Following This Ramit Sethi Advice Could Change Your Financial Life

A young businessperson does paperwork in coffee shop and checks their phone.

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Consider following this Ramit Sethi advice to rethink how you manage your money.

Key points

  • Many people manage money by focusing on cutting small expenses, but Ramit Sethi doesn’t believe this is the best approach.
  • He urges looking for a few big wins rather than asking $3 questions.
  • It’s more important to worry about debt payoff, salary negotiations, and savings than paying for coffee, dessert, or a rideshare service.

It can be hard to figure out the best way to manage your money. And, unfortunately, some people may end up focusing on the wrong things entirely.

In fact, personal finance expert Ramit Sethi recently warned that many people end up “wasting decades” because they take an approach that doesn’t really work out well in the end.

Sethi warns against making one crucial error and suggests that a shift in mindset could make all the difference in how much money you end up with. Here’s what he advises.

Ramit Sethi warns against getting hung up on small details

On Twitter, Sethi addressed one of the biggest mistakes he’s seen people make when it comes to financial decisions.

“I think people spend way too much time agonizing over small money decisions and not nearly enough time on big decisions,” he said. “Small $3 questions: Coffee, dessert, price of an Uber.”

By contrast, they don’t focus enough on what he calls the “$30,000+ questions,” which he lists as “buying vs. renting, debt payoff, negotiating salary, savings rate, asset allocation.”


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