Yahoo Finance Millionaire Money Expert Ramit Sethi Teaches How To Create Your ‘Rich Life’
What does it mean to live a “Rich Life”? According to money expert Ramit Sethi, the answer is uniquely up to you.
“A ‘Rich Life’ is your ideal life — one where you look at your personal relationships, your finances, and your ordinary days and say, ‘Wow!'” he shared on his website.
Experts: Make These 7 Money Resolutions If You Want To Become Rich on an Average Salary
Grant Cardone: Here’s How To Become Rich If You’re Earning an Average Salary
“That could be: picking up your kids every day from school, buying a $1,000 cashmere sweater, buying anything you want from Whole Foods without ever worrying about cost, taking your family on an incredible Disney World vacation that they’ll never forget,” Sethi said. “Your Rich Life is yours. Not your parents’, not your friends’, not even mine. Yours.”
To create a Rich Life, Sethi outlines a few mindful steps to get you started.
Sponsored: Owe the IRS $10K or more? Schedule a FREE consultation to see if you qualify for tax relief.
Write Out Your Rich Life Bucket List
To achieve your Rich Life, you first need to get clear on what that entails. Sethi recommends taking out a pen and paper and writing down the first 15 things that come to mind when you think of living a Rich Life.
“They could be travel destinations, things you want to buy, activities, events, people you want to meet, etc.,” he said.
Next, narrow this down to your top five bucket list items. Then, set deadlines for when you want to achieve each of these items. This will help you get a vivid picture of what your Rich Life looks like.
Find: 5 Ways To Earn at Least 5% APY on Your Money (Without Using the Stock Market)
Create a Rich Life Map
Once you have your bucket list set, the next step is to create your Rich Life Map.
“When most people think of their ideal life, they pick one big, long-term goal. Maybe that’s a dream vacation to Paris, or a beautiful home with a large garden, or owning a business that lets them work where they want, when they want. But there is more to your Rich Life than just one to two big long-term goals,” Sethi said. “When you’re crafting your Rich Life vision, it’s helpful to look at all areas of a Rich Life.”
The areas Sethi says to focus on are friends and family, health and fitness, hobbies and personal expression, giving, experience and adventure, work, self-improvement and spirituality.
“For each area in your Rich Life Map, write down your thoughts on what a Rich Life might look like,” he said. “This could be specific activities you’d like to do, feelings you’d like to have, things to buy, events you’d like to attend, people you’d like to meet. When you’re done, ask yourself if some areas are more important to you now than others. What parts of your Rich Life Map get you the most excited?”
Set Your Money Dials
While your Rich Life Map will provide you with a list of long- and short-term goals, it’s just as important to focus on your happiness in the present moment. To “dial up your happiness” day to day, Sethi said you must find your “Money Dials.” This means aligning your spending with things that make you happy.
“Cut back on the things you don’t care about so you can spend extravagantly on the things you love,” Sethi said. “For example, I love convenience and spend extravagantly on that, but I have an old phone and computer and drive a 17-year-old car because those things aren’t important to me.”
Sethi said to figure out what your different Money Dials are, and either increase or decrease your spending in each of these areas depending on what is most important to you.
“Money Dials can be broad or specific,” he said. “Your Money Dial could cover a broad area, like ‘travel’ or ‘my kids,’ or it could laser in on something very specific, like ‘shoes’ or ‘gardening.’ Everyone’s Money Dials are unique. Just like everyone’s Rich Life is unique. You get to decide what makes you happiest.”
To figure out what your Money Dials are, make a list of the best things you have spent money on over the past six months.
“My favorite part of Money Dials: Once you recognize and accept it, you can zoom in on what you love by turning the dial all the way up,” Sethi said. “Your Money Dial becomes your personal happiness strategy. And the ways you spend your money are the tactics to implement that strategy. You are now the CEO of your own Rich Life.”
More From GOBankingRates
This article originally appeared on GOBankingRates.com: Millionaire Money Expert Ramit Sethi Teaches How To Create Your ‘Rich Life’
