The Rachel Cruze Show - 5 Simple Habits for Building Wealth (This Made Me a Millionaire)

Starting point is 00:00:05 So for some people reaching a million dollar net worth, that status feels impossible. It feels so far off. It feels like a dream. But what if I told you that you could implement five simple habits guaranteed to help you build wealth regardless of where you're starting? Today, I'm going to talk about those five things that I have done personally to consistently help me build wealth and become a net worth millionaire. Now before we jump in, make sure to like this video, subscribe to the channel, and share this episode with a friend. All right, first and foremost, to help you build wealth is to live a debt-free life. When you know better, you do better. For Dave and Sharon Ramsey, this lesson came when they were adults. You know, mom and dad, they filed for bankruptcy and realized, okay, this isn't working. So what are we going to do differently? And they really started this mindset of not living with debt. And that is the family I grew up in.

Starting point is 00:00:58 So for me, debt really was never an option. It was never like a thing you would think about. I'm like, oh, should I? It was just always this no-brainer, pretty black and white subject in the Ramsey household. And I would say, though, because of that, it has forced me to live within my means. It is this idea that, yeah, okay, we have this much money a month, so what are we going to do with it? And so there's no thinking outside the box, there's no, we're going to leverage X, Y, and Z. It has always been living within our means.

Starting point is 00:01:25 And because of that, when you live a debt-free life, you're not paying payments and taking your income. and instead of paying a bank payments, you could be investing that and making you and your family money off of those investments, right? So using your income is so, so huge. So you can actually start this habit today, you guys, you can live a debt-free life. You have to start deciding, okay, I'm not going deeper into debt. That's the first step. And then number two, start paying off your debt. And the most effective way to do this is to list out all of your debts, smallest amount to largest amounts, regardless of the interest rate, pay minimum payments on everything and pay off your smallest debt first and become debt-free. So your income is all of yours

Starting point is 00:02:05 to live on and look towards the future with investing. Number two, it's similar to this, but it's live below your means. So in order to live a debt-free life, you have to live below your means. And a budget is a key way to do this. So when you are budgeting, it really helps you with your spending to know, okay, we don't want to spend beyond what we're making and we want to spend reasonably in all of these different categories. And also within the budget, it's going to help you save up an emergency fund. You're able to have sinking funds within your budget so you save a little bit every month towards something. And again, even with investing. So it's giving you this plan with your money, with your income on what you want to do long term. And it is so key,

Starting point is 00:02:44 you guys. So budgeting is an incredible tool to help you achieve this. And every dollar is one of the best budgeting tools out there. So I'll leave a link in the description for you to check that out. Number three is get comparison out of your life. Now this is easier said than done. But listen, There is always going to be someone who seems more wealthy than you, more successful than you, more creative than you. Fill in the blank, there's always going to be those people, okay? And thanks to social media, we get to see them all the time on our phones. But you have to understand that, like, you are an individual and making decisions for you

Starting point is 00:03:16 and your life is what's going to be key. It's going to look different than everyone else around you, and that's okay. And actually, this idea of winning with money, when you do look different, we find you actually are probably doing better financially than the person that looks. looks like they're doing so great. And so stop looking at everyone else, really running your own race and finding contentment and knowing like this rat in a wheel of running and just running, running, trying to be someone else, buy stuff to make everyone think you're something. I mean, like this whole idea that we have in our culture, this mindset, get it out of here. Get it out of here. Learn contentment.

Starting point is 00:03:52 Find peace in your life and your money. And again, it is about you running your own race. Put the blinders on and focus on you in your life, not what everyone else is doing. All right, before we talk about how habit number four can earn you more than a million dollars, I do want to tell you about one of our sponsors, Christian healthcare ministries. When you go against what society thinks is, quote, normal, like avoiding debt, for example, it might seem weird at first, and that is totally okay. Because we want you to be weird if that means you're doing things intentionally, including how you spend your health care dollars.

Starting point is 00:04:25 and one way to be intentional is with Christian healthcare ministries. CHM isn't health insurance. They're a health cost-sharing ministry that's helped hundreds of thousands of families like yours take care of health care costs without sacrificing freedom. Programs start as low as $98 a month, so find out more and join at chministries.org slash budget. That's chmistries.org slash budget. All right, number four is a key part to building wealth, and that is investing in the future.

Starting point is 00:04:54 when you invest your money makes money and almost no one with a high net worth has personally just saved every single dollar to retire with no they are doing things like investing their money and this is what's really really important because investing even just a Roth IRA i was listening to this news show the other day and this lady said which i totally agreed with she's like if everyone just invested in the Roth IRA and maxed it out every year like it's great like that's like that's the that's the baseline, like just be doing that, right? And so there is something about understanding that our money multiplies with compound interest and that earlier you start this, the better off you're going to be. It's never too late, but when you start investing, it is amazing what happens over time. And again,

Starting point is 00:05:39 it is a long-term mindset, which is really difficult, but I also think that's how people that build wealth think. They don't think in just like the present. They are thinking long-term is so, so key. And so having this idea where your money multiplies is so important when it comes. to investing and building wealth. And to show you what I mean, let's use one of my favorite tools. It's the Ramsey investment calculator. So let's look at some investing. Let's say you start at age 37. And let's say you contribute $600 a month, which may seem a lot, but that's like less than the average car payment out there. So instead of having car payment, you're doing this instead. That's how you can think. So let's say you invest $600 a month until age 65 with an average

Starting point is 00:06:18 return rate of 10%. You would end up with almost $1.1 million. Is that not crazy? But you will have to contribute, you know, around $200,000 over your lifetime, and that's over the 28 years, at least that you're investing. And that means you have earned more than $800,000 in interest. I mean, that's incredible, you guys. That is the power of compound interest. So take investing on your side, let that allow you to build wealth long term. And number five is what we mentioned earlier, but it's a really important one.

Starting point is 00:06:51 it is a long-term mindset. And there's a level of insta gratification that a lot of us just live in. And over time, you end up spending so much money on that that doesn't even make you happy long-term, right? We spend so much money on like these things in the moment thinking they're going to make us happy. And we end up wasting money and not, we're not any happier.

Starting point is 00:07:10 There's not more joy in our life because of it. We saved up for a pool. This is like one of our big savings goals because when we built our house, we didn't have the money to build a pool, but we knew long-term like this, would be a great thing to have for our kids and all of it. So the moment we moved in and that goal was done, we have been saving and saving and saving and saving and saving for years, for years for

Starting point is 00:07:31 for this, because we knew the kind of pool we wanted. We knew what we were looking at, like all of it. And so it was not an overnight thing that we were like, oh, that'd be fun to get a pool and just go and do it. No, we knew it was going to be a big expense. And it was going to take us longer. Would we have wanted the pool sooner? Probably. Yeah, that would have been nice. But again, we were cash flowing it. And so it was this idea that it's going to take years. but now it is complete. I can't believe it. It's done. And it has felt so great to know, okay, that was like one of our big financial goals. And there's a checkmark to it. And so, again, it is this idea of long-term thinking. And so it causes you to have more patience.

Starting point is 00:08:07 Maybe not as like instantly gratifying, right? Because that's not instant gratification. But it gives you peace and wisdom along the way. And it is the way to think about your money. Have a long-term plan. So for more of my personal money tips, make sure to check out my annual investment routine right here, that video, or if you're listening on podcast, make sure click the link below. All right, you guys, remember to take control of your money and create a life you love.

The Rachel Cruze Show - 5 Simple Habits for Building Wealth (This Made Me a Millionaire)

There aren't comments yet for this episode. Click on any sentence in the transcript to leave a comment.