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I Will Teach You to Be Rich Book Summary


Ramit Sethi, a personal finance guru, has penned a transformative book titled “I Will Teach You to Be Rich”. Aimed at those in their twenties and thirties, this guide demystifies the complex world of finance, making it accessible and actionable.

Table of Contents:

  1. Introduction
  2. Key Concepts of the Book
  3. The 85 Percent Solution
  4. Designing Your Rich Life
  5. Big Wins vs. Small Wins
  6. Automation and Investing
  7. Conclusion


I Will Teach You to Be Rich


Ramit Sethi


Personal Finance, Self-Help

Publication Year


Main Topics

Budgeting, Investing, Wealth Building

Target Audience

Young Adults, Individuals interested in personal finance

Key Concepts

Automated Finances, Conscious Spending, Investing for the Future

Writing Style

Informative, Accessible, Practical

Popular Quotes

“Spend extravagantly on the things you love, and cut costs mercilessly on the things you don’t.”

Critical Acclaim

New York Times Bestseller, Positive reviews for actionable advice


Influential in the personal finance genre, has a dedicated following


The author originally penned the book in 2009, and its recently updated version has become a New York Times bestseller. The primary aim is to teach people from diverse backgrounds and income levels how to attain wealth.

Goal: Take Control for a Rich Life

The central theme emphasizes the importance of taking control of one’s finances as a pathway to a rich and fulfilling life.

Define Your Rich Life Goals:

  • Author advises defining what a rich life means on a personal level.
  • Rejects mindless frugality and promotes living a rich life in the present.
  • Encourages individuals to be specific about their rich life goals.

Strategic Spending: Love vs. Cut Costs:

  • Challenges conventional money wisdom (e.g., avoiding small expenses like lattes or skipping vacations).
  • Advocates for conscious spending – allocating money to things that truly matter.
  • Introduces the concept of “money dials” – identifying areas where one enjoys spending money.

Earn More to Achieve Financial Goals:

  • Emphasizes the significance of increasing income to meet financial aspirations.
  • Suggests strategies like negotiating a raise, seeking higher-paying employment, or starting a side business.
  • Considers earning more as a way to enhance one’s overall money mindset.

Simple Long-Term Investing:

  • Clarifies that successful investing is not about actively picking stocks but having a long-term plan.
  • Encourages setting up automatic investments and minimal monitoring for simplicity.
  • Highlights the profitability of straightforward, long-term investment strategies.

Focus on Big Wins:

  • Downplays the impact of small expenses (e.g., a $5 coffee) on overall financial well-being.
  • Advocates concentrating on significant life factors like mastering personal finance basics, job satisfaction, creating side income, and securing affordable housing.
  • Encourages prioritizing “big wins” that substantially impact financial prosperity.

Conclusion: The author urges a shift in focus from minor financial details to making substantial life choices. This, the author contends, is the key to a richer and more fulfilling life.

Key Concepts of the Book

Starting Early: The First Step to Wealth

The journey to wealth begins with a single step, and Sethi emphasizes the importance of starting early. Time is an ally in the realm of personal finance, and the sooner you begin, the better.

Invisible Scripts: Uncover and Rewrite

We all have “invisible scripts”, subconscious beliefs that dictate our financial behaviors. Recognizing and rewriting these can lead to more informed and beneficial financial decisions.

Conscious Spending: Spend Intentionally

Conscious spending is about making deliberate choices with your money. It’s not about frugality but about spending on what truly brings joy and cutting back on the rest.

The 85 Percent Solution

Embracing Imperfection

Sethi introduces the “85 Percent Solution”, arguing that taking action, even imperfectly, is better than inaction. Mistakes are part of the learning process and are essential for growth.

Designing Your Rich Life

Aligning Money with Values

Designing your rich life means aligning your finances with your values and passions. It’s a personal journey, and Sethi encourages readers to define what a rich life means to them.

Big Wins vs. Small Wins

Focusing on What Matters

Sethi distinguishes between Big Wins and Small Wins, advocating for focusing on significant financial strategies that yield disproportionate results, rather than minor cost-cutting measures.

Automation and Investing

Set It and Forget It

Automation plays a crucial role in managing finances effectively. By automating savings and investments, you harness the power of compounding interest and ensure consistent progress.


Taking Action

“I Will Teach You to Be Rich” is more than just a book; it’s a call to action. Sethi’s principles are a roadmap to financial freedom, and it’s up to the reader to embark on this rewarding journey.