The Rachel Cruze Show - Government Changes That Impact Your Money in 2026 (Here’s What to Do)

Starting point is 00:00:05 That seems like every year the government makes a few small changes that affects our money. So today we're going to share a couple of those updates with you. And I'm going to share four things that never change when it comes to your money, regardless of what the government decides. So be sure to like, subscribe, and show this episode with a friend. All right, the first change in 2026 applies to high-income earners. So part of the Secure 2.0 Act will require that catch-up contributions for those making over 145,000, thousand dollars have to be made post tax, aka Roth contributions. So when you are funding your

Starting point is 00:00:41 retirement, there is a limit of how much you can put in your Roth IRA and your 401K. But when you hit a certain age, you can actually invest more in their catch-up contributions. But what they're saying in this is you have to do those catch-up contributions after you have paid your taxes. Where before, usually with investments, you can, if you do a traditional IRA or a traditional 401k, your money comes out before you pay taxes. Now, what they're saying with this is it has come out after you pay taxes. So that is one change. Change number two also has to do with retirement. And so the IRS usually adjust the contribution limits like we just talked about at the end of the year because they account for inflation fluctuations and different

Starting point is 00:01:20 things. So some years they change, some years they don't. For 2026, the 401k contribution limit increased to $24,500. And the IRA limit increased to $7,500. So just a couple hundred dollars here. in there, but that's wonderful. The more you can invest, you guys, the better off you're going to be. So with some of these limits, some of you, depending on your income and where you are in the baby steps, you will hit those limits. Sometimes you won't, so it won't apply to you, but as you get going with your career, making more, you're out of debt, and you have the ability to invest more, those limits are really important because the more you invest, the better off you're going to be. All right, change number three is all about standard deductions in 2026. So the standard

Starting point is 00:02:01 deduction increased to $32,200 for married couples filing jointly. And for single taxpayers and married individuals filing separately, the standard deduction rose to $16,100. And for heads of household, the standard deduction will be $24,150. So when you're taking that standard deduction, which most people do, most people do not itemize their taxes. They don't go through and like look at itemize their giving and all these little things, because usually those deductions don't add up to what the standard deduction is for many Americans. So a lot of Americans just take the standard deduction and call it a day, which is great, right? So if those increase, though, you have to know and be aware of that. Now, another change that you may need to make next year involves your health

Starting point is 00:02:51 coverage, and if you miss open enrollment, don't panic. Christian Health Care Ministries offers a simple budget-friendly alternative to health insurance, and you can join it anytime. That's right, there are no open enrollment deadlines with CHM. It's perfect if you're self-employed, starting a business between jobs, or just need an alternative option. And you can see any doctor or hospital you want with no network restrictions, and members often save hundreds of dollars a month compared to traditional insurance. So check out CHministries.org slash budget to learn more or click the link in the description. And you don't need a new you this year. You just need to stick with what works, and that is your budget and your plan. And Fairwind's credit union can help. Their smart bundle

Starting point is 00:03:39 gives you no fee checking, a high yield savings account, and the new Ramsey debit card that says dead as normal, be weird. And you guys, it's not just a card. It is a reminder that you are doing money differently. I love my Fairwin's debit card. So this year, stay on your plan and partner with a credit union that helps you make real progress in the baby steps. visit fair wins.org slash Ramsey to open your smart bundle today. All right. So the government will make small changes, big changes that can affect your money. But there are four things that will never change when it comes to winning with money.

Starting point is 00:04:11 And this is so important, you guys, because I really do believe to control what you can control. We can't control what the government's going to do. What each president's going to do, we can't. But what we can't do is control our income when it hits our account. So number one, live on less than you make. Okay. And this is going to happen. by following a budget. I use every dollar. Love it. Great budgeting app. I'll put a link down below

Starting point is 00:04:32 if you want to check it out. But there is something so powerful about knowing where your income is going to allow you not to live beyond your income. And part of that also is getting out of debt so it frees up your income, which is great. So remember, live on less than you make. Number two, always have savings. So whether it's a $1,000 emergency fund that you're starting out with, or if it's the three to six month emergency fund once you're out of debt, have savings, you guys. This is such a big. deal because 40% of Americans can't cover a $400 emergency in cash. And when you don't have savings available, not only is your stress and anxiety level high with money, but also if something happens or when something happens, you're more likely to go into debt for those things. So having a safety net

Starting point is 00:05:14 is huge. You can put your emergency fund just in a high-yield savings account if you want. That's great, but it's there for you when you need it. All right, number three is to invest 15% in retirement. Again, this is after you're out of debt and you have that fully funded emergency fund. But if you want to build wealth over time, you guys, this is so, so important. If we talk to people that are babysaps millionaires or millionaires, really all over America, we've done a huge study on them, it is amazing when you talk to them. And they're just everyday people. And listen, they just consistently invested throughout their working years.

Starting point is 00:05:47 And then when they get to retirement, they have millions. So it's something fancy. It's not like a get-rich quick thing. It's not exciting. It's just this consistency. but investing in your retirement long term, you guys, is so huge when it comes to not only living the best half of your life, you know, after you're working and all of that, but also to change your family tree. And number four, something that should never change, is living generously.

Starting point is 00:06:11 And this is something that is huge. We get this question a lot of like, well, if I'm working to get out of debt or I don't feel like I have a lot of money, should I still be giving? Listen, giving needs to be a part of who you are. And I don't care if it's the tithe, if you are a Christian and you go to church and you choose that way, or there's an organization or someone in your life, whoever it is, or whatever it is that you're giving to. It's just the practice and the idea that you're living life with an open hand. And so, again, you can put a spiritual bent to this, or you can just put a human bent to this of helping out your neighbor, right? There's something about living life where it's not all about you. And that's really big during this process of getting control of your

Starting point is 00:06:46 money and not letting your money be the thing that you are looking at 24-7. And when you're helping people and helping others, it really takes money at this, like, high level of like, this is all I want in life. And it really brings it down because it puts humanity back in your life. And that is so, so important. Now, if you want to put some of these habits into place, but you don't know where to start, make sure to check out my episode six simple ways to become more disciplined with your money. I will leave a link down below if you're listening on podcast or you can click right here. All right, you guys, remember to take control of your money and create a life you love.

The Rachel Cruze Show - Government Changes That Impact Your Money in 2026 (Here’s What to Do)

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