I Will Teach You To Be Rich: No Guilt. No Excuses. No BS. Just a 6-Week Program That Works

In 2019, Ramit Sethi, an American personal finance blogger, published the second edition of his New York Times bestselling book I Will Teach You to Be Rich with Workman Publishers. Like the 2009 first edition, the second edition is a practical introduction to basic financial literacy targeted at an audience of young professionals. In over nine chapters covering topics like retirement accounts, credit cards, and investing, Sethi defines financial terms, outlines foundational concepts, and delineates a six-week program for setting up a personal financial system to manage debt and build wealth.

The 2019 edition builds on the 2009 edition in two key ways. First, it offers a more thorough discussion of emotions. Each chapter includes a section on the emotional weight and implications of the stories most people tell themselves about money. Second, the second edition offers readers more choices. Whereas in the first edition Sethi prescribed a narrower range of behaviors for achieving a rich life, in this edition, he offers multiple avenues through which readers can apply his concepts to personalize their “rich life.”

Sethi’s primary audience comprises working professionals in their mid-twenties to early forties, who, he says, spend more money on travel and going out than older professionals. He addresses issues specifically relevant to this age group, like student loan debt, saving for a wedding, and buying a first house. He does, however, adapt his advice for older age groups, especially in his chapters about investing strategy. According to Sethi, his audience’s age is one feature that distinguishes his book from those of other personal advice writers and influencers. Another unique feature, according to the author, is that he focuses on practical, actionable advice grounded in behavioral psychology. The aim is to live a “rich life” rather than to get rich. Money, Sethi writes, is just one element—albeit an important one—of living a rich life. He wants to equip his readers with the knowledge and tools to use money to design their rich life, building wealth while spending their money and time buying and doing the things they enjoy.

This guide refers to the 2019 edition.

Summary

The dominant genres of Sethi’s book are self-help and personal finance. As such, the structure of the book follows a rhetorical line of argumentation and evidence: Sethi aims to convince readers that his financial program is effective and that they should change their behavior to follow his advice. His evidence predominantly takes the form of personal anecdotes, reader testimonials, and charts and graphs. Other forms of evidence include quotations from authors he respects, quotations from pundits he does not respect, and examples of finance public figures like Warren Buffett and David Swensen.

In addition to the Introduction, Sethi’s book is divided into nine chapters; the first eight each address one step in Sethi’s six-week program, while the ninth elaborates on how to approach large purchases and manage relationship dynamics around money. Taken together, in these 10 chapters, Sethi aims to define a rich life, show readers how to achieve it, and conclude with advice about navigating the emotional nuances of living a rich life. He opens each chapter by debunking myths, exploring invisible scripts, and explaining why so many people fail to take action to achieve financial well-being. He then elaborates on why his readers can and must be proactive about their financial lives, accompanied by an action list to be completed during the week, complete with time allocations.

In the Introduction, “Would You Rather Be Sexy or Rich,” Sethi introduces the reader to the foundational principles of his financial system: Start now with small steps and build slowly over time. He also encourages his readers to think about their deep motivations. He asks readers why they want to be rich as he begins to define the theme of The Relationship Between Money and Fulfilment. In Chapter 1, “Optimize Your Credit Cards,” Sethi explains how to use credit cards productively to build credit and how to pay down other forms of debt like student loans. He clarifies the differences between a credit score and a credit report and demonstrates how credit scores can bolster overall financial health. He encourages readers regarding Fighting Big Financial Institutions, specifically by calling and negotiating with credit card companies about unnecessary fees and interest rates. In Chapter 2, “Beat the Banks,” Sethi instructs readers on how to establish the backbone of their personal finance systems: high-interest savings and checking accounts. He continues to emphasize proactivity and going on the offensive as he elucidates how banks take advantage of their customers, and he urges readers to call their banks to negotiate overdraft fees. Chapter 3, “Get Ready to Invest,” serves as the core of Sethi’s financial program. He believes strongly that readers should invest every month—even if it’s a minimal amount—to build long-term wealth. He talks about how to change the invisible scripts around investing and teaches readers how to invest in 401(k) and Roth IRA accounts.

In Chapter 4, “Conscious Spending,” Sethi debunks the common myth that strict budgets are the most effective path to building wealth. Instead, he shows readers how to develop a “Conscious Spending Plan” that enables them to pay their bills (129), save and invest, and spend guiltlessly on the things they love. He pushes readers in Turning Attention From the Micro to the Macro, focusing on a few “Big Wins” rather than cutting all spending. He also advises readers on asking for a raise or negotiating a salary at a new job if they don’t make enough money. In Chapter 5, “Save While Sleeping,” Sethi shows readers how to automate their personal finance systems, whether they get paid once or twice per month. He argues that readers will stick with their Conscious Spending Plans if they require less effort over time.

In Chapter 6, “The Myth of Financial Expertise,” Sethi asserts a central argument: Because nobody can predict the stock market, readers should never pay for financial advisers who claim that they can. As he does with credit cards and banks, Sethi implores readers to go on the offensive and fight the big financial institutions—in this case, finance advisers and wealth managers—that charge fees for unnecessary services. In Chapter 7, “Investing Isn’t Only for Rich People,” Sethi explains how to choose investments based on diversification and asset allocation. He impresses upon readers the importance of Making Choices and Taking Action as he unpacks differences among target date funds, mutual funds, and index funds.

In Chapter 8, “How to Maintain and Grow Your System,” Sethi illustrates how readers can channel more money into their personal finance systems for greater growth over time. And in the final chapter, “A Rich Life,” he discusses how to manage emotional conversations around money with partners and parents, as well as how to save on big purchases like weddings, cars, and houses. The book concludes with Sethi’s meditation on what it means to live life beyond “the spreadsheet.”