Ramit Sethi Explains How Our Thoughts And Words About Money Influence Our Wealth: 'The Way We Talk About Money Is So Peculiar'

Financial personality Ramit Sethi regularly talks about money. He normally offers budgeting strategies, advice on how to build wealth, and other insights. However, he took a different path in a recent TikTok video and explained why it's so important to monitor how you think about money.

"The way we talk about money is so peculiar," Sethi observed.

He proceeded to share some examples of how people talk about money and how to think of money in a more healthy way.

Don't Miss:

• Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — this is your last chance to become an investor for $0.80 per share.
• Peter Thiel turned $1,700 into $5 billion—now accredited investors are eyeing this software company with similar breakout potential. Learn how you can invest with $1,000 at just $0.30/share.

Today's Best Finance Deals

Having A Bad Week

Sethi mentioned that some people will say they had a bad week if they spent too much money. He also proceeded to mention the "I have to get good with money" example, which is code for needing to save money to buy a single-family suburban house.

These assertions don't tell the entire story. He said it's okay to spend money if you know your numbers and determine you have room in your budget to make those expenses. Most of the language revolves around having to get better or making mistakes, but there aren’t as many healthy conversations about money.

For instance, many people claim that money is the root of all evil. This message comes from the Bible, but it's been misinterpreted by the people who pedal it. The love of money is the root of all evil, but if you don't put money on the altar, it's not evil. Instead, having more money gives you more choices and opportunities in your life. 

Trending: Maximize saving for your retirement and cut down on taxes: Schedule your free call with a financial advisor to start your financial journey – no cost, no obligation.

Sethi encourages people to pay attention to their thoughts and what they say when talking about money. It can reveal how you feel about money, your ability to get more of it, and what changes you may have to make.

Know Your Numbers

Sethi gives this advice a lot, but it's hard to blame him. Reviewing your income, monthly investments, and expenses can help you determine if you are on the right track to your long-term financial goals.

If you don't review your bank account and credit card statements, it's easier to feel lost when it comes to money. Your language may reflect that if you simply say that you had a bad week or have to get better.

See Also: Invest where it hurts — and help millions heal: Invest in Cytonics and help disrupt a $390B Big Pharma stronghold.

Determine What Actions You Have To Take

It's great that you want to get better, but tracking the numbers allows you to quantify what "better" actually means.

Sethi mentions that improving your finances may mean investing 10% to 12% of each paycheck. That way, you can spend money knowing that you have already put some of each paycheck aside for your long-term wealth. Of course, you can boost this number if you want to reach your financial goals sooner. Each person has a different amount they can invest each month, but knowing your numbers is vital for your money goals.

You don't have to stay on top of your brokerage account to make regular contributions. Sethi suggests setting up automatic portfolio contributions so you never have to worry about it. Automatic transfers into your brokerage account can deduct 10% to 12% of your paycheck before you even have the opportunity to spend it. 

Setting aside money for your investments is one step to building wealth. Paying attention to how you speak and think about money can help you determine the next actions you should take.

Read Next:

• Can you guess how many retire with a $5,000,000 nest egg? The percentage may shock you.
• Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – with $1,000 you can invest at just $0.30/share!

Image: Shutterstock