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	<title>I Will Teach You To Be Rich &#187; Popular Posts</title>
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	<link>http://www.iwillteachyoutoberich.com</link>
	<description>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.</description>
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		<title>Recap: The 30-day course on hustling your way to success</title>
		<link>http://www.iwillteachyoutoberich.com/blog/hustling-your-way-to-success/</link>
		<comments>http://www.iwillteachyoutoberich.com/blog/hustling-your-way-to-success/#comments</comments>
		<pubDate>Wed, 02 Mar 2011 14:51:35 +0000</pubDate>
		<dc:creator>Ramit Sethi</dc:creator>
				<category><![CDATA[Case studies]]></category>
		<category><![CDATA[Earning more]]></category>
		<category><![CDATA[How to negotiate]]></category>
		<category><![CDATA[Hustling]]></category>
		<category><![CDATA[Investor psychology]]></category>
		<category><![CDATA[Popular Posts]]></category>
		<category><![CDATA[Psychology of Money]]></category>
		<guid isPermaLink="false">http://www.iwillteachyoutoberich.com/?p=7294</guid>
		<description><![CDATA[Thank god. For the last 1.5 months, I’ve consumed more caffeine than ever before and I’ve written more than 10 pages per day. With the help of an amazing team, I’ve kicked off 2011 &#8212; the year of hustling. As I’ve said, most people get used to mediocrity. But my goal was to help you [...]<p><!--<div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;">
<p><strong>Join the free 30-day course to hustle your way to the top</strong></p>
<p>Here's a sample of what I'll be sending out:</p>
<p>- A invite to my private webcast with Tim Ferriss - where you'll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. <br/>
- A full recording of my private webcast with Tim Ferriss - in case you can't make it...<br/>
- Earn1 Bonus Case Study - Unlocking side income: From $0 to $1,500/month in 2 weeks</p>
<p><a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&utm_medium=feed&utm_campaign=earn1k-rss-ad&utm_content=rss-footer">Become a top performer now</a></p>
</div>-->
<!-- <a href="http://www.iwillteachyoutoberich.com/blog/hustling-your-way-to-success/">Recap: The 30-day course on hustling your way to success</a> is a post from: <a href="http://www.iwillteachyoutoberich.com">I Will Teach You To Be Rich</a>--></p>
]]></description>
			<content:encoded><![CDATA[</p>
<div id="insert_tweet"></div>
<p>Thank  god. For the last 1.5 months, I’ve consumed more caffeine than ever  before and I’ve written more than 10 pages per day. With the help of an  amazing team, I’ve kicked off 2011 &#8212; the year of hustling.</p>
<p>As I’ve said, most people get used to mediocrity. But my goal was to help you get more done in one WEEK than in all of 2010.</p>
<p>After  doing a 4-week course on this blog, I took tens of thousands of people  to a private one-week course via email. Then, I launched Earn1K 2.0, the  newest version of my course to help you earn money on the side.</p>
<p>Coming  up, I’ll be highlighting stories on hustling from the worlds of  careers, negotiation, travel, writing, salaries, and more.</p>
<p>But  in case you missed any of the material I published over the last few  weeks, here’s a quick guide to skip directly to what’s most relevant to  you.</p>
<h3>Week 1 – The invisible scripts of luck and success</h3>
<p>How to use automated scripts to live anywhere, quit your job, or get promoted.</p>
<ul>
<li><a href="http://www.iwillteachyoutoberich.com/blog/ace-tough-job-interviews/">How to ace the world’s toughest interviews</a></li>
<li><a href="http://www.iwillteachyoutoberich.com/blog/earn-money-case-studies-hustle-scripts/">3 Case Studies: Ordinary people using extraordinary scripts to hustle</a></li>
<li><a href="http://www.iwillteachyoutoberich.com/blog/noah-kagan-earning-more-master-class/">How Noah Kagan turned a single cab ride into a $250,000+ payday</a></li>
<li><a href="http://www.iwillteachyoutoberich.com/blog/recap-of-week-1-automating-successful-scripts/">Recap of week 1: Automating successful scripts</a></li>
</ul>
<h3>Week 2 – Psychological techniques to dominate</h3>
<p>How  to hack your psychology using concepts from the worlds of social  influence and persuasion to earn $1,000 on the side, network with top  performers, and predict your future success.</p>
<ul>
<li><a href="http://www.iwillteachyoutoberich.com/blog/testing-optimization-bars/">How to test responses at bars</a></li>
<li><a href="http://www.iwillteachyoutoberich.com/blog/persuasive-techniques/">5 fascinating experiments from the world of psychology and persuasion</a></li>
<li><a href="http://www.iwillteachyoutoberich.com/blog/psychology-persuasion-case-studies/">Case studies: The psychology of penetrating their mind</a></li>
<li><a href="http://www.iwillteachyoutoberich.com/blog/bj-fogg-interview-persuasion-psychology/">The master of persuasion: Interview with BJ Fogg</a></li>
</ul>
<h3>Week 3 – Negotiating your big breaks</h3>
<p>I’ll  ready-to-use scripts and case studies to negotiate a raise, land  meetings with top executives, and convince people to pay you for your  valuable services.</p>
<ul>
<li><a href="http://www.iwillteachyoutoberich.com/blog/negotiate-salary-examples/">How to negotiate better than 99% of people</a></li>
<li><a href="http://www.iwillteachyoutoberich.com/blog/earn1k-free-information/">Why am I giving away all this information?</a></li>
<li><a href="http://www.iwillteachyoutoberich.com/blog/networking-case-study/">How a random Twitter follower got $20,000 of my time — free</a></li>
<li><a href="http://www.iwillteachyoutoberich.com/blog/derek-sivers-the-22-million-dollar-man/">The $22 Million-Dollar Man</a></li>
<li><a href="http://www.iwillteachyoutoberich.com/blog/pickup-artist-interview-pua/">My interview with a pickup artist</a></li>
</ul>
<h3>Week 4 – How to be awesome</h3>
<p>There  are fundamental differences between people who win and people who  dream. I’ll show you how to create multiple income streams, get more job  offers than you can handle, or quit your job to work for yourself.</p>
<ul>
<li><a href="http://www.iwillteachyoutoberich.com/blog/how-to-stand-out/">Examples from the field: How to stand out</a></li>
<li><a href="http://www.iwillteachyoutoberich.com/blog/tim-ferriss-interview-testing/">Tim Ferriss Master Class: The psychology of testing</a></li>
<li><a href="http://www.iwillteachyoutoberich.com/blog/getting-paid-to-hustle/">Case studies: Getting paid to hustle</a></li>
<li><a href="http://www.iwillteachyoutoberich.com/blog/mba-earn-more-money/">The 1-week MBA on earning more money</a></li>
</ul>
<p>Talk to you soon (after caffeine withdrawal).</p>
<p>Oh  yeah &#8212; one more thing. The winner of airfare to SXSW and 3 tickets to a  sold-out party — or 30 minutes of strategy discussion with me is  Audrey, who used hustling techniques to negotiate a $3,000 raise, which  takes her total raise to $13,000 more than she was making.</p>
<p>Terrific job.  Enjoy SXSW and an the Mixergy party on me.</p>
<blockquote><p>“So  I set up FOUR practice interviews. (which doesn’t sound like much, but  everyone I talked to was impressed with the effort I put forth) The  first was just with a friend. The second a friend who is in the HR  business. Then another two, one each week before my actual interview  with the career center at my alma mater. Found out that my second  interview at the career center was with someone who had worked at the  company I was interviewing, and she gave me terrific tips!</p>
<p>Well,  it paid off because I just got the call that they’re extending me an  offer! Considering how much extra I’ll get paid at this new job (at  LEAST $15K more per year based on the minimum range I was quoted in the  interview- I was asked my salary, but turned it around to ask what they  were looking to offer) It was definitely worth the extra time! (4 hours  for the practice interviews and probably another hour or two of  preparing for the practice interviews. 6 hours total, max) Yay  disproportionate results!</p>
<p>Just  as a follow up, I managed to negotiate a $3000 pay raise over the  initial offer they quoted! (they ended up hiring me for a different  position which pays less, but it’s still $13,000 more than I make now,  with the potential to move up in 9-12 months. Yes, I got that in  writing!)”</p></blockquote>
<p><!--
<div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;">
<p><strong>Join the free 30-day course to hustle your way to the top</strong></p>
<p>Here&#8217;s a sample of what I&#8217;ll be sending out:</p>
<p>- A invite to my private webcast with Tim Ferriss &#8211; where you&#8217;ll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. <br/><br />
- A full recording of my private webcast with Tim Ferriss &#8211; in case you can&#8217;t make it&#8230;<br/><br />
- Earn1 Bonus Case Study &#8211; Unlocking side income: From $0 to $1,500/month in 2 weeks</p>
<p><a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&#038;utm_medium=feed&#038;utm_campaign=earn1k-rss-ad&#038;utm_content=rss-footer">Become a top performer now</a></p>
</div>
<p>&#8211;></p>
<p><!-- <a href="http://www.iwillteachyoutoberich.com/blog/hustling-your-way-to-success/">Recap: The 30-day course on hustling your way to success</a> is a post from: <a href="http://www.iwillteachyoutoberich.com">I Will Teach You To Be Rich</a>&#8211;></p>
<img src="http://www.iwillteachyoutoberich.com/?ak_action=api_record_view&id=7294&type=feed" alt="" />]]></content:encoded>
			<wfw:commentRss>http://www.iwillteachyoutoberich.com/blog/hustling-your-way-to-success/feed/</wfw:commentRss>
		<slash:comments>16</slash:comments>
		</item>
		<item>
		<title>The $22 Million-Dollar Man</title>
		<link>http://www.iwillteachyoutoberich.com/blog/derek-sivers-the-22-million-dollar-man/</link>
		<comments>http://www.iwillteachyoutoberich.com/blog/derek-sivers-the-22-million-dollar-man/#comments</comments>
		<pubDate>Thu, 27 Jan 2011 17:19:17 +0000</pubDate>
		<dc:creator>Ramit Sethi</dc:creator>
				<category><![CDATA[Case studies]]></category>
		<category><![CDATA[Earning more]]></category>
		<category><![CDATA[How to negotiate]]></category>
		<category><![CDATA[Hustling]]></category>
		<category><![CDATA[Investor psychology]]></category>
		<category><![CDATA[Negotiation]]></category>
		<category><![CDATA[Popular Posts]]></category>
		<category><![CDATA[Psychology of Money]]></category>
		<category><![CDATA[Rants about dumb people]]></category>
		<guid isPermaLink="false">http://www.iwillteachyoutoberich.com/?p=7236</guid>
		<description><![CDATA[In this week’s challenge of my 30-day hustling course, I asked you to negotiate one thing before Wednesday night.  We got some interesting results&#8230; &#8230;because hardly anyone even tried it! Compare that to week 1, I asked you to identify one positive script and automate it into your life. I got over 300 terrific comments. [...]<p><!--<div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;">
<p><strong>Join the free 30-day course to hustle your way to the top</strong></p>
<p>Here's a sample of what I'll be sending out:</p>
<p>- A invite to my private webcast with Tim Ferriss - where you'll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. <br/>
- A full recording of my private webcast with Tim Ferriss - in case you can't make it...<br/>
- Earn1 Bonus Case Study - Unlocking side income: From $0 to $1,500/month in 2 weeks</p>
<p><a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&utm_medium=feed&utm_campaign=earn1k-rss-ad&utm_content=rss-footer">Become a top performer now</a></p>
</div>-->
<!-- <a href="http://www.iwillteachyoutoberich.com/blog/derek-sivers-the-22-million-dollar-man/">The $22 Million-Dollar Man</a> is a post from: <a href="http://www.iwillteachyoutoberich.com">I Will Teach You To Be Rich</a>--></p>
]]></description>
			<content:encoded><![CDATA[</p>
<p id="internal-source-marker_0.5155569866900284">In this week’s challenge of my 30-day hustling course, I asked you to negotiate one thing before Wednesday night.  We got some interesting results&#8230;</p>
<p>&#8230;because hardly anyone even tried it!</p>
<p>Compare that to week 1, I asked you to identify one positive script and automate it into your life. I got<a href="../blog/ace-tough-job-interviews/#comments"> over 300 terrific comments</a>.</p>
<p>Why? Because it’s easy, you can sit safely in your house, write down a script, and find a way to automate it.</p>
<p>In week 2, I showed you the powerful strategy of taking people out to coffee and asked you to do it within 48 hours. <a href="../blog/testing-optimization-bars/#comments">Over 200 people</a> shared their stories about taking people out to lunch/coffee &#8212; with some incredible results on the spot.</p>
<p>Still,  like an Asian mother, I’m never satisfied. From 300 to 200 is a  considerable drop &#8212; because it’s easy to sit in your room and be an  internet warrior, but it actually takes effort to GET OUT OF YOUR ROOM  and negotiate something.</p>
<p>This week, when I asked you to negotiate something, there were <a href="../blog/negotiate-salary-examples/#comments">less than 100 comments</a>.</p>
<p>Keep in mind that over 100,000 people read this post.</p>
<p>Which leads me to the overall point this week.</p>
<h3>The 1 tool every good negotiator needs to dominate</h3>
<p>&#8230;is experience.</p>
<p>I  can show you every negotiation tool known to mankind and analyze script  after script &#8212; but the only thing that’s going to help you get what  you want, is <strong>actually doing it</strong>.</p>
<p>This is the same as parenting or having a relationship partner (I&#8217;m not being more specific than that since my mom reads this blog.)</p>
<p>It’s  comforting to sit back and read my negotiation scripts. It’s fun to  watch me do role-play negotiations on camera. You feel like you&#8217;re learning.</p>
<p>But until you test it in the real world, it&#8217;s pointless. As Mike Tyson said, &#8220;Everybody has a plan until they get punched in the mouth.&#8221;</p>
<p>In fact, there’s something different about the small number of people I help with  negotiation coaching &#8212; people who average $10,000 when they negotiate  for a new job, and over $5,000 when negotiating for a raise.</p>
<p>The difference is that they take what I teach them&#8230;and apply it.</p>
<p>That’s  why my challenge this week was so simple: Just try negotiating. Do it  over the phone. Do it in person at your farmers’ market. Learn to  practice it as something you do in your life &#8212; a mindset &#8211; not just  something you do once a year at your performance review.</p>
<p>Script it out, define what you’re looking to achieve, and give it a shot. You will fail &#8212; but you know to use <a href="../blog/turn-failure-to-domination-stanford-admission/">Failure Expectation</a> to expect and plan for it.</p>
<p>Like  the winner this week, Alex, who negotiated 2 days/week of working from  home so he can spend more time with his wife and 1-year-old daughter. I included my notes, too.</p>
<p><strong>Alex’s winning negotiation script to work from home 2 days per week:</strong></p>
<blockquote><p>WEEK 3 RESULTS</p>
<p>“<strong>The  short story – today I negotiated a work-from-home arrangement for 2  days per week from my full-time job, with no end date. My commute is 3  hours roundtrip per day, so this saves me 6 hours per week, which I can  now spend with my wife and 1yr old daughter.</strong> Totally liberating, although it still hasn’t really hit me. Thanks to  Ramit for the tips which helped me succeed at this. (and also to Tim  Ferriss, I re-read the script in ‘Disappearing Act’ of 4HWW too)</p>
<p>The details –<br />
I  work at a large TBTF bank, managing a team of software developers. It’s  review season, and I got my annual compensation communication last  week, but by phone since I was on vacation. I was disappointed with the  compensation (2% increase total from last year, despite ranking pretty  well at 4 of 5). My goal: negotiate an increase in my “total  compensation”. By the way, I know from research that I make a fair  amount more than others in similar jobs, and my job is kinda cool, so  I’m not really ready to run out the door.</p>
<p>[<strong>RAMIT’S NOTE: </strong>Notice the amount of preparation Alex has put into his negotiation and  the specificity of his goal. 85% of the work is done before you ever  step foot in a room to interview or negotiate.]</p>
<p>Script -<br />
Me:  As I mentioned last week, I’m disappointed in my compensation this  year, considering I performed well, and the bank did fairly well. [went  through percentages last year, this year]. It would be one thing if I  underperformed, but what really bothers me is the disconnect between  performance and pay.<br />
Boss: [checked my percentages, generally nodded, explained about bank performance and 'the way it works']<br />
Me:  This disconnect has really made my start to dislike my job. I felt this  way last year, and hoped it would get better, but it hasn’t.</p>
<p>[<strong>RAMIT’S NOTE: </strong>He’s expressing disappointment, not anger, and leading the conversation  where he wants it to go. Predictably, the boss responds with a...]</p>
<p>Boss [look of concern]<br />
Me:  HOWEVER, I also understand your predicament. You have a lot of great  performers which you’d like to pay well, but you are at the mercy of  pre-determined money pools, and a company whose overall performance is  out of your control, at the whim of markets and economies.<br />
Boss [profuse nodding, almost smiling]</p>
<p>[<strong>RAMIT’S NOTE: </strong>What Alex just did was extremely sophisticated. He expressed  disappointment, then re-framed the conversation to empathize with the  boss’s situation. Notice how deeply he gets in his boss’s head -- he’s  literally using the eaxct words his boss would use to describe his  corporate shackles. When you are deeply in someone else’s head, you will  see them irresistibly respond with nods, words like “EXACTLY,” and so  on. And you are being ethical as you are simply describing their own  situation, perhaps better than they could even articulate it. Alex is  doing a masterful job.]</p>
<p>Me: So I’ve been thinking of ways out of this stalemate which don’t involve me leaving the company.<br />
Boss: Oh well that is good, what are you thinking</p>
<p>[<strong>RAMIT’S NOTE: </strong>This is the turning point in the conversation: The boss just  essentially invited Alex to write his own ticket. But notice that it  took weeks of thinking and planning to get to this point.]</p>
<p>Me:  I’d like to propose working from home a few days a week on a regular  basis. I am much more productive working from home, and the saved  commute time would allow me to put in more hours without sacrificing  work-life-balance. I could increase my performance, and also be happier  with less commute, so it’s win-win. Of course I’d be in the office for  meetings requiring my physical presence, and always available on cell.<br />
Boss: Well that sounds ok, you don’t have to sell it to me. But how many days were you thinking?</p>
<p>[<strong>RAMIT’S NOTE:</strong> “You don’t have to sell it to me.” That’s because he already  successfully sold it with his research, top performance, and  understanding of the situation. Negotiations don’t have to be a hard  sell, which is precisely what Alex is demonstrating. The boss actually  WANTS to give Alex his demands!]</p>
<p>Me: 3 days per week<br />
Boss: That sounds like a little much, I’d feel much better about 2 days, which is less than half the time.<br />
Me: Ok I think I can do 2 days.</p>
<p>[<strong>RAMIT’S NOTE</strong>: Classic <a href="http://en.wikipedia.org/wiki/Door-in-the-face_technique">door-in-the-face technique</a>.]</p>
<p>Boss: Ok good, let’s talk some more about your compensation numbers<br />
Me: [blah blah not listening, huge grin on INSIDE, I can't believe he went for it]</p>
<p>Tactics I used:<br />
- Reviewed scripts of other similar situations, and picked key words to reuse<br />
- Wrote out a loose script in advance<br />
- Decided increasing pay was a non-starter at this point, so went for something else (tele-commuting)<br />
- Decided 2 days would be great, so asked for 3 so I had something to give back<br />
-  Decided NOT to use the phrase “on a trial basis” on my wife’s  recommendation, but instead keep it in my pocket. this was a good idea  since I didn’t need it.<br />
- Made a soft threat to quit to make the alternative seem less severe<br />
- Showed I understand his side, and played to his desire to have happy employees and compensate them<br />
- Practiced! I found a conference room 1 hour before to write my script and said it a few times out loud<br />
-  Timeboxing – I didn’t have a lot of time to work on this – total prep  was 2 hours (15 mins at home night before, 45 mins on bus reading 4HWW  &amp; this post, 1 hour at office writing script &amp; practicing). This  made me focus, especially in that final hour</p>
<p>Results, and why it’s good –<br />
–  even though it wasn’t dollars, 6 hours of my life back is worth a lot.  also gives lots of flexibility to shift hours around. I increased my  total compensation. actually it saves me $30 on commute per week also<br />
-  while I worked from home 2-3 times per month previously, a regular  arrangement is unheard of, and 2 days/wk is absolutely crazy. Can’t  believe I didn’t ask earlier.”</p></blockquote>
<p>A superb job by Alex. See the [RAMIT’S NOTES] to see behind the obvious and to analyze what’s really going on.</p>
<p>Congratulations,  Alex. My assistant will be contacting you to send you either $200 of  negotiation books or a 15-minute call with me to strategize your next  negotiation.</p>
<p>What  you’ll notice is that Alex has internalized a negotiation mindset. It’s  not just a series of unrelated tactics for him, but part of a holistic  mindset of negotiation as a lifestyle.</p>
<p>To get that mindset,  let’s go deeper.</p>
<h3>The $22 Million-Dollar Man</h3>
<p>I have a treat for you.</p>
<p><a rel="attachment wp-att-7237" href="http://www.iwillteachyoutoberich.com/blog/derek-sivers-the-22-million-dollar-man/dereksivers-250x250/"><img class="alignnone size-full wp-image-7237" title="DerekSivers-250x250" src="http://iwt.wpengine.netdna-cdn.com/wp-content/uploads/2011/01/DerekSivers-250x250.jpg" alt="" width="175" height="175" /></a></p>
<p>This is my friend Derek Sivers, who runs one of the best <a href="http://sivers.org/blog">blogs</a> online. He founded CD Baby, the largest seller of independent music on  the Web, drove it over $100 million in sales, automated himself out of  day-to-day operations, and then sold it to focus on helping musicians.</p>
<p>I  asked him to join me on a call to share his best techniques in areas  like business, motivation, accelerated learning, marketing, and finding  your passion. My favorite part is how he combines WHAT he did with WHY.</p>
<p>It was a fascinating call: <strong>The $22 Million-Dollar Man: The Psychology of Disproportionate Results.</strong></p>
<p>You  don’t meet deep thinkers like Derek outside of academia much. And I  carefully crafted our call to get Derek’s best stories for you.</p>
<p>You’ll learn:</p>
<ul>
<li>How he “accidentally” started a company&#8230;then automated himself out of the way</li>
<li>When he knew it was time to go</li>
<li>How much he sold his company for &#8212; and what he did with the money</li>
<li>The $100,000 principle that leads to a rich life</li>
<li>What he spends lots of money on&#8230;and waht he doesn’t care about</li>
<li>Disproportionate results: The key lesson he learned to graduate college in only 2 years</li>
<li>Disproportionate results: How he toured with a top musician</li>
<li>Using the Initiative Principle to stand out from others</li>
<li>How to become really smart in one area in 10-15 hours of focused work</li>
<li>How to find your passion</li>
<li>High-value vs. low-value activities</li>
</ul>
<p>I’ve put together the full 1-hour recording for you, along with a transcript.</p>
<p>This is free to readers of “I Will Teach You To Be Rich” — but if you find it useful, all I ask is two things.</p>
<p><strong>1. Treat this recording like something you spent $1,000 on. </strong> Use it. Implement it. Don’t just listen to it and then move on with  your life. It’s rare that you ge the opportunity to hear in-depth  interviews with people who have achieved success &#8212; when they’re brutally honest about what works and what doesn’t.</p>
<p><strong>2. Share it with 3 friends who want to improve themselves.</strong> Every one of us has friends who say, “I just haven’t found my passion  yet!” This is the perfect answer for them, but they’ll have to invest  something. In this case, it’s not money, but 1 hour of their time. If  they’re serious about changing, they will. If they’re not &#8212; if they  just want to complain but do nothing &#8212; they won’t. But at least give  them the opportunity.</p>
<p>You can get the recording of Derek Sivers and me, Ramit Sethi, here:<br />
<center><script type="text/javascript" src="http://forms.aweber.com/form/42/1446214042.js"></script></center></p>
<p id="internal-source-marker_0.5155569866900284" style="text-align: center;">(Can’t see the form?<a href="http://www.iwillteachyoutoberich.com/hustle/week3/"> Click here to sign up</a>.)</p>
<p><!--
<div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;">
<p><strong>Join the free 30-day course to hustle your way to the top</strong></p>
<p>Here&#8217;s a sample of what I&#8217;ll be sending out:</p>
<p>- A invite to my private webcast with Tim Ferriss &#8211; where you&#8217;ll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. <br/><br />
- A full recording of my private webcast with Tim Ferriss &#8211; in case you can&#8217;t make it&#8230;<br/><br />
- Earn1 Bonus Case Study &#8211; Unlocking side income: From $0 to $1,500/month in 2 weeks</p>
<p><a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&#038;utm_medium=feed&#038;utm_campaign=earn1k-rss-ad&#038;utm_content=rss-footer">Become a top performer now</a></p>
</div>
<p>&#8211;></p>
<p><!-- <a href="http://www.iwillteachyoutoberich.com/blog/derek-sivers-the-22-million-dollar-man/">The $22 Million-Dollar Man</a> is a post from: <a href="http://www.iwillteachyoutoberich.com">I Will Teach You To Be Rich</a>&#8211;></p>
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		<item>
		<title>The master of persuasion: Interview with BJ Fogg</title>
		<link>http://www.iwillteachyoutoberich.com/blog/bj-fogg-interview-persuasion-psychology/</link>
		<comments>http://www.iwillteachyoutoberich.com/blog/bj-fogg-interview-persuasion-psychology/#comments</comments>
		<pubDate>Fri, 21 Jan 2011 18:49:33 +0000</pubDate>
		<dc:creator>Ramit Sethi</dc:creator>
				<category><![CDATA[Case studies]]></category>
		<category><![CDATA[Earning more]]></category>
		<category><![CDATA[How to negotiate]]></category>
		<category><![CDATA[Hustling]]></category>
		<category><![CDATA[Investor psychology]]></category>
		<category><![CDATA[Personal entrepreneurship]]></category>
		<category><![CDATA[Popular Posts]]></category>
		<category><![CDATA[Productivity]]></category>
		<category><![CDATA[Psychology of Money]]></category>
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		<description><![CDATA[How do you use persuasion to change others’ behavior &#8212; or your own? 2 days ago, I held a live Q&#38;A with my mentor, Stanford psychologist BJ Fogg. He’s the father of the field of Captology &#8212; Computers As Persuasive Technologies &#8212; and he taught me most of what I learned in psychology and persuasion [...]<p><!--<div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;">
<p><strong>Join the free 30-day course to hustle your way to the top</strong></p>
<p>Here's a sample of what I'll be sending out:</p>
<p>- A invite to my private webcast with Tim Ferriss - where you'll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. <br/>
- A full recording of my private webcast with Tim Ferriss - in case you can't make it...<br/>
- Earn1 Bonus Case Study - Unlocking side income: From $0 to $1,500/month in 2 weeks</p>
<p><a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&utm_medium=feed&utm_campaign=earn1k-rss-ad&utm_content=rss-footer">Become a top performer now</a></p>
</div>-->
<!-- <a href="http://www.iwillteachyoutoberich.com/blog/bj-fogg-interview-persuasion-psychology/">The master of persuasion: Interview with BJ Fogg</a> is a post from: <a href="http://www.iwillteachyoutoberich.com">I Will Teach You To Be Rich</a>--></p>
]]></description>
			<content:encoded><![CDATA[</p>
<p><img class="aligncenter size-full wp-image-7215" title="Newsboy" src="http://iwt.wpengine.netdna-cdn.com/wp-content/uploads/2011/01/Newsboy.png" alt="" width="426" height="283" /></p>
<p style="text-align: center;"><small>How do you use <strong>persuasion</strong> to change others’ behavior &#8212; or your own?</small></p>
<p>2 days ago, I held a live Q&amp;A with my mentor, Stanford psychologist <a href="http://www.bjfogg.com">BJ Fogg</a>. He’s the father of the field of <a href="http://captology.stanford.edu">Captology</a> &#8212; Computers As Persuasive Technologies &#8212; and he taught me most of what I learned in psychology and persuasion early on.</p>
<p>It was a fascinating call.</p>
<p><strong>We covered material on:</strong></p>
<ul>
<li>Classic psychology studies on behavioral change and persuasion</li>
<li>Theoretical concepts from academia as well as applied techniques we’ve developed &#8212; and tested &#8212; ourselves</li>
<li>Rich examples of how humans behave irrationally &#8212; and how to use this to ethically influence others</li>
<li>Using persuasion techniques to get a dream job</li>
<li>Live Q&amp;A with readers on how to motivate themselves, how to stay focused on an idea, our favorite psychology books, and more</li>
</ul>
<p>My new technology system limited the number of concurrent listeners to 1,001, and we had 1,001 the entire time.</p>
<p>I thought I’d share some of the comments from people who attended:</p>
<p>&nbsp;</p>
<div class="bbpBox27927193585717250">
<p class="bbpTweet">@<a class="tweet-url username" href="http://twitter.com/ramit" rel="nofollow">ramit</a> I got more out of BJ&#8217;s answer to my decision paralysis question than in years&#8217; worth of literature I&#8217;ve read. thank you so much<span class="timestamp"><a title="Thu Jan 20 03:15:36 +0000 2011" href="http://twitter.com/dannylamas/statuses/27927193585717248">less than a minute ago</a> via web</span><span class="metadata"><span class="author"><a href="http://twitter.com/DannyLamas"><img src="http://a2.twimg.com/profile_images/1105724426/mypictr_120x120__1__normal.jpg" alt="" /></a><strong><a href="http://twitter.com/DannyLamas">Danny Lamas</a></strong><br />
DannyLamas</span></span></p>
</div>
<p>&nbsp;</p>
<p>&nbsp;</p>
<div class="bbpBox27925768348639230">
<p class="bbpTweet">thx @<a class="tweet-url username" href="http://twitter.com/ramit" rel="nofollow">ramit</a> + @<a class="tweet-url username" href="http://twitter.com/bjfogg" rel="nofollow">bjfogg</a> for webinar. Amazing scientific insights on getting foot in door, becoming an expert, persuasion &amp; behavior change.<span class="timestamp"><a title="Thu Jan 20 03:09:56 +0000 2011" href="http://twitter.com/Ericanista/statuses/27925768348639232">less than a minute ago</a> via web</span><span class="metadata"><span class="author"><a href="http://twitter.com/Ericanista"><img src="http://a1.twimg.com/profile_images/1093549896/profile2_normal.jpg" alt="" /></a><strong><a href="http://twitter.com/Ericanista">Erica Oh Martinetti</a></strong><br />
Ericanista</span></span></p>
</div>
<p>&nbsp;</p>
<p>&nbsp;</p>
<div class="bbpBox27926060943278080">
<p class="bbpTweet">@<a class="tweet-url username" href="http://twitter.com/ramit" rel="nofollow">ramit</a> thanks for the awesome webinar. That was the best 1hr I invested in my life.<span class="timestamp"><a title="Thu Jan 20 03:11:06 +0000 2011" href="http://twitter.com/trakmotn/statuses/27926060943278081">less than a minute ago</a> via <a href="http://twitter.com/" rel="nofollow">Twitter for iPhone</a></span><span class="metadata"><span class="author"><a href="http://twitter.com/trakmotn"><img src="http://a1.twimg.com/profile_images/901504836/b_icon_normal.jpg" alt="" /></a><strong><a href="http://twitter.com/trakmotn">Ben</a></strong><br />
trakmotn</span></span></p>
</div>
<p>&nbsp;</p>
<p>&nbsp;</p>
<div class="bbpBox27919685206933504">
<p class="bbpTweet">@<a class="tweet-url username" href="http://twitter.com/ramit" rel="nofollow">ramit</a> @<a class="tweet-url username" href="http://twitter.com/bjfogg" rel="nofollow">bjfogg</a> Loving the webinar guys. Really enabling. I&#8217;ve already written down (and acted upon) my steps for achieving my long term goal<span class="timestamp"><a title="Thu Jan 20 02:45:46 +0000 2011" href="http://twitter.com/janyasor/statuses/27919685206933505">less than a minute ago</a> via web</span><span class="metadata"><span class="author"><a href="http://twitter.com/janyasor"><img src="http://a3.twimg.com/profile_images/327466164/303864e02cef7998dda2f9a1997bc913_normal.jpeg" alt="" /></a><strong><a href="http://twitter.com/janyasor">John Anyasor</a></strong><br />
janyasor</span></span></p>
</div>
<p>&nbsp;</p>
<p>&nbsp;</p>
<div class="bbpBox27919503287386110">
<p class="bbpTweet">@<a class="tweet-url username" href="http://twitter.com/ramit" rel="nofollow">ramit</a> The interview with @<a class="tweet-url username" href="http://twitter.com/bjfogg" rel="nofollow">bjfogg</a> is amazing. It is highly practical. Thanks<span class="timestamp"><a title="Thu Jan 20 02:45:02 +0000 2011" href="http://twitter.com/thisisananth/statuses/27919503287386112">less than a minute ago</a> via web</span><span class="metadata"><span class="author"><a href="http://twitter.com/thisisananth"><img src="http://a0.twimg.com/profile_images/129973884/twitpic_normal.jpg" alt="" /></a><strong><a href="http://twitter.com/thisisananth">Ananth Majumdar</a></strong><br />
thisisananth</span></span></p>
</div>
<p>&nbsp;</p>
<p>&nbsp;</p>
<div class="bbpBox27912332025790464">
<p class="bbpTweet">Really digging the foot-in-the-door persuasion effect in this @<a class="tweet-url username" href="http://twitter.com/Ramit" rel="nofollow">Ramit</a> Sethi / @<a class="tweet-url username" href="http://twitter.com/BJFogg" rel="nofollow">BJFogg</a> webinar.<span class="timestamp"><a title="Thu Jan 20 02:16:33 +0000 2011" href="http://twitter.com/lilennox/statuses/27912332025790464">less than a minute ago</a> via <a href="http://www.echofon.com/" rel="nofollow">Echofon</a></span><span class="metadata"><span class="author"><a href="http://twitter.com/lilennox"><img src="http://a3.twimg.com/profile_images/1206997200/twitter_normal.jpg" alt="" /></a><strong><a href="http://twitter.com/lilennox">Lindsay Lennox</a></strong><br />
lilennox</span></span></p>
</div>
<p><!-- end of tweet --><br />
<!-- http://twitter.com/BradleyCW/statuses/28115774656741377 --></p>
<div class="bbpBox28115774656741376">
<p class="bbpTweet">@<a class="tweet-url username" href="http://twitter.com/bjfogg" rel="nofollow">bjfogg</a> &amp; @<a class="tweet-url username" href="http://twitter.com/ramit" rel="nofollow">ramit</a> &#8211; thank you for last night&#8217;s webinar. Fascinating stuff I&#8217;ve already been able to apply.<span class="timestamp"><a title="Thu Jan 20 15:44:57 +0000 2011" href="http://twitter.com/BradleyCW/statuses/28115774656741377">less than a minute ago</a> via web</span><span class="metadata"><span class="author"><a href="http://twitter.com/BradleyCW"><img src="http://a3.twimg.com/profile_images/1100652826/breakfast_brad_Twitter_normal.jpg" alt="" /></a><strong><a href="http://twitter.com/BradleyCW">Brad Wilson</a></strong><br />
BradleyCW</span></span></p>
</div>
<p>&nbsp;</p>
<p><strong>Here are some of the other areas we covered:</strong></p>
<ul>
<li>How a classic persuasion technique increased persuasion from 17% to 76%</li>
<li>How “self-persuasion” increased persuasion 3% to 32% &#8212; on a major behavior</li>
<li>The psychology of “baby steps”</li>
<li>Why “motivation” is overrated (ever say, “I just can’t get the motivation to work out / work on this project”?)</li>
<li>Using behavior to change attitude (read that again&#8230;it’s opposite of what most people think)</li>
<li>Why we’re certain we’d leave a dangerous smoke-filled room&#8230;but why a simple intervention reduced that number from 75% leaving the room&#8230;to only 10% (and how you can protect against negative social influence)</li>
<li>Why “educating others” with more information is overrated</li>
<li>Persuasive triggers that work better than information alone</li>
<li>BJ’s tip on having your clients fall in love with you</li>
<li>A killer technique when doing group presentations</li>
<li>What the best salespeople and extroverts have in common &#8212; and how to systematically study it and adopt it</li>
<li>The difference between deep academic studies and pop psychology (and the value in both)</li>
<li>Our respective favorite books on psychology, influence, and persuasion</li>
</ul>
<p>I’ve put together the full 1-hour recording for you, along with a transcript and recommended book list.</p>
<p>This is free to readers of “I Will Teach You To Be Rich” &#8212; but if you find it useful, as others have, all I ask is that you do two things.</p>
<p><strong>1. Treat it like something you spent $1,000 on.</strong> Use it. Implement it. Don’t just listen to it and then move on with your life. There are dozens of profoundly useful and applicable techniques that you can use to kickstart a project, get out of a rut, improve your health, <a href="http://www.iwillteachyoutoberich.com/earn-more-money/" target="_blank">make more money</a>, improve your relationships, excel at work, and challenge your beliefs about <a href="http://www.iwillteachyoutoberich.com/psychology-of-money/" target="_blank">behavioral change</a>.</p>
<p><strong>2. Tell 3 friends about it</strong>. Every one of your friends has an area of their lives where effective persuasion techniques could help them excel. I kept it free so you could spread the ideas that BJ and I talk about. In a profound way, you have the chance to help your friends accomplish more. What could be more powerful than that?</p>
<p>Again, I invested thousands of dollars and 16 hours of work to put this webcast together. And it’s yours free, because I know that by investing in you now, you’ll be back to invest in my work &#8212; whether my free material or my premium courses.</p>
<p>You can get the recording of BJ Fogg and me, Ramit Sethi, here:</p>
<p>&nbsp;</p>
<p style="text-align: center;">(Can’t see the above form? <a href="http://www.iwillteachyoutoberich.com/hustle/week2/">Click here to sign up</a>.)</p>
<p><!--
<div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;">
<p><strong>Join the free 30-day course to hustle your way to the top</strong></p>
<p>Here&#8217;s a sample of what I&#8217;ll be sending out:</p>
<p>- A invite to my private webcast with Tim Ferriss &#8211; where you&#8217;ll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. <br/><br />
- A full recording of my private webcast with Tim Ferriss &#8211; in case you can&#8217;t make it&#8230;<br/><br />
- Earn1 Bonus Case Study &#8211; Unlocking side income: From $0 to $1,500/month in 2 weeks</p>
<p><a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&#038;utm_medium=feed&#038;utm_campaign=earn1k-rss-ad&#038;utm_content=rss-footer">Become a top performer now</a></p>
</div>
<p>&#8211;></p>
<p><!-- <a href="http://www.iwillteachyoutoberich.com/blog/bj-fogg-interview-persuasion-psychology/">The master of persuasion: Interview with BJ Fogg</a> is a post from: <a href="http://www.iwillteachyoutoberich.com">I Will Teach You To Be Rich</a>&#8211;></p>
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		<title>Why personal-finance &#8220;experts&#8221; continue giving worthless advice</title>
		<link>http://www.iwillteachyoutoberich.com/blog/why-personal-finance-experts-continue-writing-worthless-advice/</link>
		<comments>http://www.iwillteachyoutoberich.com/blog/why-personal-finance-experts-continue-writing-worthless-advice/#comments</comments>
		<pubDate>Thu, 05 Aug 2010 15:54:10 +0000</pubDate>
		<dc:creator>Ramit Sethi</dc:creator>
				<category><![CDATA[Case studies]]></category>
		<category><![CDATA[Investor psychology]]></category>
		<category><![CDATA[Personal entrepreneurship]]></category>
		<category><![CDATA[Popular Posts]]></category>
		<category><![CDATA[Psychology of Money]]></category>
		<category><![CDATA[Rants about dumb people]]></category>
		<guid isPermaLink="false">http://www.iwillteachyoutoberich.com/?p=6119</guid>
		<description><![CDATA[Today, I&#8217;ll share a behavioral-change technique that&#8217;s helped me create a New York Times best-selling book, a blog that&#8217;s been read by millions of people, and a course on earning money that has helped my students earn hundreds of thousands of dollars on the side. In 1954, researchers Hastorf and Cantril published a seminal study [...]<p><!--<div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;">
<p><strong>Join the free 30-day course to hustle your way to the top</strong></p>
<p>Here's a sample of what I'll be sending out:</p>
<p>- A invite to my private webcast with Tim Ferriss - where you'll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. <br/>
- A full recording of my private webcast with Tim Ferriss - in case you can't make it...<br/>
- Earn1 Bonus Case Study - Unlocking side income: From $0 to $1,500/month in 2 weeks</p>
<p><a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&utm_medium=feed&utm_campaign=earn1k-rss-ad&utm_content=rss-footer">Become a top performer now</a></p>
</div>-->
<!-- <a href="http://www.iwillteachyoutoberich.com/blog/why-personal-finance-experts-continue-writing-worthless-advice/">Why personal-finance &#8220;experts&#8221; continue giving worthless advice</a> is a post from: <a href="http://www.iwillteachyoutoberich.com">I Will Teach You To Be Rich</a>--></p>
]]></description>
			<content:encoded><![CDATA[</p>
<p>Today, I&#8217;ll share a behavioral-change technique that&#8217;s helped me create a <a href="http://www.amazon.com/gp/product/0761147489?ie=UTF8&amp;tag=iwillteachyou-20&amp;linkCode=as2&amp;camp=1789&amp;creative=390957&amp;creativeASIN=0761147489">New York Times best-selling book</a>, a blog that&#8217;s been read by millions of people, and a course on <a href="http://earn1k.com/?utm_source=iwtytbr.com&amp;utm_medium=blogpost&amp;utm_content=worthlessadvice&amp;utm_campaign=Earn1k%2BGeneral">earning money</a> that has helped my students earn hundreds of thousands of dollars on the side.</p>
<p><img class="aligncenter size-full wp-image-6122" src="http://iwt.wpengine.netdna-cdn.com/wp-content/uploads/2010/08/iStock_000006395518XSmall.jpg" alt="" width="394" height="305" /></p>
<p>In 1954, researchers Hastorf and Cantril published a seminal study in The Journal of Abnormal Psychology called, &#8220;They Saw a Game: A Case Study.&#8221; What they discovered would change the way we look at rational behavior forever.</p>
<p>Yet decades later, much of that research has not trickled down to ordinary people &#8212; most notably &#8220;experts&#8221; in various fields, including personal finance. We continue to ignore the lessons in Hastorf and Cantril&#8217;s study. Why? Because it challenges our worldviews about perception, psychology, and behavioral change.</p>
<p><strong>For example, nobody ever wakes up, stretches, clears their eyes, and says, &#8220;TODAY I REALLY WANT TO GET FINANCIALLY LITERATE!!&#8221;</strong></p>
<p>It just doesn&#8217;t happen. Nobody wants to be financially literate&#8230;they want to be rich. Nobody wants to learn about stocks and bonds&#8230;they just want their money to be doing the right things, automatically. (Just like nobody wants to go to the gym&#8230;they just want to lose weight.)</p>
<p>Yet virtually every college course on personal finance is pedantically called &#8220;Financial Literacy 101&#8243; or &#8220;Managing Expenses&#8221; &#8212; yes, the things we &#8220;should&#8221; do, but the last thing anyone <em>actually wants</em> to do. Witness how most personal-finance books treat people as robotic automatons whose only goal is to consume structured information on stocks, bonds, insurance, annuities, and other pointless encyclopedic topics.</p>
<p>Today, I want to show you something I&#8217;ve learned over the last 10 years of writing this blog and systematically developing my skills in behavioral change. This will change the way you view personal finance &#8212; and changing others&#8217; behavior &#8212; forever.</p>
<h3>What do people want to do with their money?</h3>
<p>Last week, I asked what was wrong with this page in the Wall Street Journal.</p>
<p>&nbsp;</p>
<p><img class="aligncenter size-full wp-image-5980" title="Personal Finance How-To Guide - Wall Street Journal" src="http://iwt.wpengine.netdna-cdn.com/wp-content/uploads/2010/07/Personal-Finance-How-To-Guide-Wall-Street-Journal.png" alt="" width="491" height="1152" /></p>
<p>The <a href="http://www.iwillteachyoutoberich.com/blog/can-anyone-spot-whats-wrong-with-this/">100+ responses</a> were terrific:</p>
<blockquote><p>It seems overly complex and could cause analysis paralysis. Reader thinks ‘it’s all too much effort’</p>
<p>The reporters and columnists are telling me ‘how-to’ do all this stuff, when I don’t know ‘why-to’ do it.</p>
<p>I feel overwhelmed just looking at that page! A ton of acronyms and frankly, gibberish to most people. But I feel like the most important part they overlook is that money is really about emotions. There are no emotions on that page.</p>
<p>&#8230;the essential problem is that it isn’t going to reach anyone&#8230;few of your fellow undergrads would show up to your personal finance classes because they didn’t think they needed the help or didn’t want to admit that they did.</p></blockquote>
<p>What&#8217;s going on here?</p>
<p>To understand, let&#8217;s go back to the 1950s&#8230;to a psychology experiment on, of all things, football.</p>
<h3>The Hastorf &amp; Cantril study: How Ivy League football explains personal finance failures</h3>
<p>In the famous study, the two researchers analyzed a 1951 football game between the Dartmouth Indians and Princeton Tigers. The game was unusually rough, with the Princeton quarterback being injured so badly that he had to leave the game.<br />
One week later, researchers questioned students who had attended the game to understand their perception of what had happened. Who played dirtier? Who was responsible for the fouls and injuries?</p>
<p>When asked, &#8220;Do you believe the game was clean and fairly played or that it was unnecessarily rough and dirty?&#8221; a staggering 93% of Princeton students responded &#8220;Rough and dirty,&#8221; while only 42% of Dartmouth students agreed.</p>
<p>When asked, &#8220;Which team do you feel started the rough play?&#8221; 86% of Princeton students surveyed responded that Dartmouth had. Only 36% of Dartmouth students blamed their own team.</p>
<p>In a clever twist, the researchers then asked students to watch a film of the game and report how many infractions were made. <strong>Both groups watched the same game on video, but Princeton students reported twice as many infractions as Dartmouth students did.</strong></p>
<p>These students watched the objectively same game, yet had astonishingly different perceptions of what &#8220;actually&#8221; happened.</p>
<p>Please read that last sentence carefully. You&#8217;ll notice that I wrote they <em>perceived</em> the game.</p>
<p>That is indeed what happened. Even though they physically &#8220;watched&#8221; the very same game, each set of students &#8212; Dartmouth and Princeton students &#8212; were unconsciously affected by their group membership and beliefs. Despite what we think, we do not objectively see what happens around us. You and I could be watching a clown walk across the street, and we would perceive two VERY different things. Our perceptions are colored by a variety of factors, including our beliefs, history, group membership, culture, and more.</p>
<p>That might seem obvious. But now think about politics, the most fertile ground for misunderstood perceptions. Most people believe they are rational and know what&#8217;s &#8220;really&#8221; going on. Obama is a socialist! You&#8217;re a crackpot Tea Partier! But have you ever considered that the other side has a legitimate reason to believe what they believe?  Again, if you put two people in front of the <strong>same</strong> situation, they will perceive it very differently. One is not right or wrong or smart or dumb &#8212; to him, his perceptions are true and indeed, very <em>real</em>. But they are nonetheless surprisingly discrepant from someone else&#8217;s views of the identical situation. (<a href="http://delicious.com/ramitsethi/political-marketing">Read more about political marketing</a>.)</p>
<p>No matter how simple or clear-cut or objective we think a situation is &#8212; whether a simple football game or a complex political belief &#8212; the person next to us is likely seeing it totally differently.</p>
<h3>What does this mean for personal finance?</h3>
<p>It means that experts in personal finance  have gotten fat and intellectually lazy by writing bullshit like, &#8220;The 7 types of bonds.&#8221; <strong>In general, facts do not change behavior.</strong> Nobody cares about &#8220;objective&#8221; advice that&#8217;s not tailored to them.</p>
<p>But it&#8217;s easy to write a post on &#8220;the 7 types of investments you should hold&#8221; and call it a day, isn&#8217;t it?</p>
<p>Imagine a regular person clicking around and ending up on The Wall Street Journal, or Smart Money, or even this blog. Most &#8220;experts&#8221; think, &#8220;Well, he&#8217;s here. He needs to understand how stocks and bonds work and how they fit into his portfolio!&#8221;</p>
<p>Meanwhile, the person does not give a damn about stocks or bonds. In fact, he doesn&#8217;t even know where stocks and bonds fit into his universe of options. He simply knows, &#8220;I just got screwed by my bank on late fees and I really need to figure this out.&#8221; How effective do you think it is to throw a kitchen sink of terms and definitions at this person?</p>
<p>99% of people care about <em>their</em> money and couldn&#8217;t care less about &#8220;learning&#8221; about personal finance in general.</p>
<p>Unfortunately, personal-finance &#8220;experts&#8221; are obsessed with their own encyclopedic knowledge and seemingly take any opportunity to intellectually masturbate about the depth of their knowledge. &#8216;Why yes, I CAN present a glossary of terms like CAGR, NPV, Black-Scholes, and derivatives. Will this change anyone&#8217;s behavior? Who knows! But I sure sound smart!&#8217;</p>
<p>If your goal is to write a glossary, just take your pen and paper and throw them in a fire. You can save yourself the trouble. But if your goal is REAL BEHAVIORAL CHANGE, you need to model an approach that resonates with your readers.</p>
<h3>When it comes to money, what do people REALLY want?</h3>
<p>I&#8217;ve spent the last 10 years trying to understand this. I&#8217;ll share some of the things I&#8217;ve learned here:</p>
<p><strong>People want&#8230;</strong></p>
<ul>
<li>To not worry about money</li>
<li>To be in control</li>
<li>To occasionally live extravagantly</li>
<li>To dominate their friends (virtually everybody neglects the social aspect of money)</li>
<li>To get relevant, tailored information for their personal situation (this doesn&#8217;t necessarily have to be via a person&#8230;think also of Amazon-like personalization/recommendations)</li>
</ul>
<p><strong>People do NOT want&#8230;</strong></p>
<ul>
<li>To have to &#8220;learn&#8221; about personal finance as a whole &#8212; they just care about their own situation</li>
<li>To learn what stocks, bonds, interest rates, or ANY OTHER TERMS are</li>
<li>To be told they CAN&#8217;T do something (this is probably the #1 biggest mistake personal-finance &#8220;experts&#8221; have made in the last 50 years: turning money into a conversation of &#8220;no&#8221;s, which elicits <a href="http://en.wikipedia.org/wiki/Reactance_%28psychology%29">reactance</a>)</li>
<li>To wait 50 years to see results</li>
<li>To have to manually &#8220;throw money away&#8221; into a savings account</li>
<li>To ignore their emotions about money</li>
</ul>
<p>Each of those seems deceptively simple, but they are deeply complex when you dig into the psychological underpinnings. (And there are a few other insights that I&#8217;ll keep to myself, since I&#8217;ve spent years discovering and refining them.) Here are more specific examples.</p>
<p>GOOD: &#8220;Here&#8217;s a 4-step process to start investing&#8221;</p>
<p>BAD: Let me explain what stocks and bonds are and how they work (NOBODY CARES)</p>
<p>GOOD: &#8220;Here are 2 ways to pay off your debt, and this is the way I recommend the best&#8221;</p>
<p>BAD: Let me explain how debt works (NOBODY CARES)</p>
<p>GOOD: &#8220;Here are scripts to use to negotiate against your bank. Read them off and watch the customer-service rep melt like butter&#8221;</p>
<p>BAD: You should really negotiate stuff (LAZY)</p>
<p>GOOD: Here is what YOU need to be doing, Mr. 26-year-old dude who I deeply understand and therefore know that you spend a significant portion of your income on drinking</p>
<p>BAD: Here is a comprehensive list of things that everyone should be doing: Insurance, retirement, estate planning, tax optimization, family planning&#8230; (BROAD AND WORTHLESS)</p>
<p>GOOD: Spend extravagantly on the things you love, but cut costs mercilessly on the things you don&#8217;t</p>
<p>BAD: Keep a budget (HAS THIS EVER WORKED?)</p>
<p>(The last one really makes me mad. So many &#8220;experts&#8221; write nonsense like &#8220;Keep a budget&#8221; or &#8220;Stop spending on lattes!&#8221; that lets them wipe their hands clean &#8212; &#8220;I&#8217;ve done my job!&#8221; &#8212; WITHOUT ACTUALLY CHANGING ANYONE&#8217;S BEHAVIOR. For example, <a href="http://www.washingtonpost.com/wp-dyn/content/article/2010/02/12/AR2010021205908.html?hpid=topnews">this article</a> says: &#8220;We need to start a new tradition for Valentine&#8217;s Day, one that includes a focus on personal finances rather than consumerism to demonstrate our love.&#8221; Right. I really want to talk to my girlfriend/boyfriend/husband/wife about money on Valentine&#8217;s Day. YOU might think that&#8217;s important, but nobody else does&#8230;and as a result, it won&#8217;t even get cognitively processed, much less cause behavioral change.)</p>
<p>Personal-finance &#8220;experts&#8221; need to get off their asses and start talking to the people they&#8217;re writing for to understand what they&#8217;re <em>really</em> looking for. For example, I could write the most technically brilliant article about asset allocation, but if people are afraid of investing or don&#8217;t believe they have enough to get started, none of my brilliance matters. <strong>IT&#8217;S NOT ABOUT YOU. IT&#8217;S ABOUT YOUR AUDIENCE.</strong></p>
<h3>Case study: The WSJ How-To Guide</h3>
<p>Let&#8217;s go back to the WSJ image I posted above.</p>
<p>Can you now see what&#8217;s wrong with it?</p>
<p>When I asked a few days ago, <a href="http://www.iwillteachyoutoberich.com/blog/can-anyone-spot-whats-wrong-with-this/">lots of commenters</a> harped on the lack of automation, earning more, or even the order of the presentation. Frankly, that&#8217;s stylistic. But there&#8217;s something far more damning &#8212; but you have to look deep beneath the hood to understand.</p>
<p>Several commenters said, &#8220;They don&#8217;t write about the <em>why</em>.&#8221; This is true, but incomplete. For example, how many of you have had parents emphasizing how IMPORTANT IT IS TO START INVESTING RIGHT NOW??!? Yet you ignore them. Because of both the source, and the way they communicate the information. Explaining &#8220;why&#8221; is critical &#8212; but not enough. There&#8217;s something else.</p>
<p>Here it is: Each of the topics is me-focused. The editor thinks understanding bonds are important&#8230;but ordinary people do not. And so they will not read this page.</p>
<p>In other words, the editors did a terrific job of simply listing off topics, much in the same way an encyclopedia editor organizes and lists off material. <em>But the encyclopedia editor doesn&#8217;t expect anyone to ever read his material.</em></p>
<p>The average person comes to this page with dozens of inherent biases:</p>
<ul>
<li>&#8220;I know I <em>should</em> be doing something with my money, but I don&#8217;t know what&#8230;&#8221; (and throwing complicated terms at me will just cause me to shut down)</li>
<li>&#8220;I keep hearing about paying off credit card debt, but they don&#8217;t understand. My situation is different &#8212; I have [details that are actually very similar to everyone else but SEEM different to them]&#8220;</li>
<li>&#8220;I need to figure out all my stuff before sitting down and really starting to invest&#8221;</li>
<li>&#8220;I&#8217;ll do this later&#8221;</li>
<li>&#8220;I&#8217;ll let my husband/wife do this&#8221;</li>
</ul>
<p>And so on.</p>
<p>Now, you also have Wall Street Journal readers, who are likely far more sophisticated than the average person. One of my commenters, Wren, said it best:</p>
<blockquote><p>&#8220;Typical WSJ readers aren’t going to look at a how-to guide because they already think of themselves as above-average investors (even though they’re probably losing money trying to pick stocks or buying shares in the latest hotshot mutual fund). Even if they made it to the page, the first article on “What is a bond” would convince them that there was nothing to learn there. If instead the WSJ paid more attention to its audience and titled the page “Little Known Tips for Skilled Investors” the page views would be through the roof and readers might actually learn something.&#8221;</p></blockquote>
<p>By the way, I&#8217;ve made this mistake myself. When my book was published, I spent hours working with my publisher carefully crafting the copy on the front and back cover. When it was published, I noticed that this back-cover copy had slipped through the cracks. See the problem?</p>
<p>&nbsp;</p>
<p><a href="http://www.amazon.com/gp/product/0761147489?ie=UTF8&amp;tag=iwillteachyou-20&amp;linkCode=as2&amp;camp=1789&amp;creative=390957&amp;creativeASIN=0761147489"><img class="aligncenter size-full wp-image-6118" src="http://iwt.wpengine.netdna-cdn.com/wp-content/uploads/2010/08/I-Will-Teach-You-To-Be-Rich_-Back-Cover-Copy_-13.95_-Workman-Publishing-2.png" alt="" width="530" height="417" /></a></p>
<p>Nobody wants to be financially literate. They want to be rich.</p>
<h3>Personal finance needs better marketing</h3>
<p>Marketing is not a bad word. In fact, it&#8217;s one of the reasons that I Will Teach You To Be Rich readers use this site to <a href="http://www.iwillteachyoutoberich.com/blog/birthday-favor/">implement real behavioral change</a>, instead of just reading about money over and over again.</p>
<blockquote><p>After reading your book, I’ve now signed up for my company pension plan (target lifestyle funds too!) and am on my way to automate my savings.</p>
<p>I got the bank charges reversed 3 times</p>
<p>Negotiating credit card interest rates: I went from 27% to 6% with one 20-minute phone call</p>
<p>I’m the only person within my group of friends (I’m 23) who already has $1000 saved for a wedding</p>
<p>The biggest you have taught me, is that personal finance is 95% psychological. The tactics are pretty simple, it’s more about getting over the mental barriers we place on ourselves.</p>
<p>&#8230;haggled him down about from $4500 to $2500&#8230;</p>
<p>Pay off $12K in student loan debt in 18 months rather than 10 years.</p></blockquote>
<p>This stuff works.</p>
<p>Why do you think these people were able to change their behavior? Why do you think I can sell a <a href="http://earn1k.com/?utm_source=iwtytbr.com&amp;utm_medium=blogpost&amp;utm_content=worthlessadvice&amp;utm_campaign=Earn1k%2BGeneral">$1,000+ course to help people earn money</a>&#8230; to a group of people who ordinarily never buy anything online? Why do you think of ALL the &#8220;earn more money&#8221; courses online, this one helped my students get off their asses, find a profitable idea, and earn money (sometimes to the tune of thousands of dollars/month)? I will tell you why: Because I spent years understanding people&#8217;s REAL needs to get people to STOP READING and START EARNING MORE &#8212; not just write high-level BS about &#8220;10 different ways you can earn money&#8221; and &#8220;You should get business cards and a Twitter page.&#8221; And now my students are earning money, when 3 months ago, they would have never imagined they could.</p>
<p><strong>Marketing matters</strong>. It works in persuading people to change their behavior, unlike simply &#8220;putting the information out there&#8221; or claiming that &#8220;you have to really want it to change,&#8221; which embraces a highly ineffective persuasive mechanism  where you simply list out the info and hope people &#8220;get it.&#8221; Good luck with that. People don&#8217;t respond to pure information because they have frame information based on prior experiences, culture, group membership, etc.</p>
<p>Yet even though the corporate world knows that marketing works, ordinary people think marketing is a bad word. &#8220;Ugh, that&#8217;s just advertising,&#8221; they&#8217;ll say (then, amusingly, <a href="http://www.reddit.com/r/business/comments/8dwx2/consumers_are_easily_manipulated_do_you_think_you/">claim that advertising does not affect them</a>).</p>
<p>No. Marketing is not just advertising, or writing copy for brochures. Marketing is the end-to-end customer experience, from deciding <em>what</em> to build all the way through the design and delivery process &#8212; including deeply understanding your audience&#8217;s biases, beliefs, and barriers. As an example, here&#8217;s a terrific TED video &#8212; &#8220;Rory Sutherland: Life lessons from an ad man&#8221; &#8212; illustrating how marketing adds value every day.</p>
<p>&nbsp;</p>
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<p><strong>Personal finance needs better marketing</strong>. What personal finance needs is less people who think that &#8220;information&#8221; alone will change behaviors, and more people with marketing and psychology backgrounds who know that it&#8217;s critical to connect with people in order to change their behaviors. <strong>More information alone won&#8217;t do</strong>. <a href="http://www.iwillteachyoutoberich.com/blog/education-is-not-the-magic-bullet/">Education is not the solution to personal-finance problems</a>.</p>
<p><strong>Banks</strong> need to stop sending out useless campaigns on the importance of saving and investing. We &#8220;know&#8221; that. Why aren&#8217;t we <em>doing</em> it? Do banks really know? Why aren&#8217;t they sending me lifecycle communications when I get married, buy a car, buy a house, have kids, and other <em>personal</em> situations?</p>
<p>Why do <strong>credit unions</strong> continue to talk about how they&#8217;re different than banks? Nobody cares. Talk to me about ME, my problems, and how you can solve them for me.</p>
<p>Why do<strong> personal-finance magazines</strong> continue to talk about investing in stocks? Well, that&#8217;s easy &#8212; they have 2 customers: Advertisers first, then readers. But even <em>they</em> could do an infinitely better job and still make tons of ad money.</p>
<p>I&#8217;m not trying to highlight myself as the best at this. I have a lot to learn and I&#8217;ve only scratched the surface of behavioral change, which I will continue to study for the rest of my life.</p>
<p>But one of the main reasons that &#8220;I Will Teach You To Be Rich&#8221; has been so widely read and shared is that I try to use classic marketing and psychology principles here, rather than pedantic lecturing of the same old boring topics (lattes, budgets, start early, blah blah kill me). For example, <a href="http://www.iwillteachyoutoberich.com/blog/conscious-spending-how-my-friend-spends-21000year-on-going-out/">you want to spend $21,000/year going out</a>? Do it! Let me show you how to <a href="http://www.iwillteachyoutoberich.com/automate-your-personal-finances/">automate your personal finances</a> to do it.</p>
<p>Remember: Nobody wants to read an encyclopedia. Next time you&#8217;re trying to change behaviors, don&#8217;t fall into the trap of writing a me-focused article that highlights what <em>you</em> think is important. Nobody cares, especially your audience. They have their own filters and biases filtering any information they receive. To execute real behavioral change, you must understand and address these concerns first.</p>
<h3>Want more real-world personal finance advice? Join my private list</h3>
<p>I&#8217;m as sick as you are of generic, outdated, boilerplate financial advice. That&#8217;s why, in addition to this blog, I created a free Private List for readers who want even more (including content I never share publicly.) Each week, I&#8217;ll send you detailed, actionable information about:</p>
<ul>
<li>The psychology of money, including biases and barriers that hold us back</li>
<li>Specific action steps to optimize your spending, savings and investments</li>
<li>Simple ways to earn more money using skills you already have</li>
<li>Much, much more</li>
</ul>
<p><strong>You can sign up for free below:</strong></p>
<p><script src="http://forms.aweber.com/form/69/812776169.js" type="text/javascript"></script></p>
<p style="text-align: center;">(Can&#8217;t see the above form? <a href="http://forms.aweber.com/form/69/812776169.htm" target="_blank">Click here.</a>)</p>
<p><!--
<div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;">
<p><strong>Join the free 30-day course to hustle your way to the top</strong></p>
<p>Here&#8217;s a sample of what I&#8217;ll be sending out:</p>
<p>- A invite to my private webcast with Tim Ferriss &#8211; where you&#8217;ll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. <br/><br />
- A full recording of my private webcast with Tim Ferriss &#8211; in case you can&#8217;t make it&#8230;<br/><br />
- Earn1 Bonus Case Study &#8211; Unlocking side income: From $0 to $1,500/month in 2 weeks</p>
<p><a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&#038;utm_medium=feed&#038;utm_campaign=earn1k-rss-ad&#038;utm_content=rss-footer">Become a top performer now</a></p>
</div>
<p>&#8211;></p>
<p><!-- <a href="http://www.iwillteachyoutoberich.com/blog/why-personal-finance-experts-continue-writing-worthless-advice/">Why personal-finance &#8220;experts&#8221; continue giving worthless advice</a> is a post from: <a href="http://www.iwillteachyoutoberich.com">I Will Teach You To Be Rich</a>&#8211;></p>
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		<title>Attention annoying hypocrites: Stop being judgmental about your friends&#8217; money habits</title>
		<link>http://www.iwillteachyoutoberich.com/blog/judgmental-money-spending/</link>
		<comments>http://www.iwillteachyoutoberich.com/blog/judgmental-money-spending/#comments</comments>
		<pubDate>Mon, 24 May 2010 08:44:45 +0000</pubDate>
		<dc:creator>Ramit Sethi</dc:creator>
				<category><![CDATA[Consumerism]]></category>
		<category><![CDATA[Popular Posts]]></category>
		<category><![CDATA[Rants about dumb people]]></category>
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		<category><![CDATA[Women and money]]></category>
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		<description><![CDATA[When was the last time you judged your friends for their poor spending choices? Today, I'll illustrate several examples of how hypocritical we are in judging others' spending. <p><!--<div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;">
<p><strong>Join the free 30-day course to hustle your way to the top</strong></p>
<p>Here's a sample of what I'll be sending out:</p>
<p>- A invite to my private webcast with Tim Ferriss - where you'll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. <br/>
- A full recording of my private webcast with Tim Ferriss - in case you can't make it...<br/>
- Earn1 Bonus Case Study - Unlocking side income: From $0 to $1,500/month in 2 weeks</p>
<p><a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&utm_medium=feed&utm_campaign=earn1k-rss-ad&utm_content=rss-footer">Become a top performer now</a></p>
</div>-->
<!-- <a href="http://www.iwillteachyoutoberich.com/blog/judgmental-money-spending/">Attention annoying hypocrites: Stop being judgmental about your friends&#8217; money habits</a> is a post from: <a href="http://www.iwillteachyoutoberich.com">I Will Teach You To Be Rich</a>--></p>
]]></description>
			<content:encoded><![CDATA[</p>
<p>When was the last time you judged your friends for their poor spending choices?</p>
<p><center><img src="http://iwt.wpengine.netdna-cdn.com/wp-content/uploads/2010/05/iStock_000011510418XSmall.jpg" alt="" /></center>I do it. You do it. We all do it, saying &#8220;<a href="http://www.iwillteachyoutoberich.com/blog/spending-hypocrisy/">YOUR spending is bad, but mine is good</a>.&#8221; And chances are, we&#8217;re usually right &#8212; since most people are terrible with their spending, they probably <em>can&#8217;t</em> afford those shoes, trips, or restaurants they&#8217;re always buying.</p>
<p>Yet each time we judge others&#8217; spending, we&#8217;re less likely to actually look at <em>our own</em> spending and do something about it. And just as your friends probably overspend on &#8220;ridiculous&#8221; things, <strong>so do you</strong>.</p>
<p>Today, I&#8217;ll illustrate several examples of how hypocritical we are in judging others&#8217; spending. So come along &#8212; but hold on, because we&#8217;re going to be looking in the mirror for much of the ride.</p>
<p><center>* * *</center></p>
<h3>&#8220;I can&#8217;t believe she spent THAT MUCH on her wedding&#8230;&#8221;</h3>
<p><center><img class="aligncenter size-full wp-image-5582" title="iStock_000000333695XSmall" src="http://iwt.wpengine.netdna-cdn.com/wp-content/uploads/2010/05/iStock_000000333695XSmall1.jpg" alt="" width="413" height="291" /></center>One of the most popular posts I&#8217;ve ever written was called &#8220;<a href="http://www.iwillteachyoutoberich.com/blog/the-28000-question-why-are-we-all-hypocrites-about-weddings/">The $28,000 Question: Why We&#8217;re All Hypocrites About Weddings</a>,&#8221; where I pointed out how everyone is delusional about their weddings. People say things like, &#8220;Oh, I don&#8217;t want a big wedding&#8230;I just want it to be small and simple, with a few friends and family.&#8221; This lasts about 15 seconds until they start looking at wedding options and decide they want a a fancy wedding hall, nice china, huge flowers, and the best food and music, bringing the average cost of around $30,000 per wedding.</p>
<p>Which is fine! Unlike other boring<a href="http://www.iwillteachyoutoberich.com/" target="_blank"> personal-finance</a> pundits, who delusionally lecture you to have a small wedding (when you won&#8217;t), I&#8217;m a big fan of spending extravagantly on the things you love, if you cut costs mercilessly on the things you don&#8217;t. (Hint: If you&#8217;re 20 years old, you need to be saving $333/month for your wedding. 25 years old? $1,167/month.)</p>
<p>And yet, there are <em>always</em> people who will judge you for your spending choices.</p>
<h3>Introducing the most annoying people on the planet</h3>
<p>On the wedding post, there was a group of commenters that were some of the most annoying people I&#8217;ve ever heard from:</p>
<blockquote><p>&#8220;$28,000 for a wedding is absurd. Most weddings end in divorce, why start your marriage financially cramped by a wedding? Yes, I realize you can plan to save that $28,000 in advance. However, wouldn’t it be more sensible to use that money for a down payment on a home (instant equity!). Or, to buy outright a late model used car? Just a few thoughts.&#8221;</p>
<p>&#8220;28k for a wedding is utterly ridiculous The key is to NOT invite everyone you know. I spent about $2500 TOTAL on my wedding 4 years ago. Yes, you read that right&#8230;What a complete waste of money to spend 28k on one day! What about saving that money for the rest of your life?&#8221;</p>
<p>&#8220;Wow, I don’t know where morons that spend $28K on weddings buy the stuff to do it, but I’ve got some left over paper plates I can sell you for $100 each.&#8221;</p></blockquote>
<p>You can find these annoying people criticizing others&#8217; spending on <a href="http://www.boundlessline.org/2007/08/what-weddings-r.html">virtually</a> <a href="http://wedding.theknot.com/wedding-planning/wedding-budget/qa/what-does-the-average-wedding-cost.aspx">every</a> <a href="http://jezebel.com/5476427/in-the-long-run-your-wedding-could-cost-you-big-time">post</a> on weddings.</p>
<p>Each of these people made it their mission to point out how &#8220;ridiculous&#8221; it is to spend $28,000, or $10,000, or even $2,000 for a wedding. &#8216;It&#8217;s outrageous! I did it for $100! Stop wasting your money,&#8217; they angrily write.</p>
<p>But there&#8217;s just one thing&#8230;</p>
<p>They&#8217;re all hypocrites.</p>
<p>What would they say if I examined their spending? In fact, here&#8217;s a new rule:</p>
<p><strong>Give me your budget and 10 minutes on the phone and I could identify 20% of your money being &#8220;wasted&#8221; on something useless and unnecessary.</strong></p>
<p>Now, an exploration on how hypocritical we all are about money.</p>
<p><center>* * *</center></p>
<h3>We&#8217;re hypocrites for judging our friends&#8217; spending</h3>
<p>When you judge others for their spending, you automatically assign YOUR values to them without even recognizing it. You think spending money on clothes, or first-class airfare, or expensive jewelry is wasteful? What about your own spending?</p>
<p><center><img class="aligncenter size-full wp-image-5585" title="iStock_000000545874XSmall" src="http://iwt.wpengine.netdna-cdn.com/wp-content/uploads/2010/05/iStock_000000545874XSmall.jpg" alt="" width="425" height="282" /></center>Here&#8217;s one of my favorite <a href="http://www.reddit.com/comments/6n2jp/are_women_boring/c04bxzx">examples</a> because it&#8217;s so nutty:</p>
<blockquote><p>&#8220;That is just stupid. Unless the clothes are broken, there is no need to return it. If it is the wrong size, it can be exchanged for the right size.</p>
<p>PS: I hate the mentality of people buying clothes for “fashion” or whatever. You are buying $100 for something that costs $10 dollars to manufacture in China!</p>
<p>And about fashion trends – it is wasteful and stupid. If last season/year’s clothes are not broken, there is no need to buy new ones. Jeezz. As for “brand name” clothes – wake the fuck up.&#8221;</p></blockquote>
<p>Yes, I&#8217;m sure your computers and new XBOX and 30&#8243; LED TV are so important, too.</p>
<p>You think it&#8217;s ridiculous to buy $100 clothes? Let&#8217;s go beyond the knee-jerk reaction to understand what&#8217;s actually going on here.</p>
<ul>
<li>What if your friend who buys expensive clothes makes twice as much as you (say, $120,000)? Is it &#8220;wasteful and stupid&#8221; then?</li>
<li>What if your friends don&#8217;t eat out as often as you, but they love buying a new shirt every month because it makes them feel good?</li>
<li>What if you live in the midwest, but your friend lives in Manhattan? How does that change things?</li>
<li>What if you&#8217;re 25 and your friend is 29? How does that change things?</li>
</ul>
<h3>Judging others&#8217; spending is emotional, not rational</h3>
<p>Think back to the last time you judged someone else for spending. Maybe you heard how much your friend pays for his apartment, or overheard your co-worker talking about yet another weekend vacation.</p>
<p>When we judge others&#8217; spending, we do it emotionally, not rationally. Let&#8217;s say you hear that your friend is going on a trip to Vegas and staying in the Bellagio for $800/night. Do you consciously evaluate his income, age, spending patterns, priorities, and debt levels? Of course not. We simply say, &#8220;Wow, I couldn&#8217;t imagine spending $800/night on a hotel room. Therefore, his spending is RIDICULOUS!&#8221;</p>
<p>When it comes to judging spending, we consistently demonize others&#8217; spending while rationalizing our own.</p>
<p>Ironically, if you went back in time and asked yourself of 5 years ago if he could imagine spending what you spend on food/clothes/travel today, the younger you would scoff and think your modern-day spending would be &#8220;ridiculous,&#8221; too. What do you think you&#8217;ll be doing 5 years from now?</p>
<p>But if someone dared point out your own spending on something &#8212; say, a new Macbook because your old one was &#8220;slow&#8221; &#8212; you&#8217;d have a multitude of reasons to justify it. &#8220;My old one was slow&#8230;and this one is important for my productivity&#8230;and I need it to run the new software I want, and&#8230;.&#8221;</p>
<p>This pattern repeats itself in virtually every article on others spending money online:</p>
<p>In a terrific New York Times article on <a href="http://www.nytimes.com/2009/12/03/garden/03cheap.html?_r=1&amp;pagewanted=all">redecorating on a budget</a>, a newlywed couple budgets $2,000 to renovate their apartment.</p>
<p><center><img class="aligncenter size-full wp-image-5573" title="nyt-before-after" src="http://iwt.wpengine.netdna-cdn.com/wp-content/uploads/2010/05/nyt-before-after.jpg" alt="" width="372" height="500" /></center>&nbsp;</p>
<p><center><small>Donna Alberico for The New York Times</small></center>They end up spending $5,175 &#8212; a modest increase for their joint income &#8212; and the commenters go bonkers:</p>
<blockquote><p>&#8220;$2000 is more than I&#8217;ve had to spend on decorating my entire house for the past four years. Decorating on a budget? How about $500 or less&#8230;&#8221;</p>
<p>&#8220;I made handsome, one-of-a-kind pillows, by taking embroidered dresses my brother purchased in the Middle East, that our mother never wore, and made covers for pillows I had tired of. (I didn&#8217;t even have to buy blank stuffers). ANY fabric store has even high-end design-house remnants that would be suitable and CHEAP.&#8221;</p>
<p>&#8220;How many newlyweds can afford to spend this kind of money on revamping their apartment?&#8230;I would rather put that money in a savings account for a house, or put it away for a nice vacation.&#8221;</p></blockquote>
<p>Notice the presumptuous commenters condemning the couple for spending on their home decorations, and suggesting that their way &#8212; making pillows by hand or putting the money away for a vacation &#8212; is &#8220;better.&#8221;</p>
<p>Again, give me these comments&#8217; budgets and 10 minutes on the phone, and I could identify hundreds of dollars per month that they&#8217;re &#8220;wasting&#8221; &#8212; according to <em>my</em> tastes. Yet few people &#8212; even those who lob financial judgments at others &#8212; would ever subject themselves to scrutiny of the same kind.</p>
<p>What is going on here? Are these people simply angry or jealous at hearing about other people spending on items they consider luxuries? Or is there something more going on?</p>
<p>In few other areas of our lives are we so adamant about us being &#8220;right&#8221; and others being &#8220;wrong,&#8221; particularly since most of us are terrible at managing our own money. When you dig deeper, you&#8217;ll discover the <a href="http://www.iwillteachyoutoberich.com/psychology-of-money/" target="_blank">fascinating psychology</a> of self-serving biases and other psychological mechanisms we use to judge others &#8212; but protect ourselves.</p>
<h3>The psychology of judging others</h3>
<p>The first phenomenon in judging others is called a &#8220;<a href="http://en.wikipedia.org/wiki/Self-serving_bias">self-serving bias</a>,&#8221; which we use to protect ourselves from judgment:</p>
<blockquote><p>A self-serving bias occurs when people attribute their successes to internal or personal factors but attribute their failures to situational factors beyond their control&#8230;For example, a student who gets a good grade on an exam might say, &#8220;I got an A because I am intelligent and I studied hard!&#8221; whereas a student who does poorly on an exam might say, &#8220;The teacher gave me an F because he does not like me!&#8221;</p></blockquote>
<p>If your friend buys a $500 coat, you might say, &#8220;That&#8217;s nuts&#8230;Jack is really bad at managing his money. He can&#8217;t even control his spending!&#8221; But when I asked you about the $500 coat in your jacket, you might say, &#8220;Oh, that&#8217;s because I had to go to a wedding last month.&#8221;</p>
<p>Second, we employ the <a href="http://en.wikipedia.org/wiki/Fundamental_attribution_error">Fundamental Attribution Error</a> to judge others:</p>
<blockquote><p>In social psychology, the fundamental attribution error&#8230;describes the tendency to over-value dispositional or personality-based explanations for the observed behaviors of others while under-valuing situational explanations for those behaviors.</p></blockquote>
<p>In other words, &#8220;She bought those Jimmy Choos because she&#8217;s financially irresponsible&#8221; instead of &#8220;She bought those Jimmy Choos because she recently <a href="http://www.iwillteachyoutoberich.com/earn-more-money/">earned more money</a> or <a href="http://www.iwillteachyoutoberich.com/how-to-negotiate/">negotiated her salary</a>.&#8221; When judging others, we believe people make decisions because of WHO they are, rather than the SITUATION they&#8217;re in.</p>
<p>Third, we use the powerful strategy of downward social comparison:</p>
<blockquote><p>Downward social comparison is a defensive tendency to evaluate oneself with a comparison group whose troubles are more serious than one&#8217;s own. This tends to occur when threatened people look to others who are less fortunate than themselves&#8230;For example, a breast cancer patient may have had a lumpectomy, but sees herself as better off than another patient who lost her breast</p></blockquote>
<p>Wondering where you&#8217;ve seen this? Turn on any talk show or radio show. Try to monitor your emotions during the episode. You might notice your internal voice saying something like, &#8220;Oh yeah, I have $5,000 in credit card debt&#8230;<em>but at least I don&#8217;t have $45,000 debt like that guy</em>. This actually feels good &#8212; one of the chief reasons that talk shows and <a href="http://www.iwillteachyoutoberich.com/blog/category/the-money-diaries/">Money Diaries</a> do so well. Yet the feeling of satisfaction is short-lived.</p>
<p>Fourth, we have the <a href="http://www.iwillteachyoutoberich.com/blog/success-and-the-shrug-effect/">Shrug Effect</a>:</p>
<blockquote><p>We see a famous CEO and point how “he took 5 companies public and got a Harvard MBA.” We see a successful children’s book author and point out how she already knew 4 publishers, so her book got published immediately. We point to Donald Trump and talk about how he had billions, so of course he could buy half of Manhattan, and we note that we’re already older than Michael Dell was when he was running Dell out of his dorm room.</p>
<p>And then we shrug. “What can we do?” “She has a Harvard MBA.” “They made it big, but they’re different than me.”</p></blockquote>
<p>You see someone spending a lot of money on something that you consider &#8220;crazy.&#8221; Instead of trying to figure it out, we often shrug and say, &#8220;Well, they have [SOME ADVANTAGE YOU DON'T HAVE] and <em>that&#8217;s</em> how they do it. There&#8217;s no way I could ever do that.&#8221; Since this is psychologically painful and difficult, we demonize their behavior. Easier than understanding it.</p>
<h3>A prime example: Demonizing a CEO for her spending experiment</h3>
<p>Let&#8217;s examine a recent example of this.</p>
<p>Alexa Von Tobel, the CEO of a personal-finance site called Learnvest, wrote an article called, &#8220;How I Went 24 Hours Without Spending Any Money&#8230;In New York City.&#8221; (Interestingly, the article is now gone, and so is the Google cache. You&#8217;ll see why in a second. Fortunately, I grabbed a <a href="http://img.skitch.com/20100524-gi5fhj1e18irtss6xn13rra3yw.jpg">screenshot</a> before it was taken down. )</p>
<p>Now, it may not have been the most tactful article, especially in this economic climate. In fact, the tone was somewhat condescending. But I intentionally chose this extreme example to make a point.</p>
<p>The problem is that Americans hate people who write about how they spend money on anything that&#8217;s not directly focused on the bare necessities of living.</p>
<p>The one wedding day of your life? You&#8217;re spending too much. Taking a luxurious vacation that you saved up for? You could feed 2,000 foreign children. Buying a couch for your living room? You should invest that in your Roth IRA.</p>
<p>How do you think people responded to Alexa&#8217;s article? Did they make thoughtful comments on the economy or different ways to earn money? Of course not. Commenters from around the web were absolutely livid.</p>
<p>On <a href="http://www.reddit.com/r/reddit.com/comments/c1jd4/oblivious_entitled_woman_proud_about_going_24/<br />
&#8220;>Reddit</a>:</p>
<blockquote><p>&#8220;She spends more money in one day than I do most weeks. Why does she feel walking twenty minutes to work, cooking dinner, and packing a lunch are unsustainable? This broad obviously lives in a completely different class than I do.&#8221;</p>
<p>&#8220;The part that pissed me off was that she seems completely auaware that some people have no money to spend. I was hoping that she would decide to volunteer at a soup kitchen or donate her extra cash to a charity. In terms of her spending habits&#8230;retarded. It&#8217;s like she&#8217;s never heard of a budget, a kitchen, or a grocery store. What is not sustainable is spending $100 a day on nothing.&#8221;</p>
<p>&#8220;Who the hell spends $30 on pasta and a salad?&#8221;</p>
<p>&#8220;What the fuck?!? $80 in one day? That&#8217;s food for me, my wife, and my dogs for two weeks.&#8221;</p></blockquote>
<p>Even on the normally reasoned discussion board, Metafilter, the top comment says this: &#8220;Please tell me this is joke. If it isn&#8217;t, I want to murder this writer in the face.&#8221;</p>
<p>(The Metafilter comment that made me laugh out loud: &#8220;This person would not have lasted long on the Oregon Trail.&#8221;)</p>
<p>What is going on here?</p>
<h3>Instead of condemning her, the commenters should have asked another question</h3>
<p>Condemning someone for their spending is easy. But it&#8217;s not productive.</p>
<p>We&#8217;ve already covered the protective mechanisms we use when judging others&#8217; spending: &#8220;Their&#8221; spending is always out of line (&#8220;She can&#8217;t control her spending&#8221;), while our spending is always easily explainable (&#8220;Oh, that ring was for a special occasion&#8230;besides, I work hard, so I deserve to reward myself&#8221;).</p>
<p>But there&#8217;s more.</p>
<p>You may not like to hear this, but I&#8217;m going to say it any way. Instead of automatically condemning the author for her spending habits, the angry commenters above should have tried to figure out how she affords such a lofty lifestyle in the first place.</p>
<p>&#8220;But Ramit,&#8221; you might say, &#8220;she went to Harvard. She&#8217;s clearly a wasteful trust-fund baby who&#8217;s living off mommy and daddy&#8217;s money.&#8221; Maybe. Maybe not. Who knows? But if that&#8217;s your first thought, you&#8217;re guilty of the <a href="http://www.iwillteachyoutoberich.com/blog/success-and-the-shrug-effect/">Shrug Effect</a>.</p>
<p>A better way to approach the question would be to acknowledge that she probably has a few advantages you don&#8217;t, but focus on the things she DOES control &#8212; which you can learn from. For example, you could stipulate that yes, she likely has some advantages in life (maybe wealthy parents, some inheritance money, whatever)&#8230;but focus on the things you <em>can</em> control. She started her own company. She made friends with XYZ. She got internships at XYZ, which led her to XYZ2.</p>
<p>If you want to live her lifestyle, it pays to ask: How could she be earning SO MUCH that she could afford to take cabs every day? What is she doing that I don&#8217;t know about? <a href="http://www.getrichslowly.org/blog/2008/10/12/the-best-20-youll-ever-spend/">Who can I talk to to learn more</a>? How can I <a href="http://www.earn1k.com">earn more money</a>?</p>
<p>To many people, this is too much work. It&#8217;s easier to throw your hands up, accuse her of being a rich trust-fund kid, and then feel better about yourself since <em>you</em> don&#8217;t waste money on cabs every day. Witness virtually every comment accusing the writer of being wasteful and spending outlandish amounts of money on food and other supposedly wasteful items.</p>
<p>It&#8217;s much harder to actually consider the details of the situation. For example, one Reddit commenter notes that, &#8220;Often very highly paid workers have very little free time so it makes sense to spend some money to buy back some time, such as getting in a cab to get somewhere quicker.&#8221; Instead of criticizing her spending, wouldn&#8217;t it be more productive to ask, &#8220;Damn, this woman obviously makes a lot more money than I do. How did she do it and what can I apply to my situation?&#8221;</p>
<p>We&#8217;re more than happy to criticize others&#8217; spending. Yet few people ever try to ask themselves what they can learn from someone whose spending outpaces their own &#8212; and even fewer open up their own finances to such scrutiny.</p>
<h3>A huge caveat: Most people are terrible with their money</h3>
<p>There is one upside to judging others&#8217; spending: Since most people are absolutely terrible at managing their own money, when you judge them, you&#8217;re probably right.</p>
<p>An excerpt from my <a href="http://www.amazon.com/gp/product/0761147489?ie=UTF8&amp;tag=iwillteachyou-20&amp;linkCode=as2&amp;camp=1789&amp;creative=390957&amp;creativeASIN=0761147489">personal finance book</a>:</p>
<p><center><a href="http://www.amazon.com/gp/product/0761147489?ie=UTF8&amp;tag=iwillteachyou-20&amp;linkCode=as2&amp;camp=1789&amp;creative=390957&amp;creativeASIN=0761147489"><img class="aligncenter size-full wp-image-5551" title="I Will Teach You To Be Rich excerpt - judging friends money" src="http://iwt.wpengine.netdna-cdn.com/wp-content/uploads/2010/05/I-Will-Teach-You-To-Be-Rich-excerpt-judging-friends-money.png" alt="" width="519" height="611" /></a></center>So yes, judging others is surprisingly accurate and you&#8217;re probably right in criticizing your friends&#8217; spending. But at the end of the day, you&#8217;re probably <a href="http://www.iwillteachyoutoberich.com/blog/we-love-to-debate-minutiae/<br />
&#8220;>debating minutiae</a> and wasting your time.</p>
<h3>Examples: Annoying critics</h3>
<p>Since I&#8217;ve written hundred of articles about <a href="http://www.iwillteachyoutoberich.com/" target="_blank">personal finance</a>, I see a lot of kooky people criticizing others&#8217; spending, including mine.</p>
<p>Yet it&#8217;s gone from being annoying to fascinating: You can get true insights into people&#8217;s belief systems about money by watching what they say.</p>
<ol>
<li>When I launched my <a href="http://www.earn1k.com"> Earn1k course</a> to help people <a href="http://www.iwillteachyoutoberich.com/earn-more-money/">earn more money</a>, I got <a href="http://www.iwillteachyoutoberich.com/blog/announcing-the-earn-your-first-1000-on-the-side-course/">many comments</a> about how crazy others would be to spend money on my course &#8212; and how dare I charge for an online course.</li>
<li>A while back, Henry Blodget wrote a a semi-satirical article on the Huffington Post called &#8220;<a href="http://www.huffingtonpost.com/henry-blodget/easiest-job-on-planet-ban_b_97933.html">Easiest Job on Planet: Bank CEO</a>. And in a separate thread, <a href="http://reddit.com/info/6go91/comments/ ">internet commenters took the bait</a>, writing that being a bank CEO is all about luck and secret connections. This is classic <a href="http://www.iwillteachyoutoberich.com/blog/success-and-the-shrug-effect/">Shrug Effect</a> from armchair businesspeople who have never run a company. Even more interestingly, the comments reveal several limiting beliefs about money, such as &#8220;money=evil&#8221; and &#8220;anyone who has money must have done something bad to get it.&#8221;</li>
<li>Another personal finance blogger, FMF, wrote a guest post about making 6 figures in 7 years. The result? <a href="http://www.getrichslowly.org/blog/2009/10/15/five-steps-to-six-figures-in-seven-years/ ">People hated him</a>. Themes include jealousy, &#8220;not everyone can do it,&#8221; excuses like &#8220;I&#8217;m too old,&#8221; and &#8220;Yeah, but $100k means you hate your job.&#8221; Funny, few people say, &#8220;Wow, this guy did a lot of hard work to earn six figures and now he&#8217;s writing a free blog post to share how he did it. What can I take away from this to improve my life?&#8221; Easier to criticize others&#8217; spending &#8212; or earning &#8212; rather than do something different in our own lives.</li>
<li>Erica Douglass, who sold her company for over $1 million at age 26, writes about outsourcing part of her life. <a href="http://www.getrichslowly.org/blog/2010/02/10/outsourcing-life-unconventional-advice-for-when-youre-financially-secure/ ">The commenters go nuts</a>, accusing her of being irresponsible with her money, racist, and virtually every other financial criciticism you can imagine.</li>
</ol>
<h3>What can you learn from judging other people&#8217;s spending?</h3>
<p>First, when you judge other people for poor spending, you&#8217;re probably right, since most people are horrible at managing your money. This judgment is profoundly rewarding &#8212; and also wasteful &#8212; since we employ psychological techniques to distort our judgments in favor of our own spending. Think back to the last time you gossiped about a friend&#8217;s new pair of shoes or iPhone: It felt good for a few minutes. But it didn&#8217;t produce any positive behavioral change for you to change your spending.</p>
<p>Second, it&#8217;s easy to judge others, but hard to honestly evaluate our own spending. When we judge others, we assign &#8220;dispositional&#8221; reasons like, &#8220;He is just really bad at managing his money.&#8221; But when it comes to ourselves, we use &#8220;situational&#8221; explanations like, &#8220;It&#8217;s my birthday&#8230;I deserve it!&#8221;</p>
<p>Third, you WILL go up the <a href="http://www.nytimes.com/2009/03/05/opinion/05glanville-upgrades.html?_r=2&amp;pagewanted=all ">hedonic treadmill</a> and increase your spending as you earn more money &#8212; it&#8217;s only natural. When we judge someone else, we rarely take their income, savings, and other largely invisible factors into account.</p>
<p>Fourth, in America, we have a special hatred of people who earn significant amounts of money &#8212; <a href="http://articles.latimes.com/2008/oct/25/nation/na-wallstreetwives25 ">especially when they fall from grace</a>. If someone earns $250,000/year and spends $10,000/year on clothes, is it really &#8220;ridiculous&#8221;? In the above examples, you saw numerous examples of people earning six figures, spending on things that were very much in their reach &#8212; but people criticize without context.</p>
<p>Fifth, judging others is toxic. It&#8217;s not enough for us to make money &#8212; as a University of Texas researcher writes <a href="http://www.psychologytoday.com/blog/ulterior-motives/201005/what-makes-me-happy-is-i-make-more-money-you">Psychology Today</a>, &#8220;What makes me happy is that I make more money than you. It isn&#8217;t enough just to make a lot of money, you need to make more than the people to whom you compare yourself.&#8221;</p>
<p>But judging others goes even deeper. Have you ever noticed that co-worker who <em>always</em> complains about his boss, job, salary, etc? Think back to the last time you sat next to him &#8212; did you start complaining, too? Soon afterward, you feel worse about yourself. This negative emotion is the same thing that happens when you listen to a radio host skilled at evoking your emotions. You get outraged, you get angry&#8230;.and the short-term emotion retards long-term behavioral change &#8212; it literally robs you of energy.</p>
<p>Judging others&#8217; spending is a natural phenomenon. It&#8217;s also destructive and wastes time focusing on others, when you could focus on yourself.</p>
<h3>About to judge someone&#8217;s spending? First, use this 5-step process</h3>
<p>Whenever you find yourself about to judge someone else&#8217;s spending, ask these simple 5 questions first.</p>
<ol>
<li>How much do they earn?</li>
<li>How much do they save, on a percentage and absolute basis?</li>
<li>What do they <a href="http://www.iwillteachyoutoberich.com/blog/conscious-spending-how-my-friend-spends-21000year-on-going-out/">consciously spend on</a> and what do they <a href="http://www.iwillteachyoutoberich.com/blog/what-do-you-not-care-about-spending-money-on/">NOT care about spending on</a>?</li>
<li>How long will they be keeping this purchase? (For example, are they buying a car to keep it for 10+ years? Or are they buying shoes to keep for one season?)</li>
<li>MOST IMPORTANT: Are my own finances automated and optimized? If not, <a href="http://www.iwillteachyoutoberich.com/automate-your-personal-finances/">automate your personal finances</a> and implement the <a href="http://www.iwillteachyoutoberich.com/blog/bad-money-advice/">STFUDF Technique</a> &#8212; against yourself.</li>
</ol>
<p>Since few people will do this, my hope is that you&#8217;ll distract yourself enough to stop the insidious process of judging someone else before looking at yourself.</p>
<p>Personally, I&#8217;ve been trying to get better at this recently. To do so, I have to remind myself that personal finance is personal. You don&#8217;t know your friends&#8217; financial situations &#8212; although they are likely not very good. But each time we judge someone else, we make it less likely of taking action on our own finances.</p>
<p><center>* * *</center><strong>Automate your finances</strong>: <a href="http://www.amazon.com/gp/product/0761147489?ie=UTF8&amp;tag=iwillteachyou-20&amp;linkCode=as2&amp;camp=1789&amp;creative=390957&amp;creativeASIN=0761147489">Get the 6-week plan used by thousands of people</a>.</p>
<p><strong>Earn more money</strong>: My Earn1k course to help you <a href="http://www.earn1k.com">earn your first $1,000 on the side</a>.
<p><!--
<div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;">
<p><strong>Join the free 30-day course to hustle your way to the top</strong></p>
<p>Here&#8217;s a sample of what I&#8217;ll be sending out:</p>
<p>- A invite to my private webcast with Tim Ferriss &#8211; where you&#8217;ll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. <br/><br />
- A full recording of my private webcast with Tim Ferriss &#8211; in case you can&#8217;t make it&#8230;<br/><br />
- Earn1 Bonus Case Study &#8211; Unlocking side income: From $0 to $1,500/month in 2 weeks</p>
<p><a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&#038;utm_medium=feed&#038;utm_campaign=earn1k-rss-ad&#038;utm_content=rss-footer">Become a top performer now</a></p>
</div>
<p>&#8211;></p>
<p><!-- <a href="http://www.iwillteachyoutoberich.com/blog/judgmental-money-spending/">Attention annoying hypocrites: Stop being judgmental about your friends&#8217; money habits</a> is a post from: <a href="http://www.iwillteachyoutoberich.com">I Will Teach You To Be Rich</a>&#8211;></p>
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		<title>Student loans and financial aid: How to save $23,000</title>
		<link>http://www.iwillteachyoutoberich.com/blog/student-loans-financial-aid-save-money/</link>
		<comments>http://www.iwillteachyoutoberich.com/blog/student-loans-financial-aid-save-money/#comments</comments>
		<pubDate>Fri, 02 Apr 2010 07:06:41 +0000</pubDate>
		<dc:creator>Ramit Sethi</dc:creator>
				<category><![CDATA[Debt]]></category>
		<category><![CDATA[Personal entrepreneurship]]></category>
		<category><![CDATA[Popular Posts]]></category>
		<guid isPermaLink="false">http://www.iwillteachyoutoberich.com/?p=5005</guid>
		<description><![CDATA[Too many people say, "Oh, I'm not going to apply to Harvard. Even if I could get in, there's no way I could afford it." This is wrong. Read Anya Kamenetz's guest post about student loans, financial aid, and higher education to find out why, and to see her simple advice: "Apply to the most expensive schools you can."<p><!--<div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;">
<p><strong>Join the free 30-day course to hustle your way to the top</strong></p>
<p>Here's a sample of what I'll be sending out:</p>
<p>- A invite to my private webcast with Tim Ferriss - where you'll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. <br/>
- A full recording of my private webcast with Tim Ferriss - in case you can't make it...<br/>
- Earn1 Bonus Case Study - Unlocking side income: From $0 to $1,500/month in 2 weeks</p>
<p><a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&utm_medium=feed&utm_campaign=earn1k-rss-ad&utm_content=rss-footer">Become a top performer now</a></p>
</div>-->
<!-- <a href="http://www.iwillteachyoutoberich.com/blog/student-loans-financial-aid-save-money/">Student loans and financial aid: How to save $23,000</a> is a post from: <a href="http://www.iwillteachyoutoberich.com">I Will Teach You To Be Rich</a>--></p>
]]></description>
			<content:encoded><![CDATA[</p>
<p>When it comes to student loans, financial aid, and higher <a href="http://delicious.com/ramitsethi/education">education</a>, everyone&#8217;s got an opinion. They just usually happen to be wrong.</p>
<p>When I was in high school, it drove me crazy to hear people saying things like, &#8220;Oh, I&#8217;m not going to apply to Harvard. Even if I could get in, there&#8217;s no way I could afford the tuition.&#8221;</p>
<p>This is wrong. In fact, if Harvard accepted them, these very people would likely have to pay <em>nothing</em>. But people don&#8217;t understand that. Like naive car buyers, they truly believe that &#8220;tuition&#8221; is what people actually pay, and are predictably too intimidated to even apply.</p>
<p>My friends who didn&#8217;t apply to these colleges are perfect examples of people who do the job of rejecting themselves before anyone else can reject them. It&#8217;s sad, because many of the people who think this way simply don&#8217;t know any better.</p>
<p>In reality, <a href="http://www.stanford.edu/dept/finaid/undergrad/how/parent.html">almost nobody pays the full sticker price</a>.</p>
<h3>Hundreds of thousands of dollars in scholarship money</h3>
<p>Here&#8217;s my 10-second background so you know where I&#8217;m coming from: I grew up in a middle-class family with immigrant parents and 3 other siblings, got into Stanford (where I completed my undergraduate and graduate studies), and <a href="http://www.iwillteachyoutoberich.com/blog/the-1-day-iwillteachyoutoberich-entrepreneurship-boot-camp/">secured hundreds of thousands of dollars in scholarships</a>.</p>
<p><em>But even if I hadn&#8217;t won a single scholarship, my financial aid would have required me to only pay single-digit thousands per year for a Stanford education.</em></p>
<p>That&#8217;s why it&#8217;s aggravating to read people, especially anonymous online commenters, who persist in advising students to apply to community colleges and state universities for financial reasons. That&#8217;s nonsense. If you want to go to your local university to stay close to your family, or you prefer a smaller school, fine. But don&#8217;t blame it on money. It&#8217;s just not true.</p>
<h3>3 notes about applying to expensive schools</h3>
<ol>
<li><strong>If you&#8217;re good enough to get in, top-tier universities will take care of you</strong>. Yes, &#8220;if you&#8217;re good enough&#8221; includes incredibly complex socio-economic connotations, but we can&#8217;t address them all here. I simply want to highlight the mistaken belief that money is holding students back from attending top-tier colleges because of tuition costs. No. It&#8217;s not. If you&#8217;re good enough to get in, top-tier universities will take care of you, financially.</li>
<li><a href="http://www.iwillteachyoutoberich.com/blog/your-college-is-not-a-technical-school/">Your college is not a technical school</a>. It&#8217;s not only about how much money you&#8217;ll make once you graduate, like so many people try to claim. There are ineffable qualities to being surrounded by an extremely high caliber of peers. I&#8217;m not even saying, &#8220;Go to a top-tier university&#8221; (although I think you should). Just apply to them.</li>
<li><strong>Tuition should be one of the last decisions you make</strong>. Stop thinking about the money up front. First, focus on getting into the best schools possible, whatever that means for you. Once you secure admission, worry about the finances. Remember, if you&#8217;re good enough, the universities want you there, and they have hefty treasure chests to ensure that you matriculate.</li>
</ol>
<h3>Harvard dean: &#8220;&#8230;.Never allow a lack of financial resources to stand in the way of reaching for their first choice college&#8230;&#8221;</h3>
<p>The curious aversion to student debt is at once irrational and understandable. To put it bluntly, I wouldn&#8217;t take on $40k of debt to attend Chico State. Actually, I wouldn&#8217;t pay $10 to go to Chico, and I would rather send my daughter to a Chinese prison than the 4-year gangbang that is ASU or UofA. But I would easily pay $40k to attend a top-tier school like Stanford, Harvard, or Yale because of the education, caliber of peers, and opportunities available at schools like this.</p>
<p>Yet the constant drumbeat of &#8220;avoid student debt&#8221; produces some funny thinking.</p>
<p>Washington Post columnist Jay Mathews asked the provocative question, <a href="http://www.washingtonpost.com/wp-dyn/content/article/2009/07/26/AR2009072602301.html">Do You Know a High-Achieving Student Kept From College Because of Money?</a>. Not one person could provide an example.</p>
<p>As William R. Fitzsimmons, the Harvard dean of admissions and financial aid, <a href="http://thechoice.blogs.nytimes.com/2009/09/10/harvarddean-part1/?hp">writes</a>, &#8220;Promising students should never allow a lack of financial resources to stand in the way of reaching for their first choice college.&#8221;</p>
<p>Always, always apply to the best schools you could possibly get into.</p>
<h3>Does a more expensive college mean it&#8217;s better?</h3>
<p>It&#8217;s important to address whether &#8220;expensive university = better.&#8221;</p>
<p>My take: Not always, and &#8220;better&#8221; is different for everyone. But can we stop being politically correct for a minute? Yes, expensive universities are often better than less expensive schools. At Stanford, I met people I could have never otherwise met. I had access to resources that few other colleges could equal, and experiences that few other colleges could provide. I learned an entirely different way of thinking.</p>
<p>The point is this: People assume that more expensive colleges are out of their reach, when in reality, if you can&#8217;t afford much money, <em>you&#8217;re the very person who should be applying to expensive colleges</em>.</p>
<p>That&#8217;s why I&#8217;m thrilled to run this guest post from Anya Kamenetz, who has simple advice: &#8220;Apply to the most expensive schools you can.&#8221;</p>
<p>To find out why, read on.</p>
<p><center>* * *</center></p>
<h2>Anya Kamenetz: How to save $23,000 in student loans</h2>
<p>The average bachelor’s degree recipient graduates with $23,200 in student loan debt. But that is mostly preventable. Here’s one way to avoid it:</p>
<p>Apply to the most expensive schools you can.</p>
<p>Colleges are like airlines. The person in the seat next to you may be paying a fraction of what you are for the same ride. Too many people focus on the published sticker price, which makes public colleges seem more affordable.</p>
<p>The problem is that public colleges are broke. Broker than they’ve been in decades. They’re <a href="http://www.citytowninfo.com/career-and-education-news/articles/public-university-tuitions-rising-10020402">raising tuition</a> and <a href="http://www.businessweek.com/bschools/content/feb2010/bs20100211_635552.htm">cutting back on their programs</a>.</p>
<p>If you have good grades and test scores, and you have a special quality a college is looking for, you could end up with lower debt at a more expensive school.</p>
<p>Total grant aid to both undergraduate and graduate students increased from $43.4</p>
<p>billion) in 1998-99 to $61.0 billion in 2003-04 and $76.4 billion in 2008-09, in constant dollars. As you can see, institutional grants—money that comes from the college itself&#8212;is the largest source of grant money for college. Almost half of the new grant dollars over the past five years were from colleges and universities themselves.</p>
<p><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://1.bp.blogspot.com/_dicTtWKK4gw/S5aUcVVfWGI/AAAAAAAAAUA/NQlBL8ZSVZ4/s1600-h/Grant+dollars.jpg"><img id="BLOGGER_PHOTO_ID_5446704013835720802" style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 400px; height: 317px;" src="http://1.bp.blogspot.com/_dicTtWKK4gw/S5aUcVVfWGI/AAAAAAAAAUA/NQlBL8ZSVZ4/s400/Grant+dollars.jpg" alt="" border="0" /></a></p>
<p>(image via the <a href="http://www.collegeboard.com/">College Board</a>)</p>
<p>A private college with a big endowment is likely to offer a more generous package of grants and discounts than a public university—in fact, the most expensive private colleges cover about 40% of the cost to attend for students whose families make $60,000 or less.</p>
<p>You don’t have to be poor to get financial aid, though. Quite the opposite. A <a href="http://www.edtrust.org/dc/publication/engines-of-inequality-diminishing-equity-in-the-nation%E2%80%99s-premier-public-universities">2006 study</a> of major research universities found that they spent $171 million on aid to the poorest students—those whose families made less than $20,000 a year. At the same time, they spent $257 million on financial aid for the richest students, from families earning more than $100,000 a year. To look at it another way, between 1995 and 2003, grant aid from those same universities to students from families making $80,000 or more increased 533 percent, while grant aid to families making less than $40,000 increased only 120 percent.</p>
<p><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://2.bp.blogspot.com/_dicTtWKK4gw/S5aWdtXT29I/AAAAAAAAAUI/uo_Z43ok9ow/s1600-h/REUs.jpg"><img id="BLOGGER_PHOTO_ID_5446706236488932306" style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 400px; height: 287px;" src="http://2.bp.blogspot.com/_dicTtWKK4gw/S5aWdtXT29I/AAAAAAAAAUI/uo_Z43ok9ow/s400/REUs.jpg" alt="" border="0" /></a></p>
<p>(Image via the <a href="http://www.edtrust.org/dc/publication/engines-of-inequality-diminishing-equity-in-the-nation%E2%80%99s-premier-public-universities">Education Trust</a>)</p>
<p>I met Olabisi when I spoke at her high school in the Bronx. She was a very high-achieving student who had immigrated from Nigeria. At the time she was comparing financial aid offers from SUNY Binghamton and the University of Pennsylvania. She showed me the financial aid letters. SUNY’s offer was for her to take out $4000 of loans a year, at a public university ranked 80th among major universities college that costs $14,898 this year. That’s $16,000 in loans, total. The offer at U Penn, an Ivy League school ranked <a href="http://colleges.usnews.rankingsandreviews.com/best-colleges/philadelphia-pa/university-of-pennsylvania-3378">4th in its category</a> in the US News and World Report rankings, was for her to take out $20,000 of loans a year, for a college that costs $35,916. That’s $80,000 in loans total.</p>
<p>And then there was <a href="http://colleges.usnews.rankingsandreviews.com/best-colleges/middlebury-vt/middlebury-college-3691/@@Academics_overview.html">Middlebury. </a>With the <a href="http://www.campusgrotto.com/most-expensive-colleges-for-2008-2009.html">second highest tuition</a> in the country, at $42,910, ranked far above SUNY and roughly equal to U Penn (#4 in the category of Tier 1 Liberal Arts Colleges.)</p>
<p>Here’s what she wrote me a few weeks after we met:</p>
<blockquote><p>&#8220;I got great news…I&#8217;m going to Middlebury this fall. Middlebury offered me $41,810 in aid with $36,060 in college grant, $4,000 in Perkins loan and $1,750 in work study. I am so excited that I will be attending a college with less worries about the amount of debt I will be in after four years. My family contribution is more than $2,000 and it will be $200 on a monthly payment.</p>
<p>This is great! Middlebury said that I cannot take any more loans from them and every student is only allowed $4,000 in loans. I&#8217;m very happy too because today, I graduated a valedictorian!&#8221;</p></blockquote>
<p>More than <a href="http://blog.scholarships.com/student-loans/williams-college-ends-no-loan-policy/">30 of the most expensive private college</a>s, including Amherst and Claremont McKenna, have adopted <a href="http://www.finaid.org/questions/noloansforlowincome.phtml">no-loan policies</a> over the last few years. That means if you get accepted and you meet their income requirements, they pledge to meet your needs with grants and work-study instead of student loans. Some colleges have had to <a href="http://www.finaid.org/questions/noloansforlowincome.phtml">pull back on the no-loan guarantee</a> because they are taking severe hits to their endowments, but a richer college is still more likely to be able to work with you to limit your overall loan burden, just as Middlebury helped out Olabisi.</p>
<p>Here are some strategies for maximizing your financial aid package:</p>
<p>1) Fill out your <a href="http://www.fafsa.ed.gov/">FAFSA form</a> as early as possible. You may be able to get help on this from a tax preparer such as H&amp;R Block on an hourly basis.</p>
<p>2) Don’t apply early decision—it includes a commitment to attend if you are accepted, which means you can’t <a href="http://www.iwillteachyoutoberich.com/how-to-negotiate/" target="_blank">negotiate</a>.</p>
<p>3) Apply to a larger number of schools: 10 to 15 rather than 5 to 7.</p>
<p>Once you get some financial aid offers, here&#8217;s an awesome <a href="http://www.financialaidletter.com/">website </a>that can help you decode your financial aid letter. They break down real financial aid letters and explain them in plain English.</p>
<p>Now you&#8217;re ready to get a better deal.</p>
<p>Colleges don’t take kindly to attempts to hardline “negotiate” on a financial aid package. Instead, call the financial aid office and ask to speak to a financial aid officer, or even better, ask for an in-person meeting. Here’s what you should say to the financial aid officer:</p>
<blockquote><p>&#8220;I want to let you know about some personal circumstances that have changed for me or may not be reflected on my application:</p>
<ul>
<li>My relocation costs to move xx miles to this college.</li>
<li>Recent unemployment, or illness.</li>
<li>Other personal hardships for you or your family.</li>
<li>Because of the <a href="http://www.mndaily.com/2009/06/02/credit-card-act-impacts-college-students">CARD act</a>, I will not be able to use a credit card for personal expenses.</li>
<li>Because of <a href="http://archives.chicagotribune.com/2008/aug/10/business/chi-ym-started-0810aug10">lenders dropping out of the student loan program</a>, I haven’t been able to find private student loans.</li>
<li>A common problem: although a stepparent’s income is listed on my application, they are not contributing to my education.</li>
<li>I believe that I would be a valuable addition to this school’s community for the following reasons: (Same stuff you said in your personal statement).</li>
<li>This school is my first choice, but I am entertaining other very attractive offers, and I need to make a decision.</li>
<li>Is there any way that you could take another look at my application for financial aid?&#8221;</li>
</ul>
</blockquote>
<p>Good luck. The best financial aid packages go to those who are persistent.</p>
<p><em>Read Anya Kamenetz&#8217;s new book, <a href="http://www.amazon.com/DIY-Edupunks-Edupreneurs-Transformation-Education/dp/1603582347">DIY U</a>, for more strategies on crafting a personal learning path that is affordable and relevant to your future. </em>
<p><!--
<div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;">
<p><strong>Join the free 30-day course to hustle your way to the top</strong></p>
<p>Here&#8217;s a sample of what I&#8217;ll be sending out:</p>
<p>- A invite to my private webcast with Tim Ferriss &#8211; where you&#8217;ll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. <br/><br />
- A full recording of my private webcast with Tim Ferriss &#8211; in case you can&#8217;t make it&#8230;<br/><br />
- Earn1 Bonus Case Study &#8211; Unlocking side income: From $0 to $1,500/month in 2 weeks</p>
<p><a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&#038;utm_medium=feed&#038;utm_campaign=earn1k-rss-ad&#038;utm_content=rss-footer">Become a top performer now</a></p>
</div>
<p>&#8211;></p>
<p><!-- <a href="http://www.iwillteachyoutoberich.com/blog/student-loans-financial-aid-save-money/">Student loans and financial aid: How to save $23,000</a> is a post from: <a href="http://www.iwillteachyoutoberich.com">I Will Teach You To Be Rich</a>&#8211;></p>
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		<title>How to get 150,000 people to read your blog post in 1 week (and how I did it)</title>
		<link>http://www.iwillteachyoutoberich.com/blog/getting-traffic-for-your-blog/</link>
		<comments>http://www.iwillteachyoutoberich.com/blog/getting-traffic-for-your-blog/#comments</comments>
		<pubDate>Thu, 21 May 2009 02:23:24 +0000</pubDate>
		<dc:creator>Ramit Sethi</dc:creator>
				<category><![CDATA[Personal entrepreneurship]]></category>
		<category><![CDATA[Popular Posts]]></category>
		<guid isPermaLink="false">http://www.iwillteachyoutoberich.com/?p=2796</guid>
		<description><![CDATA[Here's the specific, tactical, step-by-step system I've used to write guest post for other high-traffic bloggers to get hundreds of thousands of new readers, tens of thousands of newsletter subscribers, and hundreds of paying customers to my newest paid product -- and how you can use this for yourself.<p><!--<div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;">
<p><strong>Join the free 30-day course to hustle your way to the top</strong></p>
<p>Here's a sample of what I'll be sending out:</p>
<p>- A invite to my private webcast with Tim Ferriss - where you'll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. <br/>
- A full recording of my private webcast with Tim Ferriss - in case you can't make it...<br/>
- Earn1 Bonus Case Study - Unlocking side income: From $0 to $1,500/month in 2 weeks</p>
<p><a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&utm_medium=feed&utm_campaign=earn1k-rss-ad&utm_content=rss-footer">Become a top performer now</a></p>
</div>-->
<!-- <a href="http://www.iwillteachyoutoberich.com/blog/getting-traffic-for-your-blog/">How to get 150,000 people to read your blog post in 1 week (and how I did it)</a> is a post from: <a href="http://www.iwillteachyoutoberich.com">I Will Teach You To Be Rich</a>--></p>
]]></description>
			<content:encoded><![CDATA[</p>
<p>When I started blogging in 2004, I took a good look around at other blogs, calmly chewed a cookie in my dorm room, and then vomited. There were only about 12 big personal-finance blogs back then, and yet even in 2004, I noticed the trend of new bloggers complaining about why they couldn&#8217;t get covered by the Big Blogs.</p>
<p><img class="alignleft size-full wp-image-2824" title="vomiting-rss-bird" src="http://iwt.wpengine.netdna-cdn.com/wp-content/uploads/2009/05/vomiting-rss-bird.jpg" alt="vomiting-rss-bird" width="275" height="275" /></p>
<p>Today, I&#8217;m going to share a strategy I&#8217;ve used to get regularly featured in The Wall Street Journal and extremely high-traffic blogs like Lifehacker.</p>
<p><strong><a href="http://www.iwillteachyoutoberich.com/write-a-guest-post-for-i-will-teach-you-to-be-rich/">You can skip right to the detailed writeup</a></strong> (includes examples &amp; screenshots), but I hope the story below is useful.</p>
<p><strong>This advice can be useful for getting thousands of new readers to your blog, customers to your new startup, or to get your dream freelance job</strong>. And you can start using it tomorrow morning.</p>
<p>So, back to the question: Why do some bloggers get the lion&#8217;s share of attention, while others toil endlessly to write posts that virtually nobody will ever read?</p>
<p>On a recent forum where both new and experienced bloggers share tips for getting traffic, SEO, etc, most of the discussions were <a href="http://www.iwillteachyoutoberich.com/blog/we-love-to-debate-minutiae/">debating minutiae</a> about meaningless changes they could make to their blog to get more readers. &#8220;What SEO plugin should I use?&#8221; one asked. &#8220;Does anyone think I should change my blog&#8217;s name???&#8221; another wondered. After 20 minutes of reading, I had to close the window because I was getting so frustrated.</p>
<p>Look, here&#8217;s a simple chart of what matters for getting traffic for your site.</p>
<p>&nbsp;</p>
<p><img class="aligncenter size-full wp-image-2797" title="pie chart via iwillteachyoutoberich.com" src="http://iwt.wpengine.netdna-cdn.com/wp-content/uploads/2009/05/pie-chart-of-traffic.png" alt="pie chart via iwillteachyoutoberich.com" width="398" height="508" />&nbsp;</p>
<h2>The Guest Post Strategy</h2>
<p>Besides writing really good content, the easiest way to get traffic to your blog is to <strong>write something interesting for another blogger who has more traffic than you</strong>.</p>
<p>It&#8217;s funny &#8212; when you point this out to many new bloggers by saying, &#8220;Hey, why don&#8217;t you write up something really good and send it to a bigger blogger as a guest post?&#8221; &#8212; many of them quickly make up a bunch of excuses. &#8220;Well, uh…I am really busy this weekend&#8221; or &#8220;I&#8217;m in the middle of this really interesting post on how HSBC interest rates changed!&#8221; Yes, okay.</p>
<p>But it&#8217;s not just as simple as deciding to write a guest post. When it comes to high-traffic bloggers, there are very specific ways to approach them so they&#8217;ll accept your pitch.</p>
<p>Before we get to the tactics&#8230;</p>
<h2>Who could apply this strategy? 3 examples</h2>
<p>Like I said, this works for bloggers and many other areas of business:</p>
<ol>
<li><strong>You&#8217;re a new blogger who wants more traffic</strong>: If you&#8217;re a blogger and you&#8217;re looking to grow traffic, put yourself in the mind of bloggers with large readerships: They&#8217;re busy, they have huge egos, and they need to constantly post new, interesting stuff to satisfy their readers&#8217; voracious appetites for content. Could you write one piece of excellent content for them?&nbsp;
<p>As an example, here were the results of Nora Dunn&#8217;s <a href="http://www.iwillteachyoutoberich.com/blog/cheap-travel/">travel post</a> earlier this week, which drove nearly 100,000 pageviews in 72 hours. I&#8217;ve already invited her to have a regular guest spot on I Will Teach You To Be Rich.</p>
<p>&nbsp;</p>
<p><a title="travel-traffic by ramitsethi, on Flickr" href="http://www.flickr.com/photos/ramitsethi/3549493183/"><img src="http://farm4.static.flickr.com/3325/3549493183_1024c20b61.jpg" alt="travel-traffic" width="500" height="175" /></a></li>
<li><strong>You want to break into the fashion industry</strong>: Or let&#8217;s say you read fashion magazines and really want to break into the industry. The magazine needs fresh perspectives, especially things that haven&#8217;t been done (think <a href="http://www.iwillteachyoutoberich.com/blog/category/the-money-diaries/">Money Diaries</a> for a magazine, for example). How could you help them?</li>
<li><strong>You just started a new company and need customers</strong>: How about if you&#8217;re starting a business on Christmas ornaments, and you aren&#8217;t sure how to get traffic to your website. The first thing I would do is record some interesting videos for other Christmas sites and give them away for free.</li>
</ol>
<h2>How to get hundreds of thousands of new visitors using the Guest Post strategy</h2>
<p>I&#8217;ve written up a detailed post with the tactics for writing successful guest posts for high-traffic bloggers. This post and the writeup took me over 9 hours to write, which gives you a sense of how much time these take. But when you do it, you can get hundreds of thousands of new readers and many thousands of new customers for your business.</p>
<ol>
<li><strong>Read how: <a href="http://www.iwillteachyoutoberich.com/write-a-guest-post-for-i-will-teach-you-to-be-rich/">Tactics for writing winning guest posts for high-traffic bloggers</a></strong> (includes examples &amp; screenshots)</li>
<li><strong>Save money</strong>: If you like the kind of tactical tips I&#8217;m giving you, check out <a href="http://www.scroogestrategy.com">Scrooge Strategy</a>, where I send out one highly tactical savings tip per week. You&#8217;ll get super-detailed tips on <em>big wins</em> for saving money that really work (not stupid tips on saving money on $3 lattes). Many of my customers save hundreds of dollars within the first 30 days, and there&#8217;s a 100% money-back guarantee.
<p>* Kristin Stromberg, <strong>Total savings: $2,500</strong><br />
* Stacy Miller, <strong>Total savings: $660.60</strong> by making only two changes<br />
* Matthew Earle: <strong>&#8220;It’s like having a smart, articulate, and inexpensive financial advisor that calls you all the time to check in.&#8221;</strong></p>
<p>See how you can save hundreds at <a href="http://www.scroogestrategy.com">http://www.scroogestrategy.com</a></li>
</ol>
<div class="entry-footer">
<p style="font-size: 1em; font-family: Helvetica,Arial,sans-serif;">This post is part of a series of <strong><a href="http://www.iwillteachyoutoberich.com/tips-on-starting-your-own-business/">Tips on Starting Your Own Business</a></strong>. For more articles on personal entrpreneurship and marketing, <a href="http://www.iwillteachyoutoberich.com/tips-on-starting-your-own-business/">go to the index page</a>, or follow the links below.</p>
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<td width="33.333333333333336%">« <a href="http://www.iwillteachyoutoberich.com/blog/the-tripod-of-stability/">The Tripod of Stability</a> <a href="http://www.fourhourworkweek.com/blog/2009/03/26/the-psychology-of-automation-building-a-bulletproof-personal-finance-system/"></a></td>
<td style="text-align: center;" width="33.333333333333336%"><a href="http://www.iwillteachyoutoberich.com/tips-on-starting-your-own-business/">Tips on Starting Your Own Business</a></td>
<td style="text-align: right;" width="33.333333333333336%"><a href="http://www.iwillteachyoutoberich.com/blog/heres-a-simple-way-to-get-50000-people-to-your-blog-in-1-day/">Here’s a simple way to get 50,000 people to your blog in 1 day</a> »</td>
</tr>
</tbody>
</table>
</div>
<p><!--
<div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;">
<p><strong>Join the free 30-day course to hustle your way to the top</strong></p>
<p>Here&#8217;s a sample of what I&#8217;ll be sending out:</p>
<p>- A invite to my private webcast with Tim Ferriss &#8211; where you&#8217;ll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. <br/><br />
- A full recording of my private webcast with Tim Ferriss &#8211; in case you can&#8217;t make it&#8230;<br/><br />
- Earn1 Bonus Case Study &#8211; Unlocking side income: From $0 to $1,500/month in 2 weeks</p>
<p><a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&#038;utm_medium=feed&#038;utm_campaign=earn1k-rss-ad&#038;utm_content=rss-footer">Become a top performer now</a></p>
</div>
<p>&#8211;></p>
<p><!-- <a href="http://www.iwillteachyoutoberich.com/blog/getting-traffic-for-your-blog/">How to get 150,000 people to read your blog post in 1 week (and how I did it)</a> is a post from: <a href="http://www.iwillteachyoutoberich.com">I Will Teach You To Be Rich</a>&#8211;></p>
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		<title>Travel full-time for less than $14,000 per year</title>
		<link>http://www.iwillteachyoutoberich.com/blog/cheap-travel/</link>
		<comments>http://www.iwillteachyoutoberich.com/blog/cheap-travel/#comments</comments>
		<pubDate>Mon, 18 May 2009 13:49:04 +0000</pubDate>
		<dc:creator>Ramit Sethi</dc:creator>
				<category><![CDATA[Miscellaneous]]></category>
		<category><![CDATA[Popular Posts]]></category>
		<guid isPermaLink="false">http://www.iwillteachyoutoberich.com/?p=2772</guid>
		<description><![CDATA[Today, I've asked Nora Dunn, a <a href="http://theprofessionalhobo.com/">professional world traveler</a>, to write up a detailed post with her tips on traveling affordably. What I love about this article is how Nora has used money to do what she wants-- instead of waiting around for a mythical day where she'll be able to travel. <p><!--<div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;">
<p><strong>Join the free 30-day course to hustle your way to the top</strong></p>
<p>Here's a sample of what I'll be sending out:</p>
<p>- A invite to my private webcast with Tim Ferriss - where you'll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. <br/>
- A full recording of my private webcast with Tim Ferriss - in case you can't make it...<br/>
- Earn1 Bonus Case Study - Unlocking side income: From $0 to $1,500/month in 2 weeks</p>
<p><a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&utm_medium=feed&utm_campaign=earn1k-rss-ad&utm_content=rss-footer">Become a top performer now</a></p>
</div>-->
<!-- <a href="http://www.iwillteachyoutoberich.com/blog/cheap-travel/">Travel full-time for less than $14,000 per year</a> is a post from: <a href="http://www.iwillteachyoutoberich.com">I Will Teach You To Be Rich</a>--></p>
]]></description>
			<content:encoded><![CDATA[</p>
<p>Ask anyone what they wish they could do more of, and the answer is literally always the same: &#8220;I wish I could travel more.&#8221; Yet when you remove all the excuses, few people actually do. I don&#8217;t have enough vacation days! It&#8217;s too expensive. My friends don&#8217;t want to go with me.</p>
<p>I know I&#8217;ve been guilty of this. </p>
<p>Today, I&#8217;ve asked Nora Dunn, a <a href="http://theprofessionalhobo.com/">professional world traveler</a>, to write up a detailed post with her tips on traveling affordably. What I love about this article is how Nora has used money to do what she wants&#8211; instead of waiting around for a mythical day where she&#8217;ll be able to travel. </p>
<p>Below, you&#8217;ll find a few sites you&#8217;ve heard of, some you haven&#8217;t&#8230;and the overall message: Once you remove the barrier of money, what&#8217;s your excuse?</p>
<p>(Note: This is part of the new book, <a href="http://www.wisebread.com/ebates/">10,001 Ways to Live Large on a Small Budget.</a>) </p>
<h2>Travel full-time for less than $14,000 per year</h2>
<p><a href="http://theprofessionalhobo.com/"><img class="alignright" title="Nora Dunn Professional Hobo" src="http://www.wisebread.com/files/fruganomics/nora-dunn-adventure-begins.png" alt="" width="100" height="149" /></a></p>
<p>I &#8220;retired&#8221; from the rat race at the tender age of 30 to embrace my life-long dream of traveling the world, before life had a chance to get in the way.</p>
<p>So far, I have frolicked in the Rocky Mountains, fallen off the grid in Hawaii, managed tropical hostels, survived Australia’s worst-ever natural disaster, led eco-treks on Llamas, and nearly froze to death in a camper van. (The traveling life is rarely a dull one.)</p>
<p>I am not rich. I am not a trust child, nor do I have rich parents, a sugar daddy, or a stream of income that allows me to live the high life on the road. Full time travel doesn&#8217;t have to be expensive, and after two years on the road, I&#8217;ve learned plenty of tricks to travel the world without breaking the bank, and without an end in sight.</p>
<p>Here are my secrets (click to jump to the 11 tips below or just keep scrolling):</p>
<ol>
<li><a href="#tip1">Save 80% on Airfare</a></li>
<li><a href="#tip2">Work for Accommodation</a></li>
<li><a href="#tip3">Get Free Accommodation</a></li>
<li><a href="#tip4">Work While Traveling</a></li>
<li><a href="#tip5">Learn the Truth About Volunteering</a></li>
<li><a href="#tip6">Become a Part of a Community</a></li>
<li><a href="#tip7">Avoid the Biggest Trap</a></li>
<li><a href="#tip8">Be Food Wise</a></li>
<li><a href="#tip9">Roll with the Punches</a></li>
<li><a href="#tip10">Rethink Travel Expenses</a></li>
<li><a href="#tip11">Travel Slowly</a></li>
</ol>
<p style="text-align: center;"><a href="http://theprofessionalhobo.com"><img class="aligncenter" title="Nora needs a ride" src="http://www.wisebread.com/files/fruganomics/nora-and-ride.png" alt="" width="500" height="333" /></a></p>
<h2><a name="tip1"></a>Tip #1 – Save 80% on Airfare</h2>
<p>If you solely use the big online search engines to book your flights, there is a good chance that you are overpaying – sometimes dramatically. I will demonstrate with a case study.</p>
<p>For the purposes of this case study, I arbitrarily decided to fly one-way from Paris to Madrid on June 15th, 2009.</p>
<p>In performing my search on Orbitz, the cheapest fare came from Air Brussels for $249US. At first blush this seems like a terrific deal, considering the next highest price came in at $939US.</p>
<p style="text-align: center;"><a href="http://orbitz.com"><img class="aligncenter" title="Flight Search Results from Orbitz.com" src="http://www.wisebread.com/files/wisebread/hosted/worldtravel/orbitz-flight-search-results.jpg" alt="" width="432" height="211" /></a></p>
<p>But before I got all excited and booked the flight, I checked a few other sites, the first of which is called <a href="http://www.whichbudget.com/">Which Budget</a>. By simply plugging in my starting point and destination, I was given a listing of all the budget airlines that fly this route – many of which are not indexed with the larger search engines.</p>
<p style="text-align: center;"><a href="http://www.whichbudget.com/"><img class="aligncenter" title="WhichBudget.com" src="http://www.wisebread.com/files/wisebread/hosted/worldtravel/Which-Budget-flights-from-Paris-to-Madrid-Barajas.gif" alt="" width="400" height="261" /></a></p>
<p>If no options appear in your Which Budget search, the alternative is to do a series of Internet searches to find other airlines that fly this route. A great starting place is to find the website for your departing or arriving airport, which often lists the airlines it caters to.</p>
<p><a href="http://ryanair.com"><img class="alignright" title="RyanAir: for cheap flights within Europe" src="http://www.wisebread.com/files/wisebread/hosted/worldtravel/ryanair-33-euro.jpg" alt="" width="219" height="204" /></a></p>
<p>In my search, Ryanair was one of the options that came up, and before I knew it, I had found a flight on the same day, direct no less (the Air Brussels option had a stopover), for… drum roll please…. 33 Euros. This works out to a whopping $45US.</p>
<p>Not only did I get a direct flight by doing a little extra research, but I saved more than 80% on the listed fares.</p>
<p><strong><em>Words of Caution/Wisdom for Saving Airfare</em></strong></p>
<ul>
<li>Be prepared to fly from other terminals or airports entirely. If you are booking connecting flights, ensure that you are arriving at and departing from the same airport, or that there is enough time for you to hustle to your new departure point.</li>
</ul>
<ul>
<li>Watch the luggage rules. Many budget airlines cut their costs by charging for checked-baggage by weight. If you don’t pre-pay for your checked bags, or if you exceed the limit you paid for, you could face some hefty fines.</li>
</ul>
<ul>
<li>Don’t expect to be wined or dined; not feeding guests is a common budget airline tactic. It’s no loss really – just pack some snacks.</li>
</ul>
<p><strong><em>Other Flying Tips</em></strong></p>
<ul>
<li>Flying mid-week is usually the cheapest time.</li>
</ul>
<ul>
<li>Picking your seats doesn’t have to be a shot in the dark with <a href="http://www.seatguru.com/">Seat Guru</a>.</li>
</ul>
<h2><a name="tip2"></a>Tip #2 – Work for Accommodation</h2>
<p>One of the biggest expenses for a traveler is accommodation. Working (or rather, volunteering) in trade for accommodation – also known as <a href="http://transitionsabroad.com/listings/work/shortterm/articles/caretaking_jobs_abroad.shtml">caretaking</a> &#8211; is a great way to meet the locals, learn about the land, and get off the beaten path. All the while saving thousands of dollars on places to sleep.</p>
<p>Although most people think of WWOOFing (Willing Work on Organic Farms &#8211; we will discuss this in a minute) as the way to work in trade for accommodation, it is only the tip of the iceberg. There are work-trade gigs available in many countries, for people with a variety of skill sets. Among other things, I have milked goats, painted murals, manned reception, cleaned cottages, and maintained estates in trade for my accommodation.</p>
<p><a href="http://theprofessionalhobo.com/2007/11/where-we-live/"><img class="alignright" title="View from my yurt" src="http://www.wisebread.com/files/fruganomics/yurt-view.png" alt="" width="300" height="225" /></a>My accommodation has varied in nature from five-star accommodations, to camper vans, to tiny shared hostel rooms, to <a href="http://theprofessionalhobo.com/2007/11/where-we-live/">Oceanside yurts</a> (photo to the right is the view from my yurt). And you would be surprised at the lack of correlation between quality of accommodation and work expectations. Every position is unique and offers something different to the lucky (sometimes not so lucky) applicant.</p>
<p>Here are six resources that will allow you to find the work-trade arrangement that is perfect for you:</p>
<p><em><a href="http://www.caretaker.org/">Caretaker’s Gazette</a></em> &#8211; This is one of the most useful resources I have found to date. For the $30 annual fee, you will receive listings from around the world for people who are willing to offer rent-free living (and sometimes food too) in trade for your work. Work situations vary from house-sitting, to caring for the elderly, to farm work, campground maintenance, and beyond.</p>
<p><em><a href="http://www.housecarers.com/">House Carers</a></em> &#8211; If all you want to do is watch the house and walk the dogs, House Carers is for you. Basic membership is free, and the full meal deal is about $45. A majority of the listings are in Australia and New Zealand.</p>
<p><em><a href="http://www.organicvolunteers.com/">Organic Volunteers</a></em> &#8211; For a $20 membership, you will find a variety of work-trade opportunities that are not limited to organic farming. It is an easy platform to use, and you can converse with hosts using their system to protect your personal information.</p>
<p><em><a href="http://www.wwoof.org/">WWOOFing</a></em> &#8211; As the most popular work-trade platform, you will find individual WWOOF membership plans for each country. After paying your fee (which varies from country to country), you will receive a booklet detailing the WWOOF hosts in the area and what they are looking for. It is recommended that you get your WWOOF booklet well in advance of your trip, as some are not fully online and will only mail you their listings.</p>
<p><em><a href="http://www.helpx.net/">Help Exchange</a></em> &#8211; With a free basic membership (and a nominal premium membership which allows you to converse with hosts using their online platform), you can browse listings around the world which entail a variety of work-trade duties. The sky is the limit.</p>
<p><em><a href="http://www.workaway.info/">Work Away</a></em> &#8211; This platform is very similar to the ones above, and costs €20.</p>
<p style="text-align: center;"><a href="http://theprofessionalhobo.com"><img class="aligncenter" title="Nora on an eco trek" src="http://www.wisebread.com/files/fruganomics/Nora-and-goat.png" alt="" width="499" height="333" /></a></p>
<p><strong><em>Advantages of Work-Trade Arrangements</em></strong></p>
<ul>
<li>The commute is never very far.</li>
<li>You will learn many new skills.</li>
<li>You can travel slowly (more on this later) and live inexpensively.</li>
<li>Locations are sometimes remote (whether this is an advantage or disadvantage depends on what you want out of your travels).</li>
<li>You don’t need a working visa, since no money exchanges hands in a work-trade arrangement. Many countries allow volunteer work in exchange for room and board.</li>
</ul>
<p><strong><em>Disadvantages of Work-Trade Arrangements</em></strong></p>
<ul>
<li>Sometimes having your boss and your landlord as the same person can be troublesome. If you have a falling-out, you will not only be out of a job, but looking for a new place to live – and fast.</li>
<li>Privacy (or lack thereof) can be an issue, depending on the situation.</li>
<li>Sometimes you have to do grunt work. (Hey – if your host liked doing it, they wouldn’t have work-traders.)</li>
</ul>
<h2><a name="tip3"></a>Tip #3 – Get Free Accommodation</h2>
<p>Using hospitality exchanges, you are a guest in somebody’s home free of charge. The arrangement generally lasts only a few days as opposed to the weeks and even months that a work-trade gig will last, so it is more geared towards active travelers.</p>
<p><strong><em>What’s in it for the host?</em></strong></p>
<p>They get to meet you, proudly show their home town to you, and live vicariously through your stories of adventure and travel. (Oh – and if you are nice, you will do the dishes for them too.)</p>
<p><strong><em>What’s in it for you?</em></strong></p>
<p>Instead of staying in an expensive and sterile hotel room, you have an “in” with the locals, you get to see how they live, and you have an instant local friend who can show you the ropes.</p>
<p>Although your stay is technically free, common etiquette dictates that you bring a gift for your host, and help out with the household chores and such. So while budgeting your free or almost-free trip, don’t forget to add in this cost.</p>
<p style="text-align: center;"><a href="http://theprofessionalhobo.com"><img class="aligncenter" title="Free View" src="http://www.wisebread.com/files/fruganomics/best-view-ever.png" alt="" width="500" height="375" /></a></p>
<p>Here are four resources for you to find the right hospitality exchange:</p>
<p><em><a href="http://www.couchsurfing.com">Couch Surfing</a></em> &#8211; Couch Surfing is arguably the most well-known hospitality exchange, although not the first. Your bed for the night can take the form of a couch, extra bedroom, or chunk of the floor depending on what your host can offer. You can browse online listings, learn about and converse with your potential host online, and make arrangements to meet. Safety checks are in place to ensure no dodgy travelers/hosts ruin it for everybody, but as with all the opportunities listed in this section, please do your due diligence and go with your gut instincts to be safe.</p>
<p><a href="http://www.hospitalityclub.org/"><em>Hospitality Club</em></a> &#8211; I have used Hospitality Club to stay in a few Australian homes and meet new friends in other places in the world. The platform is similar to Couch Surfing with checks and balances, and a wide variety of members can make this site an adventure to surf.</p>
<p><em><a href="http://www.globalfreeloaders.com/">Global Freeloaders</a></em> &#8211; If the platform or profiles on Couch Surfing and Hospitality Club aren’t doing much for you, then check out what Global Freeloaders has to offer. The only stipulation to membership is that you must be able to reciprocate and offer up your home to travelers within six months of signing up. So if you are on a long trip, best to wait until you get home unless you can host travelers before you leave.</p>
<p><em><a href="http://joomla.servas.org/">Servas</a></em> &#8211; With over 50 years under its belt, Servas is considered to be a pioneer in the hospitality exchange arena, and is recognized by the United Nations. The membership application process is more grueling, and requires a personal interview before acceptance. Fees vary from country to country, and many country listings are not yet available online (instead, they are mailed to you). Although I don’t doubt the quality of candidate screening and such, I find it much easier to use the other three options above.</p>
<h2><a name="tip4"></a>Tip #4 – Work While Traveling</h2>
<p>There are a few ways you can keep the money flowing while traveling long-term, depending on your skills and desires. Here are three:</p>
<p><strong><em>Freelancing on the Web</em></strong></p>
<p>With an increasing trend towards telecommuting, the widespread use of social media, and online businesses cropping up everywhere, it is quite possible to make a living online while you travel, with little more than an internet connection. Personally, I make my millions (ha) as a writer, the income of which pays my expenses over and above accommodation (which I usually work in trade for). I know another fellow whose websites and freelance SEO work make him over $3,000/month – a more than adequate long-term traveling income. (You will see shortly that the cost of full-time travel may not be as high as you think).</p>
<p><a href="http://www.amazon.com/4-Hour-Workweek-Escape-Live-Anywhere/dp/0307353133"><img class="alignright" title="4 Hour Work Week" src="http://www.wisebread.com/files/fruganomics/4-hour-workweek.png" alt="" width="120" height="188" /></a>Reading <a href="http://www.fourhourworkweek.com/">The 4-Hour Workweek</a> by Tim Ferriss was instrumental in helping me to see the online income, telecommuting, and outsourcing possibilities. <a href="http://www.transitionsabroad.com/listings/work/shortterm/articles/working-living-abroad-freelancing-on-the-web.shtml">Freelancing</a> on the Web is possible in many careers, even if at first it may not seem so. If you are new to the concept of being an Internet business-person, then start slow; subscribe to newsletters, lurk forums, and watch how other people in your line of work are making a go of it. Combine this prep work with an ingenious idea, and you could end up laughing all the way to the bank. (Or at least covering your next dinner out. Either way.)</p>
<p><strong><em>Working Visas</em></strong></p>
<p>If you are under the age of 30, you can get a working visa without much drama in many western countries. In this way, you can take your skills on the road and enjoy learning how to do your job on the other side of the planet. Some country-specific resources can be found here on this topic: <a href="http://www.immi.gov.au/media/fact-sheets/49whm.htm">Australia</a>, <a href="http://www.immigration.govt.nz/migrant/stream/work/workingholiday/">New Zealand</a>, <a href="http://www.visabureau.com/canada/working-holiday-requirements.aspx">Canada</a>, <a href="http://www.owh.com.au/working-holidays/110/">UK</a>. Search for the country name plus &#8220;working visa&#8221; for the countries you&#8217;re interested in.</p>
<p>Additionally, <a href="http://www.workpermit.com/">Work Permit</a> and <a href="http://www.transitionsabroad.com/listings/work/careers/index.shtml">Transitions Abroad</a> both have great resources for those wanting to know more about working abroad.</p>
<p><strong><em>Other Work</em></strong></p>
<p><a href="http://theprofessionalhobo.com"><img class="alignright" title="Nora the freelance author" src="http://www.wisebread.com/files/fruganomics/freelancing-nora.png" alt="" width="200" height="267" /></a>Do you know how to tend bar? Serve tables? Are you a scuba dive master? You would be amazed at the working opportunities that present themselves to you on the road with a little networking and looking under the right rocks.</p>
<p>Now I would never condone working illegally in a foreign country, so if that is your gig, just don’t tell anybody that I suggested it. But depending on where you travel and your ability to communicate with the locals, don’t be surprised if a chance to work for a little extra cash comes your way. With a few nods and winks, you can make enough money to cover off some of your traveling expenses.</p>
<p>Or – as was the case with my travel partner, who used to fight forest fires in Canada and found himself in the middle of the worst bush fire Australia had ever seen – you may find your skills are suddenly in such demand in the country you are traveling to that a working visa will materialize.</p>
<p>A quick cautionary note for anybody planning to travel and work: Be aware of maintaining a balance between work and play. I have more than once entrenched myself so deeply in my work that I have lost sight of why I am on the road in the first place. As with most freelance lifestyles, everything in moderation is a key thing to remember.</p>
<h2><a name="tip5"></a>Tip #5 – Learn the Truth About Volunteering</h2>
<p>Although you would think that volunteering never costs the volunteer any money, you may be surprised. Depending on the organization, you could spend more money for the privilege of volunteering your hard labor than you would to sit on a beach at a luxury all-inclusive resort, being plied all day with tropical drinks bearing umbrellas. So volunteering on vacation is rarely a financial decision, and more likely an altruistic one.</p>
<p>But don’t lose hope if you are on an altruistic travel quest with a minimal budget. There are a number of ways to volunteer inexpensively (or for free) if you are willing to do some research.</p>
<p>In Asia, I met two German girls who were on a world tour, volunteering everywhere they went. In each destination, they found orphanages and refugee camps that were more than happy to have them in each afternoon to play with the kids or help out with some of the chores. They rarely paid for this chance to help, and more often than not got a rewarding grassroots volunteering experience out of it.</p>
<p style="text-align: center;"><a href="http://theprofessionalhobo.com"><img class="aligncenter" title="Nora volunteering for an arts project" src="http://www.wisebread.com/files/fruganomics/nora-volunteering.png" alt="" width="500" height="333" /></a></p>
<p>If you are looking for something a little more packaged or travel-friendly, there are a number of volunteer travel resources that can help you find the perfect position:</p>
<p><em><a href="http://www.cdtrail.org/page.php?pname=home">Continental Divide Trail Alliance</a></em> &#8211; A little closer to home, you can work on nature trails in North America with this company. A small membership fee applies, which allows you to volunteer as much as you like. It’s hard work, but satisfying work at that.</p>
<p><em><a href="http://www.conservationvolunteers.com.au/conservation-connect.asp">Conservation Connect</a></em> &#8211; If you are in Australia or New Zealand, this website will connect you with a myriad of volunteer opportunities, depending on your area of interest. Day trips are free to volunteer for (pack a lunch), and overnight trips work out to $200/week, all expenses in.</p>
<p><em><a href="http://www.thepodsite.co.uk/">Personal Overseas Development</a></em> &#8211; This non-profit organization connects travelers with volunteer opportunities across the world.</p>
<p><em><a href="http://www.compathos.com/resources.php">Compathos</a></em> &#8211; This organization brings awareness and support to worthwhile international projects and volunteer travel opportunities through film, digital storytelling and grassroots media.</p>
<p><em><a href="http://www.voluntourism.org/options.html">Voluntourism</a></em> &#8211; As a pioneer of the term “voluntourism,” this comprehensive site is a practical and educational resource.</p>
<p><em><a href="http://www.idealist.org/if/as/vol">Idealist</a></em> &#8211; This site connects volunteer organizations with supporters and volunteers. It has a great search engine for finding just what you want, where you want.</p>
<p><a href="http://www.transitionsabroad.com/listings/work/volunteer/index.shtml"><em>Transitions Abroad</em></a> &#8211; This is also a fabulous resource for eager volunteers to use.</p>
<p>I have personally found that the most rewarding volunteer opportunities were serendipitous and not organized. While in remote northern Thailand in 2008, Cyclone Nargis (which devastated the neighboring country of Burma) just missed me. Touched by the incident and the amount of suffering that was a stone’s throw from where I was, I dropped my trip and volunteered my help wherever it was needed. My initially simple (and admittedly naïve) plan exploded in 24 hours into the <a href="http://www.youtube.com/watch?v=crcnP1GeyjI">ride of a lifetime</a>. By virtue of this adventure, I now have lifelong friends in Thailand.</p>
<p><a href="http://theprofessionalhobo.com/2009/02/victorian-bush-fire-diary-february-9th-day-three/"><img class="alignright" title="Nora and prime minister rudd" src="http://www.wisebread.com/files/fruganomics/nora-and-rudd.png" alt="" width="175" height="208" /></a>Less than a year later, I found myself in the middle of the <a href="http://theprofessionalhobo.com/2009/02/victorian-bush-fire-diary-february-7th-day-one/">Victorian Bush Fires</a>: Australia’s worst ever natural disaster. Once again, I rolled up my sleeves to do whatever I could, which involved working for almost a month (full-time) at a warehouse which was accepting donations of supplies for the survivors of the fire from all over the country. It was a heart-warming community-strengthening experience, and one with a happy ending: by virtue of the work that my partner and I did, we were granted 1 year extensions on our Australian visas – and given working rights.  (Well, maybe it helped a bit that I ran into the Australian Prime Minister during the relief efforts: see photo to the right.)</p>
<p>You never know what can come out of an earnest and unselfish desire to do good for the world.</p>
<p>And as a Rotarian, I attend local Rotary meetings wherever I go, and am immediately tapped into local volunteer projects. It is a fabulous way to fast-track becoming part of a community.</p>
<h2><a name="tip6"></a>Tip #6 – Become Part of a Community</h2>
<p>Speaking of fast-tracking to becoming part of a community in record time, here are eight ways to help you do just that:<a href="http://theprofessionalhobo.com"><img class="alignright" title="Nora at the Rotary Club" src="http://www.wisebread.com/files/fruganomics/nora-rotary-club.png" alt="" width="300" height="226" /></a><a href="http://theprofessionalhobo.com"> </a></p>
<p><em><a href="http://www.rotary.org/">Rotary</a></em><a href="http://theprofessionalhobo.com"> </a>- Rotary is a service-based organization that works on both community and international levels to improve quality of life for everybody. Almost solely responsible for eradicating polio around the world, and with numerous sponsored student and career exchanges available, attending a meeting abroad is a brilliant way to share some camaraderie with fellow Rotarians around the world.</p>
<p><em><a href="http://www.toastmasters.org/">Toastmasters</a></em> &#8211; As another international organization (this one dedicated to public speaking), you can show up at a Toastmasters meeting anywhere in the world and be welcomed with open arms. (Well, within reason. If you are a female arriving in a Muslim country wearing nothing but a bikini you have made your bed.)</p>
<p><strong><em>See an Opportunity? Help!</em></strong></p>
<p>The quickest way I worked my way into a completely foreign community was when I adopted the project to help the Cyclone victims of Burma. By simply rolling up your sleeves and helping where you see a need, locals will see what you are doing and come to help you. It doesn’t have to be a monumental project: start with helping an elderly person with their groceries, and see where that takes you.</p>
<p><strong><em>Library</em></strong></p>
<p>At least in developed countries, and even in some lesser-developed areas, libraries are a hub of community information and resources. You will often find access to free or inexpensive seminars, workshops, and special interest groups. Besides which, the library is a great place to research your trip and pass some time for free.</p>
<p><strong><em>The Pub</em></strong></p>
<p>In many global circles, enjoying a drink with somebody is the unspoken sign of kinship. Not only that, but who is the best person in town to talk to if you want the latest word on the street? The bartender, of course. So pull up a stool, and just take in the scene at the pub. If you look remotely approachable, you won’t likely leave alone if you don’t want to.</p>
<p><strong><em>Bulletin Boards</em></strong></p>
<p>I love bulletin boards. Be they in hostels, libraries, pubs, or supermarkets, you can learn lots about a community by virtue of their bulletin boards. Search the listings – you may find a job opportunity, some gear you want to buy (or a buyer for something you want to sell), a place to stay, or even just a new friend.</p>
<p><strong><em>Community Newspapers</em></strong></p>
<p>Although a little less interactive than bulletin boards, a community newspaper will give you a decent sense of what makes the community tick and tap you into the local pulse.</p>
<p><strong><em>Keep your Eyes Open, and Get Involved!</em></strong></p>
<p>Be aware of your surroundings, and don’t be shy. In Thailand one evening, my boyfriend and I noticed some elderly people sitting around a radio and listening to the closest thing to Thai-Country music I could imagine. We spent a spontaneous evening enjoying their company and watching all the tourists at the market, almost none of whom looked up from their souvenir shopping long enough to notice that we were having a good time right in front of them.</p>
<p>By becoming part of a community, you will discover new doors opening for jobs, places to stay, and places to eat. You will get to know the local culture better, avoid the tourist traps, and best of all – you will make some amazing friends along the way. Enriching travel involves putting yourself out there, potentially making a few mistakes along the way, but also reaping the benefits of your courage in unimaginable ways.</p>
<h2><a name="tip7"></a>Tip #7  – Avoid the Biggest Trap</h2>
<p>This is an easy tip to learn, but one of the hardest to practice. I still struggle with keeping my travels free or almost-free, given the never-ending temptation to…are you ready for it?&#8230;buy souvenirs.</p>
<p><img class="alignright" title="Souvenir Masks (Photo by Wandering Angel / Flickr)" src="http://www.wisebread.com/files/wisebread/hosted/worldtravel/1470925369_250.jpg" alt="" />Don’t.</p>
<p>One of the easiest ways to save money while you are traveling is to steer clear of the souvenir shops. Most often, the goods are mass-produced in another country entirely, and lack the authenticity that you are probably looking for. Even if you find yourself coveting a trinket that is “real,” ask yourself these questions:</p>
<ul>
<li>Is it an accurate representation of the place I am visiting?</li>
<li>Will I use it?</li>
<li>Will I remember this trip by virtue of owning this souvenir?</li>
<li>Was I planning on buying something like this anyway?</li>
</ul>
<p>If you even think twice about answering yes to these questions, it is best to reconsider your purchase.</p>
<p>Instead of leaving yourself to chance and impulse, why not put a little purpose into your souvenir shopping? Before leaving for your trip, choose one or two items that for you will encapsulate the trip and the destination, then spend your traveling days searching for the perfect artifact. If the whole family is planning, allow everybody to choose their own souvenir. It gets other family members involved in the trip planning process, and will minimize the kids’ incessant requests for “can I have this…and this…and this?”</p>
<p>I have a pair of blue tanzanite earrings and a mask from South Africa, a silk shirt and painting of Buddha from Thailand, hand-carved wooden salad spoons from Spain, and a hand-crafted Didgeridoo and piece of black opal from Australia, as examples. Not a tacky t-shirt or keychain can be found in my collection of souvenirs from around the world. My wallet thanks me, and I like it this way.</p>
<h2><a name="tip8"></a>Tip #8 – Be Food Wise</h2>
<p>From food selection, to the time of day you eat, to how you eat and socialize – there is a lot of money that can be spent (or alternately saved) by virtue of paying attention to how you eat while traveling. (Don’t worry, I won’t tell you to eat ramen if you don’t like to.)</p>
<p><strong><em>Case Study: Taco Tuesday</em></strong></p>
<p>When I lived in Hawaii, I met a lot of travelers at the hostel where I was living (and working in trade for accommodation). Everybody enjoyed sharing and hearing travel tales of adventure and misadventure alike. So when “Taco Tuesday” presented itself as a way to get super cheap beers and tacos, we jumped at the opportunity to enjoy a night on the town all together.</p>
<p>Interestingly, Taco Tuesday became a fascinating study in the spending patterns of people on vacation.</p>
<p><a href="http://theprofessionalhobo.com"><img class="alignleft" title="Street Vendors" src="http://www.wisebread.com/files/fruganomics/street-vendor.png" alt="" width="250" height="375" /></a>John and Wendy, having nipped over to Hawaii for a quick break before embarking on a major move across the country, didn’t have huge money concerns, but were trying to be frugal knowing that their upcoming move would cost them dearly. Dave and Angie were finishing off a trip around the world, having been on the road for eight months already through countries both expensive and inexpensive.</p>
<p>They played hard during their trip, but their stash of cash was predictably dwindling (an expected bi-product of good budgeting through their long trip). Julie was a very young headstrong woman figuring out where she belonged in the world, and Wayne was an older gentleman on an extended vacation. Rounding out the group (in addition to myself) was Phil, who was something of a nomad, living and working in Hawaii for a bit before moving on to the next locale that tickled his fancy.</p>
<p>I describe each friend’s background in an effort to paint the picture; one of a group of people, all originally from North America, but bringing an entirely different set of experiences, finances, and travel values to the table.</p>
<p>Where things got interesting was in how people indulged on Taco Tuesday.</p>
<p>John &amp; Wendy decided that cheap beer was more appealing than cheap tacos, and so they engineered their budget for the night to partake of the beer (at $2/bottle), and prepared their own full dinner at the hostel prior to going out. Dave &amp; Angie being well-seasoned travelers chose to fill up on some home-made appetizers prior to going out, and each nursed one beer and a taco or two. Julie simply had Coke (not only was she young, but she was broke and underage), and Wayne (who had gads of money) flew under the radar with one beer and two tacos, as did I. And then there’s Phil. Poor Phil.</p>
<p>Phil was definitely out for the party and camaraderie, but didn’t have much money to spare given his lifestyle. This didn’t seem to stop him from indulging though; he managed to order seven tacos, and four beers – not the beers on special though – premium beers.</p>
<p>Phil’s tab ended up being more than everybody else’s tab – combined. No wonder he was constantly broke. He listened to tales of faraway and exotic destinations with drooling enthusiasm – and a bit of melancholy, as he wished he had the ability to travel to these places, but couldn’t scrape together even the airfare if he had to.</p>
<p>Here’s the rub: <strong>The amount of money spent on this night was in no way correlated to how much fun each person had</strong>. Everybody laughed, shared stories, enjoyed the leisurely walk along the ocean to and from the bar, and came away with great memories. If anybody, Phil seemed the least enthused about the night, spending much of the walk home doing the math about how many hours he would have to work to pay for his tab. At least he had a good buzz on to dull the financial pain.</p>
<p>Despite a range of financial backgrounds and intrinsic values, the people who had the <a href="http://www.wisebread.com/the-millionaire-next-door-riches-de-mystified">ability to spend a wad of dough</a> that night chose not to. Most people ate something at home prior to going out, so they wouldn’t be starving and end up over-eating at the bar. The tacos were cheap – but they weren’t cheaper than a healthy homemade snack or meal.</p>
<p style="text-align: center;"><img class="aligncenter" title="Photo by Wolfgang Staudt / Flickr" src="http://www.wisebread.com/files/wisebread/hosted/worldtravel/1205059754_542cade80a.jpg" alt="" width="500" height="333" /></p>
<p>Next to accommodation and long-haul flights, food and drinks are going to be the biggest drain on your expense account while you are traveling. So although you don’t want to sacrifice quality of your vacation by limiting yourself, you can decide what is important to you and budget accordingly. If you were at Taco Tuesday, what would you do?</p>
<p>Do you like beer? Then scrimping a bit on food may be a way for you to enjoy a night on the town without wondering if the next beer will put you over-budget.</p>
<p>Do you like food? Then drink water instead of premium drinks, and order that dish that makes your mom’s cooking look like slop.</p>
<p>Here are some more tips for saving money on food:</p>
<ul>
<li>If you don’t normally eat breakfast in a restaurant, don’t do it while traveling. Instead, save your money and buy some basic ingredients from the grocery store.</li>
</ul>
<ul>
<li>Want a special meal out? Consider going out for lunch instead of dinner. You often get similar if not identical portions, but for a fraction of the dinner prices.</li>
</ul>
<ul>
<li>Avoid hotel restaurants, especially for breakfast. They tend to be overpriced in the name of convenience.</li>
</ul>
<ul>
<li>Does the restaurant have a beautiful view? If so, chances are you are paying for it with your meal. Instead, go to the restaurant around the corner (for better and cheaper food), and/or take a picnic to where the view is.</li>
</ul>
<p><strong><em>Tipping</em></strong></p>
<p>Don’t carry your 20% American tipping conventions around the world with you – it is unnecessary, and in some cases, you can actually offend locals. Instead, <a href="http://blog.iloho.com/older/2008/9/12/tipping_around_the_world/">do some research</a>. For example, tipping at bars and restaurants is not expected in Australia, China, and Italy. In Germany, look for the words “Trinkgeld Inbegriffen” on your bill which means a service charge has been included already.</p>
<h2><a name="tip9"></a>Tip #9 – Roll with the Punches</h2>
<p>When I decided to travel full-time, I had aspirations of heading to Costa Rica as part of a broader Central and South American adventure. But before I booked the ticket, an opportunity came to me that took me across Canada instead. When I was ready to re-join my original plans, another opportunity to go to Hawaii cropped up. Then Asia. Then Australia. And so on. I’ve yet to make it to my original destination, but Latin America isn’t going anywhere – it will surely happen yet.</p>
<p>While you are traveling, opportunities of many an ilk will come to you from all directions. Be prepared to adopt and accept these changes as part of your traveling credo. You can’t possibly predict what will happen or how you will feel when you land in India, so cut yourself some slack if you either feel the need to get out of there ahead of plans, or want to extend your stay after accepting the generous and spontaneous hospitality of a local family.</p>
<p>Had I not rolled with the punches and allowed my travel plans to evolve with me, I may never have had a chance to meet <a href="http://www.youtube.com/watch?v=vd6Z_eDiX9M">Bracken</a> – the kangaroo I lived with for six months nor would I have ever learned to <a href="http://www.youtube.com/watch?v=RnZ-1v2TNxQ">milk goats</a> (hot on the heels of being a very city-oriented business person a mere few months prior).</p>
<p  style="text-align: center;"><object width="480" height="385" data="http://www.youtube.com/v/vd6Z_eDiX9M&amp;hl=en&amp;fs=1&amp;rel=0" type="application/x-shockwave-flash"><param name="allowFullScreen" value="true" /><param name="allowscriptaccess" value="always" /><param name="src" value="http://www.youtube.com/v/vd6Z_eDiX9M&amp;hl=en&amp;fs=1&amp;rel=0" /><param name="allowfullscreen" value="true" /></object></p>
<p>I might have missed out on meeting the generous people in the tiny town of Lightning Ridge, and I certainly would never have become a part of the local Chiang Mai community if I had continued with my agenda and not helped the Burmese victims of Cyclone Nargis.</p>
<h2><a name="tip10"></a>Tip #10 – Rethink Travel Expenses</h2>
<p><a href="http://www.tripbase.com/travel-widgets"><img class="alignleft" title="TripBase Cost Calculator" src="http://www.wisebread.com/files/wisebread/hosted/worldtravel/tripbase-cost-calculator.jpg" alt="" width="212" height="310" /></a>In my first full calendar year abroad, my partner and I spent $20,000 in total. This included a host of miscellaneous and pricey expenditures, such as the purchase of a new laptop, a car, insurance, and numerous long-haul flights. For a single person, I would suggest that the cost of full-time travel could be achieved for $14,000/year. By utilizing the techniques outlined in this article, you can see that travel doesn’t have to break the bank.</p>
<p><a href="http://www.tripbase.com/travel-widgets">Tripbase</a> has some funky widgets for planning your trip, including the handy Trip Cost Calculator, which estimates the cost of lodging and three daily meals in any given destination, according to your selection of a budget, mid-range, or high-end price tag.</p>
<h2><a name="tip11"></a>Tip #11 – Travel Slowly</h2>
<p>The more flights you take, the more money you will spend. The more you have to pack up, hop on a bus, a train, or a taxi, and find a new place to stay, the more money you will spend. Want to keep your travels free or almost-free? Consider traveling slowly.</p>
<p style="text-align: center;"><a href="http://theprofessionalhobo.com"><img class="aligncenter" title="Nora in Hawaii" src="http://www.wisebread.com/files/fruganomics/nora-in-hawaii-24.png" alt="" width="500" height="333" /></a></p>
<p>Think of your trip as a lifestyle and not just a getaway, even if you are only traveling for a short time. Don’t worry about seeing absolutely everything there is to see in Europe – just focus on one or two countries if you don’t have years to see it all.</p>
<p>By staying in one place for a while, you will get to know the people, the language, and the culture. Your new connections and friends will help you to have fun, plan the next stage of your trip, and embrace the place you are visiting. If you are actually living there as a local (even for a month or two) as opposed to actively traveling through, you will get a different perspective of the place entirely.</p>
<p>Traveling slowly is very rewarding. I am about to take a four month trip around the world (yes, I’m already a full-time traveler; it’s a long story). But I’m only choosing to visit a few destinations, which I will explore in depth.</p>
<p>By volunteering for a few weeks here and there, working in trade for accommodation or using hospitality exchanges, watching what (and when) I eat and what I buy, and being savvy in booking flights, I will integrate myself into the local community, see the sights, and make friends. Oh yeah – and I will be traveling for free – or almost-free, anyway.<a href="http://www.wisebread.com/ebates"><img class="alignright" title="Living large on a small budget" src="http://www.wisebread.com/money-saving-book/images/10001-Ways-to-Live-Large-3D-CoverB-150x210.jpg" alt="" width="150" height="210" /></a></p>
<p>For more tips on how to explore the world without spending a fortune, check out <a href="http://theprofessionalhobo.com/">Nora&#8217;s blog</a> and her new book <a href="http://www.wisebread.com/ebates">10,001 Ways to Live Large on a Small Budget</a>.  The book includes guest contributions from other great blogs such as Wise Bread, Zen Habits, Get Rich Slowly, The Simple Dollar, Digerati Life, and the Frugal Duchess.</p>
<p><a href="http://www.wisebread.com/ebates/" target="_blank">Buy the book today</a> and get a <strong>$15 Ebates bonus</strong> and a chance to win a <strong>Flip Cam</strong>.</p>
<p>Photo Credit: <a href="http://www.flickr.com/photos/wandering_angel/1470925369/">Masks by The Wandering Angel</a> and <a href="http://www.flickr.com/photos/wolfgangstaudt/1205059754/">Beach Cabana by Wolfgang Staudt</a>.</p>
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</tr>
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<p><img src="http://forms.aweber.com/form/ci/?tc=FFFFFF&#038;bg=0077E7&#038;d=rJzs7JwcPoLqpkamTj5MLAw%3D" style="margin-top: 8px;"></p>
<p><img src="http://forms.aweber.com/form/displays.htm?id=jMwMbGwMjOzsjA==" border="0" /><br />
</center>
<p><!--
<div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;">
<p><strong>Join the free 30-day course to hustle your way to the top</strong></p>
<p>Here&#8217;s a sample of what I&#8217;ll be sending out:</p>
<p>- A invite to my private webcast with Tim Ferriss &#8211; where you&#8217;ll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. <br/><br />
- A full recording of my private webcast with Tim Ferriss &#8211; in case you can&#8217;t make it&#8230;<br/><br />
- Earn1 Bonus Case Study &#8211; Unlocking side income: From $0 to $1,500/month in 2 weeks</p>
<p><a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&#038;utm_medium=feed&#038;utm_campaign=earn1k-rss-ad&#038;utm_content=rss-footer">Become a top performer now</a></p>
</div>
<p>&#8211;></p>
<p><!-- <a href="http://www.iwillteachyoutoberich.com/blog/cheap-travel/">Travel full-time for less than $14,000 per year</a> is a post from: <a href="http://www.iwillteachyoutoberich.com">I Will Teach You To Be Rich</a>&#8211;></p>
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		<slash:comments>146</slash:comments>
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		<item>
		<title>Carrying a CC balance? Guy lowers his APR by 5.75% using my negotiation scripts</title>
		<link>http://www.iwillteachyoutoberich.com/blog/lower-credit-card-apr/</link>
		<comments>http://www.iwillteachyoutoberich.com/blog/lower-credit-card-apr/#comments</comments>
		<pubDate>Wed, 13 May 2009 15:45:51 +0000</pubDate>
		<dc:creator>Ramit Sethi</dc:creator>
				<category><![CDATA[Credit cards]]></category>
		<category><![CDATA[Negotiation]]></category>
		<category><![CDATA[Popular Posts]]></category>
		<guid isPermaLink="false">http://www.iwillteachyoutoberich.com/?p=2615</guid>
		<description><![CDATA[Check out how Aaron, an iwillteachyoutoberich reader, negotiated 5.75% off his credit card APR with one phone call. <p><!--<div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;">
<p><strong>Join the free 30-day course to hustle your way to the top</strong></p>
<p>Here's a sample of what I'll be sending out:</p>
<p>- A invite to my private webcast with Tim Ferriss - where you'll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. <br/>
- A full recording of my private webcast with Tim Ferriss - in case you can't make it...<br/>
- Earn1 Bonus Case Study - Unlocking side income: From $0 to $1,500/month in 2 weeks</p>
<p><a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&utm_medium=feed&utm_campaign=earn1k-rss-ad&utm_content=rss-footer">Become a top performer now</a></p>
</div>-->
<!-- <a href="http://www.iwillteachyoutoberich.com/blog/lower-credit-card-apr/">Carrying a CC balance? Guy lowers his APR by 5.75% using my negotiation scripts</a> is a post from: <a href="http://www.iwillteachyoutoberich.com">I Will Teach You To Be Rich</a>--></p>
]]></description>
			<content:encoded><![CDATA[</p>
<p>I&#8217;ve said it before and I&#8217;ll say it again: If you&#8217;re carrying a balance on your credit card, the first thing you should do is call your credit card and <a href="http://www.iwillteachyoutoberich.com/negotiation">negotiate</a> your APR down. It doesn&#8217;t always work, but when it does, you can save a ton of money.</p>
<p>I include a call script in Chapters 1 and 2 of my <a href="http://www.amazon.com/gp/product/0761147489?ie=UTF8&#038;tag=iwillteachyou-20&#038;linkCode=as2&#038;camp=1789&#038;creative=390957&#038;creativeASIN=0761147489">book</a> to do this.</p>
<p>Aaron T. writes:</p>
<blockquote><p>I was fortunate enough to come out of school with no student loans, but do have $4364.11 in credit card debt over 2 cards.  One is $999.03 and the other is 3,365.08.  I just started reading your book yesterday, today I called the card with the higher balance to lower my APR from 19.99%.  I have had this card for almost 4 years.  My Mom had been paying the minimum for a year or so, but since I became full time I took over any other bills my parents were paying.  I have paid $200 the last 3 months and my minimum payment is around $89.</p>
<p><strong>   Anyways, I just called and asked, (I had to do no negotiating really, I just followed the script you have in your book) and I got my APR lowered from 19.99% to 14.24%, effective immediately.</strong></p>
<p>Basically, the $13.95 my girlfriend paid for your book will more than pay for itself by the time I get my next bill.</p></blockquote>
<p>See for yourself with <a href="http://www.iwillteachyoutoberich.com/book/excerpts/">full-chapter excerpts</a> of my book.</p>
<p>Then get the book at <a href="http://www.amazon.com/gp/product/0761147489?ie=UTF8&#038;tag=iwillteachyou-20&#038;linkCode=as2&#038;camp=1789&#038;creative=390957&#038;creativeASIN=0761147489">Amazon</a> or <a href="http://search.barnesandnoble.com/I-Will-Teach-You-to-Be-Rich/Ramit-Sethi/e/9780761147480/?itm=1">B&#038;N</a>. </p>
<div class="entry-footer">
<p style="font-size: 1em; font-family: Helvetica,Arial,sans-serif;">
		This post is part of a series on <b><a href="http://www.iwillteachyoutoberich.com/credit-card-perks/">Credit Card Perks</a></b>. For more articles on getting value out of your credit cards, <a href="http://www.iwillteachyoutoberich.com/credit-card-perks/">go to the index page</a>, or follow the links below.
	</p>
<table width="100%" cellspacing="0" cellpadding="3" bordercolor="#000000" border="0">
<tbody>
<tr>
<td width="33.333333333333336%">
					&#171;&nbsp;<a href="http://www.iwillteachyoutoberich.com/blog/credit-card-perks-you-didnt-know-about-part-2/" title="More credit card perks you didn&rsquo;t know about"><em>More</em>&nbsp;credit card perks you didn&rsquo;t know about</a></td>
<td width="33.333333333333336%" style="text-align: center;"><a href="http://www.iwillteachyoutoberich.com/credit-card-perks/">Credit Card Perks</a></td>
<td width="33.333333333333336%" style="text-align: right"><a href="http://www.iwillteachyoutoberich.com/blog/get-your-credit-cards-annual-fee-waived/">Get your credit card&rsquo;s annual fee waived</a>&nbsp;&#187;
				</td>
</tr>
</tbody>
</table>
</div>
<p><!--
<div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;">
<p><strong>Join the free 30-day course to hustle your way to the top</strong></p>
<p>Here&#8217;s a sample of what I&#8217;ll be sending out:</p>
<p>- A invite to my private webcast with Tim Ferriss &#8211; where you&#8217;ll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. <br/><br />
- A full recording of my private webcast with Tim Ferriss &#8211; in case you can&#8217;t make it&#8230;<br/><br />
- Earn1 Bonus Case Study &#8211; Unlocking side income: From $0 to $1,500/month in 2 weeks</p>
<p><a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&#038;utm_medium=feed&#038;utm_campaign=earn1k-rss-ad&#038;utm_content=rss-footer">Become a top performer now</a></p>
</div>
<p>&#8211;></p>
<p><!-- <a href="http://www.iwillteachyoutoberich.com/blog/lower-credit-card-apr/">Carrying a CC balance? Guy lowers his APR by 5.75% using my negotiation scripts</a> is a post from: <a href="http://www.iwillteachyoutoberich.com">I Will Teach You To Be Rich</a>&#8211;></p>
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		<slash:comments>32</slash:comments>
		</item>
		<item>
		<title>The Tripod of Stability</title>
		<link>http://www.iwillteachyoutoberich.com/blog/the-tripod-of-stability/</link>
		<comments>http://www.iwillteachyoutoberich.com/blog/the-tripod-of-stability/#comments</comments>
		<pubDate>Wed, 22 Apr 2009 06:04:39 +0000</pubDate>
		<dc:creator>Ramit Sethi</dc:creator>
				<category><![CDATA[Personal entrepreneurship]]></category>
		<category><![CDATA[Popular Posts]]></category>
		<category><![CDATA[Videos]]></category>
		<guid isPermaLink="false">http://www.iwillteachyoutoberich.com/?p=2518</guid>
		<description><![CDATA[Below is a video clip of a webcast I did with Tim Ferriss, who wrote The Four Hour Workweek (read my book review). The question was, &#8220;How many false starts have you had?&#8221; but in my response, I mention something I&#8217;ve been meaning to write about: The Tripod of Stability. This basically means that I [...]<p><!--<div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;">
<p><strong>Join the free 30-day course to hustle your way to the top</strong></p>
<p>Here's a sample of what I'll be sending out:</p>
<p>- A invite to my private webcast with Tim Ferriss - where you'll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. <br/>
- A full recording of my private webcast with Tim Ferriss - in case you can't make it...<br/>
- Earn1 Bonus Case Study - Unlocking side income: From $0 to $1,500/month in 2 weeks</p>
<p><a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&utm_medium=feed&utm_campaign=earn1k-rss-ad&utm_content=rss-footer">Become a top performer now</a></p>
</div>-->
<!-- <a href="http://www.iwillteachyoutoberich.com/blog/the-tripod-of-stability/">The Tripod of Stability</a> is a post from: <a href="http://www.iwillteachyoutoberich.com">I Will Teach You To Be Rich</a>--></p>
]]></description>
			<content:encoded><![CDATA[</p>
<p>Below is a video clip of a webcast I did with <a href="http://www.fourhourblog.com/">Tim Ferriss</a>, who wrote The Four Hour Workweek (read my <a href="http://www.iwillteachyoutoberich.com/blog/the-book-that-changed-my-life-in-2-hours-the-4-hour-workweek/">book review</a>).</p>
<p>The question was, &#8220;How many false starts have you had?&#8221; but in my response, I mention something I&#8217;ve been meaning to write about: The Tripod of Stability.</p>
<p>This basically means that I try to keep the big things in my life ultra-stable &#8212; car, where I live, relationships &#8212; so I can afford to be ultra-aggressive about other things. This alone has had a huge effect on my ability to take on risky and new projects all the time.</p>
<p>Check out the clip:</p>
<p><object classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="425" height="344" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="allowFullScreen" value="true" /><param name="allowscriptaccess" value="always" /><param name="src" value="http://www.youtube.com/v/h3Z3hr4_X2o&amp;hl=en&amp;fs=1" /><param name="allowfullscreen" value="true" /><embed type="application/x-shockwave-flash" width="425" height="344" src="http://www.youtube.com/v/h3Z3hr4_X2o&amp;hl=en&amp;fs=1" allowscriptaccess="always" allowfullscreen="true"></embed></object></p>
<p><strong>More videos</strong></p>
<ul>
<li>On Tim&#8217;s blog, see 3 more clips on <a href="http://www.fourhourworkweek.com/blog/2009/04/22/tim-ferriss-and-ramit-sethi/">blogging tactics and self-publishing vs. traditional publishers</a>.</li>
<li>I&#8217;ve put up 75+ other videos at <a href="http://youtube.com/ramitsethi">youtube.com/ramitsethi</a>.</li>
</ul>
<div class="entry-footer">
<p style="font-size: 1em; font-family: Helvetica,Arial,sans-serif;">This post is part of a series of <strong><a href="http://www.iwillteachyoutoberich.com/tips-on-starting-your-own-business/">Tips on Starting Your Own Business</a></strong>. For more articles on personal entrepreneurship and marketing, <a href="http://www.iwillteachyoutoberich.com/tips-on-starting-your-own-business/">go to the index page</a>, or follow the links below.</p>
<table border="0" cellspacing="0" cellpadding="3" width="100%" bordercolor="#000000">
<tbody>
<tr>
<td width="33.333333333333336%">« <a href="http://www.iwillteachyoutoberich.com/blog/time-management-how-an-mit-postdoc-writes-3-books-a-phd-defense-and-6-peer-reviewed-papers-and-finishes-by-530pm/">Time management: How an MIT postdoc writes 3 books, a PhD defense, and 6+ peer-reviewed papers — and finishes by 5:30pm</a></td>
<td style="text-align: center;" width="33.333333333333336%"><a href="http://www.iwillteachyoutoberich.com/tips-on-starting-your-own-business/">Tips on Starting Your Own Business</a></td>
<td style="text-align: right;" width="33.333333333333336%"><a href="http://www.iwillteachyoutoberich.com/blog/getting-traffic-for-your-blog/">How to get 150,000 people to read your blog post in 1 week (and how I did it)</a> »</td>
</tr>
</tbody>
</table>
</div>
<p><!--
<div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;">
<p><strong>Join the free 30-day course to hustle your way to the top</strong></p>
<p>Here&#8217;s a sample of what I&#8217;ll be sending out:</p>
<p>- A invite to my private webcast with Tim Ferriss &#8211; where you&#8217;ll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. <br/><br />
- A full recording of my private webcast with Tim Ferriss &#8211; in case you can&#8217;t make it&#8230;<br/><br />
- Earn1 Bonus Case Study &#8211; Unlocking side income: From $0 to $1,500/month in 2 weeks</p>
<p><a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&#038;utm_medium=feed&#038;utm_campaign=earn1k-rss-ad&#038;utm_content=rss-footer">Become a top performer now</a></p>
</div>
<p>&#8211;></p>
<p><!-- <a href="http://www.iwillteachyoutoberich.com/blog/the-tripod-of-stability/">The Tripod of Stability</a> is a post from: <a href="http://www.iwillteachyoutoberich.com">I Will Teach You To Be Rich</a>&#8211;></p>
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		<slash:comments>35</slash:comments>
		</item>
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