{"id":291791,"date":"2026-02-15T00:11:10","date_gmt":"2026-02-15T00:11:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/291791\/"},"modified":"2026-02-15T00:11:10","modified_gmt":"2026-02-15T00:11:10","slug":"advice-to-ignore-if-you-want-to-get-rich","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/291791\/","title":{"rendered":"Advice To Ignore If You Want To Get Rich"},"content":{"rendered":"

\"Ramit <\/p>\n

\n \u00a9Ramit Sethi <\/p>\n

Commitment to Our Readers<\/p>\n

GOBankingRates’ editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services – our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines<\/a> and our products and services review methodology<\/a>.<\/p>\n

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20 Years
Helping You Live Richer<\/p>\n

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Millions of Readers<\/p>\n

There\u2019s a ton of advice out there on how to make more money and cut your expenses so you can \u201cget rich.\u201d Not all advice is good advice, though.<\/p>\n

That\u2019s why personal finance<\/a> influencer Ramit Sethi recently shared a YouTube video<\/a> all about the advice you should avoid while pursuing your financial goals. Here are his thoughts.<\/a><\/p>\n

1. Focusing on Extreme Frugality<\/p>\n

It\u2019s tempting to try to reduce every little expense as much as possible to save money and grow your wealth<\/a>. Sethi argued that\u2019s a mistake. Putting too much time and energy toward cutting expenses like coffee and making homemade lunches every day will get in the way of looking at the big picture.\u00a0<\/p>\n

Instead, Sethi recommended gradually cutting your top two or three discretionary expenses by 20% to 50% over the next six months. \u201cYou can reallocate that to savings, investing, even guilt-free spending on something that you actually care about.\u201d<\/p>\n

2. Relying on Budgeting Apps or Fancy Spreadsheets<\/p>\n

Similarly, Sethi suggested tools like budgeting apps and fancy spreadsheets can lead to agonizing over every small purchase. His recommendation is to instead focus on big things like your mortgage and debt repayment.<\/p>\n

3. Moving To a Low-Tax State To Save<\/p>\n

Sethi said he often gets comments from people earning around $60,000 to $70,000 annually about moving to a state with lower taxes to save money. He rejects this advice. Moving across states can cost over $8,000, depending on the distance, which will immediately eat into any tax savings you gain. Sethi told viewers to instead focus on earning more and on voting for the values they agree with.<\/p>\n

4. Implementing Vague Mindfulness Tips<\/p>\n

Tips such as \u201cdo morning affirmations, get in a cold plunge, then a sauna, then drink 68 gallons of water, then journal\u201d are everywhere online, Sethi said. But these are not necessary \u2014 he doesn\u2019t do any of those things and is still successful. His advice is to focus on a rich life plan, instead, with specific goals for your future.<\/p>\n

5. Following Your Passion<\/p>\n

You\u2019ll often hear people say to \u201cfollow your passion,\u201d and the money will follow, but that\u2019s unfounded. \u201cPassion alone is not a strategy for making money<\/a>,\u201d Sethi argued. He turns the advice around to suggest that you develop skills related to something that is valuable to others.<\/p>\n

6. Making Financial Decisions Based on Shame<\/p>\n

Shame is a powerful influence, so it\u2019s no surprise that many people online try to use it to affect others\u2019 purchasing decisions. Sethi\u2019s opinion on this is clear: \u201cThat\u2019s ridiculous.\u201d You don\u2019t need to justify your purchases to people you don\u2019t know. Avoid the \u201cnegative money spiral.\u201d<\/p>\n

7. Being an Angel Investor<\/p>\n

An angel investor is someone who provides funding to early-stage startups while they\u2019re still private. It\u2019s something you hear about rich people doing, and you may even see advice to participate, too.<\/p>\n

As Sethi pointed out, though, the average American cannot make these investments. You have to be an accredited investor, meaning you either have a net worth over $1 million excluding your primary residence or an income over $200,000 (individually) or over $300,000 (with a spouse or partner).<\/p>\n

And even if you fit these criteria, angel investing is high risk. He recommended sticking to low-cost index funds for your investing instead.<\/p>\n

8. Chasing Trends<\/p>\n

When everyone\u2019s telling you to hop on the next big financial trend, whether it\u2019s special purpose acquisition companies (SPACs), NFTs or something else, you should probably ignore that advice. Sethi argued that these \u201copportunities are far more like gambling than investing.\u201d Focus on long-term investing over trends.<\/p>\n

9. Believing You Can\u2019t Get Rich From a 9-to-5 Job<\/p>\n

Sethi said the good news is, \u201cYou have the opportunity to build serious wealth<\/a> working a normal 9-to-5 job,\u201d even if you don\u2019t earn as much as a lawyer or a doctor. He suggested negotiating a raise, upgrading your skills and carefully choosing your career.<\/p>\n

10. Buying a House<\/p>\n

As Sethi acknowledged, buying a home is incredibly common financial advice. He called it \u201cAmerica\u2019s number one religion,\u201d but tells viewers to ignore it. Specifically, Sethi stressed that many people don\u2019t account for the unseen costs of homeownership, such as maintenance, property taxes and insurance, which can add \u201c30% to 50% to a monthly mortgage.\u201d<\/p>\n

It\u2019s not that you should never buy a house. His take is simply to run all the numbers and make sure that you can afford the purchase.<\/p>\n","protected":false},"excerpt":{"rendered":"\u00a9Ramit Sethi Commitment to Our Readers GOBankingRates’ editorial team is committed to bringing you unbiased reviews and information.…\n","protected":false},"author":2,"featured_media":93733,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[114,268,686,85,46,2101,266,267,1583],"class_list":{"0":"post-291791","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-gobankingrates","11":"tag-il","12":"tag-israel","13":"tag-money","14":"tag-personal-finance","15":"tag-personalfinance","16":"tag-wealth"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/291791","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=291791"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/291791\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/93733"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=291791"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=291791"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=291791"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}