Ramit Sethi, a famous financial counselor and writer, has helped bring millions to financial freedom through his book named "I Will Teach You to Be Rich". He believes that anyone can be a millionaire at age forty by making the right decisions at the right time. Here is a brief sketch of the 6 steps suggested by Ramit Sethi.
### 1. Know Your Money
Ramit Sethi's first principle is learning about your finances, what it's worth to know-how in income, expense, and saving. Know the ground to which one stands and your financial position. Knowing this will help you in improving your calculations. Important in this step is to create one's budget and check it.
### 2. Establish a security base
The second step which Ramit recommends is clearly creating an emergency fund. This is the fund that will enable you to counter situations you did not anticipate, such as a medical emergency or losing your job. One should keep in this fund at least the equivalent of three-month to six-month expenses. Apart from this, paying off the high-interest loan amount is also part of this stage.
### 3. Start Investing
Step three says that Ramit Sethi feels one should start investing. This is more than just keeping the money in the bank; you ought to invest into stocks, mutual funds, and real estate. Over time, all the interest and profits on your investments will accumulate. Sethi advises investing according to risk capacity and holding investments with a long-term view.
### 4. Improve Your Salary
The fourth step of Ramit is about enhancing your income. This is not just looking for another job to do- it is also possible to have several sources of income, earning through freelancing, starting up an online business, obtaining a further degree, and many more. Networking and new skills will find you setting greater heights in your career.
### 5. Set up an account and automate
In Step Five, Ramit Sethi suggests that you automate savings and investments. To do this, make an arrangement to send a fixed sum from your bank account to your savings account every month. In this way, you will save money, and this will develop the habit that you could have more in your account in the future.
### 6. Increase knowledge and stay abreast
The last step that Ramit advises is to accumulate the financial knowledge required learning through books, seminars, or experienced investors. Keep abreast of the continual changes that investments and financial activities face, so that you may know how to make decisions at any time.
By following these tenets, anyone can be a millionaire at the age of 40. According to Ramit Sethi, it happens through self-belief, improving knowledge, and consistent effort. His message is simple: with the right guidance and effort, anyone can improve his fortunes.