Ramit Sethi Says Doing This Every Year Could be Worth Thousands of Dollars​”Unlock Thousands of Dollars: Ramit Sethi’s Annual Strategy for Financial Success” 

Personal FinanceJemal Countess/Getty ImagesIan CooperThis post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.Every December, author Ramit Sethi does a “rich life review.”He’ll look back at the year that passed and plan for the one ahead – something we should all strive to do, as well. All of which involves looking at how much money you brought in for the year, debt, investments, budgets, and goals you met and haven’t met just yetTero Vesalainen / iStock via Getty ImagesKey Points About This Article:Every December, author Ramit Sethi does a “rich life review.” He’ll look back at the year that passed and plan for the one ahead – something we should all strive to do, as well.
If you invested 5% of your income in 2024, try to increase it to 6% for 2025.
Sethi suggests setting aside a one-year emergency fund.
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Sethi suggests increasing your investments by 1%If you invested 5% of your income in 2024, try to increase it to 6% for 2025. By doing so over the next decade or so, you could increase your investments by thousands of dollars thanks in part to compound interest.“While 1% is a small percentage of your annual earnings today, after 20 or 30 years it can make a big difference in your account balance when you retire. That’s because the longer you give your money a chance to grow, the better. And it works no matter how old you are—or how far off retirement is,” notes Fidelity.com.Set Aside Money for EmergenciesSethi suggests setting aside a one-year emergency fund.For many of us, saving a year’s worth of expenses is easier said than done.If you can’t swing that, start small with an emergency savings goal of at least $1,000. Sure, it’s small but it’s a safety net, and it’s a start. In fact, if you can put away about $85 a month, you’ll reach that goal and have some wiggle room. However, be sure to store this in a separate “don’t touch” account, automatically depositing money every time you’re paid. Plus, if you ever receive another source of income, such as a bonus or a gift, put it directly into that “don’t touch” account instead of spending it immediately.Know Your Finances Inside and OutKnow how much money they have coming in and going out, which you can also do by answering key questions. How much do you make? How much do you owe? What percentage of your income is being invested? How much are you saving? What are you spending your money on, and where can you spend less?Consult with financial advisors. They also diversify their wealth across multiple financial avenues, including high-yield savings, money market accounts, diversified investment portfolios and even real estate in many cases.Automate Your Money in the New YearAutomate your money so it’s automatically shifted into other accounts without having to think about it. They do it with sa