Q & A: Ramit Sethi teaches young professionals how to save money and still afford those $250 jeans

 

by Christine Cruz

Traditional “Get Rich” books such as the “Millionaire Next Door” teach readers how to save money. Cut back on Starbucks lattes. Stop dining out at fancy restaurants. Eliminate designer handbags and shoes from your vocabulary. Live below your means, and never leave your house.

But Ramit Sethi, New York Times Best Selling author of “I Will Teach You To Be Rich: No Guilt, No Excuses, No B.S., Just a 6-Week Program That Works” understands that these traditional tips are not in tune with his generation. He says that Millennials will spend money on what they want and live the lifestyle that they want. The Stanford graduate and San Francisco resident provides unconventional advice such as “How To Negotiate Like An Indian” and "ScroogeStrategy: Saving Tips That Don't Suck" in his blog on how to save money, automate investments, go after the big wins, and STILL afford $250 jeans. (Sevens or True Religion, anyone?)

Ramit shares with Examiner readers how his life has changed after becoming a New York Times Best Seller, what new projects he is currently working on, and why he loves living in San Francisco.

Q: How is your “Get Rich” strategy different from others?

Personal finance is usually about "no, no, no" -- no, you can't buy those jeans. No, you can't afford that latte every day. No, forget about vacation. That just doesn't work. Look around you! We still spend on what we want, and we ignore old, irrelevant personal-finance "experts" who tell us what to do with our money. My tips in I Will Teach You To Be Rich encourage you to actually spend extravagantly on the things you love, but cut costs mercilessly on the things you don't. If you want to spend $250 on jeans, great! I'll show you how to save, earn more, and automate your money so you can buy them.

Ultimately, my background and education and book sales don't matter to you. Why should you care? It's all about results. Go to my blog and read the comments. You'll see that readers are saving hundreds or, sometimes, thousands of dollars within days of picking up my book. We've been burned by too many "experts" who have fancy degrees, but whose advice is tainted or just plain bad.

Q: What prompted you to do this?

A: When I was in high school, my parents told me I needed to apply for scholarships if I wanted to go to college. Since I'm a big weirdo, I applied to about 70 of them. Unfortunately, I took the first check and invested it in the stock market -- and lost half my money immediately. (Back then, I thought "investing" meant "picking stocks.") So I decided to get educated about money. I started teaching my friends at Stanford and eventually launched a blog so lazy college students could read from their dorm rooms.

Q: What new projects are you working on?

A: I've got a new ebook coming out on health insurance for self-employed people. Another one is "Earning your first $1,000 as a freelancer." And I'm just focusing on spreading the word about I Will Teach You To Be Rich to people who are trying to save and earn more money (especially now).

Q: How has your life changed ever since you’ve become a NY Times Best Selling author?

Not much. I tried to use it to get my rent lowered and to get free food, but nobody seems to take me up on it. I guess I get recognized on the street once in a while since my book has a gigantic picture of me on the cover, but other than that, not much. Oh, my parents know what to tell their friends now instead of "some blog writing thing."

Q: Why did you choose to live in San Francisco?

I love this place. After I graduated from college, I was living in South Bay for a few years, but I was coming up here 4 times a week to go out. That's when I knew it was time to move. The people are smart and there's a ton of stuff to do within 1 hour away. In the last few weeks, I've gone hiking, cracked oysters for the first time, and run by the beach. But let's be honest -- bloggers hardly ever leave their rooms, so that was not typical.

A: John Colins, Americano, or Fresca for dinner.

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Christine features professional networking events, professional associations, and timely career advice for San Francisco's young professionals. Please email her at SFYoungProfessional@gmail.com if you have any questions or want to see any stories covered.

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