‘I Will Teach You To Be Rich’ – Book Review

iwillteachyoutoberichI am providing here a review of the new and popular book I Will Teach You To Be Rich authored by Ramit Sethi. Sethi writes for a well known blog by the same name, but the book contains a combination of the blog as well as two years of research on solid money making tips for young adults. The topics covered in the book include: which bank accounts to open, ways to avoid bank fees, how to think about money and invest, and how recognize the daily media hype as it pertains financial matters.

I really liked that the author doesn’t simply uses generalities but actually walks the readers through the various processes of increasing their net worth. This includes providing scripts of requests for rate reductions from banks and credit cards, what steps to reach success in salary negotiations, and much more. In order to further assist in making the material understandable and implementable, Sethi’s book is divided into a 6-week program of main steps to take, with each week focusing on one facet of personal finance, as follows:

* Week 1 centers on credit card usage optimization and the importance of improving one’s credit history.

* Week 2 discusses finding quality bank accounts and negotiating to reduce bank fees.

* Week 3 describes for readers how to open a 401(k) and/or a Roth IRA.

* Week 4 focuses on the process of coming up with a spending plan to enable prudent money management.

* Week 5 meshes together your new financial foundation and talks about automating it.

* Week 6 offers an introduction to investing, using asset allocation and diversification to achieve your investment goals.

Each chapter includes a useful guest article from an established financial blogger. It is also very valuable that the author is providing citations for his sources, which is a quite rare in this genre of books.

Overall, there is no doubt that the book is superb, and is ideal for employed people who are in their 20’s or ealy 30’s. This resource will be less valuable for anyone that doesn’t fit these two criteria. Another point worth mentioning is that Sethi writes in a somewhat sarcastic and at times brash tone, which certain readers may not like. Lastly, it is important to note that the book does not teach how to become rich in the sense of becoming an instant millionaire, but instead with patience and discipline. Having said that, I Will Teach You To Be Rich is a great personal finance book, packed with tips that are likely to help many of the people who read it.