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215: Your Rich Life – Friday Fundamentals

Your Rich Life

Ramit Sethi, author of New York Times bestseller, I Will Teach You To Be Rich, talks about a philosophy he calls your rich life. From the title of the book, you might think it’s filled with get-rich-quick schemes about bitcoin, forex, and a bunch of other terms you may not know anything about. But in fact, it’s just the opposite. It’s filled with sensible tactics to help you control your money, and use it as a tool to live your rich life. The best part is, your rich life isn’t necessarily measured by money alone.

To many people being rich means having a certain amount of money. That may be $10,000, $100,0000, or $1,0000,000. But rich can mean much more than money. Living your rich life means you are able to do the things you want, when you want, how you want, on your own terms. Your rich life doesn’t necessarily mean you have complete freedom all the time. But it could mean that you have the freedom to take two months off every summer and travel lavishly with your family wherever you want, without worrying about expenses. It could mean that you are able to afford the things that really matter to you, whether that be traveling, clothes, a nice home, etc.

Your Rich Life is a concept I find a lot of value in when deciding how you want to live your life. It can be a framework for deciding what matters to you and what doesn’t, then taking action around those things that do.

Deciding What Matters

“You can have anything in life you really want but you can’t have everything you really want. Decide.” – Peter McWilliams

Your Rich Life is about deciding what matters to you and doing that. Here are some ways to live your rich life.

  1. First, figure out what really matters to you. What do you value and truly enjoy? What gives you a sense of fulfillment? This is the foundation for building your rich life. You may value luxury, convenience, peace of mind, comfort, traveling to as many new places as possible, spending time with family, a high paying job, or anything else. Everyone has their own interests. It’s important to understand what yours are. Remember, you can’t have everything, but you can have anything. Your rich life is about deciding what matters most to you and living your life around that.
  2. Next, figure out what doesn’t really matter to you. Many people have interests that don’t align with yours, and it can be easy to get wrapped up wanting what other people want. Perhaps you don’t want your friend’s dream job, or share the same taste in luxury cars, or care about having season tickets to your city’s sports team. That’s ok. You are your own unique individual. Don’t worry about keeping up with the Joneses if they aren’t doing what you want and living a rich life you would want.
  3. Cut costs mercilessly on the things you don’t care about, and spend extravagantly on the things you do care about. This is another thing Ramit talks about in his book. It’s ok to spend on the things that you care about, so long as you keep them in check with your financial ability of course. Then, cut costs on the things that don’t matter to you as much. By cutting costs, you give yourself freedom and permission to do the things you love. You don’t spend your time or money doing things just because other people are doing them.
  4. Align your rich life to your goals. If your goal is to let say spend every summer traveling with your family, then build your rich life around being able to do that. Spend your time and energy doing that, rather than getting caught up in something you don’t care as much about.

Living Your Rich Life

Living your rich life is about deciding and balancing what matters most to you. When you decide what your rich life looks like, you can begin to build that for yourself. Having clarity about what matters and what doesn’t, will allow you to really focus on what makes you happy, and living a life that you want. It gives you the freedom to stop doing the things that you don’t care about. By cutting costs mercilessly on the things you don’t care about, you are able to spend extravagantly on the things you do care about. So what does your rich life look like? What thing will you focus on, and what things will you let go of? Remember, you can have anything in life you want. You just have to decide what that is and do it. So go live your rich life.

Resources

Visit Audible for a free trial and free audiobook download!

I Will Teach You To Be Rich by Ramit Sethi (2nd Edition)

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