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Kindle Notes & Highlights
by
Ramit Sethi
Read between
March 9 - July 22, 2020
Don’t say you have another offer when you don’t. Don’t inflate your current salary. Don’t promise things you can’t deliver. You should always be truthful in negotiations.
1. I broke down their job posting
2. I researched their website extensively,
3. I prepared a spiel about my somewhat eclectic résumé,
4. I called an expert on startups,
5. I actually took Ramit’s advice,
A Fresh Look at Buying a Car
It’s strange how many people make an effort to save on things like clothes and eating out, but when it comes to large purchases like cars, make poor decisions and erase any savings they’ve accumulated along the way.
the most important factor is how long you keep the car before you sell it.
Instead, understand how much you can afford, pick a reliable car, maintain it well, and drive it for as long as humanly possible.
There are four steps to buying a car: Budgeting, Picking a Car, Negotiating Like an Indian, and Maintaining Your Car.
Don’t Buy a Horrible Car
For others, the “newness” wore off and now it’s just a tool for their daily commute—an expensive tool they regret.
First, any car you evaluate must fit within your budget. This will eliminate most cars automatically. Do not even look at cars you can’t afford.
Second, the car must be a good car. “But, Ramit,” you might say, “who can ...
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Reliability.
A car you love.
Resale value.
To check out how your potential cars will fare, visit the Kelley Blue Book site at kbb.com and calculate resale prices in five, seven, and ten years.
Insurance.
Fuel efficiency.
The down payment.
Interest rate.
Dos and Don’ts for Buying a Car
Do
Calculate total cost of ownership (TCO).
TCO should include maintenance, gas, insurance, and resale value.
Buy a car that will last you at least ten years,
Don’t
Lease.
Sell your car in fewer than seven years.
Most people sell their cars far too early. It’s much cheaper to maintain your car well and drive it into the ground.
Assume you have to buy a used car.
a new car may end up saving you money if you pick the right new car, pay the right price, and drive it for a long time.
Stretch your budget for a car.
You must negotiate mercilessly with dealers.
Fighting Chance (fightingchance.com), an information service for car buyers, to arm yourself before you negotiate.
quotas—I reached out to seventeen car dealers and told them exactly which car I wanted. I said I was prepared to buy the car within two weeks and, because I knew exactly how much profit they would make off the car, I would go with the lowest price offered to me.
The Biggest Big-Ticket Item of All: Buying a House
You should know all the common real estate terms, as well as how to push and pull to get the best deal. And you should understand that houses are primarily for living in, not for making huge cash gains.
if you buy a house without opening up a spreadsheet and entering some numbers, you are a fool.
Who Should Buy a House?
Actually, houses really aren’t very good investments in general.
In the olden days, this meant that your house would cost no more than 2.5 times your annual income, you’d be able to put at least 20 percent of the purchase price down, and the total monthly payments
would be about 30 percent of your gross income.
First off, chances are you’ll want to buy a nicer house than you’re currently renting, which means the monthly payment will likely be higher. Second, when you buy a house, you’ll owe property taxes, insurance, and maintenance fees that will add hundreds per month.
Finally, will you be able to stay in the house for at least ten years?
The Truth: Real Estate Is a Poor Investment for Most Individual Investors
The truth is that, over time, investing in the stock market has trumped real estate quite handily—which is why renting can be a great decision.
(In fact, I created a sub-savings account called “Down Payment for Future House,” knowing that I will eventually buy.)
