How to Make Money And Get Rich Fast- Simple and easy steps- I WILL TEACH YOU TO BE RICH book summary

Finance School !

5 Jul 202210:19

Summary

TLDRThe video script discusses various ways to become wealthy, emphasizing the importance of financial management and smart investing. It highlights the significance of credit scores, spending wisely, saving, and investing in stocks and mutual funds. The speaker also advises against blaming others for financial conditions and encourages self-responsibility in managing finances.

Takeaways

😀 The video discusses various ways to become wealthy, emphasizing that there are more paths than just business.
💼 The speaker introduces Rames Seth, who helps viewers understand how to manage finances and grow wealth without necessarily being highly educated.
🎓 Rames Seth has a degree from Stanford University and is associated with the New York Times, indicating his credibility and expertise.
💳 The script highlights the importance of understanding credit cards, credit reports, and credit scores for financial health.
📊 Credit scores can significantly affect loan approvals and interest rates, with good scores leading to better loan terms.
🔒 The video suggests automating loan repayments and minimizing unnecessary expenses to maintain a good credit score and financial discipline.
💰 It emphasizes the value of spending on valuable assets rather than on frivolous items to build wealth over time.
📈 The speaker advises investing in areas like stocks and mutual funds to grow wealth, especially for those with a long-term perspective.
📚 Before investing, the video stresses the need to learn about fundamental and financial analysis of companies to make informed decisions.
🚫 The script warns against blaming others for one's financial situation and encourages taking personal responsibility for financial education and management.
🌐 The video concludes by promoting a book that provides valuable concepts for understanding the mindset and wealth management strategies of the wealthy.

Q & A

What are the two primary ways mentioned in the script for becoming wealthy?
-The script suggests that the two primary ways to become wealthy are through business and, to a great extent, investments.
What is the role of credit cards in personal finance management according to the script?
-The script emphasizes that credit cards can be used to one's advantage by leveraging offers and discounts provided by companies to influence customers. It also highlights the importance of timely repayment to maintain a good credit score.
How does the script suggest managing credit card usage to improve credit score?
-The script advises setting up automatic payments for credit card bills to ensure timely repayment, which helps in maintaining a good credit score.
What is the significance of a credit report and credit score in the script's context?
-A credit report contains details about all the loans one has taken, including the amount and repayment history. A credit score is a three-digit number indicating the creditworthiness of an individual. Both are crucial for securing loans at lower interest rates.
How does the script differentiate between the financial outcomes for individuals with good and bad credit scores?
-The script illustrates that individuals with good credit scores are more likely to get loans approved at lower interest rates, while those with bad credit scores may face loan rejections or higher interest rates.
What is the advice given in the script regarding spending on wants versus needs?
-The script advises prioritizing spending on needs over wants. It suggests cutting down on unnecessary expenses and focusing on value-added investments to grow wealth.
What is the '50/30/20' money management rule mentioned in the script, and how is it applied?
-The '50/30/20' rule suggests allocating 50% of income for basic needs, 30% for wants such as entertainment, and 20% for savings and investments. This rule helps in managing finances effectively.
Why is investing in insurance important according to the script?
-The script highlights the importance of insurance as a financial safety net, protecting against unforeseen events and ensuring financial stability.
What is the script's stance on blaming others for one's financial condition?
-The script strongly advises against blaming others for one's financial situation. It emphasizes taking personal responsibility for one's financial decisions and management.
How does the script encourage viewers to learn about personal finance and investing?
-The script encourages viewers to educate themselves in finance and investing, just as they would learn subjects for other professions. It suggests that understanding financial concepts is crucial for managing wealth and achieving financial freedom.
What is the final advice given in the script regarding financial education and wealth management?
-The script concludes by urging viewers to always be ready to learn and improve their financial knowledge. It emphasizes the importance of financial education in achieving long-term wealth and success.

Outlines

00:00

💼 Achieving Wealth Through Smart Financial Management

This paragraph discusses the common misconception that the only ways to become wealthy are through business or to a lesser extent, inheritance. The speaker introduces Rames Seth, who helps viewers understand how to manage their finances and grow their wealth through the book 'Subscribe'. The book teaches viewers how to wisely spend their money, focusing on essential expenses and avoiding unnecessary costs. It also emphasizes the importance of understanding credit card offers and managing credit reports and scores, which can significantly impact loan approvals and interest rates. The speaker advises viewers to pay off loans and credit card debts on time to maintain a good credit score, which is crucial for securing loans at lower interest rates.

05:02

💰 Strategies for Financial Growth and Wealth Creation

The second paragraph delves into strategies for financial growth and wealth creation. It highlights the importance of saving and investing for long-term benefits. The speaker suggests cutting down on unnecessary expenses, such as dining out or buying high-quality coffee daily, and instead investing in smart liquid funds. The paragraph also discusses the 50-30-20 money management rule, which advises allocating 50% of income for necessities, 30% for discretionary spending, and 20% for savings and investments. The speaker encourages viewers to start investing as early as possible to reap the benefits of compounding, especially in stocks and mutual funds. The advice also includes learning basic financial analysis before investing in the stock market and considering mutual funds for those who are risk-averse. The speaker emphasizes the need for financial education and taking responsibility for one's financial situation.

10:03

🌟 Embracing Financial Education for a Wealthy Future

In the final paragraph, the speaker emphasizes the importance of financial education and taking responsibility for one's financial well-being. It encourages viewers to subscribe to financial school for valuable insights into wealth management. The speaker also thanks the audience for their support and looks forward to meeting them in the next video. The paragraph ends with a patriotic note, expressing gratitude and pride in the nation.

Mindmap

Keywords

💡Wealth

Wealth in the context of the video refers to the accumulation of financial resources and assets that provide a high level of economic security and the ability to afford a comfortable lifestyle. The video discusses various methods to achieve wealth, emphasizing that it is not limited to business ventures but can also be achieved through smart financial management and investments.

💡Credit Score

A credit score is a numerical representation of an individual's creditworthiness, which is used by lenders to assess the risk of lending money. In the video, it is highlighted that a good credit score can lead to better loan terms, such as lower interest rates, and is crucial for securing loans for significant investments like a house or a car.

💡Investing

Investing is the act of allocating resources, such as money, with the expectation of generating income or profit. The video stresses the importance of investing in stocks, mutual funds, and other financial instruments as a way to grow wealth over time, especially through long-term strategies.

💡Financial Management

Financial management involves organizing and controlling financial resources to achieve an individual's financial goals. The video emphasizes the need for effective financial management to accumulate wealth, including budgeting, saving, and making wise investment decisions.

💡Credit Cards

Credit cards are a payment tool that allows consumers to borrow money to pay for goods and services. The video discusses how credit card usage can impact one's credit score and financial health, advising viewers to use credit cards responsibly to maintain a good credit rating.

💡Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. The video mentions the impact of inflation on the value of money and the importance of making smart financial decisions to protect one's wealth from the effects of inflation.

💡Savings

Savings refer to the portion of income that is not spent on consumption and is set aside for future use. The video encourages viewers to save a significant portion of their income, suggesting that disciplined saving habits are essential for building wealth.

💡Insurance

Insurance is a means of protection from financial loss. It involves pooling resources from many individuals to provide a benefit for specific losses from an insurance event to the insured. The video mentions the importance of having life and health insurance as part of a comprehensive financial plan.

💡Financial Freedom

Financial freedom is the state of having control over one's financial life and not being dependent on a job or others for financial support. The video discusses the concept of financial freedom as a goal that can be achieved through smart financial management and strategic investments.

💡Budgeting

Budgeting is the process of creating a plan to spend your money in a way that helps you meet your financial goals. The video suggests that a well-planned budget is crucial for managing finances effectively and achieving financial goals, such as saving for retirement or buying a home.

💡Financial Education

Financial education involves learning about financial concepts and skills to make informed decisions about money management. The video emphasizes the importance of financial education, suggesting that understanding basic financial principles is necessary for achieving financial success and wealth accumulation.

Highlights

There are two primary ways to become wealthy: business and to a great extent, investments.

You can become wealthy from your job without necessarily being highly educated.

Ramesh Sethi's 'Wealth Without a Job' can help you understand wealth management and face management.

Ramesh Sethi completed his BE from Stanford University and later launched 'Wealth Without a Job'.

The New York Times' bestseller list will be shown to demonstrate how money is spent and where it is invested.

Understanding how to read and grow your money by investing in things like the U.S. is crucial.

The first lesson is to use credit cards for your advantage, not just for spending.

Many people take credit cards for granted, but they can be a tool for financial growth.

Credit reports and credit scores are essential for understanding your financial health.

A good credit score can help you get loans at lower interest rates.

Automating loan payments can help maintain a good credit score and avoid additional charges.

Spend on things you like, but avoid unnecessary expenses to save money.

An example is reducing daily coffee expenses, which can save a significant amount over a year.

Investing in smart liquid funds can help grow your savings over the long term.

The 50/30 rule for managing money advises spending 50% of your income on basic needs and 30% on wants.

The remaining 20% should be spent on insurance and starting investments for long-term benefits.

Investing in the field of finance is crucial for those who want to become wealthy.

Learning the basics of company analysis is essential before investing in the stock market.

Investing in mutual funds can be a safer option for those new to investing.

For those over 50, considering investment options like bank fixed deposits, PPF, and government bonds is advised.

Never blame others for your financial condition; take responsibility for your own financial management.

It's important to learn financial concepts to manage your money effectively and become wealthy.

The book 'Wealth Without a Job' provides valuable concepts about wealth management and financial freedom.