Latest news with #RamitSethi
Yahoo
a day ago
- Business
- Yahoo
Couple making $180K say they're one mistake away 'from losing everything' — Ramit Sethi says their problem is 'not math'
Dominique, 33, and Chris, 34, make a combined income of $180,000 per year — and while that may sound like a lot of money, they're still living paycheck to paycheck. They're one 'f–ck-up away from losing everything,' Dominique told Ramit Sethi on his I Will Teach You To Be Rich podcast. At that moment, Chris has just $64.18 in his checking account. While on paper they have 'an amazing income,' their short-term money mindset 'has them living very, very tightly with their finances,' said Sethi. For example, they bought a second house 'based purely on vibes.' Don't miss Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now The dilemma Dominique and Chris have been together six years; they're engaged and raising a toddler. They bought a second house, which they're currently renting, but that's costing them $1,000 to $2,000 a month — though if they offload the house in this market, they could end up losing about $40,000. Their childcare costs are also set to quadruple. But they spend without thinking and don't crunch the numbers, even on major purchases, leaving them financially unstable. There's also a disconnect around how much they each contribute. Dominique manages parenting, full-time work, and the household finances, which makes her increasingly resentful. But Chris tunes out their financial issues, becoming more and more disengaged. Chris wasn't working for a while 'and it just felt like everything was piling on and piling on, especially because we don't communicate about finances together or… work things out as a team,' Dominique told Sethi. 'I kind of shut down in those situations because I don't like confrontation,' Chris admitted to Sethi. Chris is now working, and when Sethi breaks down the numbers, he finds that Chris makes a gross monthly income of $9,240 versus Dominique's $5,709. 'Their finances are driven mostly by emotion, not by math. And if they don't make a change, they are at risk of losing everything they've built,' said Sethi. This money mindset is the culprit 'behind everything from their daily spending to their hesitation around investing,' he added. 'There's not a lot of conscious spending, conscious saving, conscious investing. It's pretty reactionary.' Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. The cost of living reactively A short-term money mindset usually involves living paycheck to paycheck, making impulse purchases, and overusing credit cards, as well as avoiding savings and investments. But if you make impulse decisions on major purchases like a house, car, or vacation — especially if those decisions are based on fear — 'you will pay the price,' said Sethi. That price can be financial, like higher costs over time (such as putting a major purchase on your credit card that you can't afford to pay off right away, leading to accruing interest charges). Or, it could mean you're more vulnerable to emergencies (if you don't have savings or an emergency fund). But it can also lead to stress, anxiety, and even major health problems. An Intuit consumer survey found that 61% of those aged 18 to 35 experience financial anxiety, with the main culprits being rising living expenses (76%), job uncertainty (48%) and increasing housing costs (46%). That financial anxiety ties into their overall mental and physical health, with 58% saying that managing their finances improves their quality of life. Yet, 49% still live paycheck to paycheck and 32% struggle to plan for unexpected expenses. Ongoing stress and financial fears can lead to negative mental health side effects, such as anxiety, depression, relationship problems, and even problem substance abuse, according to the Newport Institute. A recent Health is Wealth report found that 66% of U.S. adults experienced trouble sleeping (40%) and headaches (37%) due to financial stress, while 67% say inflation has negatively impacted their physical or mental health. But it doesn't have to be that way. Shifting to a long-term mindset Sethi says there's a difference between being problem-oriented and solution-oriented. 'You can be someone who talks about problems or you can be someone who finds solutions,' he said during his podcast. As for Dominique and Chris? They've 'spent years in problem mode, spinning their wheels, going in circles, arguing, avoiding, reacting.' If they really want to change, Sethi said they need to shift 'from being problem-oriented to solution-oriented.' Sethi's advice to Dominique and Chris is to start by learning the basic language of personal finance. That might mean reading books, watching videos, or taking workshops; it could also mean financial counseling. They also need to start communicating about money — and their future goals. That could mean setting aside a regular meeting time to discuss money matters and start setting goals for their future together. From there, they can create a budget, open a joint savings account, set money aside for emergencies and automate their bill payments, savings and investments. 'It needs to happen every month consistently, automatically,' said Sethi. They'll also need to make a decision on their second house, which they'll take a loss on if they sell (which may or may not be the right decision after they crunch the numbers). But a major factor that could influence whether they're successful or not is whether they can shift away from their short-term money mindset toward a solution-oriented, long-term mindset. 'That's a profound shift,' Sethi said. 'That means going from 'can you believe this?' to 'how would I fix this?'' What to read next Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Here are 5 simple ways to grow rich with real estate if you don't want to play landlord. And you can even start with as little as $10 Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Ramit Sethi: 8 Steps To Pay Off Debt in 6 Months
The Northwestern Mutual 2025 Planning & Progress Study found that 22% of Americans felt that personal debt was keeping them from becoming financially secure, and credit card debt was the biggest culprit. According to money expert Ramit Sethi, debt can become a lifelong problem that leaves people stuck with stress, debt collection calls and extra costs. But the right strategy can help you wipe out debt in just six months. Here are eight steps Sethi suggested in a recent YouTube video. Find Out: Read Next: Face the Brutal Truth To get anywhere, you must recognize your debt is there and not keep brushing it off as 'manageable.' Sethi said to start by listing all your debts with their current balances, interest rates and minimum payment amounts, which may be painful to see. He also recommended using to get your credit report so you avoid overlooking any accounts. Discover More: Pick Your Attack Method You can now figure out whether the debt snowball or debt avalanche method is the right attack method. Sethi said either is fine and prioritized commitment. The debt snowball approach, which Dave Ramsey prefers, focuses on eliminating your debts from the smallest to the largest amounts, which is motivating. The debt avalanche strategy targets debts from the highest to the lowest interest rates to boost your overall savings. You can use an online debt payoff calculator to compare the timelines and interest paid. Also, consider negotiating your rates with creditors. Sethi suggested explaining your focus on debt payoff, emphasizing your time as a customer and mentioning that competitors have better offerings. He added, 'It doesn't work every time, but when it does, you can often save thousands of dollars in interest alone.' Take the 'Lazy Genius' Approach Sethi said that willpower isn't something to count on to successfully pay off debt. Instead, use automatic payments to guarantee that funds regularly go toward your balances. First, make sure you're automatically paying the minimum on everything to avoid late or missed payments. Next, set up a larger payment each month for your current target debt. Sethi suggested scheduling these payments soon after you get paid so that you don't splurge on something else. Free Up Cash Without Excessive Sacrifice According to Sethi, getting rid of debt fast doesn't have to mean extreme sacrifice, like cutting out everything you love or eating disappointing meals. He recommended focusing on cutting expenses in three specific areas and putting the savings toward debts. These include getting rid of unnecessary subscriptions, finding cheaper insurance and avoiding impulse purchases. He added, 'In my experience talking to tons of people, I found that most people can free up at least $500 a month by methodically going through those steps.' Unlock the Cheat Code to Faster Progress An important cheat code for faster progress is to boost your earnings while you reduce expenses. The extra money you make could help you become debt-free years sooner. Sethi mentioned many options, so consider what might be right for you. An obvious step is getting a raise at your current job, but a second income source is also smart. You might offer freelance services, take on local side gigs or monetize hobbies. Sethi also recommended selling unwanted household items. The income boost will vary, but any amount will help as long as you actually use the money for debts. Gamify Paying Off Debt If you're someone who needs excitement to stay motivated, you'll need to combat the boredom that comes with debt payoff. Reminding yourself to regularly look at your progress is key. 'A weekly check-in, not just monthly, keeps you engaged and helps you catch unnecessary expenses before they drain your spending,' explained Sethi. For example, you might find you're unnecessarily paying for a $60 gym membership and a $15 streaming service. Cutting those costs would save you $75 per month or $450 in six months. Sethi outlined a simple weekly routine that involves using an app or spreadsheet where you track your debt payoff progress, looking for any hidden expenses in your statements to eliminate and then celebrating your progress. Watch Out for Debt Traps While handling your debt, watch for traps that can keep you stuck or even leave you in a worse place. Sethi warned about moving debt using balance transfers, which often lure you with attractive promotional rates that eventually go up. Other traps include not changing your spending habits and making minimum payments, which leaves you in debt longer with more interest charged. Plus, watch out for debt consolidation scams, which Sethi said can leave you with a longer repayment timeline and large fees. According to the Federal Trade Commission, debt relief scams often involve questionable promises and little actual help. Avoid Going Back After your debt is gone, plan to never get back in the situation. Sethi gave three tips that can help. First, consider forgetting credit cards and trying cash envelopes, which will each have a label for your expense and the budgeted cash amount inside. Once you spend the allocated money, you can't spend any more. If you feel disciplined enough to keep using cards, avoid carrying a balance from month to month. This will require carefully monitoring your spending, including not buying things just to maximize rewards. Finally, Sethi encouraged having an emergency fund of three to six months of your fixed expenses. Since many people go into debt for emergencies, this cash will help protect you. More From GOBankingRates 5 Ways Trump Signing the GENIUS Act Could Impact RetireesHow Much Money Is Needed To Be Considered Middle Class in Your State? This article originally appeared on Ramit Sethi: 8 Steps To Pay Off Debt in 6 Months
CNBC
6 days ago
- Business
- CNBC
Here's how much it costs to rent a 1-bedroom unit across 10 major cities in Asia in 2025
Finding the right place to rent or buy can feel daunting for first-timers or even repeat real estate investors, considering the impact it can have on your wallet. This is especially true in big metropolitan areas, where property prices tend to be on the higher side. Besides the popular "30% rule" which suggests that renters should spend no more than 30% of their before-tax income on housing, another common strategy is the "3x annual income" rule — home-buyers should cap their total mortgage at three times their annual household income. Based on 2025 data from local property portals and government websites in each country, researchers at the Global Property Guide compiled a list of median rental and purchase prices of homes across several major cities in Asia. The numbers listed below, updated in August, are based on the median monthly asking price to rent and buy a one-bedroom residential dwelling within each respective city in 2025, according to Global Property Guide: Median monthly asking price to rent a 1-bedroom: $275 Median asking price to buy a 1-bedroom: $106,000 Median monthly asking price to rent a 1-bedroom: $387 Median asking price to buy a 1-bedroom: $122,000 Median monthly asking price to rent a 1-bedroom: $400 Median asking price to buy a 1-bedroom: $46,000 Median monthly asking price to rent a 1-bedroom: $550 Median asking price to buy a 1-bedroom: $100,000 Median monthly asking price to rent a 1-bedroom: $562 Median asking price to buy a 1-bedroom: $151,000 Median monthly asking price to rent a 1-bedroom: $700 Median asking price to buy a 1-bedroom: $279,000 Median monthly asking price to rent a 1-bedroom: $722 Median asking price to buy a 1-bedroom: $120,000 Median monthly asking price to rent a 1-bedroom: $973 Median asking price to buy a 1-bedroom: $641,000 Median monthly asking price to rent a 1-bedroom: $2,421 Median asking price to buy a 1-bedroom: $968,200 Median monthly asking price to rent a 1-bedroom: $2,740 Median asking price to buy a 1-bedroom: $900,000 During the apartment hunt, there are a few strategies that prospective renters can use to negotiate the price. One of the best things to do is to arm yourself with research, experts say. For example, you can compare the listing prices of similar units in your neighborhood. In addition, you can try to negotiate any additional fees or ask for the place to be furnished when you move in. Another strategy that is often forgotten, is that people can still negotiate their monthly rent even if they've already been living in the apartment. In a CNBC Make It video, author and television host Ramit Sethi suggested that renters can approach their landlords and say: "Based on the data, it appears that apartments in this neighborhood are trending down by X%... I've been a good tenant, I've been here for X years. I plan to be here for many years more. I never cause unnecessary problems or damage. I'd like to negotiate for a lower rent, here's what I propose." While a landlord may still say "no," renters can end up saving thousands a year if they are able to successfully negotiate a new deal, added Sethi.
Yahoo
6 days ago
- Business
- Yahoo
Ramit Sethi: When You ‘Should Take the Big Swing' of a Financial Risk To Be Happier
Even when we're thriving in our careers, making good money and feel relatively content with the way things are going, we may have pretty frequent callings to reflect on the hustle and bustle world around us and think, 'Can I just quit my job and travel for a year?' Find Out: Read Next: Financial expert Ramit Sethi talked about this common wanderlust, wondering in a recent email newsletter sent to his subscribers. He looked at a real-life example of one of his readers, a 25-year-old product manager based in California who was in incredibly strong financial shape. He asked Sethi, 'Can I quit my job to travel for a year? How will this impact my future career prospects?' Even When We're in Great Financial Shape, We May Hold Back The question of when you can take this kind of risk-loaded 'big swing' may be 100% feasible financially, but you need to have a crystal clear look at your money situation. If you live below your means, hold no debt, have a strong investment portfolio and plenty of savings, as this person did, then you can absolutely 'afford' to take the risk. But even if you have the dream financial situation and money isn't really a problem, you may resist seizing the opportunity to embark on freedom. It's a sort of mind over matter issue. But rather than using our minds to overcome something, we're using them to hold us back. 'The problem is that it is very difficult to break out of the mindset of needing to 'maximize' how much you invest and save,' Sethi wrote. 'Many people I've talked to who have savings rates like this are in the FIRE community. They find it incredibly psychologically crippling to reduce their savings by even 5%. They also find it very difficult to spend money.' Explore More: Careers May Be More Resilient Than You Think Whether quitting your job and traveling for a year will hurt your career is a whole 'nother beast to tackle. It's highly unlikely that you can quit (unless that job is in academia and you're approved to take sabbatical) for a year and have a guaranteed good job upon your return. 'How will this affect your future career prospects? 'It's likely that it will affect them negatively,' Sethi said. 'It's possible that if you go away for a year, you may come back to a recession. You may come back to your industry being reduced.' But don't just think about the probability of things being tough when you get back. Think about how different and more culturally enrichened you'll be a year from now. 'I know a lot of people who have traveled for a long period of time and came back with an amazing narrative that they could share in interviews,' Sethi wrote. 'That depends on the market, your abilities and the combination of both.' It's OK To Take a Break From Being Aggressive More likely than not, there will be some bumps in your career if you decide to quit your job and spend a year doing something you've always wanted to do (and make nada while doing it). That's why it's so important that you ensure you're well ahead of the game with saving, investing and living debt-free. But a rich life, as Sethi reminded us in this newsletter, isn't just about generating the max amount of money all the time. It's about enjoying money, too. 'A Rich Life is not just blindly accumulating more money,' Sethi wrote. 'In fact, a Rich Life might be actually prioritizing the numbers second.' If you're in amazing shape financially and see no evidence that a big swing of a risk will disable your future or hinder your retirement, go for it. And as you take the leap, recognize with confidence that part of the point of doing as well as you're doing with money is to be able to luxuriate in it (within reason) while you still can. One day, doing something as extravagantly carefree as traveling the world may not be a realistic option for you. More From GOBankingRates 9 Downsizing Tips for the Middle Class To Save on Monthly Expenses This article originally appeared on Ramit Sethi: When You 'Should Take the Big Swing' of a Financial Risk To Be Happier Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 days ago
- Business
- Yahoo
Ramit Sethi's 5 financial red flags for couples
Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. Ramit Sethi shared his 'five financial red flags' for couples on LinkedIn. He even put Robert Kiyosaki and Grant Cardone fans on blast, saying that if your partner follows either of the financial gurus, it's a bad sign. Don't miss Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Kiyosaki is the author of Rich Dad Poor Dad and a big advocate for investing in non-traditional assets, like gold and cryptocurrencies. Cardone, on the other hand, is all about property — claiming in a 2022 interview for Jetset magazine, 'In real estate, it's not if you make money; the question is when.' Sethi has a different take. He often emphasizes simple, consistent, and disciplined financial habits rather than risky investments. And that's the ethos behind Sethi's list of warnings he says he's identified through working with couples. He claims these habits could indicate money troubles ahead for those who don't address the issues head on. Red flag 1: They follow Robert Kiyosaki or Grant Cardone Sethi believes in regular, boring, and disciplined action to make money. That's not exactly Kiyosaki nor Cardone's advice of choice. However, not all of Kiyosaki and Cardone's advice is based on 'get rich quick' schemes. For instance, in March 2024, Kiyosaki raved on X, 'I love gold and silver.' It underscores his preference for alternative assets during times of economic uncertainty. One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold. Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties. To learn more, you can get a free information guide that includes details on how to get up to $10,000 in free silver on qualifying purchases. With the price of gold hitting all-time-highs in 2024, Goldman Sachs suggests the trend won't falter in 2025. In contrast, Kiyosaki also champions cryptocurrencies, like bitcoin, which is a significantly riskier asset. This dual strategy reflects Kiyosaki's broader philosophy of diversifying investments across both conservative and speculative asset classes to navigate uncertain economic conditions. If you're interested in accepting that level of risk, Gemini is a full-reserve and regulated cryptocurrency exchange and custodian, which allows users to buy, sell and store bitcoin and 70 other cryptocurrencies. You can place instant, recurring and limit buys on their growing and vetted list of available cryptos. But if you're not ready to buy just yet, you can still invest in crypto with their Gemini credit card. Red flag 2: They 'have a money guy' During a recent Diary of a CEO episode, Sethi clarified that having a financial advisor isn't inherently bad. In fact, a 2022 Vanguard study showed that financial advisors can add up to 3% in annual returns. But, Sethi flags that advisors who charge a percentage of assets under management (AUM) for fees might be an issue. A seemingly small 1% annual fee can compound into significant losses over time, draining your overall returns. To avoid those growing fees, Sethi suggests choosing advisors who charge a flat fee instead. With you can find the best advisor for your needs — both in terms of what they can offer your finances, and what they'll charge to work for you. is a free service that helps you find a financial advisor who can co-create a plan to reach your financial goals. By matching you with a curated list of the best options for you from their database of thousands, you get a pre-screened financial advisor you can trust. You can then set up a free, no obligation consultation to see if they're the right fit for you. Read more: BlackRock CEO Larry Fink has an important message for the next wave of American retirees — Red flag 3: They're cheap Sethi also believes that excessive frugality is a red flag. On Diary of a CEO, he said it 'sucks the life out of every room.' He believes that fixating on price, at all costs, means you'll end up hoarding money instead of using it. In a recent interview with Moneywise, Sethi said couples make the mistake of focusing on restrictions when it comes to money. 'No, you can't buy coffee. No, you can't buy jeans. No, you can't go on vacation. Save your money until you're 96 years old and then maybe you can take a trip in economy seats.' 'The point of money is to use it to live your rich life…everybody teaches you how to save, but very few people teach you how to spend money meaningfully,' he shared. There are also tools out there to balance spending with saving, meaning you can avoid falling into a scarcity mindset. Sethi is a proponent of automatic investing. 'It's easier to invest than it is to brush my teeth everyday because it's totally automated,' he said. With Acorns, you can save and invest while you spend on the things you need. Acorns automatically rounds up the price to the nearest dollar and places the excess into a smart investment portfolio. This way, even the smallest spending translates to money saved for the future. Sign up now and you can get a $20 bonus investment. Red flag 4: They think that renting is throwing money away Many see it as a waste of money, but Sethi and Cardone would actually agree that it can be a wiser choice. Sethi explained on his blog that renting is beneficial because you get the value and convenience of having a landlord manage the property and all of the associated maintenance. Cardone agrees, posting on X that homeowners insurance and property taxes are 'exploding' for homeowners, making renting a more attractive decision for some. However, they both frame renting primarily as a lifestyle choice rather than an investment, because the home you want to live in might not be the best investment opportunity. But that's not to say there aren't properties worth investing in. And with Arrived, you can add rental properties into your investment portfolio without needing to do any of the heavy lifting or legwork. Homeshares allows accredited investors to gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning, or managing property. The fund focuses on homes with substantial equity, utilizing Home Equity Agreements (HEAs) to help homeowners access liquidity without incurring debt or additional interest payments. This approach provides an effective, hands-off way to invest in high-quality residential properties, along with the added advantage of diversification across various regional markets – all with a minimum investment of $25,000. With risk-adjusted internal returns ranging from 12% to 18%, the U.S. Home Equity Fund offers accredited investors a low-maintenance alternative to traditional property ownership. Similarly, First National Realty Partners (FNRP) allows accredited individual investors to access necessity-based commercial real estate investments — without having to manage tenants. FNRP has relationships with some of America's biggest names, from Walmart to Whole Foods. They provide insights into the best properties both on- and off-market, and you can engage with FNRP's experts while exploring deals and making investments in their personalized portal. Red flag 5: They refuse to talk about money Lastly, Sethi believes that financial honesty is integral to a healthy relationship. He says couples need a clear understanding of their combined household income and shared goals to make smart financial decisions. 'The biggest red flag with money and couples is if one person is not willing to talk about money. We can work with somebody who has debt. We can work with somebody who has a spending problem,' Sethi told Moneywise in a recent interview. 'We can even work with somebody who sees money differently. But if one person will not talk about money, that's a dead end.' But just because your partner isn't open to discussing finances doesn't mean you need to close yourself off, too. For instance, platforms like Moby provide actionable investment insights that help you improve your financial literacy. With research from former hedge fund analysts and financial experts, Moby simplifies complex financial data into easy-to-understand recommendations. Their strategies have historically outperformed the S&P 500 by nearly 12%, making it a valuable resource for novice and seasoned investors alike. – with files from Victoria Vesovski What to read next Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Here are 5 simple ways to grow rich with real estate if you don't want to play landlord. And you can even start with as little as $10 Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
