When Ramit Sethi was in college, money was a hot topic among his friends.
Like most young people, they daydreamed about their futures and debated how much money they’d need to feel secure.
One night, they sat in a circle and shared their “magic numbers.”
- “If I had $100,000, I’d be set for life,” one friend said confidently.
- Another countered, “Nah, you’d need at least $1 million to live comfortably.”
It all seemed straightforward: hit the magic number, and happiness would follow.
The Moving Goalpost
But as time passed, something strange happened.
The numbers kept growing.
- The friend who thought $100,000 was enough? Suddenly, that felt too small.
- The one aiming for $1 million started wondering about houses, kids, and retirement.
Every time they got closer to their goals, the finish line moved further away.
Ramit noticed this pattern in himself too.
He once believed a specific number would guarantee a “rich life.” But the more he earned, the more he realized:
Chasing a number is like trying to catch the wind.
It never felt like enough. Instead of bringing freedom, it brought anxiety.
Rethinking the Goal
That’s when Ramit decided to flip the script.
Instead of asking, How much money do I need? he asked, What do I want my money to do for me?
For Ramit, the answer wasn’t about flashy cars or sprawling mansions.
It was about freedom:
- The freedom to travel.
- The freedom to enjoy incredible meals.
- The freedom to spend quality time with the people he loves.
Renting Over Buying
Take Ramit’s decision to rent instead of buy.
To many, renting feels like “throwing money away.”
But when Ramit crunched the numbers, he realized renting a beautiful apartment in New York cost far less than owning a comparable home.
The money he saved?
- He invested it.
- He traveled the world.
- He built the life he truly wanted.
For him, that was a rich life.
Spending on What Matters
Ramit also made a key decision: spend extravagantly on what he loves and cut ruthlessly on what he doesn’t.
- He loves eating out, so he doesn’t hesitate to splurge on fancy dinners and appetizers.
- But he doesn’t upgrade his car every few years or chase the latest tech gadgets.
By focusing on what matters most, he doesn’t feel the need to justify his spending—or chase arbitrary numbers.
Breaking Free from the “Number Obsession”
If you’re stuck in the cycle of chasing numbers, here’s Ramit’s advice:
# 1. Picture Your Ideal Life
- Close your eyes and imagine your perfect day.
- What are you doing? Who are you with? Write it down.
- Use this vision as your true north, not an arbitrary financial number.
# 2. Stop Obsessing Over the Math
- Numbers matter, but life isn’t a spreadsheet.
- Once you have a basic financial plan, focus on living in the moment.
# 3. Celebrate Your Wins
- When you save money or reach a milestone, take a moment to appreciate it.
- Don’t keep moving the goalposts—celebrate your progress.
The Big Takeaway
Ramit’s story is a powerful reminder:
Money isn’t the goal. It’s the tool.
When you stop chasing numbers and start focusing on what truly makes you happy, you can build a life that feels rich—no matter how much is in your bank account.
Because at the end of the day, a rich life isn’t about the size of your paycheck.
It’s about how you live.
This post was inspired by Ramit Sethi's interview with Scott Galloway How To Build a Rich Life.
