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About Ramit Sethi

In world of personal finance bloggers that insist that cutting costs and saving money is the way to go, Ramit Sethi is a voice that offers a different choice. Sethi is known for his lavish lifestyle, and his insistence that it’s important to earn more money than it is to cut back on the things that you love. He’s one of the youngest Top Money Gurus [3] on our list and one that connects with the young professional crowd.

Ramit Sethi’s Brief Biography

Ramit Sethi is known as a gifted writer, speaker, and entrepreneur. While he doesn’t have formal financial training, Sethi does have a degree from Stanford University. He has bachelor and master degrees in technology, psychology, and sociology. He often jokes about his upbringing as a person of Indian descent.

This profile is part of our Top Money Guru poll. For the next two weeks we’ll be highlighting ten personal finance experts for our first ever Top Money Guru poll – you can vote for your favorite guru here [3]. It takes less than a minute and you could win a $100 Amazon Gift Card. Poll ends June 10th.

Many of Sethi’s tips for earning more over time are based on psychology. He talks about using psychology to boost your income, and to get paid what you’re worth. Sethi is also known for using research to develop different products to sell to readers. He is known for vetting his products before offering them for sale, and for using sociological and psychological principles in creating products and offering advice.

Ramit Sethi started the web site I Will Teach You To Be Rich, and in 2009 published a book with the same name [4]. It is a New York Times bestseller and he is also the co-founder and vice president of Silicon Valley startup PBwiki.

Ramit Sethi and Anti-Frugality

The biggest issue that many people have with Ramit Sethi’s advice (this is completely different from their issues with his brash manner) is that it has a very definite anti-frugal bent.

Sethi is very clear, in his writing [5] and in his presentations, that frugality is not the answer to financial success. While he acknowledges that it makes sense to cut back to a certain degree, he often points out that there comes a point when you can no longer cut anymore. However, there is never a cap on your earning power.

Sethi is also an advocate of prioritized spending. He suggests that readers cut back on the things that aren’t important. Once that is done, it’s possible to spend more on the things that you really enjoy. He has long scoffed at the idea that cutting lattes out of your daily schedule will make you rich. Plus, it will suck some of the enjoyment out of your day.

Even though there are many critics who take issue with Sethi, he remains very popular, especially since he is particular about who he works with. His coaching products are often action driven and he is vocal about not spending money on his products if you are in debt.

Sethi also preaches entrepreneurship. He talks about turning skills into side income, and then using that money to help live the life you want. Rather than trying to cut back more, he advocates earning more, and then putting that money toward investments, paying down debt, or helping you reach other goals.

Guru Vitals:

You can find him on Twitter @ramit [6] or through his website IWillTeachYouToBeRich.com [7].

What do you think about Ramit Sethi?