I Will Teach You To Be Rich- Book Summary

You have a choice to be sexy or rich. That is a decision you must make. To be rich you have to do the boring stuff things like having 401(k), have some saving, investment, and waiting for your money to grow for decades.

To be rich like losing weight you need simple workable things. To lose weight you need to eat right and exercise regularly, but many feel obliged to complicate things and debating the minutiae.

People don’t get overweight overnight; neither do they get in a knee-deep in debt overnight.

Money and food have this in common;  When it comes to food we don’t track calorie intake, in finances we fail to track our spending. We eat more food than we know, we spend more money than we realize. We value anecdote advice over research on what good diet is just like in finances we value financial pundits instead of reading financial books.

You don’t need financial adviser what you need to do is to automate your savings, bills payment, and identify few things to invest in and wait for your money to grow for 30 years, unsexy as it sounds it works always. Sexy stuff like listening to financial pundits, following stock predictions, debating minutiae takes people nowhere financially because they end up confused about what to do.

Do not focus so much on miniature and TV pundits you need to take action and let the fool debate details.

The 85 Percent Solution: Getting started is more important than becoming an expert.

Spend extravagantly on the things you love and cut costs mercilessly on things you don’t love. Spend more on the thing you care about which is achieved by creating an automatic financial infrastructure.

Define what being rich means to you because money by itself is just a small part of being rich.

Long-term investing works- that old school stuff buy and hold. No secrets to getting rich, just small steps, discipline, and a little hard work.

Chapter 1: Optimize your credit card.

Always bargain, if they refuse walk away, go to the next person.

Establishing a good credit card is a vital factor in getting rich. A good credit card can save you thousands on a purchase.

There is a difference between credit score and credit report; a credit score is based on payment history, how reliable you are, while a credit report is about basic identification information. A credit report gives your lender information about your payment history and credit-related activities.

The higher your credit scores the better for you. You can get your credit report for free at www.annualcreditreport.com but to get your credit score you need to pay.

Good reports on your credit will save you a lot in interest. If you have a higher score you are charged at very low interest for your purchase because you are reliable and antithesis is also true.

Credit cards are not always good unless you pay on times, they have hidden charges. They are convenient enemies as the author called them, but used well they are good just ensure you pay off your bill on time.

If you miss a payment your score drops more than 100 points, your APR may go up by 30%, and incur a late fee penalty of $35.

Credit Cards to avoid as given by the Author;

• The credit card offers you receive in the mail.
• Cash-back cards.

How to get a credit card when you have no income? Get a secured credit card and put a few bucks in your savings account which the bank can use as collateral to issue you credit.

Ramit Sethi, advice against having more than 4 cards, unless one is debt-free. Remember your credit score is based on overall sources of credit. Limiting yourself to one is favorable.