The Mel Robbins Podcast

The Truth About Money and Why We Have It All Wrong | The Mel Robbins Podcast

Registration for Launch 2023 is now CLOSED 🌟 https://bit.ly/launch2024 👈 Get on the waitlist for the 2024 Launch with Mel Robbins! 🚀 — You can be #rich. Don’t roll your eyes. This is not what you think. This episode today is so digestible. So counterintuitive. And one of the most enlightening conversations I’ve had with anybody. Most of us have been thinking about money all wrong. It turns out that the amount of money you have in the bank (or don’t) is only a small part of your relationship with money. Ramit Sethi (@ramitsethi is a NYT best-selling author and #finance advisor with a brand new, top-ranked Netflix series called How to Be Rich, where he coaches real people about how to take control of their financial lives. He says you’ve been thinking about #money all wrong. If you were told that you need to create a budget and stick to it, Ramit calls BS. Instead, you’ll learn about your money dials, the only four numbers that matter, the 85% Rule, why the 10 Year Bucket List is so important, the one thing you should NEVER say about yourself, and best of all, what it means to live a Rich Life. Today’s episode is going to change the way you SEE money, because when you see it differently, you’ll treat it differently. And if you’re looking for another zero-cost resource to help you change your mindset around finances, sign up for my free training called Take Control with Mel Robbins - https://www.melrobbins.com/takecontrol And if you're ready to start living your rich life with more confidence and no regrets, sign up for my exclusive signature course, Launch with Mel Robbins. Learn all the exciting details here: https://www.melrobbins.com/launch Xo Mel In this episode, you'll learn: 00:00 Intro 07:44 Just like me, Ramit has his own story of big-time money loss. 11:20 Assignment #1: Think back to your 20’s and ask yourself this question. 14:17 How do your childhood influences impact your beliefs around money? 22:23 If you want to live a rich life, you need to do two things. 26:23 Wondering what most people love to spend money on? 30:32 Why is it important to come up with a fun vision around money? 34:38 How do you define your “rich life”? 37:36 I think everyone listening needs to do this fun activity. 41:02 Especially if life is hard right now, THIS is what you have to do.. 45:27 Here’s how you step your way closer to your rich life. 47:00 How can you feel in control of something if you don’t understand the details? 50:18 The four numbers everyone should know to stop feeling overwhelmed by money. 58:12 NEVER say this about yourself because it will create your reality. 1:06:30 The two areas most people spend too much money on. 1:10:37 Ramit lays down the bottom line about changing your mindset around money. 1:12:23 Here’s your new money mantra to play on repeat. — Follow Mel: Instagram: https://www.instagram.com/melrobbins/ TikTok: http://tiktok.com/@melrobbins Facebook: https://www.facebook.com/melrobbins LinkedIn: https://www.linkedin.com/in/melrobbins Website: http://melrobbins.com — Sign up for Mel’s newsletter: https://melrob.co/sign-up-newsletter A note from Mel to you, twice a week, sharing simple, practical ways to build the life you want. — Subscribe to Mel’s channel here: https://www.youtube.com/melrobbins?sub_confirmation=1 — Listen to The Mel Robbins Podcast 🎧 New episodes drop every Monday & Thursday! https://melrob.co/spotify https://melrob.co/applepodcasts https://melrob.co/amazonmusic — Looking for Mel’s books on Amazon? Find them here: The Let Them Theory: https://amzn.to/3IQ21Oe The Let Them Theory Audiobook: https://amzn.to/413SObp The High 5 Habit: https://amzn.to/3fMvfPQ The 5 Second Rule: https://amzn.to/4l54fah

Mel RobbinshostRamit Sethiguest

Apr 27, 20231h 30mWatch on YouTube ↗

WHAT IT’S REALLY ABOUT

Ramit Sethi Redefines Money: Design A Rich Life, Not Budgets

Mel Robbins interviews personal finance expert Ramit Sethi about why most people think about money all wrong and how to shift from stress and shame to designing a "rich life."
Ramit argues that money is only partly about numbers; it’s primarily about psychology and the stories we inherited from childhood, which often keep us stuck even when our income rises.
He introduces practical frameworks like the "money dials" exercise, a 10‑year rich-life bucket list, and his four-number Conscious Spending Plan as simple, non‑spreadsheet ways to regain control.
Throughout, they emphasize that you can start creating a rich life even while in debt by clarifying what you truly value, spending extravagantly there, and cutting costs mercilessly on what you don’t.

IDEAS WORTH REMEMBERING

5 ideas

Define your own rich life in vivid, specific detail.

Instead of vague goals like “freedom” or “a beach house someday,” describe exactly what you want—where you travel, what hotel you stay in, what you’re wearing, and who’s with you—so money becomes a tool to create that life.

Your feelings about money are largely uncorrelated with your bank balance.

Ramit notes that people who grew up hearing phrases like “we can’t afford it” often feel guilty spending even when they’re objectively fine; without changing your money psychology, more income alone won’t create peace.

Use Money Dials to prioritize joyful spending and unapologetically turn them up.

Identify one thing you truly love to spend on (e.g., eating out, travel, gifts, convenience), then imagine quadrupling or 10x‑ing that spend in more imaginative ways instead of just doing more of the same.

Create a 10‑year bucket list and reverse‑engineer the cost into a monthly plan.

Brainstorm what would make the next decade amazing, pick one standout goal, estimate its cost, choose a target month/year, and divide the total into a simple automated monthly transfer (e.g., “Dream Trip 2030” fund).

Replace strict budgeting with four simple Conscious Spending numbers.

Track only: fixed costs (50–60% of take‑home), savings (5–10%), investments (5–10%+), and guilt‑free spending (20–35%), so you can pay debts and build wealth while still enjoying desserts, clothes, or travel without guilt.

WORDS WORTH SAVING

5 quotes

The way you feel about money is highly uncorrelated to how much you’ve got in the bank.

— Ramit Sethi

I’m unapologetic about spending extravagantly on the things I love, as long as I cut costs mercilessly on the things I don’t.

— Ramit Sethi

What a tragedy to live a smaller life than you have to.

— Ramit Sethi

You can have a rich life and still be in debt.

— Ramit Sethi

I haven’t always been great with money, but now I’m learning.

— Ramit Sethi (as a suggested reframe)

The concept of a “rich life” and why it’s personal and specificMoney psychology and childhood money scripts (e.g., “we can’t afford it”)The Money Dials exercise: identifying what you love to spend on and 10x‑ing itThe 10‑year rich-life bucket list and turning dreams into concrete plansThe Conscious Spending Plan: four key numbers instead of traditional budgetingDealing with debt without shame and shifting from defensive to offensive money movesCommon overspending traps (housing, cars) and aligning spending with values

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