#250August 27, 20211:24:38

#214 with Ramit Sethi - Why You Should Have a Diversified Invest…

The history and future of the online course business Investment strategies and risk management The psychology of money and couple dynamics High-margin business ideas in lifestyle niches

About This Episode

Personal finance expert Ramit Sethi joins Sam and Shaan to discuss the evolution of the online course industry and the psychological factors behind wealth management. The conversation explores different investment philosophies, from diversified index funds to high-risk concentrated bets, while brainstorming business opportunities in price-insensitive niches.

Episode Description

In this episode Sam (@theSamParr) and Shaan (@ShaanVP) are joined by Ramit Sethi (@ramit), the founder of I Will Teach You To Be Rich. They start off talking about course businesses and Ramit shares what he's learned running courses for over 15 years. Ramit shares a few ideas for businesses and then the trio talk about different strategies around investing. Shaan shares why his approach is so different from what Ramit recommends, and he breaks down his own asset allocation. At the end Sam & Ramit share their personal money rules. --------- * Follow Ramit on Twitter: https://twitter.com/ramit * Ramit's new podcast: https://iwt.com/podcast * Want to be featured in a future episode? Drop your question/comment/criticism/love here: https://www.mfmpod.com/p/hotline/ * Support the pod by spreading the word, become a referrer here: https://refer.fm/million * Have you joined our private Facebook group yet? Go to https://www.facebook.com/groups/ourfirstmillion and join thousands of other entrepreneurs and founders scheming up ideas. ---------

Show Notes

* (1:06) Ramit's new podcast
* (5:02) An update on Shaan's Power Writing course
* (7:07) Ramit's course business
* (11:30) Who is Jay Abraham
* (16:43) Should MFM get a new name?
* (20:14) How long can Ramit run his empire
* (24:11) Ramit on trolls
* (27:31) The history of courses
* (34:12) Ideas around pets
* (37:35) Ideas around cosmetics
* (39:54) How Ramit would differentiate a product
* (43:47) Ramit's money hacks
* (46:00) How Shaan approaches investing
* (47:00) A little anecdote about camera issues
* (47:58) Back to Shaan's investment approach
* (50:47) What game are you playing and what risk can you tolerate?
* (53:26) What Shaan's goals are with investing
* (57:11) Ramit's 10 money rules
* (59:35) Sam's money rules
* (1:02:09) Taking out loans on your assets
* (1:05:33) How Ramit thinks of risk versus rewards
* (1:17:10) Ramit on Sam's engagement ring story
* (1:21:04) It's not all about the metrics

Key Takeaways

Establish personal 'money rules' to automate financial decisions and allow for guilt-free spending on things that truly enhance your quality of life.

When entering high-demand markets like pets or cosmetics, prioritize premium packaging and celebrity associations over product innovation to capture price-insensitive customers.

Incorporate the 'Theory of Preeminence' by putting customers at the center of your world, even if it means turning away sales from those who aren't financially ready for your product.

Business Ideas Mentioned

Premium Pet Vitamins and Supplements

E-commerce

Packaging-First Luxury Skincare Brand

E-commerce

High-End Premium Childrens Learning Tools

E-commerce

View all ideas

Featuring

Ramit Sethi

4 episodes

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Duration1:24:38

Guests1

Ideas Discussed3

Topics4