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In an August 2024YouTube video, Sethi rounded up eight of his controversial financial takes.
Try on these eight perspectives about money and decide for yourself whether they resonate.
Also seewhy Sethi says dreaming big is important when building wealth.
Instead, people should focus on the big picture of their finances.
But they can also make you beat yourself up over and over, according to Sethi.
Many people dont bother with formal budgets at all.
Theyre a classic example of gamification, and it can be addictive.
Think twice on that before whipping out your credit card next.
As Sethi said in the video, Credit card points are not the ultimate goal of money.
Living a rich life is.
But many advisors, Sethi said, charge you a percentage of assets under management.
He used the example of an advisor charging 1% of assets under management.
While that may not seem like a lot, it can add up because it gets compounded every year.
However, pay them a flat fee or pay them hourly.
Investing Is Actually Pretty Simple
Sethi said investing is like watching paint dry.
Invest in low-cost index funds and call it a day.
As Sethi said, Real investing is low-cost and long-term investing things like index funds.
Houses Arent Always Good Investments
Housing is a living expense, not an investment.
It costs you money every month, and it doesnt generate income (unless you house hack).
Dont justify overspending on a home by telling yourself its an investment.
In fact, in some markets, it makes far more sense to rent.
Sethi suggested running a buy versus rent calculation before deciding to buy a home.
Your kids have dozens of ways to pay for their college education.
He said we criminalize the poor and idolize the rich.
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