Why do you want to be rich?

Posted at 17:28 on Friday April 08, 2005 | Filed Under Introductory Articles , Investing , Miscellaneous , Saving , Saving

Sometimes, teaching people how to get rich gets me a bad rap. "You just want to make money," I've been told. Or "money isn't everything." These gems, while not particularly eloquent, do have a point. Actually, I'd prefer that these people ask me why I teach people to be rich. It's important to ask yourself, too: Why do you want to be rich?

Take a second and think about it.

Do you want to have a luxurious lifestyle? Do you want to travel? To eat at nice restaurants? Maybe you want to start your own business.

I believe it's really important to consciously think about why you want to be rich. If you don't, it's easy to get caught up in a race to get more and more money without ever knowing why.

"But Ramit," you might say, "I'm really smart. I got a 4.0 at Stanford and I don't really want to take the time to think about this. I just want some cash, playa!!"

After I point and laugh at you, I'll actually get serious. Trust me--take an hour to write it down and compare your long-term goals to what you're actually doing on a day-to-day basis. It's easy to say and harder to do, so I've taken my own advice below. And hopefully, I can use these things to explain why I teach people to be rich. It's not just money--far from it.

Why I teach/learn how to be rich

In one sentence: I never want to have to make a bad decision because of money (e.g., staying at a job I don't love because of car payments).

Long-term goals of earning wealth (in order):

Give my parents a retirement where they don't have to work if they don't want to
Comfortable, sometimes gaudy lifestyle (I love pens)
Make career decisions because I want to, not because of money
Stay in touch with my friends by seeing them in person often
~~Start a scholarship fund for high school/college entrepreneurs~~ [done]

There it is: an online, accountable list of goals for why I teach and learn how to be rich. What if you made a list like this and checked it every 6 months to see if you were moving towards your goals?

Now what?

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Comments (27)

1.: "Make career decisions because I want to, not because of money"

this is the stronger one to me..

Posted by Baldo at January 12, 2006 04:07 PM

2.: I dont think I want to be filthy rich, but I want to be comfortably well off to do the foln..

1. Make career decisions because I want to, not because of money

2. Start a scholarship fund/Open a school that teaches lifeskills, for underprivileged

Your post made me think more than my usual comfort level about richness associated with money. Thanks!

Posted by Kay at January 31, 2006 10:29 AM

3.: i want to live comfortably in life, take care of family and start my own bussiness. But the main reason I would like to be rich so I could give more to help people in need. That more important that having high quailty things when you can be happy with just he basic.

It nothing wrong with having nice things in life, but difference would it make if you ate your food on a $10 plate than a $400 plate.
Its good to save. Live to give, not to receive

Posted by Romance at February 16, 2006 12:17 PM

4.: I've lived being truly poor for 7 years now. After loosing everything we had, we were never able to get back on our feet. Now i have seen how poverty is, I want to be able to experiance what it is like to raise my kids without haveing to worry if my electricity or water will get turned off. I want to send them to college and be able to pay for it myself. (college is important-- i use the Pell Grant)

Posted by betty overall at May 9, 2006 05:51 PM

5.: You love pens! How fantastic. This made my day.

Posted by Bree at June 21, 2006 12:40 AM

6.: Dear Ramit, good point with asking this question, however... don't you think that there's a more important one really close, that is: "why do you want to live?". You know, long-term goals, things like that... sound pretty big.

Posted by Elsindel at June 21, 2006 12:43 AM

7.: I was just surfing tonight and stumbled across your blog. I haven't read all of your articles, but I have yet to find a definition of what rich is. If it is here somewhere, I apologize. I think it would be useful if everyone knew what rich is.

Rich or Real Wealth is not a specific number. It differs for everyone. Rich is being able to maintain a lifestyle from your investments only.

And the real secret to obtaining this elusive goal, is to not change your lifestyle until you rich this point. At once it is obtained, it is easier to improve the lifestyle you are currently living.

So if you can maintain your current lifestyle for a month, you are already rich. If only rich for a month. What you want is to be life long rich.

But other than that, most of the information here is dead on. Getting rich is not easy, but its not hard either.

It only takes time, patience, a plan and execution.

I will check back in on you from time to time and see what nuggets you have uncovered.

Maybe give a little advice on how to actually trade/invest.

And one more point. Never listen to anyone who is not better off than yourself.

Just the opinion of a someone who is rich.

Posted by Chris at June 23, 2006 01:28 AM

8.: Why do I want to be rich?

1. Having the money means not having to worry over things that won't matter in 50 years.
2. We want four children. Forget raising costs, think about college!
3. We don't want a terribly extravagant lifestyle, but we do want to raise horses. This requires serious $$$.
4. I want to homeschool my children... this means that either myself or my husband would almost HAVE to be a stay at home parent.
5. I want to start my own theatre/voice school (just graduated Voice Performance), preferably as a not-for-profit "teaching theatre"... not high-rent professionals, but kids & 20somethings getting their feet wet & learning the ropes.
5. Once we start having kids, we don't EVER want to move again. And for four kids, a fair-sized house will be a good thing.

Oh, and this last guy? He's dead on... never listen to anyone who is poorer than you. They obviously don't know what they're talking about.

What am I doing towards these goals? Right now? Working a 9-5 that uses NONE of my professional skills, but is reasonably enjoyable. It's not a NEEDED job... my husband brings home plenty to pay the bills, but we can save almost 80% of my pay every month towards the future. (Next three big things: a full size freezer - John hunts- a 4WD vehicle - Wyoming winters are vicious - and either land to build a house, or a house w/ decent land attached.)

Beyond that, I don't really know WHAT to do... we're very frugal, but as for investing... we're clueless.

Posted by Laura at August 23, 2006 10:33 AM

9.: Yes before undertaking a plan its nice to pursue reason, if only for a very brief time. I would like to be rich so that I could have greater controll over my life and others around me. Like right now I am moderately poor. So I don't choose what food to eat and when. I eat whatever I can get whenever I can. Sometimes I eat multiple meals in a couple hours of food I don't like because its free. So I would like to controll and plan my life more. But mostly the biggest reason I want to be rich is because everyone else likes rich people and wants to be rich themselves. So in order to make those around me more happy and comfortable I would like to be richer. It may sound shallow but its the truth.

Posted by Charlie Panella at August 23, 2006 09:55 PM

10.: I am working on begining my own buisness as well, do not know what buisness yet though. Im 19, working in real estate, and hopefully I too want to retire my parents so they would no longer have to work , and i cold keep them by my side forever.

Posted by Jose Benites at October 6, 2006 12:40 PM

11.: I am financially free at 29. I am continue to learn to make money and invest it until I reach my own personal cash flow goals. What motivates me? Two things:
Freedom and Fear. I want my freedom. I want to be rich, because I am afraid of being poor. PS Ramit- fabulous job on riding the Why We Want You To Be Rich wave (PR and SEO wise this week I mean)- your site traffic should be through the roof! I hope people stay and learn!

Posted by prlinkbiz at October 9, 2006 07:02 PM

12.: I want to be Rich because i could live a more expansive lifestyle, But most importantly is the need to give. Giving is Fullfilling. Brings you closer to what we all really want which is Happiness. Finding contentment~ compare yourself with a child from the Darfor region in Africa experiencing Genoside through starvation and you will quickly learn to be content with what you have and be HAPPY. Compare yourself to Trump, Gates and the like and you will be unhappy. I know i will be Rich all my life in more ways than one because i wont ever quit, or loose sight of my goals. it will take time through taking baby-steps but i will be extremely wealthy as well~ this is because my intention are Pure~For the good of others. I NEED to start up a more effective aid program for helping those suffering in 3rd world countries. And i will always saw with eagles'~Not scratch around with turkey's. lifes to short so realise your impermanence NOW!!! From the day you were born you started to die. live each day like it could be the last because it really can be its no joke. Drop our western ideal of "let it be". if we dont do it today we will do it tomorrow. what if a drunk driver sped into the side of your car tonight and killed you instantly-(sorry if there are children reading this). But everything in life is constantly changing before your eyes. Dont take anything for granted and always be greatful for what you have if your a fellow australian. i might be 19 and still only a baby in the scale of this world, but my understanding of the world is always growing and i encourage everyone to think about the rest of this world because in the system the world runs only the RICH can make a difference for the better. Sadly the sheep are being slaughtered by the wolves and once you run with the wolves it easy to become one. Have someone who is doing the good you want to do and it will help become rich sooner. I look at the work lead singer of U2 Bono is doing with Hollywood stars in Africa and the various charities Bill Gates is opening. if read this you may want more but im half asleep and just thought id deposit my 2c worth. Good Luck with your dream but remember your responsibilities as a human being. RKC c:

Posted by Reece at October 13, 2006 06:43 PM

13.: "Making career decisions because I want to, not because of money" adds a fresh perspective to my thought process.

I wd love to go back farming in my native place. But I'm stuck in a job faraway. More than that my wife and kid would not like to come with me.

I don't hv any clue to what shd I be working at???

Posted by Ranjan at November 1, 2006 12:48 AM

14.: I want to be rich, so I can be free.

Free to live my life in ways I choose.

Free to spend time on things I'm passionate about.

Free to pursue my goals unabaded.

Posted by Xin at November 10, 2006 01:44 PM

15.: Xin sums it up pretty well for me too. Money doesn't solve your problems, but the lack of money creates problems.

Posted by Kevin at November 25, 2006 04:17 PM

16.: teach me to learn how to fish, but don't teach me how to eat the fish. in short; l would be happy if you teach me how to management my finances and move on in the right track. thanks alot for the education.

Posted by marfo emmanuel blaise at November 28, 2006 01:52 AM

17.: The purpose of money in my life:
food, shelter, day to day expenses & helping those in need.

Long-Term goals of earning wealth:
Make art as a career (having a job I want - not need for money)
Give it away to help tell God's story
Take care of my brother after we're gone
Travel the world & experience other cultures.

Posted by billie at December 2, 2006 08:40 AM

18.: Love the blog. I was just wondering: what would you say to someone who agrees with everyone you write, but intends on going into a very low-income field (academia) and doesn't have a lot of start-up capital (so to speak)? Yes, saving and starting early (not even 20, so I'm good there), but can you teach me to be okay with being lower middle class?

Posted by thoughts at December 16, 2006 02:57 PM

19.: I think this website is the best resource I have seen about "getting rich" I have read books from Donald Trump to RObert Kiyaski 'or what ever his name is '. I have dedicated my life on becoming rich because I grew up in such a poor state"no food,no clothes" and I believe that a little hard work will produce all the things not only want but need.

Posted by Ken at December 27, 2006 02:56 PM

20.: I want to be rich so I can be hermit. Just hole up in a nice place and have things I need delivered to me.

Posted by Eric at January 1, 2007 09:10 PM

21.: Being rich means having to envy the super rich, i.e. the ones with billions. While I'm enjoying my deluxe sedan they are flying around in a jet. When I'm enjoying a swim off my boat I'm staring at the island they own. I simply could not handle it and it would me very unhappy.

Posted by Biern Nelterz at January 13, 2007 06:34 PM

22.: Good stuff - but I note it's aimed at graduates and students. Is it OK if a 41 year old broke guy in the UK reads your stuff too? I'd like to be rich, but right now I'd settle for just not having negative net worth...

Posted by Dave at January 17, 2007 02:58 PM

23.: I'm korean guy, this topic is interest and impressed to me.

ofcourse i want to become a rich.

In korean idoms, " the man who has many foods, he has a mind to give others his owns. "

I want to give my owns to others as my ability.

Posted by DAVID, CHANG at January 17, 2007 10:52 PM

24.: Rich... for me is not having to do anything. Not because I want to do nothing, but because I want to have complete freedom over the use of my time.

My plan involves me having to put in roughly half an hour of work every day, but I think that's reasonable.

I think I've been failing so far because I'm not making any goals for 'right now', and because I've gone too far pursuing my current lifestyle, which I don't want.

I want to live on the water, in the tropics, to build, and have financial freedom, and I've married a seasick Canadian woman and had a daughter.

Folly.

Posted by Dan at January 18, 2007 12:22 PM

25.: The reason for me is simple I want to do things whenever I want to and to be so far ahead of my bills that I can live life to the fullest and have an extravagant lifestyle setup small amounts of cash for my children so they wont need to struggle through life or even live paycheck-paycheck and be
or have Just Over Broke those of you who cant see what I mean just over broke means to have a job or work for someonelse I want them to own investmenst they can make money with without ever having to set foot in or around, this is one of my own personal goals I have set I have been working at this goals for almost 10 years and still have not found the right kind of investment as of yet!

Posted by Jason at February 4, 2007 11:58 AM

26.: I've worked 28 years at a job I can't stand and which I feel is essentially morally wrong. But I have not made it as an 'artist/writer,etc'. So I've put my life on hold for the past 28 years. I have two years to go to get a pension and then hopefully I'll have a few decades to pursue my art, my writing, my freedom.

Money to me represents freedom. There is nothing I don't have that I could not buy at this point in time,however, one can't buy one's freedom w/o survival dough! Money for me is not a materialist trip, it allows me to live as I prefer. So I wait and wait.

Posted by jim at February 4, 2007 05:27 PM

27.: You might like to check the website:

www.43things.com

It's a checklist of the things you want to do in your life, as well as a social community based on it, with tagging and such 2.0 things. I use it to keep track of my goals and deadlines.

Posted by Alex Boutet at February 5, 2007 04:49 AM

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