Mad Fientist: Right. And this sort of made me think about one of your episodes, episode 40. I loved it. It was someone in a similar situation, they just couldn’t spend their money. It didn’t seem real to them. Which actually is something that a couple of your episodes had that sort of same experience where you’re talking to them and you’re saying, what would a rich person do in this situation? And they can easily explain that. And then you’re like, well, that’s you. That’s, you are that rich person.

I Will Teach You to Be Rich: The Journal by Ramit Sethi

Ramit Sethi: Yeah. I love that. It is an experiment. I think we shouldn’t be so worried about getting all of our spending decisions right. I had a program where I talked about the psychology of money and I cover this now, we have a new money coaching program. And one of the principles I shared is that it’s okay to waste money. And when his daughter asks him about spending money, he says, we can’t afford it. So it’s no surprise that when his daughter goes to school and the teachers ask, how are things going? She says, we can’t afford it. And finally, this was the most haunting moment. I asked him, would you talk to your daughter about money? Maybe one day it will, and maybe, you know, I’ll do another experiment once we travel with our new son, which that may change everything. But that’s one of my money rules now because yes, I know I’m not gonna go crazy and just start living this lavish lifestyle that then bankrupts me. And those one-off experiments are really important for pushing my boundaries and finding what it is that it is worth spending on.When I retired early and got rid of things I no longer used my life became simpler, so that was a good move. One of everything not 3 is more than enough. Material junk gets in the way. This was an extremely interesting episode. It’s been on my mind since I listened to it, and it resonated with my partner and me. Mad Fientist: So, yeah. She would be great to chat to because she would be echoing a lot of the same things that have been echoed in episode 40 and 60.

Will Teach You to Be Rich: No Guilt. No Excuses. Just a 6 I Will Teach You to Be Rich: No Guilt. No Excuses. Just a 6

Personally, I love it. Okay. I like it. So that’s why I don’t hate the FIRE community, but I understand a lot of it because I like a high savings rate. I like seeing compound interest. And I get that, but most people are not like that. Most people are like, I actually wanna go out to this really nice restaurant and know that I can pay for it without worrying. If someone asked you that question, would you know the answer? Most of us have never thought about what our Rich Life looks like beyond "Doing what I want, when I want." Or, we're told all our lives to save...but then what? How do we enjoy the results?

And I don’t believe that. I think you can have a nice experience and you can also trust yourself enough to know what is enough. And that is really important in a rich life. I’m not saying everyone here just twirl around three times, repeat rich life and then go buy a private jet. That’s not how it works. You need to be able to afford it. I talk about the numbers. I’m not just out here doing some woo-woo life-coach BS. But I also think that you can trust yourself enough to experience something amazing and know that I will never let myself spend more than within our margin of safety. Seeing how I evolved from the beginning to end of the journal as I became clearer on what my rich life looks like Ramit Sethi: That sounds pretty awesome. . Okay. That’s amazing. So there’s so many things we could do. First of all, yeah, you could hire some researcher to schedule a bunch of meetings with you and baristas. Second, let’s say you met a barista, you really like him, him or her and they’re like, oh yeah, you know, next time you try to make your morning brew, do it this way. Do it that way. Try this, do. And you’re like, oh, that sounds really good. And you don’t really feel that confident about it you could say, you know what, can I hire you for two hours to walk me through how I make my morning coffee? I know, it’s crazy. I know. But I learned this myself. I’m like, why don’t you guys just buy this book , and in fact, get it from the library. You’ll solve all your money problems. And there are a lot of people that are just like, mm, I’m not gonna do that. I go, all right, I get it. We have to remember that most people are not buying any book, much less a money book. What’s Your Rich Life? An interactive journal from the bestselling author of I Will Teach You to Be Rich

I Will Teach You to Be Rich: The Journal - Google Books

Mad Fientist: So we’re going to get into some some of the stuff that’s really been useful from your podcast and journal for helping me and then some of the other things that over the last couple years that have been really helpful. So please talk about that because that is just recently released and it is pretty much the ideal workbook for coming up with that. So if you could just tell the audience, who may not be familiar with it, what you just released with the IWT Journal. So I do wanna get better at that, but for me, I struggle, I think to sort of distinguish between the two because I couldn’t care less about status, but I do really love that quality. So any insight into that?A certain type of sweater, a picture doesn’t do it justice. A certain type of food. When you see it being made in front of you and you understand where the ingredients came from and how it was sourced. Oh my God, I never knew that much work went into this, and how it tastes is incredible. When you’re doing this right and you’ve allocated what you need to in the other categories, imagine getting the figure up to 30% or even 40% of your take-home pay. So over the past couple of years, you’ve released a couple of things that are actually very helpful for this goal. So if you could, since I’m gonna be referencing them so many times, would you just tell the audience who may not be familiar with your podcast and your new journal, what those both are about? However, technology has shown us that everything is easier when you automate it. Apps like Fudget and Monefy are great for those who wish to use the envelope system. This allows you to stay on top of your obligations, have a proactive approach to budgeting, and not overspend. One thing is spending more when you have 10 million and another one is when you can barely stay at 25x your annual expenses and always worried if you’ll have enough to live on.