I Will Teach You To Be Rich

The book "I Will Teach You to Be Rich" presents a new perspective on personal finance, where the goal is not just to save and invest, but to create a financial system that works easily and without stress. The author offers a step-by-step approach on how to gain control of your money, build wealth and enjoy life at the same time. He doesn't try to teach readers excessive frugality or a life full of limitations. Instead, his advice is based on principles such as automating finances, investing wisely, and spending consciously on what brings us true joy. The book is a guide that teaches that financial decisions don't have to be a source of anxiety, but rather a means to achieve life's goals.

Automating your finances is an easy way to gain control of your money without having to struggle with recalculating expenses or setting up orders every month. The principle is clear - as soon as you get paid, a portion of your finances automatically go into savings, investments or debt repayments. If you set up an automatic order to transfer €200 to an investment account and another €100 to a savings account as soon as you get paid, you can gradually build up a sizable reserve without having to keep track of every penny. The whole point of automation is to relieve people from having to make regular decisions that could lead to reckless spending. US statistics from 2018 showed that people who set up automated savings were able to build up 25% higher savings compared to those who relied on manual commands. This practice also limits impulse purchases - if money is put away right away, it's simply not available for spontaneous spending. Jennifer, a marketing manager who has chosen to invest in a stock fund each month. Although she started with small amounts, the effect of regular savings and compound interest has ensured that her deposit has almost doubled after ten years. At the same time, automation makes it possible to avoid the common mistakes that come with attempts to "time" the market or plan spending that is constantly changing in nature. In fact, with a regular setup, there is no need to think about when is the best time to invest or whether you need to increase your savings - the system does it for you. So for many people, this approach is becoming a key step towards financial freedom. Just set a few commands once and the money will start working in your favour. Automating your finances is a way to gradually gain stability while enjoying life without constantly tracking your spending.

The essence of this principle is that you just need to make most of your financial decisions correctly, without having to manage everything perfectly. Many try to achieve perfection, but in the end it leads to overwork and disappointment. This approach reminds us that success in building wealth is not about perfect decisions, but about consistency and regularity. Take Mona, for example, who set a simple plan - she sets aside 10% of her paycheck each month for savings and invests the other 5% in mutual funds. She doesn't aspire to be an investment expert, but by following the rules, she has gradually increased her savings. She doesn't care if she just made the highest return, but she knows her long-term plan is working. This principle is backed up by research - investors who focus on the basic steps and don't try to time the market perfectly often perform better than those who are always looking for the "perfect" moment. Ultimately, a system of regular investment guarantees them higher growth as their money naturally appreciates. The 85% approach can therefore be seen as a simple financial routine that allows a person to achieve steady financial growth without unnecessary stress. You don't need to be an expert or follow every market move - just stick to sound financial principles. While it is not a "perfect" strategy, it is its simple consistency that becomes the key to financial stability and gradual wealth building. The whole principle reminds us that it's better to do things approximately right than to constantly agonize over perfection.

This liberating approach to finances allows us to focus our spending on what brings us joy, rather than on things we only buy out of habit or compulsion. This approach is not about being strictly frugal, but rather about consciously choosing what is truly valuable to us. Consider Peter, an avid traveller. Instead of spending mindlessly on expensive cafes or fancy clothes every month, he decides to save and invest that money in travel. For the same amount that others would spend on sundries, Peter will enjoy new experiences and discover places he has always wanted to go. This choice not only brings him joy, but also makes him feel that his money is going towards something that is really important to him. According to research on consumer behaviour, people are happier when they direct their finances towards experiences and things that support their values or hobbies. For example, a 2010 study showed that people who spend on things they truly value achieve a longer-term sense of happiness than those who spend haphazardly or under the pressure of consumerism. The goal of this approach is to learn to consciously control our finances in a way that makes us happy. If someone is passionate about music, they can afford good quality headphones or concert tickets. Someone who loves to cook may invest in quality kitchen tools. The bottom line is that we don't feel guilty for spending money - on the contrary, through this strategy, we use it in a way that provides real value. Consciously spending on what we love brings not only satisfaction with our financial behavior, but also a sense that we are living life to the best of our abilities.

Using credit cards effectively is an art that can strengthen our finances if we master it correctly. Credit cards can be tricky for many, but with a wise approach, they can become a valuable tool that brings benefits and even rewards. Jane pays for her everyday purchases with her credit card to get cashback - that is, a small percentage of each transaction back. At the end of the year, these rewards will cover her expenses for a small holiday. Importantly, however, Jane always pays off the entire balance on her card in the interest-free period, so she never pays interest and her card thus serves as a source of benefits, not debt. Using credit cards effectively is about understanding the basic rules - never spend more than you can afford to pay back, and use cards where they offer real benefits. Different cards offer different benefits, from collecting points for travel to cashback or special discounts. For example, frequent travelers can use airline credit cards that offer miles for every purchase, allowing them to get free airline tickets or upgrade the class of flight. A 2019 survey found that up to 60% of people who use credit cards wisely reap significant benefits, while those who rely on paying back only minimal monthly amounts end up with high interest rates. These differences show the importance of attitude and discipline in the use of credit cards. Credit cards can become a useful financial tool for many if used consciously and judiciously. They should be approached with the same caution as other financial instruments, where the aim is to maximise the benefits and avoid potential risks.

Fearless investing is one of the most important lessons we can learn in building wealth. For many people, investing is intimidating, often due to fear of loss or uncertainty about how markets work. The goal of this idea is to free yourself from these fears and start investing today, even with small amounts, because time is an investor's greatest friend. An example is Johnx, who started investing in index funds at the age of 25, even though he only had small amounts at first. He decided to put in 50 euros a month and let his investments grow without following the market on a daily basis. After ten years, his savings had multiplied considerably thanks to compound interest and the steady growth of the market. Although he did not have extensive financial knowledge, his investments yielded returns precisely because of his long-term approach. Statistics confirm that regular investing, even with small amounts, is effective in terms of long-term appreciation. Surveys of the financial markets show that investors who keep their money in the market for the long term outperform, on average, those who try to 'time it right'. This approach allows us to understand that it is not necessary to be an expert to achieve financial success. The important thing is to start and not stop, even when the market seems to be fluctuating. It is persistence and discipline that are the foundation of successful investing. Regular deposits, regardless of the current state of the market, ensure steady growth and take advantage of the phenomenon of compound interest, which can multiply our finances considerably. Investing without fear is about confidence in long-term growth and understanding that fluctuations are a natural part of any market. This allows us to let go of our fears and start creating wealth with peace of mind and confidence.

Negotiating better offers is a skill that can bring long-term financial benefits, but for many it is an area they avoid. We often assume that prices and terms are fixed, but in reality, with the right approach, a lot can be negotiated - from a reduction in utility bills to a pay rise. After two years with the company, Marianne asked for a pay rise. She prepared her arguments, based on her results and contribution to the team, and dared to have a conversation with her boss. Not only did she get a pay raise, but she also got bonus vacation days. Such bargaining doesn't just bring a one-time gain, but increases the overall annual income and motivates the employee to perform better. Statistics show that those who actively negotiate the terms of their contracts or payments can save or earn up to 20% more compared to those who have never tried negotiating. In the US, for example, negotiating credit card, loan or telephone fees is a common practice and brings consumers hundreds of dollars in savings per year. An important part of effective negotiation is thorough preparation - knowing what to expect and having an idea of what terms are common in the marketplace. Negotiation is not about an aggressive approach, but about confidently presenting facts and proposals that are mutually beneficial. When you negotiate from a position of respect and trust, the other side is much more inclined to meet your demands. Negotiating better deals is therefore a useful skill that can help us achieve significant savings and increased revenue. It is characterised by a combination of courage and preparation that delivers profitable results in different areas of life, whether it is work, services or day-to-day costs.

"I Will Teach You to Be Rich" offers a liberating approach to finances that allows us to focus on the essentials while minimizing money stress. From automating saving and investing, to consciously spending on the things we love, to using credit cards to get perks, the author shows that financial freedom is available to everyone. He emphasizes simple but effective steps, such as the 85% principle and investing without fear, to help achieve long-term success without the need to be an expert. The entire book leads us to understand that wealth is not just about the amount of money, but how we use it to do what really matters to us. In this way, anyone can create a system that promotes not only financial stability, but also a fulfilling and joyful life. Do you have feedback for us? We'd love it if you let us know your opinion on our content! Just send an email to feedback@rewio.app with the title of this book in the subject line and share your impressions!