Money is very important thing in our life. There are many disbeliefs about this as well. There are many myths also. Everyone has their own thoughts. But the most important thing. Its management and its use. So the question arises. Do you know how to use money properly or not? That is why [I Will Teach You To Be Rich Book Summary] is for you.
Are you weak in accounting? Do you think if there was more money. So your life would have been set. Do you believe that you cannot handle finance properly? If the answer to all these questions is yes. Then the author says very strictly. Then you or I can never be rich. This book summary is about to teach the management of finance. Whose title is – I Will Teach You, How To Be Rich. Which is written by Ramit Sethi. This Summary says that it means being rich. You know Where to spend money and where to save. It will teach you how to handle your financial matters. In this you will get that information and guidance. With which you can become an expert in money management. You will be surprised to know this. Being rich is not that difficult either. than you used to think. Saving money is like this. such as sweet food. In the beginning you can’t stop yourself. But then slowly, your mind fills up. In terms of money, showing understanding. Seems like a good idea. But soon your enthusiasm and motivation starts decreasing. Then you return to the previous routine. Whenever he wanted, he spent the money and did not keep any account. In this you will know that budgeting is not necessary. The author believes that budgeting is a waste of time. People don’t need to make a budget. Rather, they should focus on the habit of spending their money. In this, you will also learn this lesson. How to make better use of your credit card. Spend money wisely. How does it become a powerful habit? We will know that small changes are made in life. Leading us to the rich. (I Will Teach You To Be Rich Book Summary)
Optimize Your Credit Card.
Often people are afraid of the name of the credit card itself. In fact, the credit card term itself, does sound quite negative. This is a big reason for this. That those who do not know how to manage it properly. They have a lot of negative feedback regarding credit cards. Credit is one such thing. which you have to understand. To become rich, you have to become expert in it. (I Will Teach You To Be Rich Book Summary)
People use credit cards while doing big shopping. But those who have good credit. He can save a lot of money by shopping. having a good credit. can save your money. But first this has to be understood. What is credit? There are two factors of credit. There is a credit report. The second is the credit score. Your credit report gives basic information about your account and payment history. (I Will Teach You To Be Rich Book Summary)It also helps the lenders i.e. the lenders to know this. Whether you are able to pay other lenders also or not. Also it includes your payment behavior. It also shows whether you have any late payment. Your credit score is a number. (I Will Teach You To Be Rich Book Summary)
Your credit score can be anything between 300 to 850. The lender will decide between this number and your credit score. How much money should he give you? The higher the credit score. That much better. That’s why for a high credit score, as much as possible. Submit your payment as soon as possible. Now you will think why it is important to know these things. That’s because a good credit score helps you in interest charge. (I Will Teach You To Be Rich Book Summary)
Good Credit Score can save you a lot of money. Let’s say you are thinking of buying a house. The bank gives loans with a high interest charge. But if you have a good credit score. So this interest can be paid easily.
Regarding credit cards, many negative reviews are heard. For example, on late payment, you have to pay hefty charges. Many times there are such charges in your account. The ones you don’t even know about. (I Will Teach You To Be Rich Book Summary)
But all this happens to you only. When you are not able to manage your credit card properly. People use credit cards like this. Like it is an endless source of money for them. We can look at a credit card like this. But it does not come in endless source free. It also has some side effects of its own. Like suppose you missed a payment. So your credit score may drop. The company from which you have taken the credit card. She can increase your Annual Percentage Rate (APR). The biggest thing is this. You may have to pay a late fee. But you can avoid paying extra charges by making all the payments on time. (I Will Teach You To Be Rich Book Summary)
This is one way to optimize your credit card. There is another way to optimize. You call your credit card company. Ask them if they can waive your fee or charges.
One payment is of annual fee. This is that fee. Which you have to pay to use the card. But by talking to you credit card company. It can be asked to reduce or forgive. There are many credit card companies in the market. Who does not charge this fee. So that they can get more and more customers.
If you are also paying annual fee. So you can forgive this by speaking up to your company. If he does not do this, then you can choose the annual free card. (I Will Teach You To Be Rich Book Summary)
There is another way to optimize. Try that you guys can negotiate on lower APR. Your APR is that interest rate. The company that gives you the credit card to use. Usually the APR is at 14%. It sounds like a big deal.
But it is true that the company is lending you a huge amount. So in a way, it is a win-win situation for you. That’s why call the company and ask for a lower APR. If he says why should he do this. So give them a good reason to do so. (I Will Teach You To Be Rich Book Summary)
As you have been paying your bills on time for many consecutive months. Tell them that you know those companies as well. Which offer lower APR. So you can take credit card of any other company. However, being a loyal customer of the same company has its advantages. Lenders will appreciate their long credit history. Lenders want to see if they are trustworthy or not. Will you be able to pay on time or not? To optimize your credit card, no need to succumb to the lure of lower fees and APRs. (I Will Teach You To Be Rich Book Summary)
Beat The Banks.
Like credit cards, banks are equally posse. Often banks try to take advantage of young people. Topics like interest rate and fee scare youngsters a bit. So he did without questioning and answering. Whatever you want to pay. They pay. But by understanding this concept, headache can be removed. Online banking is a good way to bank. He can increase the interest rate of his customer. (I Will Teach You To Be Rich Book Summary)
For every service related to money, people do not like to go to the bank again and again. Instead he wants to find a convenient way. In such a situation, online banking appears to be a good option. The savings you put in the online bank. He grows up a lot. It doesn’t even charge those fees. Which normally charges you the real bank. So let’s compare the interest rate between online bank and physical bank.
Online Bank – If you deposit $ 1000 in this. Online banks start with 3% interest rate. In a year, you can earn up to $30 at that interest rate.
Physical Bank – In this also if you deposit $ 1000. These banks usually give only 0.5% interest rate. That is, you will get only $5 every year on $ 1000. (I Will Teach You To Be Rich Book Summary)
You understand the difference between the two. How author set up his online bank account. He had opened bank accounts both checking and online. That is the checking account. Where you can deposit and withdraw money. For this you can use a check from a debit card. The income of the author goes to this checking account. Then he transfers his money online to the rest of the account. (I Will Teach You To Be Rich Book Summary)
Banks also offer us interest rates. When you deposit money in your checking account. Savings account as the name suggests. That’s the account. In which you save money for special occasions like holidays and festivals. Earlier there was only interest difference between checking and saving account. Earlier there was interest rate in savings account. Nothing in checking account. But today banks offer interest rate in both the accounts. So is there really any difference between these two accounts? The difference is that you must withdraw money from your checking account. Don’t even touch the savings account. Because it saves your money. How should you set up your account? So the author gives us some options. (I Will Teach You To Be Rich Book Summary)
- First – Open a Savings Account along with a Checking Account in your local bank. Ask the bank about fees. If there is any annual charge etc. in it. So find out in some other bank. Where all these charges are not there.
- Second – This is a combination of basic option and small optimization. In a local bank, open a no fee checking account. After that find an online bank. Which gives high interest rate on savings account. Like this whenever you want. You will then be able to withdraw money from your checking account. Your money will continue to grow easily. By putting it in your savings account.
- Third – this is an option. Combination of Advance and full optimization. For this, open many checking accounts in different banks. It is therefore. so that it can be decided. Which bank gives best interest and service. The author also chose the third option. He has a checking account in the local bank. Second account in online bank. (I Will Teach You To Be Rich Book Summary)
You can do the same thing with a savings account as well. You have to choose the option yourself. Which you can decide according to your financial position. Do you want a hassle free account? Then you should choose the first option. But the author says that do not put limited option in front of you. Why not try the second and third option. With both these options guaranteed, your money will help to grow. While choosing any bank, these three things have to be kept in mind. Trust, Convenience and Features. Trust then happens. When the bank does not charge you any hidden or hidden, charges or fees. Big banks always insist in creating unlimited customers. That’s why they secretly deduct their fees from your account. You can also check it on the bank’s website. If he is transparent about his fees. So understand. He can be trusted. Convince means easy access. It should be easy for you to manage money. The bank should also focus on providing good customer service. If you have any problem. So immediately they should help you. We can also see the features as value added service. Like suppose. The bank offers high interest rate. Also, the facility of transferring money is given for free. (I Will Teach You To Be Rich Book Summary)
Conscious Spending.
When you spend wisely. So that means. You understand the value of your money. How many times has this happened to you? By spending more, your budget is messed up. Authors have also gone through such a situation many times. Keeping a track record of your every purchase is not a solution. In fact, this method is not effective at all. Budgeting only looks good in theory. (I Will Teach You To Be Rich Book Summary)
If seen practically. So no one can keep track of every single penny’s expenditure. Because it is boring as well as tiring work. But the author has a solution for this. You can create a conscious spending plan. This plan is one such way. With which you will be able to spend money every month and also invest. Your savings will also continue to be the same. From your life, now that time is about to go. When you used to get upset thinking about it. After all, where did your money go? The Conscious Spending plan focuses on becoming thrift. There is a difference between being thrift and being cheap. Thrift means to be. Spending only on those things. which you need. It’s not meant to be thrift. You cut your expenses. Rather it helps us to decide. We spend only on those things. Which is really important to us. People often think of thriften as difficult. Because he can’t decide. What is important to them and what is not. Conscious spending plan has four factors. Fixed cost, investment, savings and guilt free spending money. (I Will Teach You To Be Rich Book Summary)
So, this is the short summary of the comfort crisis book. hope you liked it. If you find this informative then also check out some more book summaries like The 5 second rule , The magic of big thinking , Finish book by john acuff, Hooked book summary in my blog section.
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