Ramit Sethi, the author of the best-selling personal finance book ‘I Will Teach You To Be Rich,’ is once again urging individuals to adopt a simple but impactful financial habit: automatic investing. Responding to a question on social media that asked users to share advice that initially sounded foolish but became life-changing, Sethi highlighted the transformative power of setting aside 10% of one’s income through automated investments.
In a post on X (formerly Twitter), Sethi reiterated a cornerstone of his financial philosophy — the idea that automatically investing a fixed percentage of income removes emotional and psychological barriers to saving and builds long-term wealth. ‘If there’s one piece of financial advice that changed my life and the lives of countless others, it’s automating your investments,’ Sethi wrote. ‘Start with 10% of your income, and increase it as you grow.’
Sethi’s approach to personal finance focuses on creating systems that work without requiring constant effort. He advocates for setting up recurring investments into diversified portfolios, such as low-cost index funds or retirement accounts, allowing compound interest to work over time.
“Automatic investing helps people consistently build wealth, even when markets fluctuate or life gets busy,” Sethi previously noted in his book. “It’s a simple strategy, but one that delivers results over years and decades, not days.”
This straightforward advice is rooted in behavioral finance principles, which suggest that automating decisions — such as saving and investing — leads to better financial outcomes by removing the temptation to spend money on short-term wants. Sethi argues that this discipline can ultimately mean the difference between living paycheck to paycheck and achieving long-term financial independence.
Though the concept may sound basic, Sethi’s renewed emphasis underscores the enduring value of fundamental financial habits. As inflation, market volatility, and economic uncertainty continue to affect many households, strategies like automatic investing offer a way to stay grounded and make progress toward future goals.
Sethi’s advice resonates with a growing number of individuals seeking steady, predictable methods to build wealth — a reminder that sometimes, the simplest advice can be the most powerful.
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