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- “I’ll Teach You To Be Rich” author Ramit Sethi has just released a new diary to use alongside his best-selling book.
- I’ve never been a good saver, but writing in this journal motivates me to do better.
- I combined through my budget and found an extra $ 100 in savings.
I didn’t get any good at saving money until the age of 29, with a major gender-affirming surgery on the horizon. Although the operation was covered by California state health insurance, I had to prepare two months of out of pocket expenses – about $ 7,000, which I saved in just eight months – in case something went wrong.
It took eight weeks for my state disability office to process my FMLA leave application, which meant I used every penny of those emergency savings to make ends meet. Since then, I have become less disciplined as a saver and have looked for ways to get back on track.
When I learned that “I’ll Teach You To Be Rich” author Ramit Sethi published a new diary to accompany his bestselling book, I thought it was the perfect opportunity to get back on track with my savings goals.
The diary is not about the technical skills of personal finance, but about the change of mentality
I expected Sethi’s diary to include savings worksheets and have more technical personal finance skills, but I was pleasantly surprised to find that this was not the case at all.
In a diary interview, Sethi told me: “I think there are a lot of books about money that make you feel like you have to have all your ducks in a row, you need to extract all your account information and get all your passwords. ready. The philosophy of this diary is easy and fun. “
Instead of giving you a rundown of technical personal finance terms, using the “I’ll teach you how to get rich” reminded me why I wanted to achieve my savings goals in the first place.
Understanding what I want for my “rich life” motivated me to save more
Since I spent my childhood moving between different cities and countries, I thought of buying a house as one of the main goals in life. When I started compiling Sethi’s diary, I realized that home ownership is actually less important to me than being able to travel and live in two or three cities a year.
In the journal, Sethi writes: “One of my favorite stealth scripts is that you ‘must’ own a house. I have rented an apartment in New York for more than 10 years. Renting was a great financial decision for me because it gave me a lot of money. more flexibility and freedom than possession still rent of your choice. “
I realized that I didn’t feel motivated to save for a house because I didn’t really want it – I felt like I should Why. But when I started journaling about being bicoastal, spending more time a year traveling, and spending more time with my family, it felt like a new flame was kindled beneath me to start saving money again. more aggressive.
I combined through my budget and found an extra $ 100 in savings
In the past, I’ve made the mistake of trying to make too big a change in my budget to start saving. I said to myself, “I’ll save $ 500 a month! I’ll stop eating out completely and won’t go to shows and events!” That savings mentality quickly backfired and I spent my savings as quickly as I earned them.
Sethi’s diary has helped me feel like I have more than enough time to reach my savings goals and that I can set smaller, more realistic savings goals each month to make it easier. With that, I’ve found four areas of my budget that I can spend $ 25 less on: eating out, gas, clothing, and events.
Cutting $ 25 from each of these categories, it doesn’t feel like complete deprivation. Instead of jumping everything dinners and lunches with my friends, a $ 25 cut means I only have to skip one a month. Instead of feeling left out because I can’t go there every party or event, I only have to skip one or two a month to cut my budget by $ 25 or just focus on finding free events to attend.
The diary helped me realize that it is definitely not too late to start saving for my “rich life” – and I don’t even have to wait to start living my “rich life”.