About this Video

• Video Title: You're Not Behind: How to Start Investing Even if It Feels Too Late
• Channel: I Will Teach You To Be Rich
• Speakers: Ramit Sethi
• Duration: 19:09

Introduction

This video addresses the feeling of being too late to start investing. Ramit Sethi provides a roadmap for building wealth regardless of age, emphasizing a different approach for late starters. The video focuses on practical steps, avoiding fluff, and offering concrete strategies.

Key Takeaways

1. Face Your Finances: Begin by honestly assessing your assets and debts to calculate your net worth. This provides a clear starting point for planning.
2. Create a Conscious Spending Plan: Instead of restrictive budgeting, create a plan focusing on four numbers: fixed costs (50-60% of take-home pay), investments (10% minimum), savings (5-10%), and guilt-free spending (20-35%).
3. Maximize Employer Match: Don't miss out on free money; maximize employer 401(k) matches for an instant high return.
4. Increase Contributions Gradually: Start with a small increase (e.g., 1%) in 401(k) or IRA contributions and incrementally raise it annually (1-2% of income). Utilize unexpected funds (bonuses, refunds) for investments.
5. Earn More to Invest More: Focus on increasing income (negotiating a raise, side hustles) rather than solely cutting expenses.