Ramit Sethi’s Insight on Meaningful Financial Goals: A Fresh Perspective

‘What’s the point of earning this money?’: Ramit Sethi says many Americans are reaching for a financial goal that means nothing. Is he right?


In a thought-provoking discussion with Moneywise, as reported by journalist Bethan Moorcraft, renowned money personality and financial coach Ramit Sethi shared his insights on a common yet potentially misguided financial ambition prevalent among many Americans. His views prompt a crucial reevaluation of what truly constitutes a fulfilling financial goal.

Redefining Financial Aspirations:

Ramit Sethi, a prominent figure in personal finance, regularly challenges individuals to ponder the essence of a ‘rich life.’ Surprisingly, he often encounters a uniform response: the aspiration to freely do what one wants, whenever one wants. However, Sethi perceives this as a vague, almost empty ambition. During his interview with Moneywise, he stressed the importance of moving beyond such broad statements to define more tangible, personalized financial goals.

The Essence of Money and Work:

Sethi’s observations reveal a critical gap in our relationship with money. Many of us are entrenched in the relentless cycle of work and routine expenses, like mortgages and retirement savings, without pausing to consider the deeper purpose of these efforts. Sethi urges people to think beyond conventional financial milestones and delve into what they genuinely wish to achieve with their earnings.

Crafting Vivid Financial Dreams:

For Sethi, the key lies in specificity. He encourages envisioning detailed scenarios, like a dream vacation in Italy, complete with sensory experiences and personal connections. This approach transforms vague desires into actionable financial objectives.

Strategic Financial Planning:

Achieving these personalized dreams requires a strategic financial plan. Sethi advocates for a precise approach to budgeting and financial allocation. Drawing parallels with the popular 50/30/20 budgeting method, he recommends dividing monthly income into specific categories:

  • 50-60% for essential expenses (like housing and groceries)
  • 5-10% for savings (including emergency funds and special occasions)
  • 5-10% for investments (like retirement funds and stocks)
  • 20-35% for guilt-free discretionary spending

Balancing Dreams and Financial Realities:

Sethi cautions against over-prioritizing short-term goals at the expense of long-term financial security. Instead, he suggests a more critical examination of discretionary spending. Practical tips include downsizing possessions, terminating unnecessary subscriptions, and exploring passive income opportunities.

A Path to Achieving Financial Dreams:

Sethi also proposes practical strategies to reach these aspirations more rapidly, such as seeking better-paying jobs, starting side hustles, or leveraging travel credit cards for those dreaming of travel.


As highlighted by Bethan Moorcraft in her Moneywise article, Ramit Sethi’s insights challenge us to rethink our financial goals. It’s not just about setting broad objectives but crafting a vivid, personal vision of what financial success truly means. With a well-thought-out financial plan, achieving these dreams is not just a possibility but a reality within reach.

This article was originally written by Bethan Moorcraft for Moneywise.

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