The Rachel Cruze Show - If You Want to Become a Millionaire, Do This in 2026!

Starting point is 00:00:05 There are always going to be parts of life that we can't control. But when it comes to your money, there are a few things that you can do today that a lot of people overlook to guarantee that you'll be on your way to a million dollar net worth. Plus, I'm going to share my number one tip to keep in mind as you're building wealth. Be sure to like, subscribe, and share this episode with a friend. All right, number one, the first thing I would do is to get out of debt. No, it's not shocking that you're hearing that from me. But honestly, when it comes to getting a positive net worth, taking the taking the negative side out helps the formula. Yes. And listen, the exciting news is, even though this is the first step, I'm telling you this is possible. There are so many people, I mean, literally hundreds

Starting point is 00:00:46 of thousands of people, millions of people that have done this, that have gotten themselves out of debt and stayed out of debt. And there is something so freeing about it, because not only are you able to use your income then to help you build wealth, which will help you get you on the way to a million dollar net worth, but it also gives you peace of mind. Like there is something about not owing anyone anything and knowing that the paycheck you are working so hard for is coming to you and you get to make decisions about it is so powerful. So getting out of debt is key. Number two, having emergency savings. So again, not depending on the credit card or debt when emergencies come up, but depending on what you have in the bank. So like you being your safety net is huge and not depending on the bank

Starting point is 00:01:29 or the credit card company or whatever that is. So that safety net continues to put you in the negative if you go into debt, right? Every time something happens, whether you're heating an air, messes up, your roof leaks and insurance isn't covering it or, you know, something happens to your car. Every time a big thing like that happens and you continue to go into debt, life seems to be on that cycle. And it gets really hard to get out of that cycle if you're not intentional about saving on the other side. So getting a $1,000 emergency fund, getting out of debt and then bumping that up to three to six months of expenses helps so much. And that really does give you a strong financial foundation to build upon as you continue to build wealth.

Starting point is 00:02:12 Number three, I would say track your spending every month. There is something so powerful about knowing where your money's going that can be exciting and convicting, right? I mean, I think there's something about enjoying your money. There's a part of life that you don't want to just hoard and save constantly. Part of working hard is enjoying. the world around you, right, and that you can have fun and spend. That's not a bad thing. But also, if you're spending too much or spending too much in a certain category, when you track your spending, you're going to be able to see that. And I think that is so big because, again, when it's flippant and you don't see and you don't know, it's hard to get traction with your

Starting point is 00:02:48 income. And so for me, the monthly budget is huge. And when you can track it, like in every dollar, it's a great budgeting app. You can check out. There's something about taking control of your income in that way that's going to help you build wealth. Because when you are diligent with what you just have now, as you build wealth, that diligence is magnified. And that is so powerful. Now, if you're looking for a more budget-friendly way to handle medical costs and stay true to your values, Christian Health Care Ministries is a great option to think about. CHM is an insurance. It's a biblical community-based way that Christians can share each other's medical bills. That means no network restrictions, no enrollment deadlines, and more flexibility, which is huge if you are self-employed

Starting point is 00:03:31 or between jobs. Families often save hundreds of dollars a month, and that kind of margin gives you breathing room while you're working the baby steps. So to learn more, go to chministries.org slash budget. Number four, I would reevaluate your housing costs because your rent or your mortgage payment can take up a significant amount of your monthly income. Because it's so easy, for a lot of your income to be going towards your housing because housing is expensive. But when you hit that threshold of 40, 50, 60% of your income is just going to your mortgage or to your rent, it is hard to build wealth with the remainder because the remainder you have to buy food and pay bills and do all these other things. So keeping it at a really, really conservative rate of 25%. Some people are

Starting point is 00:04:16 like, that's insane. But listen, what that does is it gives you the ability to use your income in other ways like getting yourself out of debt or investing and using it to help you build wealth. So reevaluate that and make sure that your mortgage or your rent is not eating up most of your paycheck. Number five is to invest. And I would invest 15% of your income into retirement. When you are on your way to wealth building, this is a great percentage to work with, especially if you still have a mortgage that you're trying to pay off or if you have kids and you're trying to save for college, you know, that 15% gives you the ability that, number one, you're doing more than most people. A lot of people just go up to the match at their 401k, and that may be like 3, 4, 5%, and that's all

Starting point is 00:04:57 they do. So 15% is above that, which is great. But it also is not you just, again, saving every penny you have for the future. You want to be reasonable with it so that you can live on other things, other parts of your income. So that 15% is big. Now, I would not do that if I had debt and no emergency savings. So make sure you get out of debt and then make sure you have some savings in place. And let's say you eliminated the $300 gym membership that you're not using and you invested that instead. Like it is crazy when you look at your income and where it's going and where you can actually reallocate some of those expenses to help you build wealth for the future. So you have options. Be encouraged. Now to figure out exactly how much impact a few hundred dollars could make

Starting point is 00:05:38 down the road, make sure to check out Ramsey's investment calculator. I love this tool because you can literally just put in these numbers really fast. So you could say, hey, what if I invested $400 a month, which is around, again, the average car payment for a used car, and you were 35, and you did that, and you got an 11% rate of return, you'd have over $1.1 million by age 65, just in that one account. And the best part is, 977,000 of that $1.1 million was just compound interest. So that's how powerful it is when you start early and you're consistent. Now, if you want to run some of your own numbers, I'll put a link down below to that calculator. Make sure to check it out.

Starting point is 00:06:15 And the number one thing to remember when you are building wealth is that majority of millionaires are not flashy. So they kind of just look like, you know, you're normal people walking around. Not everything is a designer

Starting point is 00:06:26 and they like don't look like, oh my gosh, they are probably really wealthy. They actually probably don't really look that wealthy because they know, number one, that stuff doesn't make them happy. They're not in this endless black hole of trying to keep up and make themselves feel better

Starting point is 00:06:37 about what they're spending. And they also evaluate purchases and know what's important to them. And usually stuff and getting more and more nicer stuff constantly is usually not their priority. It's bigger than that. It's usually generosity, investing, like all these things that are just, I think a key part of building wealth.

Starting point is 00:06:54 So remember that. Most millionaires you see are not flashing. You would never even know they are millionaires. Now, speaking of all of this, so make sure to check out my episode, why being boring is the best way for you to build wealth. It's key. So you can click right here if you're listening on podcast.

Starting point is 00:07:10 I'll leave a link below. All right, you guys, remember to take control of your money and create a life you love.

The Rachel Cruze Show - If You Want to Become a Millionaire, Do This in 2026!

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