Real get ‘Rich’ tips
Author Ramit Sethi offers money advice for the 21st century
CAREERS AND WEALTH. Ramit Sethi is the financial guru for the 21st century. After graduation from Stanford, the 26-year-old started www.iwillteachyoutoberich.com. The popularity of the blog got him a book deal, and now “I Will Teach You To Be Rich: No Guilt. No Excuses. No B.S. Just a 6-Week Program That Works” (Workman, $14) is on the best-seller charts. Why so popular? Sethi explains how to automate your investments and savings to build your wealth by doing barely any work. The guru shares some of his tips:
Negotiate everything
“[Financial institutions] pay anywhere from $300 to $1,500 to acquire you as a customer, so they don’t want to lose you for a $30 late fee,” he says about the importance of negotiating with your bank instead of just rolling over. “In the book, I have scripts that you can use to get lower rates and late fees waived. I’ve tested them myself dozens of times, and they work.”
Boost your credit rating to save
“It’s the least sexy thing about personal finance,” he says about credit scores. “But if you have a good credit score, you can save thousands a year in interest fees on a mortgage. I hate advice on how you shouldn’t buy lattes [to save money]; what about these [big savings] wins?”
You should use credit cards
“There is huge consumer protection with credit cards,” Sethi says, even though credit cards can get a bad rap. “If you buy anything on most major credit cards, you get up to a year extended on your warranty for free. Also, say you buy a laptop and you lose it or wreck it in the first 90 days — they will reimburse you.”
Look into Schwab’s high-yield online checking account
“I rarely recommend any specific services, but use this as your bank, especially if you live in the city,” Sethi says. Why? For the simple fact that they will reimburse you on all ATM fees — saving you hundreds a year if you’re not too good about using your bank’s ATMs. “As a bonus, you earn interest on your checking account,” he says.