Indian-origin self-made millionaire shares 3 money rules to build wealth

Ramit Sethi is also the author of New York Times bestselling book 'I Will Teach You To Be Rich'. (Image credit: Ramit Sethi/Instagram)

Ramit Sethi, a self-made millionaire of Indian origin, author of I Will Teach You to Be Rich, and host of upcoming Netflix show How to Get Rich, understands that sacrifices and tough decisions are a part of the process to build wealth. But, there are some easy-to-follow guidelines for people to make those choices go quicker, Sethi told CNBC Make It.

He shared three pointers with the publication that would help people stick to their wealth-building goals:

1.) Invest a portion of all income
A piece of common financial advice, Sethi recommends saving and/or investing a portion of all earnings. “Some of my money rules are straightforward financial rules like save 10 percent, invest 20 percent, very straightforward,” Sethi told CNBC Make It. “You can adjust the numbers for your own situation.”

 2.) ‘Unlimited spending’ in one category
“One of my personal money rules is unlimited spending on health, on books and on friends’ fundraisers,” Ramit Sethi said. “Those are important to me.” As another example, Sethi added he always books business class for flights longer than four hours. “The rule is not restrictive, it’s actually empowering,” he told the publication. “Is there something in your life where you will simply always say yes? If so, make sure you can afford it.”

3.) Don't forget the financial side of personal decisions
(Marriage) is the single biggest financial decision you will ever make. So you’ve got to be thoughtful about that," Sethi said, pointing out that money rules aren’t just about finances. Investing time and energy in certain activities and relationships can become money rules. For example, this for Sethi meant committing himself to marrying the right person.

For others, it might translate to making a money rule that allows people to deepen existing relationships and spend more time with loved ones.

“It might be ‘pick up my kids from school every afternoon,’” the millionaire said. “That can be a money rule because it means you need to have a flexible schedule, you need to be earning enough to be able to do that. That’s a beautiful money rule.”

Read more: Millionaire Ramit Sethi shares pointers on how to ask your boss for a raise