The Rachel Cruze Show - Reacting to Self-Made Millionaires on TikTok (Are They for Real?)

Starting point is 00:00:05 So when you're trying to get control of your money and build wealth, one of the best things that you can do is learn from people who have reached those goals before you. And it's even more impressive when they are self-made. But there's always advice out there that could steer you in the wrong direction. So today we're going to look at a couple of TikTok videos of some self-made millionaires and kind of see what they're saying. Hey, be sure to like, subscribe and show this episode with a friend. Okay, by the way, all of these videos happen to be from young, female creators. So let's go girls. Well done. All right, here is video number one. I'm on track becoming a self-made millionaire before 30 and this is the exact blueprint that I followed.

Starting point is 00:00:48 First is maximize your income. I started with a full-time role in tech as a marketing manager. I made a ton of videos about my internships and my career journey that helped me lead up to this point. I'm using the skills that I gained from work and school to freelance on the side and to build a side business that I can work on during my off hours. Number two is living below your means. So after I graduated, I didn't get a fancy apartment, but instead I lived as modestly as I could so I can save and invest as much as possible.

Starting point is 00:01:15 As my income went up, I did spend more money to increase my lifestyle like traveling more often and eating out at nicer restaurants, but I make sure that I'm saving and investing the same percentage that I did before my pay increase. Third is to make your money work for you. I started investing at 20 years old when I had some internship money even though it wasn't a lot. I view every dollar as an employee that I can go out and make more money for me because I don't want to work for the rest of my life.

Starting point is 00:01:44 I use a high-yo savings account and CDs to store my cash for my emergency fund and medium-term goals. And I invest the rest of my money into index funds and ETFs. And the last truth is if you want to become a millionaire, it takes a lot of work and sacrifice. You're going to have to work more than the average person. you're going to have to do more than the average person because doing ordinary things are not going to lead to extraordinary results. Like and follow to learn by building wealth in your 20s and beyond. So good. Okay, I love this one because I feel like all of her stuff is doable for anyone, right? And like what she said, she said, but you're not going to be able to live just like an average life. You're going to have to

Starting point is 00:02:25 work more than the average person. You're going to have to save more. You're going to have to make decisions about your life and your money that are different than just the average person out there. And so what I like about that, though, is even the average person can do these things, meaning you don't have to have, like, a fancy degree from a certain school or have this, like, insight knowledge, no, you work hard, you live below your means, you start investing early and you're smart about where you're putting your money. So I even like that she said as her income went up, she did spend a little bit more, and I would agree with that.

Starting point is 00:02:55 I think that's great. But she was like, this is what I value, though, travel, nice to restaurants, but I didn't need this big nice luxury apartment where I pay a huge rent every month. I'd rather put my money somewhere else. So the intentionality behind it all, I loved it. Well done. Okay. I make more money than 90% of the finance bros that you've ever met. So it's time to stop listening to them and start listening to the women on this app who are actually financially fluent and don't own a Patagonia best. These are three niche finance tips that I've incorporated into my life to help me handle my money better. I automate everything and that includes alerts on my phone to check what's in my bank

Starting point is 00:03:28 account. All of my credit card payments, my investments are on auto pay and auto invest. It's not cute to say, oh, I don't even want to look at my balance. It's not cute. Get with it. You can't fix what you don't track. I started investing in stocks and no, you do not need to know what a stock is to invest in one. You don't need a finance degree. You don't need some guy mansplaining it to you and you don't need to follow the market. Just pick three ETFs, put some money in there, even 50 bucks and you're good to go. Confidence comes from participation, not perfection. Started with really small financial goal. Your financial goal doesn't have to be, I need to save for a house or my big it can just be I'm trying to save for iced coffee three times a week and not feel guilty about it.

Starting point is 00:04:03 The point is to build the habit of allocating your money with purpose. Start budgeting small. If you do not tell your money where to go, it will go everywhere or nowhere. Financial literacy is not just for men and it's not just about being rich. It's about control over where your money is. I promise you it's so hot to be a girly who knows where her finances are, where they're going, where they're invested, then being someone who just doesn't even check their bank account. Amen. Amen. Amen. And hallelujah. Oh, it's so. true, though. I love it. And I like her advice, too, because it is like, hey, start small. Check your bank account, right? Like, start having goals where you're actually changing and seeing

Starting point is 00:04:39 small wins in your life. That way, you can go and say for the big stuff, like the house or the wedding or whatever it is. So I love that concept. And again, when she said baby steps, I know she wasn't talking about the Ramsey Baby Steps. But that's one of the reasons, you guys, when you get out of debt, you pay off the smallest debt first because you need these quick wins. And that includes you with your money goals, just like what she was saying. So love it. Love her like, hot take. I feel like she's so in the know and all like the verbiage.

Starting point is 00:05:06 She was saying. I was like, she knows. She knows what's up. Okay, listen, I hate to break it to you, though, but you probably don't even realize how much of your personal information is floating around online. Because it's not just your name, but it's your address, your relatives info, and other details that you would never share with strangers.

Starting point is 00:05:24 So data brokers, collect that information, package it, and posted on dozens of sites, which is why Delete Me steps in, finds where that information is being shared, and removes it. So when your personal details are harder to find, you are harder to target. So Delete Me is a simple step that adds layers of protection for your family. Get 20% off an annual plan at join deleteme.com slash Rachel, which checks out to be just about $9 a month. Now, another amazing sponsor that makes my life easier and more aligned,

Starting point is 00:05:56 specifically in the financial space is Fairwin's Credit Union. So they're smart checking is simple and straightforward. There are no surprises. It's just an account that partners with you to help you stick to the plan. And the Beware debit card seriously is one of my favorite things because every time I pulled this out, I just did it the other night at a restaurant. Pulled out and you're like, yes, I am handling my money differently. That's what this says. Having banking tools that align with your values matters. Fairwinds gives you a set of. up where being intentional is the default, not the exception. So check out the smart checking and savings bundle and the beware debit card all at fair wins.org slash Ramsey. One tip that I learned

Starting point is 00:06:40 from the people in my life who are the best with their money is to pretend that you don't have it. The key to having money is to live like you're broke. And I don't mean be a complete cheap skate and never allow yourself anything and never go on vacation. But it's once you enter that next level, that next promotion, whatever, don't all of a sudden break your lease, get a brand new apartment. get a new car, do all of these things, because you're going to be in the same rat race that you were before. Your bank account is going to stay the same because now your expenses are higher. So it's like, yes, you might be like up-leveling your life in certain aspects, but you're actually still going to be in the same position. My husband is one of those people where like, he has money, but he doesn't

Starting point is 00:07:15 spend it in a way that's like performative or he's not flexing. And he's always saying, like, unless I can afford it, four times over and then some, we don't need it. So while yes, he's not like a cheap skate by any means, he's actually very generous. He's just very frugal and genuinely thinks about his purchases, researches, makes informed decisions. On the back end is investing and doing all these things and making sure that his ducks are in a row before he starts making like crazy purchases. Even like when he got a new job, he wasn't like, okay, time to get a new house, time to do this, like we got more money, you know? Like our level of living didn't change drastically just because maybe we have more money now. We're kind of living the same, but you're just setting yourself

Starting point is 00:07:55 up for even better in the future. So good. Okay. I totally agree at first when she was like, act like you're broke. I was like, wait, what? And then as she was explaining it, that makes sense. Because lifestyle creep is so real. And she's exactly right. If you are stressed right now and you're like, okay, all of my expenses and what I have and what I'm spending money on, and then you get a raise, and then you take that income and up the lifestyle, that stress is going to just stay with you. And so, yes, learning to say, hey, I think the big purchases, I think the car, the high, the house, all of that, those need to be very slow decisions. And you need to over time build up to those things. The people that just kind of make rash decisions around those, usually make really bad

Starting point is 00:08:35 financial decisions. So being intentional about where your lifestyle can increase when your income does increase and you're in a better place financially is great. So I love the thought. I mean, honestly, everything she's saying, I was like, yeah, absolutely. And then I think you do get to a point, too, where you realize just getting more and more and more stuff, nicer stuff, newer stuff, whatever, like, it's just stuff. Like, after a while, you're like, okay, right? So there is something about having that contentment piece through all of this is really important. I'm going to be a self-made millionaire by the time I'm 30, but I refuse to let that mean I have to be miserable now. So here are four ways I save money while still enjoying life. And if you want to make more smart

Starting point is 00:09:13 money and career moves, give me a follow. The first one is that when I was deciding on my career, I did not just pick the highest paying job. I actually considered being an investment banker for about three weeks because it's the typical Wall Street job where you can make ridiculous amounts of money. But the work-life balance is awful and I'm not optimizing for most money. I want to have the best lifestyle. So I decided to be a software engineer instead, which still pays enough money for me to meet my goals, but also gives me enough time to have a life. The second one is making easy swabs that save money while still being just as enjoyable. I think this is called dupe culture, but I'm not talking about luxury goods. I'm talking about things like using a high-yield savings account instead of a

Starting point is 00:09:49 regular savings account or going to see a movie on Tuesday instead of Saturday so it's half the price. Because personal finance advice for regular people is always stop getting takeout, stop spending money. But personal finance for rich people is about things like negotiating and credit card hacking, where you can get the same experience but pay less money. Number three is value-based spending. I always think it's a little ridiculous when a personal finance expert tells you what you should or shouldn't spend money on. Because why does some guy with a podcast get to decide that a Michelin Star meal is worth it,

Starting point is 00:10:17 but a new purse isn't. Value-based spending means everyone gets to decide what's important to them and then spend accordingly. For me, I will happily spend money on my hobbies and the things I care about, and I balance that with being financially responsible by not spending all the things I don't really value. I don't get drinks at coffee shops. I don't get takeout.

Starting point is 00:10:34 I don't pay for Spotify because those aren't things that I really care about. And number four is planning ahead. I spent some time a few years ago figuring out my financial goals, calculating how much I needed to save and invest to meet those goals, and then automating everything, so now it just runs on its own. And that means I get to just swipe my card without really thinking about it. Because I know that, number one, there's going to be enough money in the account to cover it because I've planned ahead. And number two, I can spend the money guilt-free because I've already done my savings.

Starting point is 00:11:00 So good. Is her microphone in that marker? Are we all watching that? I kept being like, she had the marker. I was like, is that your microphone? Okay, yes, I agree with this. And especially the value-based spending. I think sometimes it is good just to say out loud, though, like, hey, there are some things that are wasteful in general, and like, let's talk about those things. But when you are spending on something that, of something you enjoy or you want to experience and, you know, Sarah doesn't get that, that's fine, right? She doesn't have to understand that. It's where you want to spend your money. And I would even go a little bit deeper into ask why. Why do you want to spend your money on that? What is it about that? What is fueling you in that?

Starting point is 00:11:37 Is that giving you like a false sense of security or identity to? So I think all of it is so whole. holistic, but being so aware of what you've planned and to be thinking about the value-based spending, I love that idea, though. I really do. She also talks about planning ahead, which I think is so smart. I think one of the biggest mistakes we make with our monies that we're just not intentional and we just live our life and you look up every year to do taxes and you're like, I don't know where my money went, right?

Starting point is 00:12:05 But knowing where your money is going, I think is so, so key. That's one reason I love every dollar. And the budgeting app is great because you stay organized. you can track your spending as well, which is huge. And I do that. That little blue dot pops up. And I know exactly what we're spending at restaurants at the grocery store, stuff for the kids, like clothes, whatever it is. I know where the money's going because we have planned for it and we are tracking it. Now, the truth is a lot of people are doing better with money than they think they are. So to find out if this is you, make sure to catch my episode at Seven Signs. You're actually ahead

Starting point is 00:12:40 financially, you can click right here, or if you're listening on podcast, 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 - Reacting to Self-Made Millionaires on TikTok (Are They for Real?)

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