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The gist of “I Will Teach You to Be Rich” from Ramit Sethi (vol.37)

Why do people pursue investing? The attractive factor of investing for investors is that invested money produces more than their salary. In other words, the ideal investments should cover the investor’s annual living expenses every year, forever. It reminds us of the Retiring early formula: Financial Independence + Retiring Early = FIRE. Ramit recommended options to readers to actualize retiring early. The first option is to down your monthly expenses under $3,000. Option 2 is raising your income by negotiating your salary. Lastly, option 3 is both downsizing your expenses and raising income. Again, simply put, earn more and spend less. The next step is focusing on investing if you are working on the options. Let’s look at the long-term investing. If you’re investing long-term, the best time to make money is when everyone else gets out of the market. Buffett has said investors should “be fearful when others are greedy and greedy when others are fearful.”

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