I’m reading Ramit Sethi’s I Will Teach You To Be Rich (2nd Edition). It’s awesome so far. It is the best personal finance book I’ve ever read.
I’m pretty far ahead with having done everything he recommends, but I finally feel secure enough about everything I’ve done to maintain my financial life that I can stop reading these terrible books. I’ll have a full review when I’m done reading it.
For now, a question he poses at the beginning of the book is what does a Rich Life mean to you?
I think this is a very important question, and a big reason why I am as clear-headed as I am about my financial and career life is I have always had the answer to this. I know exactly what I want out of my financial life. Here it is, in ascending orders of wealth:
- Being able to live alone wherever I want (size/amenities matter less).
- Being able to eat out whenever I want and not look at the price. This includes getting a quick drink or snack whenever I’m out.
- Being able to buy high-quality things (long-term things like furniture or just electronics like a phone or headphones) without having to wait for a sale.
- I want my net worth to be $1m by the age of 30, so that I can sustain myself even if I am unable to work in the future. (This is a really ambitious and improbable goal!)
- I want to donate 10% of my after-tax income each year.
- I want to “retire” at 55. (I don’t know if I will retire, but I want to have the funds to be able to do so.)
That’s it. Where am I on this list right now? I’m somewhere between around #3. I can buy whatever I want, but I’m still a bit anxious about waiting for sales.
I am nowhere near being on track for #4, but we’ll see how the economy and my career plays out over the upcoming years.