The Rachel Cruze Show - 10 Things Quickly Becoming Too Expensive for the Middle Class

Episode Date: April 9, 2025

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I recently saw a list of 10 things the middle class won't be able to afford within a decade. And I'll be honest, some aren't a cause for major concern quite yet, but others could be a real challenge if this actually happens. So we're going to talk to this list. I'm going to give you my opinion on what I think, but we're also going to talk about how you can change your financial situation for the better. So make sure to like and subscribe and share this episode with the friends. All right, let's get started. So one thing to keep in mind is you can be making six figures and feel like you still are living paycheck to paycheck. And you can earn a modest salary your whole life and still retire comfortably. So I want you to know, like regardless of where

you are, so much of your mindset and your money habits is going to be a huge part of you winning. But anyone could win or lose with money at any income level. Okay. So just always know your income's going to be growing over time. But also what you do with your money is really, really important. So here's, again, the list of what someone was saying and claiming that the middle class will not be able to afford within the next decade. Number one is to retire comfortably. So the article states numbers from different states around the country. So, for example, you're going to need over $53,000 a year to retire in Florida based on the cost of living, which adds up to $736,000 to cover retirement for 20 years, or $1.1 million to cover retirement. for 30 years. So listen, I mean, math is math. And so if you look in to say, okay, here's how much

I need to live off of. And you have to be able to say, yeah, with, you know, inflation happening over the course of time, do I have enough to retire? And the sad thing is, you guys, you know, middle class or not, like we get calls on the Ramsey show all the time of people in their 60s, sometimes in their 70s, and they don't have money for retirement. So what I want you to remember, number one, is with the Ramsey plan. We want you to pay off your house. house and baby step six. So that means when you're going into retirement, like in a perfect scenario, you don't even have a house payment, which means what you need for retirement is going to look a lot different versus if you were deeply in debt, not only with a mortgage, but car loans and credit

card debt and all of it. So that's part of the Ramsey plan is to get yourself in a position where you have the means to be able to live off not as much as you may need today because you're debt-free and you don't have those payments. So again, these estimates are probably possible. And honestly, could be very realistic, but I also want you to think about over time, what do you need to live off of and start saving now? Get out of debt and start that retirement savings. Number two is private education for kids. So this is obviously a preference doing private education. It's not a necessity. And if you are in the middle class, yeah, I mean tuition, whether it is talking about elementary middle, high school of private schools all the way into college, tuition is very, very expensive.

And so this is something, again, that I know people prioritize in life, which is fine. But if you are in a position that you don't have the margin to do it, and again, when you are talking about the middle class, like, yeah, maybe you get to a point. They're like, yeah, that's not worth it for me to spend $18,000 or whatever the tuition is for school for my sixth grader. And so public education, again, depending on where you are is going to be different. But for instance, like, where we are in Nashville, we go to public school. Like I grew up in public school, my kids are going to public school.

So like there's an element to that this idea of private education can be put so high up on a pedestal. And so let's just like take it down and talk about the humanity of life and have some common sense around it. Number three is high speed internet and premium streaming subscriptions. Okay, I think the middle class is going to be able to afford this. Like I do. I think internet is probably something that is a necessity these days to be connected. But all these subscriptions, no. I mean, I think they can be a waste for anyone.

whether your middle class or upper class or whatever class you're in. And so, again, it's the idea to know what is needs versus wants and having tons of subscriptions. It's not a need. So if you are trying to get out of debt and sacrifice, this is a great place to cut. Number four is personal fitness and wellness services. And so I would say that this is, you know, more in the luxury, if you will, because you can go run and walk and, like, buy some weights and do some stuff at home.

You don't have to have, you know, this extensive health plan. but again, health has kind of become, I feel like even more of like a fad of like cold punches and sun and working out and shakes and Vitamixes and like all the things to keep ourselves healthy. And that's all great, but we want to do it in moderation with what we can afford. And so over time, I think the middle class, if you want this a priority, I think that can still be a priority for you to be healthy. And that's totally great. But it may look different of not like the super fancy gym somewhere, you know, that may not be

in your budget. and that's okay. You can still be healthy without it. Number five is specialized medical treatments. And so as we age, medical services are going to become more and more of a necessity. And so what you want to realize, though, is taking control of your money now. So when you get to be an older age, you have the ability to pay for those services. But when we do talk about health care in general, medical bills, all of that, it usually comes at a very steep price. This is one area. We do find that you can negotiate a lot of the times. But yeah, this idea that, I mean, gosh, medical expenses, they just are so, so expensive for everyone. And so for quote unquote the middle class, you know, yeah, I mean, I think that is a time

in place to say, okay, we have to be able to prioritize and know ahead of time we're probably be paying for some medical expenses. So let's start saving now. And speaking of health care costs, now is a perfect time for me to tell you about one of our amazing sponsors, Christian health care ministries. Health insurance costs are only moving one way, and that is not down. The wait times are longer. It's harder than ever to get anything approved, and if you feel like the system is working against you, try Christian health care ministries. It's a biblically based alternative to health insurance. CHM is a health cost-sharing ministry that's helped hundreds of thousands of families like yours, take care of health care costs, stay true to their values, and avoid being tied down by

miles of red tape. CH on program starts as low as $98 a month. So find out more and join at chministries.org slash budget. That's chministries.org slash budget. Number six is organic food. So again, wanting to be healthy, if you will, you know, people are looking to organic foods. Now, grocery prices have gone up and we see this, you guys. And I always tell you where you shop is going to be really important.

You can go to the fancy organic grocery store and it's going to be more. they're going and shopping at Walmart, right? And if you actually look at what's going on, like, I think some of the generic brands, you know, they're great. And listen, generic brands are pretty much made at the same factory as the products of organic brands. Okay. So, like, it's amazing how deceiving some of these labels can be. Overall, I'm kind of at this point, like, nitpicking different ingredients. I'm like kind of exhausted by, to be honest. And overall, I'm like, let's just eat healthy. Let's just eat whole foods. Like, right? More fruits and vegetables and meats and all of that.

Like overall, we can be healthy regardless of what cost you are in. I think prioritizing your health in general, not like the specific brand of fancy thing, but just in general, eating healthy overall, it's a great course of action. Number seven, new technology and gadgets. Listen, I get it. iPhones now cost what a laptop used to cost. And we are not all Silicon Valley billionaires over here. This idea feeling like we need the newest and fastest gadget all the time.

like the moment it comes out, that's a silly way to live, regardless of whether you're middle class or upper class or whatever. So this idea of chasing the newest great thing with technology, don't be running that race. Okay. When it's time to upgrade, you can upgrade. But if you feel like you have to upgrade every time something comes out, yeah, I don't think majority of people are going to be able to handle that because majority of Americans are living paycheck-to-paycheck and stuff is so expensive, including technology. So be content with what you have. And when it's time to upgrade, save up and pay for it. Number eight is eco-friendly home upgrades. So this is like sustainable cars and organic products and solar panels and all of that.

And I think, you know, some of these things will become more affordable over time. It's kind of like that supply and demand idea that over time I think there's going to be more options in this world if you want to do it. So yeah, I'm not going to say this is out of reach for the middle class. Number nine is a comprehensive insurance plan. So a lot of people feel like they are paying more for less. And this is a big shift. insurance has gotten very, very expensive, whether it's homeowners or car insurance. And so we are seeing those prices go up. These kind of things are very variable depending on where you live, what part of the

country, even state-specific, the insurance company you're with and all of it. So this is one place that is hitting everyone really, really hard, especially the middle class. So yeah, this is hard. This is a hard one. Number 10 is home ownership. This is like the biggest pain point right now for so many people is that it feels like it's impossible to own a home. But, let me just tell you, over time, it may take longer than you realize, and it may not be like the quote-unquote dream home that you want, but getting into the market is something that should be a priority for everyone. And so again, it may be a slower process. It may not be the exact home you want, but I do think that this is something that everyone can achieve at a point in their

life, and you need to. Homeownership needs to be part of your financial plan, whether you're in the middle class or not. Which brings me to two proven solutions for you if you are facing these challenges. Number one is to do a budget. Doing a monthly budget, you guys, is going to help you so much. I love every dollar. Every dollar is an incredible budgeting app and it helps you really get in control of your income, which is the thing that's going to propel you forward. If you are intentional with your income, you will be intentional with your money overall. And so every dollar helps you customize really your spending through the month. And so you're able to really plan and stay organized. I'll put a link down in the description. Next is what you want to do is follow the seven

baby steps. So the seven baby steps is getting a $1,000 emergency fund, baby step two is getting out of debt. Number three is a fully funded emergency fund. Then you're going to fund retirement, help fund kids college, pay the house off early, and then at the very end, Baby Step 7 is build wealth and give. So there is this plan of action that you can take with your money to get in control of it. So make sure that you have a plan that you're intentional with this part of your life. Now some of you may be wondering, I don't even know if I'm middle class. Like what class do I fall into? Well, if that's you, make sure to check out my episode right here. What income puts you in the upper, middle, and lower class?

Or if you're listening on a podcast, you can click the link in the description. All right, you guys, remember to take control of your money and create a life you love.