People often think that getting rich is as simple as doing the “right” things: getting a good job, working hard and building your savings. While there’s nothing wrong with any of those things, you can do them all and still not end up rich. At least, that’s what financial influencer Ramit Sethi argued in a recent YouTube video.
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Sethi outlined 13 common pitfalls that may be holding you back from achieving your financial goals. See if any apply to you.
Not Questioning Your Financial Mindset
Your perspective on money is shaped by your culture, your parents, your friends, social media and many other sources. Often, Sethi argued, we don’t question the money messages we receive: “We quietly believe it.”
But just because an idea is pervasive doesn’t mean it’s correct or valuable to you. You can shift your perspective on money to one that better aligns with your goals and priorities. Sethi did exactly that.
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Avoiding Budgeting
There’s a misconception that “budgeting means restriction.” The way Sethi sees it, budgeting is about “spending guilt-free on the things you love while automatically saving and investing for your future.”
That kind of reframing can make budgeting much more positive and impactful in your life.
Surrounding Yourself With the Wrong People
People say “you’re the average of the five people you spend the most time with,” and there’s some truth to that. Sethi pointed out that the financial attitudes and practices of those around you will begin to seem normal and influence your own behavior.
Try to surround yourself with people who make smart financial decisions you want to emulate.
Not Having Enough Curiosity
When Sethi used to pass restaurants he couldn’t afford to eat in, he reframed his thinking to be curious about what those restaurant patrons were doing to afford to eat there. He asked himself, “What can I learn from that?”
Being curious and always willing to learn more will set you up for success in your financial journey.
Being Overly Cautious
Sethi argued that “a lot of people use caution to seem smarter than they are.” While thinking your actions through is a good thing, you can’t let fear stop you from making the right moves.
Listening to the Wrong Advice
There’s tons of financial advice out there. Everyone has some idea of what you should do to get rich, but those ideas don’t all have merit. Sethi’s recommendation is to take financial advice from someone only if you would trade places with that person, financially speaking.
If you don’t want their life, don’t listen to their advice.
Not Talking About Money With Your Romantic Partner
People often avoid talking about money because it’s awkward, even in a committed romantic relationship. However, that mistake can hinder your financial goals, according to Sethi. You have to be proactive and on the same page.
Sethi suggested setting up a monthly money date with your partner.
Feeling Like You Have No Control
Sethi said he hears a common complaint all the time: “How can anyone get ahead? The system is rigged.”
Sethi acknowledged that systemic problems, such as housing, do hold people back, but he also encouraged his viewers to take personal responsibility for the decisions they can make to improve their financial lives.
Focusing on Frugality Over Bringing More Money In
While cutting your spending will leave you with more money to save or invest, so will increasing your income. Sethi argued that there’s an overemphasis on being frugal when strengthening your skills and increasing your salary would often be more impactful.
Relying on Credit Card Debt
The average credit card carries an interest rate of 23%. Such high interest rates make credit card debt extremely expensive, yet nearly half of U.S. households carry this debt.
“Every time you put something on a credit card you cannot afford today, you are actually stealing from your future self,” Sethi said. His recommendation is to avoid purchasing anything with a credit card that you could not pay for in full today.
Cutting Every Single Expense
On the other hand, cutting all of your expenses at once can boost your savings, but it may ultimately leave you feeling unsatisfied. Sethi clarified that he doesn’t “have anything against cutting unnecessary expenses.” Just make sure your budgeting and expense-cutting actually support your happiness and long-term goals.
Spending Too Much on Your Vehicle
In 2025, the average new car costs $49,740 in the United States. If you take out a loan, that’s hundreds of dollars on your car payment every month. Sethi recommended looking at the total cost of ownership for a vehicle and not buying more car than you can afford.
Not Understanding the Cost of Home Ownership
“Sometimes buying [a home] can be a great financial decision — other times, not so good,” according to Sethi. Make sure you run the numbers and understand how much house you can afford before making a purchase.
Don’t shy away from renting if it makes more sense in your situation.
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This article originally appeared on GOBankingRates.com: Stop Doing These 13 Things If You Want To Get Rich, According to Ramit Sethi
