When we first meet many of our Clients, they tell us that the idea of financial freedom feels elusive. With the cost of living as high as it’s been for decades, many people struggle to look at the bigger picture and understand how to make their hard-earned money work well for them.

At Capital Properties, we’re big fans of the ‘Rich Life’ concept inspired by Ramit Sethi. Sethi is known globally as a financial guru whose net worth surpasses $25 million. His best-selling book I will teach you to be rich and follow-up Netflix show “How to get rich” offer a refreshing perspective on how to achieve long-term prosperity and happiness. The Rich Life concept emphasises conscious spending, smart investing, and personal fulfillment. In this blog post, we’ll discuss the key principles of the concept and how to apply them to your life as an Australian Defence Force member.

The team at Capital Properties help Australian Defence Force (ADF) members apply the Rich Life concept to invest your disposable income in property, so that you can secure your financial future and create the life you want to live. Book our FREE Capital Properties Discovery Session to get started.

If you’re already on board, why not take advantage of our Property Investment Tools & Apps and essential resources from our Capital Properties Pinnacle Support Program.

On the go? Here’s 30 seconds of take outs:

  • Ramit Sethi is the author of bestselling I will teach you to be rich and follow-up Netflix show “How to get rich”.
  • Sethi coined the Rich Life concept to emphasise conscious spending, smart investing, and personal fulfillment.
  • Sethi’s 8 rules for a Rich Life are:
    • Your Rich Life is unique to you
    • You need to take control
    • Don’t wait to become an expert
    • It’s OK to muck up
    • Play offense, not defence
    • Don’t wait until retirement
    • Focus on the big wins
    • Give back
  • Capital Properties can help you apply the Rich Life concept by:
    • Providing personalised investment strategies
    • Education and ongoing support
    • Expert mentoring
    • Automation and efficiency

Keep reading >>

How the Rich Life concept come about

Sethi’s success story began with him creating a blog “I will teach you to be rich” in 2004 (while studying technology and psychology at Stanford). His next project, a humble $4.95 eBook, sold over a million copies, catapulting his business into a multi-million-dollar empire and inspiring millions of people with his straightforward approach to personal finance. His advice goes beyond traditional financial advice as he urges his followers to create a life that aligns with personal values.

Our Capital Properties Goal Setting tools and workshops encourage a similar approach to finance. We’ve discussed the importance of goal setting in many of our previous blog posts, such as “Review your goals & financial vision – what drives you?”, “Dream big to live life large through goal setting” and “How are you tracking toward your lifestyle goals?” Our aim at Capital Properties is to equally inspire you with the knowledge and tools for strategic financial planning and intentional living to create your Rich Life.

Understanding the Rich Life concept

The Rich Life concept is based on using your money to help you live a more fulfilling life. The key is to identify what truly makes you happiest in life – what fills your bucket? For some people, it means having the freedom to travel and see the world. For others it’s having the ability to enjoy quality time with the people that mean the most to you.  And for others, it might mean splashing out on designer clothes or fast cars.  It’s completely different for every person.

Then, once you’ve figured out what makes you truly happy, you direct your resources, i.e. your time, energy, and money towards those passions, and give little attention to the things that don’t bring the same level of joy to your life.

Key principles of the Rich Life concept

In his website ”I will teach you to be rich”, Sethi lays out his “rules” to create a Rich Life. Here’s a quick summary of these 8 rules:

1. Your Rich Life is unique to you

Everyone’s version of a ‘rich’ life is different. As we just said, for some, it might mean traveling the world, while for others, it could be owning a dream home or driving a luxury car. The key is to define what a Rich Life means to you and pursue it without apology. As Sethi notes, “Your Rich Life is yours—not mine, not your friends’, and not your parents’.”

2. YOU need to take control of your Rich Life

Financial independence is about taking charge of your own destiny and not leaving things to chance or allowing someone else to lead the way. Sethi tells us that he turned down lucrative venture capital offers that came with management restrictions so that he could maintain total control of his business.

He encourages people to take ownership over their financial future by setting goals, examining their spending habits and creating systems to manage their finances. Thus, making sure their money works for them in ways that align with their passions and goals. He recommends prioritising spending on the things you love, so you can save on the stuff you don’t. If this sounds like a daunting exercise, our Capital Properties Goal Setting Guide is a great place to start.

And yes, that means that you also need to create a budget! Our online Capital Properties Budget Planner makes this process much easier.

3. Don’t wait to become an expert – start now

Many people think they need to wait until everything is perfect before they take action. We hear it all the time. “I’ll invest when I’ve got that promotion, or when I’ve done more research, or when I’ve finally organised a savings plan”!  Waiting until circumstances seem “perfect” before you take action is debilitating. Sethi’s “85% Solution” advocates for getting things nearly right rather than waiting for the perfect moment.

This principle is fundamental for new property investors. Starting with a well-thought-out investment plan, even if it’s not flawless, is far better than doing nothing at all. Similarly, he suggests following a simple fitness program, so that he gets some exercise every day, rather than making grand plans and not sticking to them.

4. It’s OK if you muck up

Creating your Rich Life isn’t always going to be easy.  It’s inevitable that you’ll make mistakes, with money and relationships. And your goals for your Rich Life might change over time. But that’s all part of the learning. Don’t let it stop you from getting started or forging ahead to reach your goals. When things get tricky, reach out to mentors who can help you get back on track.

5. “Play offense, not defence”

In Sethi’s own words, rule number 5 is to “play offense, not defence”. What he means is that it’s important to take determined action to achieve your goals. That means creating a budget and sticking to it. Make sure you’re getting the best deals financially, e.g. questioning bank and service charges etc. Work with experts to stay informed of potential investment opportunities and be fully aware of what your financial status is so that you’re ready to act. Sethi suggests setting up automated banking so that you can allocate a certain amount of your income (e.g. 20%) to savings and investments. This saves time and ensures consistency and discipline in financial management.

6: Don’t wait until retirement to live a Rich Life

So many people get caught up in planning for the future, they neglect to live their Rich Life every day. We all know the future is not guaranteed, so although you do need to have a plan for retirement, it’s important to make the most of

now. And Sethi agrees, it’s vital to invest in personal growth, experiences, and relationships.

Again, your everyday Rich Life could look quite different from others. It might mean enjoying that avocado on toast without considering the cost, taking your partner away for a spontaneous weekend, or buying that car that makes you drool every time you think about it! The idea is to make your money work for you so that you can indulge every now and then without worrying about jeopardising your future. As Sethi says “No one wants to be a rich 95-year-old with regrets”.

7: Focus on the big wins

Sethi says to focus on the big wins, in other words, stop sweating the small stuff and really focus on the areas in life that you’ll make the most gains. For example, working in a rewarding career and taking advantage of further training and study opportunities that’ll help advance your career and your salary. Prioritise your physical health and maintain the important relationships in your life. Start investing early and build relationships with experts who can guide you along the way. And don’t spend any time or money on the stuff you don’t care about.

8: Create a ‘generous’ life

Sethi is an advocate for creating a generous life – one that follows the old adage “It’s better to give than to receive”. Once you’re living your Rich Life it’s important to share your time, money, resources, and/or talents with the world. Whether that means being able to volunteer at your kids footy, donate to friend’s fundraisers, or support a charity you care about. Giving back is good for the soul.

Applying the Rich Life concept with Capital Properties

At Capital Properties, we understand the unique challenges and opportunities faced by ADF members. Our goal is to help you leverage your disposable income to build a secure and prosperous future through strategic property investment. Here’s how we can help you apply the Rich Life concept:

  • Personalised investment strategies – We tailor investment plans to suit your individual goals and financial situation, ensuring that your journey to financial freedom is as unique as your vision of a rich life.
  • Comprehensive education and ongoing support – From understanding market trends to navigating the intricacies of property investment, we provide the knowledge and strategies you need to make informed decisions. And the support doesn’t stop with your first investment, we designed our Pinnacle Support Program to ensure you have ongoing guidance.
  • Expert mentoring – The Capital Properties team is made up of investment experts, financial planners, buyer’s agents, real estate agents, mortgage brokers, property tax account specialists, quantity surveyors, conveyancers, property managers and more. If you need expert help, we’ve got you covered.
  • Automation and efficiency – Our Property Investment Tools and Apps are specifically designed with you in mind. We can help you set up systems to automate savings and investments, ensuring that your financial growth is consistent and hassle-free.

By partnering with Capital Properties and adopting the principles of the Rich Life concept, ADF members can achieve financial freedom and live richly in every sense of the word. Book your FREE Capital Properties Discovery Session today and let us help you make your Rich Life a reality.

Our Capital Properties Switched-On Strategy Series and Capital Properties Pinnacle Support Program will make sure you’re able to successfully navigate these changes in the Australian property market.

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