I Will Teach You to Be Rich: No Guilt. No Excuses. No B.S. Just a 6-Week Program That Works.

by Ramit Sethi

People love to argue minor points, partially because they feel it absolves them from actually having to do anything.

Cynics don’t want results; they want an excuse to not take action. Ironically, even if they win their own manufactured argument, they lose overall, because they’re stuck in a prison of their mind.

Ironically, people who fear “being average” do exactly the things that make them perform worse than average: trade frequently, make outlandish bets, incur high taxes, and pay unnecessary fees.

Let me put that into perspective: If Roth IRAs had been around in 1972 and you’d invested $10,000 after-tax dollars in LUV, Southwest Airlines’ stock, you’d have hit a grand slam. Not only would the money have turned into about $10 million, but when you withdrew the money some thirty years later, you’d have paid no taxes. Although way back in 1972 you would have paid taxes on your initial $10,000 investment, the $9,990,000 you earned in the Roth IRA would have been tax-free. That’s unbeatable.

If you get a raise, be realistic: You earned it, and you should enjoy the results of your hard work. Treat yourself to something nice that you’ve been wanting for a long time, and make it something you’ll remember. After that, however, I strongly encourage you to save and invest as much of it as possible, because once you start getting accustomed to a certain lifestyle, you can never go back. After buying a Mercedes, can you ever drive a Toyota Corolla again?