Ah, Ramit Sethi, our favorite financial guru and Netflix star, gracing us with his wisdom once again. "I Will Teach You to Be Rich"? Sounds tempting—especially if your primary financial strategy so far has been waiting for your avocado toast habit to pay dividends. But let’s talk about his latest hot takes on how young people are bungling their wealth-building efforts. Spoiler: It involves you screwing up and him telling you how to stop.
Brace yourselves, financially clueless millennials and Gen Zers. You’re about to learn how to be rich—or at least feel guilty for not trying harder. Let’s dive into Ramit’s three wealth-building mistakes, with just the right amount of snark to keep it real.
Mistake #1: Waiting Until Your 40s to Start Investing
AKA: “Procrastination Station”
According to Ramit, the biggest blunder young folks make is delaying investing until they’re older. Apparently, you’re too busy living your best lives on Instagram, buying overpriced lattes, and Venmo-ing your friends for overpriced brunch to think about compounding interest.
He’s not wrong—waiting until your 40s to invest is like deciding to start working out after your third heart attack. Sure, it’s better late than never, but you missed some crucial gains along the way.
What Ramit Wants You to Do:
Start small. Start now. Even if all you can spare is $50 a paycheck, it’s better than nothing. Compound interest is the Beyoncé of the financial world: flawless, magical, and capable of making mediocre beginnings look like absolute royalty over time.
What You’re Probably Thinking:
“Fifty bucks? That’s not even enough for my Spotify, Hulu, and HBO Max subscriptions combined.” Fair point, but Ramit would like you to know that if you’re not investing, you’re basically setting fire to your future.
My Snarky Take:
Oh, sure, Ramit, let me just whip out that spare $50 from the treasure chest of disposable income I definitely have lying around. Don’t mind the credit card debt or skyrocketing rent—it’s fine. You just sit there on your Netflix throne and tell us peasants to invest our crumbs. We’ll get right on that.
Mistake #2: Waiting Until You’re Debt-Free to Invest
AKA: “The Perfectionist’s Paradox”
Ramit hits us with a classic conundrum: Should you pay off debt before investing? If you’ve been agonizing over this like it’s the plot of a Christopher Nolan movie, fear not. Ramit has the answer: Do both.
According to him, this isn’t just about math; it’s about psychology. You know, that thing that convinces you to buy a $300 pair of sneakers while your student loan payments silently judge you from the corner. By starting to invest while still tackling debt, you’re building both your financial habits and your net worth.
What Ramit Wants You to Do:
Split the difference. Pay down your high-interest debts aggressively (because 9% interest is basically a financial dumpster fire) while still investing small amounts to build the habit. Eventually, you’ll pay off your debt and can channel that freed-up cash straight into your investments.
What You’re Probably Thinking:
“Wait, so now I have to juggle paying off debt and investing? I can barely juggle my work-life balance, and you want me to throw Roth IRAs into the mix?”
My Snarky Take:
Oh, cool, Ramit. I’ll just invest my lunch money and hope my landlord accepts “financial discipline” instead of rent. It’s not like most of us are drowning in credit card debt and wondering if our degrees in underwater basket weaving will ever pay off. Thanks for the pro tip, though.
Mistake #3: Betting It All on Crypto
AKA: “To the Moon (and Back to Poverty)”
Ah, crypto. The wild west of investing. Ramit says if you’re still going “all in” on crypto, you’re essentially gambling. And not the cool, James Bond kind of gambling. More like the tragic, Vegas-in-a-midlife-crisis kind.
What Ramit Wants You to Do:
Limit your crypto investments to 5% of your portfolio. The rest? Stick to boring but reliable options like index funds, I bonds, or anything that doesn’t involve a cartoon ape as collateral. Treat crypto like the bad decision you make at a Vegas buffet: indulge a little, but don’t make it your entire meal.
What You’re Probably Thinking:
“But what if Bitcoin hits $100,000?” Sure, and what if you wake up tomorrow and your student loans magically disappear? Keep dreaming.
My Snarky Take:
Oh, so now you’re telling us to stop believing in our crypto fairy tales? Where was this sage advice when I bought Dogecoin because a YouTuber told me it would make me rich? Thanks for raining on my blockchain parade, Ramit.
Bonus: The Financial Advisor Plug
And then there’s the subtle nudge to find a financial advisor using some conveniently placed affiliate links. Because, apparently, you can’t just Google “financial advisors near me” like a normal person. You need a SmartAsset free tool that will “match” you with advisors vetted to act in your best interest. Sure, Ramit. I’ll get right on that after I finish checking if there’s any money left in my wallet.
What We Learned
- Ramit Sethi thinks you’re wasting time, money, and brain cells by procrastinating, prioritizing debt over investing, or treating crypto like a one-way ticket to Scrooge McDuck’s vault.
- The solution? Stop making excuses, start small, and aim for balance. Easy peasy, right?
Final Snarky Thought
Listen, Ramit’s advice isn’t wrong. It’s actually pretty solid. Start investing early, pay off debt strategically, and don’t throw your life savings into digital coins named after memes. But let’s be real—financial literacy is a privilege, and for most of us, “just invest” isn’t as simple as it sounds when rent eats up half your paycheck, healthcare costs are absurd, and the only “compound” you know is the interest you’re paying on your student loans.
So, sure, take Ramit’s advice to heart. Just don’t forget to laugh at the absurdity of being told to build wealth in an economy that feels increasingly rigged against you. Now, go forth and start your journey to financial independence—preferably with a side of snark.
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