I Will Teach You to Be Rich

Forget budgeting. Instead, let’s create a Conscious Spending Plan. What if you could make sure you were saving and investing enough money each month, and then use the rest of your money guilt-free for whatever you want?

Unfortunately, most Americans were never taught how to consciously spend, which means cutting costs mercilessly on the things you don’t love, but spending extravagantly on the things you do.

If you don’t consciously choose what “rich” means, it’s easy to end up mindlessly trying to keep up with your friends.

Optimizing your plan might involve doing some serious bargaining when you make major purchases like a car or house (see Chapter 9). Or you might need to cut your expenses as ruthlessly as possible, which I cover on my website (search for “ramit savings”). You may even think about negotiating a higher salary or getting a higher-paying job.