Episode
#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
2:25:09
Published: Tue May 21 2019
Description
Brought to you by LinkedIn Jobs."Most of us should spend less time on most decisions and we should spend a lot more time on a few key decisions." — Ramit SethiRamit Sethi (@ramit), author of the New York Times bestseller I Will Teach You To Be Rich, has become a financial guru to millions of readers in their twenties, thirties, and forties. He started his website, iwillteachyoutoberich.com, as a Stanford undergraduate in 2004, and he now hosts over a million readers per month on his blog, newsletter, and social media.Ramit grew up in Sacramento, the son of Indian immigrant parents who taught him the art of negotiating -- his father once spent five days negotiating with a car dealer, only to walk away over a set of floor mats. He wasn't the smartest kid in his class, but he loved building systems, which ultimately earned him over $200,000 in scholarships, which he used to get bachelor's and master's degrees in technology and psychology at Stanford. His understanding of human behavior and money led to him creating innovative solutions in self development.Ramit and his team of dozens of employees build premium digital products about personal finance, entrepreneurship, psychology, careers, and personal development for top performers. The IWT community includes one million monthly readers, 400,000 newsletter subscribers, and 35,000 premium customers.He has written about personal finance for The Wall Street Journal and The New York Times, and been interviewed on dozens of media outlets including NPR, ABC News, and CNBC, and popular podcasts like The Tim Ferriss Show.This episode is brought to you by LinkedIn Jobs. The right hire can move your business quantum leaps forward, while the wrong hire can crater it. Luckily, you can rely on LinkedIn Jobs to find you the most relevant, qualified candidates so you can focus on making a hire you're excited about.With five hundred million active members, LinkedIn attracts people every day who want to make connections, grow their careers, and discover new job opportunities. Note that 90% percent of LinkedIn users are open to new opportunities, but not actively scanning job boards. Post a job today at LinkedIn.com/Tim and get $50 off your first job post!***If you enjoy the podcast, would you please consider leaving a short review on Apple Podcasts/iTunes? It takes less than 60 seconds, and it really makes a difference in helping to convince hard-to-get guests. I also love reading the reviews!For show notes and past guests, please visit tim.blog/podcast.Sign up for Tim’s email newsletter (“5-Bullet Friday”) at tim.blog/friday.For transcripts of episodes, go to tim.blog/transcripts.Discover Tim’s books: tim.blog/books.Follow Tim:Twitter: twitter.com/tferriss Instagram: instagram.com/timferrissFacebook: facebook.com/timferriss YouTube: youtube.com/timferrissSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
Chapters
Ramith and his team develop premium digital products about personal finance, entrepreneurship, psychology, careers and personal development for top performers on LinkedIn, which has more than 500 million active members.
00:00 - 03:18 (03:18)
Summary
Ramith and his team develop premium digital products about personal finance, entrepreneurship, psychology, careers and personal development for top performers on LinkedIn, which has more than 500 million active members.
Episode#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
PodcastThe Tim Ferriss Show
A personal anecdote about negotiating at a car dealership and how to be aware of tactics used by the dealer.
03:18 - 05:57 (02:39)
Summary
A personal anecdote about negotiating at a car dealership and how to be aware of tactics used by the dealer.
Episode#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
PodcastThe Tim Ferriss Show
Author Kamal Ravikant shares some counterintuitive finance tips from an Indian perspective, including the power of negotiating, building a mindset of abundance, and making decisions based on purpose.
05:57 - 11:18 (05:21)
Summary
Author Kamal Ravikant shares some counterintuitive finance tips from an Indian perspective, including the power of negotiating, building a mindset of abundance, and making decisions based on purpose.
Episode#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
PodcastThe Tim Ferriss Show
The podcast challenges the widespread belief that real estate is the best investment by examining the circumstances that lead people to make this decision.
11:18 - 18:14 (06:56)
Summary
The podcast challenges the widespread belief that real estate is the best investment by examining the circumstances that lead people to make this decision. The host explains that it only makes financial sense to purchase property if you plan on living there long-term and can cover the transaction fees over a period of at least 7 to 10 years.
Episode#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
PodcastThe Tim Ferriss Show
The speaker talks about his experience of having to sit in a middle seat while traveling even though he is quite wealthy.
18:14 - 23:02 (04:47)
Summary
The speaker talks about his experience of having to sit in a middle seat while traveling even though he is quite wealthy. However, he recommends that not letting such situations affect one's mood and sharing stories like these is not shallow but can encourage people to not let such things bring them down.
Episode#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
PodcastThe Tim Ferriss Show
Understanding our biases and rules is crucial in avoiding being like a pinball and bouncing around life without a clear direction.
23:02 - 26:49 (03:47)
Summary
Understanding our biases and rules is crucial in avoiding being like a pinball and bouncing around life without a clear direction. It is important to recognize and identify our own biases to create our own set of rules that align with our own beliefs and values.
Episode#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
PodcastThe Tim Ferriss Show
The speaker discusses how they had to learn to change their financial habits when going from being single to being in a relationship and how typical financial advice doesn't address the importance of earning more money.
26:49 - 31:49 (04:59)
Summary
The speaker discusses how they had to learn to change their financial habits when going from being single to being in a relationship and how typical financial advice doesn't address the importance of earning more money.
Episode#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
PodcastThe Tim Ferriss Show
Learn how to spend on the things you love extravagantly but cut costs mercilessly on the things you don't.
31:49 - 35:09 (03:20)
Summary
Learn how to spend on the things you love extravagantly but cut costs mercilessly on the things you don't. The secret is to find your "money dial."
Episode#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
PodcastThe Tim Ferriss Show
The speaker shares personal examples of activities that bring him joy and make his life richer such as activating the travel protocol which involves having food delivered to his hotel room during extended trips.
35:10 - 40:16 (05:06)
Summary
The speaker shares personal examples of activities that bring him joy and make his life richer such as activating the travel protocol which involves having food delivered to his hotel room during extended trips.
Episode#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
PodcastThe Tim Ferriss Show
Ramit Sethi talks about his risky MacGyver cold plunge and advises on dreaming big, but always finding simple solutions.
40:16 - 44:17 (04:00)
Summary
Ramit Sethi talks about his risky MacGyver cold plunge and advises on dreaming big, but always finding simple solutions. He also shares his past experience of having ice delivered in San Francisco.
Episode#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
PodcastThe Tim Ferriss Show
The speaker describes their experience of attending a tea tasting in New York and how it opened their eyes to a new level of quality in tea.
44:17 - 49:06 (04:49)
Summary
The speaker describes their experience of attending a tea tasting in New York and how it opened their eyes to a new level of quality in tea.
Episode#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
PodcastThe Tim Ferriss Show
The speaker recommends watching chef's table or getting basic coffee vocabulary to learn how to appreciate coffee better.
49:06 - 53:59 (04:52)
Summary
The speaker recommends watching chef's table or getting basic coffee vocabulary to learn how to appreciate coffee better. He also advises approaching experts with respect and asking for their recommendations.
Episode#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
PodcastThe Tim Ferriss Show
The speaker suggests having a system for your finances such as a process map or an email inbox into which money can be withdrawn to be allocated properly.
53:59 - 57:50 (03:50)
Summary
The speaker suggests having a system for your finances such as a process map or an email inbox into which money can be withdrawn to be allocated properly. It is recommended that one should exercise setting realistic targets, starting with an optimistic self, and saving and investing 20-30% of their income.
Episode#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
PodcastThe Tim Ferriss Show
Financial advice on separating your savings and expenses, with tips on using target date funds for retirement planning and allocating funds for fixed expenses.
57:52 - 1:01:54 (04:01)
Summary
Financial advice on separating your savings and expenses, with tips on using target date funds for retirement planning and allocating funds for fixed expenses.
Episode#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
PodcastThe Tim Ferriss Show
The purpose of a prenuptial agreement is to set the terms of what is brought into a marriage, and it is not just for people with generational wealth.
1:01:54 - 1:06:16 (04:22)
Summary
The purpose of a prenuptial agreement is to set the terms of what is brought into a marriage, and it is not just for people with generational wealth. It is essential to discuss this topic openly and know its legal implications.
Episode#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
PodcastThe Tim Ferriss Show
In this excerpt, the speaker talks about the importance of discussing prenuptial agreements with a partner before getting married and cites the experiences of entrepreneurs who have encountered the consequences of not doing so.
1:06:16 - 1:09:30 (03:14)
Summary
In this excerpt, the speaker talks about the importance of discussing prenuptial agreements with a partner before getting married and cites the experiences of entrepreneurs who have encountered the consequences of not doing so.
Episode#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
PodcastThe Tim Ferriss Show
A prenup is not necessary for most couples with relatively similar assets.
1:09:30 - 1:15:17 (05:46)
Summary
A prenup is not necessary for most couples with relatively similar assets. However, it may make sense for individuals with a significant amount of assets, such as a house, inheritance, or business.
Episode#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
PodcastThe Tim Ferriss Show
In this podcast episode, the hosts discuss divorce settlements and the concept of community property.
1:15:17 - 1:18:30 (03:12)
Summary
In this podcast episode, the hosts discuss divorce settlements and the concept of community property. They explore the issue of compensation for the non-working spouse and how to divide assets, including money earned during the marriage.
Episode#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
PodcastThe Tim Ferriss Show
The speaker shares their approach to discussing money in relationships, viewing it as a contract with multiple parties to come to an agreement.
1:18:30 - 1:24:16 (05:45)
Summary
The speaker shares their approach to discussing money in relationships, viewing it as a contract with multiple parties to come to an agreement. They emphasize the importance of having a clear understanding of each person's financial priorities and goals.
Episode#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
PodcastThe Tim Ferriss Show
The speaker shares how he wished he started discussing the meaning of money in his relationship rather than focusing on spreadsheets, and how he wishes he started talking about money with his wife earlier.
1:24:16 - 1:28:02 (03:45)
Summary
The speaker shares how he wished he started discussing the meaning of money in his relationship rather than focusing on spreadsheets, and how he wishes he started talking about money with his wife earlier.
Episode#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
PodcastThe Tim Ferriss Show
In this podcast episode, the speaker emphasizes the importance of planning ahead with prenups, citing the high rate of marriage failure in the US and the need to be prepared for the worst-case scenario.
1:28:02 - 1:33:45 (05:42)
Summary
In this podcast episode, the speaker emphasizes the importance of planning ahead with prenups, citing the high rate of marriage failure in the US and the need to be prepared for the worst-case scenario. He suggests engaging high-caliber divorce attorneys to be prepared for negotiation mode in case of a divorce.
Episode#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
PodcastThe Tim Ferriss Show
The podcast discusses the emotional toll that having debt can take on a person, especially when it comes to dealing with creditors and financial institutions.
1:33:45 - 1:39:50 (06:05)
Summary
The podcast discusses the emotional toll that having debt can take on a person, especially when it comes to dealing with creditors and financial institutions.
Episode#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
PodcastThe Tim Ferriss Show
Ramit Sethi talks about the real challenge after getting married, which is day to day spending and shares the importance of using automated systems to manage finances efficiently.
1:39:50 - 1:43:16 (03:25)
Summary
Ramit Sethi talks about the real challenge after getting married, which is day to day spending and shares the importance of using automated systems to manage finances efficiently.
Episode#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
PodcastThe Tim Ferriss Show
The speaker discusses the importance of asking your partner to rate their preferences on a scale rather than just yes or no, and how it is important to understand and accommodate their likes and dislikes.
1:43:16 - 1:49:20 (06:03)
Summary
The speaker discusses the importance of asking your partner to rate their preferences on a scale rather than just yes or no, and how it is important to understand and accommodate their likes and dislikes.
Episode#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
PodcastThe Tim Ferriss Show
The speaker ponders the idea of whether emulating successful people, like Michael Jordan, in their daily habits will lead to similar success.
1:49:20 - 1:54:32 (05:12)
Summary
The speaker ponders the idea of whether emulating successful people, like Michael Jordan, in their daily habits will lead to similar success. He advises evaluating whether a person is succeeding because of or despite their habits and routines, as well as emphasizes the importance of morning routines in removing decision making from the rest of the day.
Episode#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
PodcastThe Tim Ferriss Show
Applying constraints to the tools you use can help in finding the right tools for efficient work.
1:54:32 - 1:58:34 (04:01)
Summary
Applying constraints to the tools you use can help in finding the right tools for efficient work. This principle can allow you to deduce which tools to use or at least ask people for the right tools.
Episode#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
PodcastThe Tim Ferriss Show
The traditional conversations about pensions and retirement plans are absent among millennials who seem to value more experiences than saving money for the future.
1:58:34 - 2:06:26 (07:52)
Summary
The traditional conversations about pensions and retirement plans are absent among millennials who seem to value more experiences than saving money for the future. Regular discussions with partners about future goals and lifestyle choices are necessary to plan for the future in the millennial era.
Episode#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
PodcastThe Tim Ferriss Show
The speaker describes their environment as stoic in the sense that the attitude was don't focus on the good because it takes care of itself.
2:06:26 - 2:09:55 (03:28)
Summary
The speaker describes their environment as stoic in the sense that the attitude was don't focus on the good because it takes care of itself. They mention Gretchen Rubin's book on organization and how it's an example of what a smart person could come up with dedicating a year to a project.
Episode#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
PodcastThe Tim Ferriss Show
The host explains how he blocks out time to mentally prepare himself for uncomfortable conversations with his partner and the benefits of doing so.
2:09:55 - 2:16:16 (06:21)
Summary
The host explains how he blocks out time to mentally prepare himself for uncomfortable conversations with his partner and the benefits of doing so. He also discusses communication techniques that have helped him avoid disproportionate emotional responses to extraneous discussions.
Episode#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
PodcastThe Tim Ferriss Show
The speaker discusses the publication of a finance book that provides tools and insights on money and psychology and aims to represent people from all walks of life.
2:16:16 - 2:21:09 (04:53)
Summary
The speaker discusses the publication of a finance book that provides tools and insights on money and psychology and aims to represent people from all walks of life.
Episode#371: Ramit Sethi — Automating Finances, Negotiating Prenups, Disagreeing with Tim, and More
PodcastThe Tim Ferriss Show
Tim Ferriss describes his admiration for those who experiment and shares his "Five Bullet Friday," a short email where he shares interesting discoveries for the week.
2:21:09 - 2:25:04 (03:54)
Summary
Tim Ferriss describes his admiration for those who experiment and shares his "Five Bullet Friday," a short email where he shares interesting discoveries for the week. He also promotes his book on Amazon and invites listeners to check out his website and newsletter.