6 month Financial Plan by Ramit Seti

1st Month : Foundation

Define your rich Life

• A life where I can do Pursharth with 100% efficiency
• Things I Like to spend
  • Cars
• Things I don't Like to spend
  • Food

Goals

Short Term Goal

• Financial Security Stage

Long Term Goal

• Financial Freedom Stage

Spending List

Start with take home Income and minus the Fixed Costs (70%)

• Rent
• Mobile
• Groceries
• Travel
• Child
• Maintenance

This will give your expense percentage

Investments

10% of Income

Saving Goals

10% Pay yourself first

Guilt free spending

10% Guilt free spending example building you own car

2nd Month: Build a Moat

Emergency fund

• Build an emergency fund by paying yourself first
• Build emergency fund plan with expenses input on calculator

Debt Avalanche on CC

• List all the credit card
• Try to reduce the interest rate with call
• Plan out the months to complete

3rd month: Build Wealth

4 Laws of Investing

• Index funds
• Invest Early to reap benefits of compound interest and measure the inflation adjustment
• Max out the tax efficient account
• Do not use Financial Advisor as 1% can eat 25% in 30 years

Automate your investment

• 10% Pay yourself first
  • 5% to 401K from pay yourself first
  • 5% to RothIRA from pay yourself first
• Automate Credit card payment

4th month: Conquer your money psychology

• Change your belief by justifying your purushartha. Very Simple question. Is this activity contributing to your Purushartha?
• Talk to partner. she knows better
  • Start Positive
  • Discuss your Rich Life
  • Unpack the Money Script
  • Review Numbers
  • End on Action

5th month: Negotiate Everything

Negotiate a Salary Raise

• Prepare you Case of elegant and GPM
• Research your worth as Frontend Architect
• Practice the Conversation
• Don't Simply Accept the First Offer
  • Benefits

Negotiate Expenses

• Housing Cost
• Transportation
  • Gas
  • Insurance
  • maintenance
  • Loan
• Recurring Bills
  • Internet
  • Mobile
  • Electric
• Interest Rates
• Fees

6th Month: Scale up your Rich Life

Monthly Schedules

• Celebrate your wins
• Review you numbers on family wealth
• Make adjustments on unnecessary to maintain the financial stage

6 Months Review

• Revisit your rich life vision
• Mantain the input system to make the AI track your financial stage

The experiences will compound and grow with these basics.