Personal Finance

Ramit Sethi says you need to stop listening to these financial gurus and do this instead

Joey Frenette

Published: January 26, 2025 9:04 am

Ramit Sethi is probably my favorite personal finance guru to tune into. He doesn’t just know his stuff, but he’s also very personable, especially to many of the younger audiences out there (think Millennials, Gen Z, and even older Gen Alpha). Indeed, some of the older personal finance influencers and gurus still have very relevant advice for today’s young people, but in terms of being relatable, it’s tough to top Mr. Sethi. It also helps that he’s an entertaining guy who isn’t afraid to tell things like they are.

Though there’s a lot of advice and content overlap between Sethi and some of the other gurus out there, I do think that the differences in viewpoint and contrasting opinions are what makes the topic of personal finance so interesting. Indeed, there are few one-size-fits-all solutions for some of the more complicated topics.

Even for the more common ones that require less “tailoring,” there can be a bit of a clash in belief. Whether we’re talking about the “withdrawal” rate for retirement, the perfect “FIRE” (short for financial independence, retire early). Here are two hot personal finance suggestions that Sethi suggests audiences be cautious about.

Personal finance is personal! Take oversimplified advice with a fine grain of salt.

At the end of the day, it’s my personal opinion that it’s best to absorb a wide range of “second opinions” and views so that you can weigh them for yourself and (perhaps with the help of a certified financial advisor or retirement planner) the right move that’s right for you. Indeed, personal finance isn’t always about finding the right answer. It’s more about finding the right answer for you and your family.

As always, you shouldn’t take any one (or two) financial influencers’ word as gospel. Do your own homework and be empowered to educate yourself with a wide range of resources. At the end of the day, nobody has all the answers. But with a bit of help, you can find the answers you need to tackle your financial goals head-on.

In this piece, we’ll look at some areas in which Sethi believes viewers should be cautious when it comes to influencers in the personal finance scene. Though Mr. Sethi is a big influencer himself, I tend to agree with most of what he says, at least compared to most other gurus.

On other gurus, some of whom may not serve up the best advice, he urges listeners to avoid the hype that comes with “rules of thumb” and other oversimplified pieces of advice. Remember, personal finance is personal. And there’s no personal touch that comes with watching a video. Although some of the rules of thumb may apply to some, there are really no guarantees about who such advice is fit for.

Sethi wants you to go for the “big wins” instead of penny-pinching.

Additionally, Sethi urges viewers to focus on the “big wins” rather than the skimping. Indeed, this is a point I couldn’t agree more with. While many big names in personal finance may chalk savings down to depriving oneself of daily pleasures (think coffee and those treats at the bistro), I think pinching pennies could lead to saving burnout and dissatisfaction in the present moment. Indeed, saving for the future entails some gratification to be delayed. But you don’t have to delay every last bit of gratification from the present moment!

While I’m sure that “wasting money at restaurants and other comforts and conveniences” could work out to tens of thousands over a few decades, I believe the key is finding the right balance between spending and saving.

Of course, some may not mind cutting out the “small things” to shore up cash to save. But it’s not the right lifestyle for everyone. That’s why Sethi stresses focusing on “big wins,” rather than the going after the smaller fish.

Also, by focusing on the smaller day-to-day expenses, one can miss the bigger picture. Indeed, one could have placed their energy on efforts that could make a bigger impact on one’s financial future. Think investigating what types of investments (ETFs, stocks, bonds, real estate, private equity, CDs, cash?) to own for the long haul, which could move the needle far more than foregoing the occasional café routine. Indeed, the “big wins” really can dwarf those smaller wins, and with less sacrifice in the near-term on the part of savers.

The bottom line

I think Sethi’s focus on living a balanced life and not feeling guilt for buying oneself occasional treats is part of the reason why he’s able to resonate better with today’s young people. By keeping personal finance personal, concentrating on bigger “wins,” and playing the long game, I do think listeners can realistically better themselves financially.