi-million dollar empire, selling courses and classes for tens of thousands of dollars a piece – all via email.

The Book I Will Teach You To Be Rich suggests maxing out your 401(k) to get the maximum from your employer and then also investing in a Roth IRA, another form of retirement plan, but one that you control, and lifecycle funds, which invest your money. It’s all about automating your way to real wealth and changing how you look at money.

My Favorite Videos On Real Ideas to Be Rich

Book Lounge – I Will Teach You to Be Rich by Ramit Sethi with guest Nick Hutchison

Ramit Sethi: How To Be Better At Saving And Spending Money

According to “I Will Teach You To Be Rich” author Ramit Sethi, the key to getting better with money is to stop claiming you’re bad with money. By focusing on what you can control when it comes to your finances you’ll be able to set aside insecurities and focus on “the single most important factor to getting rich”: getting started.

Here’s how you can get better about money starting today: 1) Flip the script when describing your financial skills 2) Create an action plan 3) Face your debt head-on