From Zero to Wealth: 10 Financial Rules That Can Change Your Life

Finance expert Ramit Sethi recently shared his 10 core principles for accumulating wealth. These rules may seem a bit “crazy”, but they illustrate an important point — what truly changes social classes is not being stingy, but smartly allocating resources.

Core Mindset Shift

The question for most people is:

• Saving too little (common advice is to save 3-6 months of expenses)
• Low investment ratio (only 20% in the 50/30/20 rule)
• Saving money in the wrong place

Sethi's logic is completely reversed. He says first ask yourself if it's worth it, not look at the price first.

The 3 Most Important Rules

1. Emergency reserves should cover 1 year of expenses

It sounds exaggerated, but this gave Sethi absolute security. Americans had an average annual expenditure of $73,000 in 2022—filling this amount is indeed difficult, but it can be accumulated slowly.

2. Saving and investing should not be less than 30%

His formula is: save at least 10% and invest 20% of total income. This means that as earnings increase, this ratio should be higher. Instead of what most people do - the more they earn, the more they consume.

3. Large expenses must be paid in full

Weddings, houses, cars—no loans. This is not about pretending to be rich, but making money, not debt, your decision maker. Sethi even started saving for the wedding before he met his wife.

The Difference Between Smart Money and Tight Money

Many people misunderstand: Sethi is not a miser. His other rules are exactly the opposite—

• Books, snacks, charity donations? Buy what you like, regardless of the price.
• Flights longer than 4 hours should be in business class.
• Buy the best clothes, phones, and shoes, and use them until they are worn out.
• Unlimited investment in fitness and education courses

The logic behind this: Do not get entangled in small consumption matters (wasting mental effort), but be absolutely disciplined in major decisions.

The Two Most Underrated

Only work with those you admire

The next step to financial freedom is “high freedom level.” Sethi once said, “I won't stay in a job I dislike just for money, because I've spent the most time of my life there.” The premise of this rule is that your income must be high enough.

Choosing the right partner is the biggest financial decision in life

This is straightforward, but very realistic. A spouse influences where you live, how much you save, how you work, and whether you can retire. Aligning values is really worth considering more.

How to use it on yourself?

These are not dogmas, but thinking frameworks. You do not need to copy them all. The core is:

1. Identify 2-3 areas that you truly care about (books, fitness, travel?), and be generous in these areas.
2. Other places establish ironclad discipline (it's not being stingy, it's systematic management)
3. Regularly check, but don't stare at the bill every day
4. As income increases, raise the proportion of saving and investing (this is something most people do not do)

In simple terms: The rich do not refrain from spending, but they spend very consciously.