Good Evening, Gentle Reader!
Can you believe it’s August already? Yikes! It won’t be long until it’s Christmas, and hopefully, I’ll be lounging by a log fire somewhere with snow outside.
Before we kick off, here’s what this newsletter aims to do:
- Help you speed up your retirement
- Empower you with knowledge
- Inspire you to stop talking and start doing
Each month, I break down a finance or personal development book, giving you the key two or three takeaways. You can act on these gems immediately to move forward with your goals—even if you don’t read the book. Let’s go!
This month, we’re looking at I Will Teach You to Be Rich by Ramit Sethi. It’s a comprehensive guide to basic personal finance, suitable for those just starting their FIRE journey or even for young people with no personal budgeting knowledge. Sethi’s writing style is light and self-deprecating, making the book almost bearable to read. The book is based on a six-week program, with each week focusing on a different aspect of personal finance to get the reader into financial shape.
Key Takeaways
Automate Your Finances:
Ramit advises setting up automatic transfers to savings and investment accounts. For instance, arrange for 20% of your income to be automatically deposited into a high-yield savings account or an ETF like SPY or VAS each month. This ensures consistent saving and investing without the need for constant attention. It also takes advantage of the marvellous magic of dollar-cost averaging that all wise investment sages write about.
Invest Early and Consistently:
He stresses the importance of starting to invest as early as possible. If you begin investing just $500 per month at age 25, with an average annual return of 7%, you could accumulate over $1 million by the time you’re 60. This provides a solid financial foundation for an early-ish retirement. But as geo-arbitragers, we want this life far sooner—especially if you’re looking to retire abroad in a tax-friendly, lower-cost country. Poolside cocktails in Thailand, anyone?
Focus on the BIG Wins
While I almost fell asleep during the budgeting section of the book, Ramit does discuss how to negotiate promotions and pay increases in your working life—topics that might interest some of you. He advocates that by pushing hard for raises and avoiding excessive lifestyle creep, you can accelerate your investment accumulation and live your best life by the time you’re 60.
Should you bother reading I Will Teach You to Be Rich?
It’s a big no from me. But if you haven’t read anything about finance before, or if you’re a teenager just starting out, then maybe—but here’s the thing: I think this book offers the same old advice that has been given by countless other finance writers before, and the delivery just isn’t as good. Don’t get me wrong, it’s a bestseller, and the guy knows what he’s talking about, but to me, he hasn’t done anything here that you couldn’t find in other books that not only cover the same ideas but present the content better.
Here are the key takeaways from above, along with my preferred books that address the same topics in a far more engaging and easy-to-grasp way:
Key Takeaways Alternative Books
- Automate your Investments: The Automatic Millionaire by David Bach
- Invest consistently in broad-based, low-cost ETFs: The Simple Path to Wealth by J.L. Collins
- Focus on the Big Wins: Never Split the Difference by Christopher Voss
Read it in a book-book. Try to get through a few pages a day and bring a highlighter with you—at least the bright pink and green colors will be stimulating. I listened to the audiobook at 1.75x speed and struggled to stay awake.
I truly appreciate you taking the time to read the 60 Seconds to FIRE newsletter. Your support means the world to me. If you have any feedback or book recommendations for future reviews, please don’t hesitate to reach out—I’d love to hear from you.
If you find value in this newsletter, please consider sharing the Substack with like-minded friends and family. Also, don’t miss out on joining our vibrant Geo-Arbitrage FIRE Community on Facebook. Connect with others who share your passion for financial independence and retiring abroad by joining the Geo-FIRE Retire Abroad group here.
Thank you once again, and I look forward to continuing this journey together!
Andy
Back in Panama
August 2024