There’s a ton of advice out there on how to make more money and cut your expenses so you can “get rich.” Not all advice is good advice, though. That’s why personal finance influencer Ramit Sethi recently shared a YouTube video all about the advice you should avoid while pursuing your financial goals. Here are his thoughts. 1. Focusing on Extreme Frugality It’s tempting to try to reduce every little expense as much as possible to save money and grow your wealth. Sethi argued that’s a mistake. Putting to ...

There’s no shortage of budgeting and spending rules when it comes to personal finance. One says you shouldn’t spend more than 30% of your monthly income on housing. Another says to always save 10% of your income. Don’t take more than 4% out of your retirement nest egg. And then there’s the golden ratio budget. Here’s why Morningstar says you should consider this strategy. A financial advisor can help you create a financial plan for your needs and goals. This budgeting approach breaks down your monthly s ...

The new year is here, meaning a potentially new approach for your money! Personal finance guru, bestselling author and podcaster Suze Orman has some advice for you if you want to make 2026 your best financial year yet. In fact, she’s created a roadmap for the start of 2026. Here’s what you need to know. What To Expect in 2026 Orman said there are a few things you can expect to see happen in early 2026, and what you should do if and when they do. Stay invested in the stock market. Orman is optimistic an ...

Core Insights - A Chicago family earning an annual salary of $156,000 is facing difficulties in affording groceries, attributed to the husband's $700 monthly addiction to tobacco and marijuana [1][2] - The husband spends approximately $6,000 annually on his substance use, with increased spending recently due to personal losses [2] - The family has a $20,000 car loan, and the wife is hesitant to pay it off due to concerns that the freed-up funds would be spent on the husband's addiction [3] Financial Situation - The household takes home about $7,800 per month after taxes, yet food insecurity persists [5] - Monthly expenses include a $3,400 mortgage and a $600 car payment, indicating potential cash flow issues beyond the husband's spending habits [6] - The financial expert highlighted that the couple's budgeting and planning may be inadequate, suggesting that the food insecurity is not solely due to the husband's substance use [6] Behavioral Concerns - The financial expert challenged the framing of the husband's behavior as an addiction, suggesting that it may be a budgeting issue instead [4] - The wife is encouraged to reassess the situation, either by confronting the addiction seriously or reconsidering whether it is truly an addiction [6]

A 46-year-old who sold his business for $1.23 million is worried about how family members will react to the money. The caller, John, told "The Ramsey Show" that he recently sold a construction services business he inherited from his late father and now feels torn between protecting the proceeds and managing family expectations. He said his father died 12 years ago, leaving him sole ownership of the company. After rebuilding the business, he completed the sale and is now preparing to sell his home and mo ...

Finance personality and YouTuber Ramit Sethi — author of the 2009 best-seller “I Will Teach You to Be Rich” — recently posted a slew of advice to his channel on the video-sharing platform kicking off with a bit of shade thrown at other financial gurus (namely, “Shark Tank” star Kevin O’Leary) regarding the oft-dispensed advice of ditching the $5 lattes if you want to become wealthy. Sethi noted that this wisdom is often issued by rich people attempting to shame their audience, then pivoted to say he was ...

Core Insights - Rami Sethi, a personal finance expert, identifies common financial advice that may not be beneficial for individuals seeking to improve their financial situation Group 1: Ineffective Financial Advice - Advice focusing on extreme frugality, such as never buying coffee or eating out, is often misguided; Sethi promotes the CEO method: Cut costs, Earn more, Optimize yourself [2] - Using budgeting apps and trendy financial tools is not necessary; instead, Sethi recommends a simple conscious spending plan with fixed costs below 50% to 60% of take-home pay and allocating 10% for investments [3] - Relocating to low-tax states is not always advantageous; higher taxes can fund essential services, and moving may incur hidden costs such as increased property taxes [5] - Vague mindfulness tips, like morning affirmations, should be avoided; Sethi suggests creating a detailed rich life plan with specific goals and actionable steps [6]

Core Insights - The article emphasizes the importance of living below one's means as a fundamental principle for achieving financial success, regardless of income level [3][7][15] - Dave Ramsey's financial philosophy advocates for debt elimination, investing at least 15% of income for retirement, and prioritizing the payoff of high-interest debt [5][10][14] Group 1: Financial Philosophy - Ramsey suggests that individuals should first focus on building an emergency fund and paying down debt before engaging in more complex investment strategies [1][5] - The advice to avoid accumulating debt is particularly crucial during the early stages of life, as it can lead to financial strain later on [10][11] - Ramsey's "baby steps" program serves as a roadmap for individuals to achieve financial stability and invest for the future [5][6] Group 2: Investment Behavior - The article highlights that many high-income earners may have smaller investment portfolios compared to individuals with modest incomes who consistently save [2] - It is noted that achieving financial goals requires creating a margin between income and expenses, which allows for savings and investments [11][12] - The article suggests that adopting simple financial habits can significantly enhance savings and retirement preparedness [16][17]

Core Insights - Robert Kiyosaki's financial philosophy emphasizes the advantages that wealthy individuals have over those who are not, and he provides strategies for individuals to gain these advantages regardless of their current financial status [2] Group 1: Education - Kiyosaki acknowledges the importance of traditional education but stresses the need for financial education to achieve true success [3] - He suggests that advice on obtaining education should include strategies to minimize debt, such as attending community college or living at home [4] Group 2: Employment and Income Generation - Kiyosaki argues that true financial freedom comes from entrepreneurship and investments rather than traditional employment [5] - The current trend shows that individuals who start businesses and make smart investments are more likely to achieve significant financial success [6] Group 3: Work Ethic - Kiyosaki differentiates between working hard and working smart, advocating for the latter as a more effective approach to wealth accumulation [7] Group 4: Financial Management - Kiyosaki advises individuals to live below their means while also focusing on expanding their income to afford desired purchases [8] - He notes that adhering to this principle has become more challenging due to inflation, layoffs, and stagnant wages, but emphasizes that increasing income or reducing expenses are the primary options for financial improvement [9]

Core Insights - Dave Ramsey criticizes financial fearmongering and misinformation regarding the economy, asserting that the narrative around inflation and mortgage rates is misleading [1] - He presents data showing that current inflation and mortgage rates are significantly lower than historical highs, challenging the perception of economic hardship [1][2] Economic Data - Inflation rates: 3.4% in 2024, 6.2% in 2022, compared to 12.4% in 1980 and 7.4% in 1982 [1] - Mortgage rates: Current rates near 5%, compared to 17.66% in 1982 [1] - Median household income: $83,000, with average household expenses at $78,000, indicating financial stability for many [2] Consumer Behavior - Ramsey argues that the notion of the average American struggling to make ends meet is incorrect, supported by income and expense data [2] - He highlights that 93% of surveyed millionaires maintain a monthly budget, countering the stereotype that budgeting is only for those in financial distress [3] Financial Advice - Criticism of tax strategies that involve illegal practices, such as misclassifying personal expenses as business expenses [4] - Ramsey points out the irrationality of fearing a 5% mortgage while carrying high-interest credit card debt at 22.8% [4]