What is your "rich life"?
Lessons I learnt from a bestselling author and personal finance expert
This post is inspired by Ramit Sethi, who is the best-selling author of the book “I will teach you to be rich”.
He also has a Netflix show titled “How to get rich”.
In the show, he reviews the personal finances of people from various backgrounds, and gives advice on how they can improve their financial situation.
What “Rich” really means?
When we think of the word “rich”, what comes to mind?
For most of us, this could mean staying in a big house, and owning a garage full of Lambos and Porsches.
Realistically, how many of us can afford, or even want this kind of life?
Too much of a good thing can end up being a bad thing. I’ve found that this is especially true for material things.
It comes down to the concept of diminishing marginal utility. The more of an item that you use or consume, the less satisfaction you get from each additional unit consumed or used.
It’s why we see people queuing up for the latest iPhone every year in September, even when there’s nothing wrong with their current iPhones.
Do we really need to change our phones every year?
It’s really the shiny object syndrome at play here. After some time, the novelty of a new item fades away.
We’re then left chasing for the next new thing, and the hamster wheel keeps rolling.
Defining YOUR “rich life”
There is no one definition of what a “rich life” is.
My definition of a “rich life”is likely to be vastly different from yours.
Here are some things that represent what being “rich” means to me:
Having the spending power to travel and explore the world
Being able to pay for expenses required for sustenance and beyond
Ensuring that me and my loved ones are adequately insured
Spending money on better, but more expensive food
Enjoying a cup of flat white on a lazy Sunday (like in the pic)
Some things that DO NOT represent what being “rich” means to me:
Flying first class (for me, flying business class for the experience is enough)
Staying in 5-star luxury hotels
Owning a big, expensive house
Buying designer labels
Concluding Thoughts
List down all the things that fits your “rich life”, and which do not.
Spend mercilessly on those that do, and cut back mercilessly on those that don’t.
You might discover something new that represents your “rich life”, one you never knew.