From Yahoo Finance: 2025-05-13 13:03:00

Financial influencer Ramit Sethi challenges the traditional notion that saving money will make you rich. Instead, he advises investing money to build wealth. Sethi compares saving $1,000 monthly in a savings account to investing in the stock market, showing significant growth potential over time.

Sethi emphasizes that money in a savings account loses value to inflation, making it essential to invest instead of saving. He highlights the low interest rates in savings accounts, which fail to keep up with inflation. Sethi promotes tools that allow individuals to set up investments for long-term growth.

Sethi stresses the importance of taking advantage of employer 401(k) matches, stating it’s like leaving money on the table if not utilized. He describes the 401(k) match as the best return on investment, as employers double the money you contribute. Sethi also praises the benefits of Roth IRAs for tax-free growth and wealth expansion.

Read more: Stop Saving and Do These 5 Things Instead To Build Wealth