Netflix’s Ramit Sethi Reveals His Top 10 Money Rules; Netizens Agree #10 Is The Most Important

Ramit Sethi, renowned for his no-nonsense approach to finance, has gained widespread recognition through his Netflix series How to Get Rich and his best-selling book I Will Teach You to Be Rich. In an Instagram post, Sethi outlined his top 10 money rules that have guided his financial journey. While some, such as paying cash for a house, might seem ambitious, each rule encourages a mindful approach to personal finance. The principles, which may differ from one person to the next, are designed to help you focus on what you value most, while building wealth and security.

Here’s a breakdown of Sethi’s personal top 10 money rules, with netizens especially backing the significance of rule #10.

1. Always Have One Year of Emergency Funds in Cash

Sethi’s approach to emergency savings is more conservative than the standard three-to-six-month recommendation. He advocates keeping a full year’s worth of living expenses in an easily accessible bank account. According to Sethi, this fund serves as a buffer in case of unexpected events, enabling peace of mind and financial flexibility.

Financial expert Lynnette Khalfani-Cox echoes the importance of this cushion, especially considering that nearly half of Americans would struggle to cover a $400 emergency. Sethi suggests that even if building a year’s fund feels challenging, starting with smaller goals can help build this vital safety net over time.

2. Save 10%, Invest 20% of Gross Annual Income

In line with disciplined wealth-building strategies, Sethi recommends saving at least 10% of gross income while investing 20%. He notes that these percentages can be adjusted based on individual goals and rising income, advising everyone to increase their saving and investment rates as they earn more. For those following the 50/30/20 budgeting rule (with 20% for savings and investing), Sethi’s rule offers a practical framework for long-term growth.

3. Pay Cash For Large Expenses, 20% Down Minimum on a House

Sethi believes in paying cash for big-ticket expenses like weddings and insists on putting at least 20% down when buying a home. His “no-debt” policy is aimed at removing financial constraints that could hinder one’s decision-making. “One of my keys to saving money is spending only what you have when you have it,” he explains. By preparing financially, he avoids compromising quality in important life decisions.

4. Never Question Spending on Books, Appetisers, or Charity

Sethi is willing to spend freely on books, appetisers, and charitable donations, believing these small indulgences contribute to personal growth, happiness, and a positive impact on the world. He’s a firm believer in focusing on the essentials that bring joy and cutting costs elsewhere. “Spend extravagantly on the things you love, and cut costs mercilessly on the things you don’t,” Sethi says, encouraging his followers to embrace similar priorities.

5. Business Class on Flights Over Four Hours

Sethi’s fifth rule is all about comfort. For flights exceeding four hours, he treats himself to business class, justifying this expense as a way to ensure a relaxing and productive journey. While this rule may be considered a luxury, Sethi sees it as an investment in his wellbeing. “I indulge every now and then when it comes to comfort,” he admits, balancing his disciplined spending with small luxuries.

6. Buy the Best and Keep It As Long As Possible

When it comes to material goods like clothes, shoes, and cars, Sethi opts for high-quality items that stand the test of time. He prefers purchasing durable goods and maintaining them over years instead of repeatedly replacing low-cost items. Sethi’s philosophy on quality over quantity underscores the value of thoughtful spending.

7. No Limit on Spending on Health or Education

Sethi believes that health and education are invaluable investments. He regularly spends on personal trainers and educational opportunities, viewing these as fundamental to his ongoing growth as an entrepreneur and educator. “I want to improve myself… and learn from how others do it,” he says, underscoring the potential lifelong benefits of health and knowledge investments.

8. Earn Enough to Work Only With People You Respect and Like

Sethi’s eighth rule is aimed at professional fulfillment. As an entrepreneur, he prioritises working with people who align with his values. While not everyone has this luxury, Sethi’s advice encourages individuals to consider the importance of a healthy work environment. According to a PEW Research Center study, 67% of workers report satisfaction with their colleagues, and 62% are content with their managers, underscoring the impact of positive work relationships on overall wellbeing.

9. Prioritise Time Outside the Spreadsheet

Once a Conscious Spending Plan is in place, Sethi encourages people to step away from constant financial tracking to enjoy life’s experiences. Sethi himself shifted his focus from meticulous budgeting to creating memorable experiences. He suggests defining your life goals and actively pursuing them to enrich your financial journey.

10. Marry the Right Person

Sethi believes choosing the right partner is a decision that influences every aspect of life, including finances. He argues that the person you marry will affect your lifestyle, savings, and future financial choices. “Whether you like to believe it or not, money is a big part of a relationship. People have grown up on different money values and can see it very differently,” he says.

Netizens React

The final money rule, “Marry the right person,” struck a chord with many netizens who agreed that a supportive partner is essential for financial success. One user emphasised, “#10 should be everyone’s number one decision with everything in life.” Another praised their own spouse, noting, “We’ve built good wealth together because we share the same goals.” Many comments reflected similar sentiments, affirming that finding the right partner can make or break one’s financial future.

This focus on choosing a compatible life partner isn’t just popular opinion; research backs it up. A 2021 Census Bureau report shows that married adults often have significantly higher earnings and three times the net worth of unmarried individuals. A study from Washington University in St. Louis further supports this, finding that people with reliable, conscientious partners tend to experience greater career success and job satisfaction, likely due to the positive influence of responsible behaviour within the partnership.

A Match Made in Financial Heaven

Financial stability in marriage goes beyond combined incomes; it’s also about shared habits. Jeff Haden, a speaker and author, explains that conscientious partners often create environments that support their spouse’s career and financial goals. He notes that “good habits tend to rub off,” suggesting that shared responsibility and organisation within the household can lead to increased productivity, earnings, and overall financial security for both individuals.

Wealth advisor Beau Wirick echoes these findings, explaining that marriage can be a powerful factor in wealth accumulation. Recent data show that married couples not only earn more but also spend less, with average annual savings of around $10,000 per person. Married individuals tend to be more financially disciplined, spending less on housing and maintaining higher overall savings rates, proving that financial stability can be a collaborative outcome in a supportive marriage.