I Will Teach You To Be Rich » Miscellaneous http://www.iwillteachyoutoberich.com Personal finance blog for college students, recent graduates and everyone else -- including entrepreneurship -- for getting rich. Featured in the Wall Street Journal and New York Times. Fri, 10 Feb 2012 14:07:04 +0000 en hourly 1 http://wordpress.org/?v= How I save 1 hour/day http://www.iwillteachyoutoberich.com/blog/free-virtual-assistant/ http://www.iwillteachyoutoberich.com/blog/free-virtual-assistant/#comments Wed, 21 Dec 2011 20:57:17 +0000 Ramit Sethi http://www.iwillteachyoutoberich.com/?p=7778

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Here’s a productivity tip I use myself.

Years ago, I was invited to speak on some panel about technology and entrepreneurship, and the panelist sitting next to me was a senior executive at Google. This dude walked in, opened up his briefcase, and pulled out a neatly organized packet with colored Post-Its and hand-written notes. I glanced over it and nearly vomited in admiration.

You see, his assistant had prepared an entire DOSSIER (who even uses that word any more) on the event, the organizers, and the topic. It was obvious that he had never even thought about this event until seconds before it began. He was skilled enough that he could do this — and get away with it. He was an awesome panelist.

I started wondering…Why did I have to spend my days on the minutiae of figuring out where the event was? Or what I was supposed to talk about? What if I could batch all that stuff up, and leave my days open to be creative? What if the info I needed appeared EXACTLY when I needed it — not a minute before?

(Note: This is not just about speaking at a conference. Think about all the time you spend planning LOGISTICS instead of being creative and doing what you’re best at.)

For 10 seconds, I did not know what emotion to feel.

Then, I settled on one: envy.

Again, I wondered, what if I could keep my mind free — letting me be creative most of the day — and when it came down to nuts and bolts of preparation, I could walk in somewhere, confidently knowing that I had every piece of relevant information at my fingertips?

And so I built a process to do exactly this, which I want to share with one of you.

Plus…
* When I travel, my appointments in NYC are automatically rescheduled (e.g., gym, lunches, etc).
* When I have a meeting, I get a text message, and I know to start getting ready. As I’m walking down the hall to grab the elevator, I open up my calendar, where I see the exact location (not stated as “123 7th Ave,” but rather “16th and 7th” so it’s easier to relay to the cab driver). I also see the agenda, any prep items I’ve prepared, and bios of the people at the meeting. I can review this all in the time it takes me to get to the meeting, aka my “Taxi time.”

I built and tested all these processes using my personal assistant.

And I’m buying $10,000 worth of a personal assistant’s time — for one of you. It’s just a cool thank-you for making this IWT’s best year yet.

I’ll personally train the assistant, and I’ll even get on the phone with you for 30 minutes to share my tested tips to best work with your new assistant. No catch.

One full year of a virtual assistant for you — free. Enter to win here:
http://www.iwillteachyoutoberich.com/assistant

Good luck!

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So Fortune did a 6-page profile on me, and I want to talk about that. But first, I thought I’d share a hilarious story behind the story…

Rewind a couple months. The reporter, Mina, had been following me around for a few days, and she came to Chicago to watch me give a keynote speech at this personal-finance blogger conference. Later that night, I threw a party for the conference people.

Now, most of you know I hate throwing events. I think this stems from college, when I would hold IWT classes…and nobody would come. Like a beaten child, I had trouble overcoming my past.

Anyway, every year I try to overcome at least 2 big personal barriers, and this year, it was throwing events. So I throw this party, which I had intended to be at a quiet lounge. Somehow, some wires got crossed, and it ended up being at a club. Not a quiet lounge, a STRAIGHT UP CLUB with a DJ and go-go dancers. I was in heaven.

I’m milling around and I spot this 23-year-old dude who is on the PROWL. You know the look — like he’s a prehistoric hunter, searching out his prey (women), using all the tools at his disposal (spiky hair). Turns out he’s a fellow blogger. He comes up to me and says, “Hey Ramit. I spoke to that Fortune reporter of yours.” He says this suggestively like something filthy has already happened. I’m intrigued.

I said, “Yeah? How was that?”

He goes, “Good, man.” He leans in and smirks. “I told her how your techniques got me laid.”

I almost spit my fucking drink out. This is a national reporter following me around for a major profile and I was not trying to have some delinquent story hit the press. So I slowly say, “Uhh…sounds good dude” Then I made my way over to her and casually asked, “Hey…how’s it going? Everything good? So…did you meet that dude?”

This is where it gets hilarious.

She says, “YES! He told me your techniques got him laid!” I started to say something, and then she interrupted –

“AND, do you know what else he said?” I shook my head, praying.

Keep in mind it’s 11:45pm at a loud club where people are grinding on each other, and this young reporter has been completely professional, nursing one drink for like an hour. Apparently this dude had looked her up and down, looked at his watch, then said (with a smirk on his face): “So…you off the clock?”

HAHA. I died laughing. This 23-year-old dude tried to spit his futile game at a Fortune reporter with hilarious results. I begged her to put it in the article, but alas, it didn’t make the cut…

So, here’s the article:
http://finance.fortune.cnn.com/2011/12/13/ramit-sethi-financial-adviser/

One more thing:

I’m really proud of this article. When Fortune looked for the person in the field of personal finance and behavioral change, they came to me, and that’s flattering. It elevates everything we’ve been doing at I Will Teach You To Be Rich to another stage. I find that pretty exciting.

But it’s not just about me. In fact, there are tons of writers with incredibly good material…but without a massive movement of readers, it’s difficult to break through. Not just readers, but the fact that you trust me enough to read my material and apply it to your life. I take that seriously.

When I started this site, it was a rinky-dink blog. I didn’t make a cent off it for years because it was just this random hobby. But over time, the articles resonated with you, and you stuck around, giving me your time and attention. Some of you joined my courses or bought my book. Together, we all grew towards living a rich life.

Overall, it’s an incredible feeling to listen and learn about what we’re ACTUALLY going through — unlike some 68-year-old geezer lecturing us to stop spending money on lattes. Instead, it’s someone who understands we WANT to live a rich life. We WANT to go out and buy a round of drinks for our friends. We EXPECT to be able to travel abroad, or go to Vegas for the weekend, or grab dinner without worrying if we can afford an appetizer.

So, I want you to see this Fortune article, not just because I’m proud of being recognized on a national stage, but because it’s only possible with a readership that takes action. Honestly, there are a lot of blogs with larger readerships than IWT…but none have readers that take action like you. I know this quantitatively (when I show my metrics to a few close friends, they almost shit their pants) and qualitatively (since I intentionally repel whiners and complainers off this site, telling them to go check out a frugality blog to save $0.25 on laundry sheets). That leaves you and me — both of us committed to taking action.

So, thanks for the opportunity. Thanks for listening and telling me when my stuff resonates, and when it sucks. And thanks for sticking around, because this is just the beginning. 2012 is going to knock your socks off.

Here’s that article link:
http://finance.fortune.cnn.com/2011/12/13/ramit-sethi-financial-adviser/

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I’m just about to get on a flight to Seattle to do a web show with my buddy Chase Jarvis, a master photographer and host of a hugely popular online web show.

Tune in tomorrow, Tuesday, 12/13, to watch us live at 11am PST (2pm EST). We’ll be talking about how creative people — photographers, writers, artists — can grow their incomes and market themselves. Including…

-Specific techniques to negotiate with your clients
- Concrete strategies to help you earn more money per job, shoot, photo, etc
- How to –in very specific terms– illustrate the value of your creative work to your clients
- When to work for free (or cheap) and when NOT to
- How these principles can guide so many other parts of your life

As Chase mentioned, “If you don’t come away with a new vocabulary for talking about the value of your work AND a new bad-ass approach for negotiating, I’ll eat my shorts.”

Lots of time for live Q&A, too, so I hope to see you tomorrow.

Here’s the link for more details.

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Each day, I post short insights on http://twitter.com/ramit about psychology, testing, personal finance, investing, the best links I’ve found, and stupid people.

You won’t find these on my blog.

Here are a few of my favorite recent tweets:

How I feel when I read yet another “savings” tip. http://t.co/pCAISKA5Wed Nov 16 20:34:08 via Timely by DemandforceRamit Sethi
ramit


“How to defeat the fun police” — an interview I did with Vanguard: http://t.co/PyY8kVl0Mon Nov 14 18:46:08 via Timely by DemandforceRamit Sethi
ramit


Tech nerds believe u should let ppl “demo” an app before signing up. But showing benefits can be MORE persuasive than showing the actual appThu Nov 10 20:08:13 via Timely by DemandforceRamit Sethi
ramit


Everybody read this brutally honest NYT article on how a financial pro walked away from his mortgage. Should he have? http://t.co/mb5IqTJXWed Nov 09 17:43:48 via Timely by DemandforceRamit Sethi
ramit


“So you sold your company. What did you buy first?” I LOVE this story: http://t.co/bl05tnJsWed Nov 09 02:33:10 via Timely by DemandforceRamit Sethi
ramit


Wow, look how similar movie posters are: http://t.co/aPvoqvMFTue Nov 08 18:36:52 via Timely by DemandforceRamit Sethi
ramit

To get all of my Twitter updates as they happen, follow me here: http://twitter.com/ramit

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As a dude in my 20s, Halloween is my favorite holiday for obvious reasons.

Your favorite blogger and New York Times best-selling author, Ramit Sethi

A few days ago, in preparation for this magnificent day, I asked the people on my Insider’s List to send me their financial horror stories.

Here are some of the best:

*     *     *     *     *

“How do I re-build credit when I can’t get a credit card?”

Hi Ramit,

Loving the savings and credit updates; I can’t believe you give out this advice for free!

Here’s my financial horror story:

In an attempt to assert independence and get out of an unfortunate living situation my freshman year of college, I moved out of my parents’ house into an apartment I couldn’t really afford.  I planned on paying my rent with my ‘leftover cash’ from financial aid.  A few months later I felt the crunch and borrowed from family members to make payments and racked up over $5,000 in credit card debt to pay for food and entertainment.  I was drowning and it was all because I wanted frozen pizzas, ice cream, ramen, and independence.  So, so stupid.

I entered credit counseling and five years later am credit card debt free.  I got your book and started reading on how to save.  Automated saving is so simple and so effective.  My car got totaled this past Friday and I actually have the money to deal with it – a far cry from my college days of financial irresponsibility (read: days of denial). I even started a retirement account through my employer.  Not too shabby, eh?

So here’s my question: Since I went into credit counseling I’m having a hard time getting accepted for a credit card, but I need to rebuild that credit.  I’ve been reading your tips about limit increases, suggested best credits cards (LOVE IT when you share your favorite things!), but I have to get back in the credit game first.  I’ve called my old cards and tried to shmooze them into reopening my old accounts but that didn’t work either (I even kept a spreadsheet tracking those convos, per your command)  So how can I get back in the credit game with my irresponsible college past hanging over me?

Thanks!

-Jackie

My answer:
Nice job, Jackie, and congrats on changing your life around.

To rebuild credit, get a “secured credit card.” Go into your bank and ask about them. You’ll have to put down some money to “secure” the card, but after a few months of paying it off regularly, you’ll graduate to being able to get a regular credit card.

*     *     *     *     *

“I have $180,000 in medical bills…”

Financial horror story: I’m in my late twenties and just got pointed to you. I am divorced and have custody of my 3 kids. My ex does not work and will not get a job, so I get no child support. I bring in roughly $3200/mo, but half of that goes to daycare. Keep in mind I still buy diapers and wipes, food, clothes, etc.

I live in Texas where land values, and thusly the cost of living, are lower, which is how I survive, but I still have to live with family… Texas does not have alimony by the way…

I’m so broke I can’t even afford your book, so I’m having a family member buy it for me for Christmas.

The horror part is that I got in a wreck a year and a half ago which shattered two vertebrae, and I didn’t have medical insurance because the company I contracted through at the time didn’t offer it, so I have $180,000 in medical bills sitting on my credit report.

Now I have a better (not contract) job and medical insurance, but still no money.

I like your advice about cutting down eating and entertainment expenses, so I’m going to figure out what I spend each month on those and try to cut that down as you suggest.

Hope this is enough of a horror story for you.

Please keep my name anonymous. Thank you.

My response:
Sorry to hear about your situation. Two things:

  1. Keep an eye out for an email from my staff. I’m sending you a signed copy of my book.
  2. One thing you should know is that medical bills are HIGHLY negotiable — often for pennies on the dollar. Research it (just Google it) and spend a few days reading articles, posts, and forums. Considering the hospital has no chance of recovering $180K from you, they likely will settle for tens of thousands of dollars off the “retail” price. Good luck.

*     *     *     *     *

“The people you make fun of are out there…”

Someone I work with– who is building a brand new house–said her husband wants them to bring their own coffee to work in the mornings from now on to save money for house payments.

The people you make fun of are out here…

Nick

My answer:
Jesus Christ

*     *     *     *     *

You want a financial horror story. You got it!

You want a financial horror story. You got it!

I dont blame anybody for this just me and only ME.

I was in an MLM; ok, i will give the name what the heck, Amway, for about 7-8 yrs. My choice, I dont blame anybody not even my family.

I have seen success stories with my own eyes. But it is NOT for every one. Well, in my opinion, 98% fail because they dont do a squat with it, dreaming to become rich one day.

I did work on it but may be not 100% or close to what it requires to succeed. Anyways…

Coming to my story, long story short, i spent close to $1000 – $1200 per month average on products/conferences/meetings/

TIME the whole ball of wax. Over 7yrs it amounted to 70k approx.

Should i say more :) you got the picture.  I QUIT!!!

-Ravi

My answer:
2 things:

  1. If you ever get in an MLM again, I will personally find you and kill you myself. Everyone else considering MLM (then again, if you are, you probably cannot read these words because you are illiterate), see my previous article: I Hate Indian Network Marketers So Much
  2. Btw, MLM does not fail because people “dont do a squat with it” — it fails because it is systematically built to extract value from people at the bottom of the pyramid, while those at the top revel in the profits from the constant inflow of clueless newbies.

*     *     *     *     *

“I started living off my credit card…”

After graduating college in May of 2009 I had no credit card debt (with the exception of my graduation invitations and party supplies), problem was I had no job either.

I used my money from graduation to live for a while, but then more and more items were getting put on credit cards. I would put the items on the credit card thinking I will have a job soon and be able to pay it off at that point. I had about $1000 in credit card debt on my card by the end of July 2009. I did have a position with Americorps at this point though. I made enough that I would always pay more than the minimum payments. I knew at the end of the program I would have a good paying job and be able to pay off all my debt in one month so I continued spending. In February of 2010 I had about $3000 in credit card debt.

I left the program before it finished and did not get the good paying job because I did not finish the program. I started living off my credit card at this point and raised my credit card debt to about $6000. To get out of debt I bought $2500 worth of Mary Kay inventory to sell. Moral of story before I got a job I had racked up about $8500 in credit card debt in a year and two months.

In response to your blog post about raising credit score I was also wondering if it is always a good idea to request credit limit increases. My husband and I are looking at buying a house right now, the lenders requested credit scores, and so my score went down. Should I have the additional inquiries on my record for the two cards I have?

Jess

My answer:
Sometimes I find it helpful to try to analyze someone’s decision-making instead of individual decisions. For example, why did you not finish Americorps? I’m sure you have a very specific answer (“I hated my boss, I was sick, etc”) but ask yourself: Have you not followed through on anything else? Are there patterns?

One pattern might be jumping from one salvation to another (Americorps…Mary Kay…). Another pattern might be not doing your homework, which is why I was one knife slit away from killing myself when I read that you’re planning to BUY A HOUSE. Why?

Have you truly run the numbers? Have you added 40%-50% (not a typo) to your monthly payment to account for taxes, maintenance, new furniture purchases, fees, and more? Have you read my extensive articles on buying a house?

Do you understand that buying a house requires a ton of money down, and you will likely go from being in debt to being in a different kind of debt?

Again, I’m not categorically against buying a house. I will, at some point in the future. But from your question, I want to make sure you’re not jumping from one catastrophe to another potential catastrophe. Do some homework before making the biggest purchase of your life, please.

*     *     *     *     *

Now I’m wondering…if you know someone who’s had their own financial horror story, what did you do? Did you try to give them advice? How did they take it? Leave a comment so we can all hear from you.

BOO

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Now that I launched Dream Job Elite and I’m working with my students, I want to get back to writing some IWT material for you.

What do you want to read about?

Maybe it’s tactics on negotiating a raise, or how to invest, or specific money/career questions. Maybe it’s the secrets of how I iron my clothes so well, which I’ll just ignore since white people don’t care about ironing.

Do me a favor and take a quick survey here. Thanks in advance.

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Years ago, I went to the Caribbean island of Grenada. As I previously wrote,

My sister, who was living there at the time, took me shopping in the local bazaar, where she pointed out a young boy who was about 8 years old. He carried a notepad with him.

He was a beggar, but no ordinary one. Every day, he would vary a small element of his presentation — his clothing, his grammar, his request style — and measure exactly which one produced the largest tips from shoppers. This little boy was one of the most sophisticated amateur social psychologists I’ve ever seen.

As you can see, you don’t have to be a multi-national corporation using the Taguchi Method to reap the rewards of testing. If a beggar child can, you can.

And you can apply testing directly to find a Dream Job. Compare this to worthless advice about “finding your passion” (has that ever worked?).

For example, top performers I know are constantly testing every aspect of their careers:

  • The job hunt: Am I talking to the right people? Is my resume as good as it could be? Are my outreach emails perfect?
  • At work: Am I making enough? How do I know? How can I get more responsibility?
  • Broad career: Am I making a big enough impact? What are my peers doing?

There are actually simple tests you can implement to get dramatic results in your current job…or to find a new Dream Job.

And you can start this week.

I recorded a new 34-minute presentation for you, including:

  • How I created the Ramit 1-2 Punch (and boosted my results in one campaign from 0% to 82.5%)
  • The 4 most common reasons people don’t test
  • The 3 things you need to do to test successfully
  • Strategies for designing tests to get rapid feedback (versus waiting months to see if a test worked)

This is premium material I could charge for, so if you choose to watch it, I ask that you carve out a dedicated hour to watch and take notes on it. Otherwise, let’s not waste each other’s time.

I’d like to share some of the ways I’ve used testing to improve my career…and how you can, too.

By the way, I’m giving this away because I received such a great response to the last presentation I shared: The 80/20 Guide to Finding a Job You Love.

First, here’s a 5-minute sample, which will show why most career experts don’t know what they’re talking about as well as how I’ve used testing to PROVE my methods work.

Now, get my new, 34-minute presentation below — free of charge.

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I’ve told you before about how my Indian immigrant parents told me that I needed to get scholarships to pay for college.

(It wasn’t a request — Asian/Indian parents don’t ask their kids what they think, they tell their kids what’s to do. I can’t wait to do the same thing to my kids.)

And so I built a system to rapidly apply and optimize my scholarship applications — and paid my way through undergrad and grad school.

I’ve never forgotten the generosity of the foundations and groups that gave me opportunities I could never have gotten on my own. As a result, I plan to give back far more than I was given over my lifetime.

And today, I’m announcing one scholarship for Dream Job Elite.

If you were interested in the program, but couldn’t afford it — or were prohibited from joining because of credit-card debt — I saved one seat in Dream Job Elite to give you the opportunity of a lifetime. I’ll personally pay your tuition.

There are no catches. No tricks. I’m simply inviting one of you to join my $12,000 course, learning every exclusive technique I’ll teach the others to find their Dream Job, learn in-depth techniques on networking, master interviewing, and conquer salary negotiations, for free. If you succeed, I know you’ll pay it back to others.

I was personally blown away by how many of you emailed me, frustrated that you couldn’t join because of credit-card debt, or being laid off, or having to support your families. Many of you simply signed off their emails saying, “I’ll just do my best with your free stuff.”

But for one of you, I’d like to invite you to get my best techniques, along with 1-on-1 access to me, through this scholarship. Click here to get more information about this program: Full Details of Dream Job Elite (PDF).

Note that because my “Elite” (paying) applicants applied to a limited pool, their chances of being accepted are dramatically better. And since internet weirdos love to jump at the word “FREE,” I expect to be flooded with far more applications than I received for Elite applicants.

That’s why I’m looking for a “hidden gem” — someone who has the same hustle and drive and demonstrated success as my other world-class applicants…someone who is every bit as qualified as my paying students, but who may have fallen on some bad luck.

Here are the details of the Dream Job Elite Scholarship:

  • There is 1 scholarship available for my full Dream Job Elite program
  • You will receive the same instructions, material, and access as Elite (paying) applicants. Click here for the Full Details of Dream Job Elite (PDF)
  • The scholarship fully covers your $12,000 tuition. Note that you will be responsible for travel and accommodations to New York on the weekend of December 3rd-4th, 2011
  • The entry deadline is 11:59pm EST on Friday, October 14, 2011. That’s tomorrow night
  • You’ll be required to fill out the same application as standard Elite applicants, plus two more questions about why you deserve this scholarship
  • If you’ve already applied for Dream Job Elite, you’re not eligible. This is strictly for people who don’t have the financial means to enroll in this any other way.
  • No purchase is necessary to win. I’m the judge and my decision is final.

Here’s the link to the scholarship application — due Friday, 10/14, at 11:59pm:
https://www.surveymonkey.com/s/6ZG6B7S

Good luck.

Scholarships changed my life. I’m excited to do the same for one of you to help you find your Dream Job.

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Each day, I post short insights on http://twitter.com/ramit about psychology, testing, personal finance, investing, the best links I’ve found, and stupid people.

You won’t find these on my blog.

Here are a few of my favorite recent tweets:

More evidence that the Better Business Bureau (BBB) is just a complete racket: http://t.co/oALCycb5Thu Sep 22 16:36:08 via Timely AppRamit Sethi
ramit

 

“The Tricks Investors Use Against Founders” – incredible article, in plain English, of sophisticated investor tricks: http://t.co/R7NUhI4Thu Sep 08 16:19:04 via Timely AppRamit Sethi
ramit

 

This dude used my techniques to negotiate a salary increase $30,000. Here’s how he did it: http://t.co/WLWc6l2KFri Sep 16 00:37:17 via Timely AppRamit Sethi
ramit

 

Coercive charity auctions…this is brilliant. http://t.co/J8Rt30BCThu Sep 22 23:26:06 via Timely AppRamit Sethi
ramit

 

HAHA, from The Onion: “Visa exposed as huge credit card scam” — http://t.co/WzBBTnuFri Sep 09 14:04:04 via Timely AppRamit Sethi
ramit

 

Inca girl, frozen for 500 years, on display. These images are incredible: http://t.co/8YMJazLFFri Sep 23 00:37:06 via Timely AppRamit Sethi
ramit

 

“Junk food is cheaper than real food..This is just plain wrong. In fact it isn’t cheaper to eat highly processed food” http://t.co/OQgYJk9aMon Sep 26 20:43:22 via Timely AppRamit Sethi
ramit

To get all of my Twitter updates as they happen, follow me here: http://twitter.com/ramit

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Since I’m traveling 5-6x/month, I figured it’d be fun to meet up with IWT readers across the country.

So this Thursday in Chicago, I’m throwing a casual “I Will Teach You To Be Rich” meetup. Come by, grab a drink, and hang out with me and other IWT people.

Here’s the info:

If you’re going to come, email me at ramit@iwillteachyoutoberich.com and let me know who you are and a little bit about yourself so I can get to know you beforehand.

If you’d like to get advance notice of future IWT meet-ups in Chicago, fill out the form below.

Coming up soon: San Francisco, New York.