The Rachel Cruze Show - Signs You’re Better at Money Than You Think

Starting point is 00:00:05 Yes, the housing market is competitive and yes, inflation is real. But do you ever wonder if, despite all the noise, if you're actually doing okay financially, well, here are six signs that you're doing better with money than you think you are. Let me know in the comments if you agree and make sure to like, subscribe, and share this episode with a friend. All right, let's jump in. Sign number one, that you're doing better with money than you think you are. You have more than $400 saved. So here's what's crazy.

Starting point is 00:00:32 A few years ago in 2022, data found that only 63. percent of Americans said that they would be able to afford a $400 emergency with cash or savings. And that wild, you guys, so like 37 percent of Americans could not cover a $400 emergency. So if you have more than $400 in the bank, you're doing great. And if you have $1,000 saved, which is baby Step 1, you are doing incredible. So either that's a great sign for you or you're like, oh, crap, I need to get some money saved. If so, get to it. Sign number two, you can cash flow your monthly expenses. So for a lot of people, they are living in this paycheck to paycheck cycle, meaning like they may be covering everything, but they have to wait for that next paycheck for sure because they don't have savings. Like we just talked about, they have nothing. And if that paycheck doesn't come in, things are not able to be paid. And so if you have some margin and some buffer, then it is incredible when you're able to pay for those expenses, have some extra breathing room and some margin, and even carry it over to the

Starting point is 00:01:35 next month if you need to, but having that margin is fantastic, so you're not on this, like, really tight paycheck-to-paycheck living, or even worse, if you're having to go into debt just to cover your basics. Now, if you need help organizing all of this, a monthly budget is incredible, and every dollar is my favorite budgeting app. I'll leave a link down below, make sure to check it out. Sign number three is that you have no debt or you're actively working to pay it off. It's like we just talked about having a thousand dollars saved as Baby Step 1 of the Ramsey plan, And then once you have that, then you can go to start working to pay off all of your debt. And this is where you're going to list out all of your debts, smallest to largest, regardless of the interest rate, pay minimum payments on everything, and pay off the smallest debt first.

Starting point is 00:02:17 So I would say, for sure, if you don't have debt and you are debt free, no student loans, no personal loans, no credit card debt moving over, you know, month to month, you're in an incredible spot. Because a lot of people, their mindset is, well, debt's just a part of my life. It's just what you do. You know, to get a new car, of course, you have to borrow money and get a car loan. That's what you do. So you go buy a brand new $40,000 car, and you have payments. And then when you're done with that, you go get another car and another car loan. And you live this life where debt is a part of it.

Starting point is 00:02:47 So if you have gotten out or you're working to change your mindset around that, you're doing fantastic. Now, before I share the rest of the list, I do want to tell you about two incredible sponsors that can make your life easier and better with the services they offer. So first up is Fair Wins. So y'all, when you're working the baby steps, your bank shouldn't be working against you. And this is why I love Fair Wins Credit Union because they share Ramsey values and their smart checking and savings bundle was designed to line up with the baby steps. Their customer service and who they are, you guys are incredible.

Starting point is 00:03:23 I love them so much. Creating an account, everything was so simple and so easy. So if you are ready to move your money somewhere that supports your financial goals, fair wins is what you've been looking for. So head to fairwinds.org slash Ramsey to open your smart checking and savings bundle today. Next, if you have not gotten your delete me subscription yet, you guys, no time is better than right now. If you don't remove your personal data from the internet, it's basically like a billboard for everyone to see because your name and your address, your email, even your kids' names are out there on sketchy data broker websites.

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Starting point is 00:04:29 So ideally, I want you putting 15% of your income. income towards retirement accounts. And these are great because there's a lot of tax advantage ones, like a Roth IRA or a Roth 401k or even just a 401k, right? So that 15% can feel really overwhelming. That's why you want to do it after you are debt-free and you have a fully funded emergency fund with three to six months of expenses. Then you're going to start funding retirement. But can I just tell you, you guys, that, man, I take so many calls on the Ramsey show. And there's a lot of people that are getting to that age, you know, in their late 50s and even in their 16th where they don't have a lot saved for retirement or some of them, nothing.

Starting point is 00:05:07 And they're just depending upon Social Security. So this is not great. So if you have any level of savings in retirement, I'm going to say you're doing a great job. Now, pause that if you still have debt and you don't have an emergency fund, other savings, that's liquid. Take care of that first. Then press play on retirement investing and invest 15% of your income into retirement. So your 401K is where I would start.

Starting point is 00:05:32 Go up to your employer's match. And then if you still have 15% of your income, you know, maybe that takes 5% of your income. I don't know, to go up to that employer match. Then go and fund a Roth IRA. And then if you max it out and you still have some percentage left, go back to the 401K. So that's kind of the formula. So remember, match beats Roth beats traditional. All right.

Starting point is 00:05:55 Sign number five, you check your bank account regularly. Yes. So sometimes it's like this trend that I'm hearing and sometimes people are like, oh my gosh, you know, my bank account balance is none of my business. Like I'm just like, it's fine. It's all going to work out. And people kind of put their head in the sand financially and like, listen, you have to live in reality. You have to know what's going on with your money, you guys.

Starting point is 00:06:17 And if you don't check your balance and not know what is going on with your money, that is not a good place to be. Now, if you are budgeting every month, every dollar of the budgeting app is linked to your checking account, which is fantastic. And so that's able to get you in a great rhythm of being on top of it. But again, I talk to some people and they don't even know their bank login. And so ignorance is not bliss when it comes to that. Know what money you have. All right. Number six is that you're able to practice generosity. So this is a really big part of your financial journey is being generous and living your life with an open hand. And for a lot of people, whether it's, you know, the belief of like, well, if I just had more, I would give you.

Starting point is 00:06:58 or I'll do it, you know, when I get to this place financially, you know, there's all these excuses because I want to say for the most part, I think most of humanity wants to be a good person, right, and wants to, like, help people. I don't think people are being selfish just for the sake of, like, being selfish. Maybe there are some people like that. But I would say for the most part, we don't even have the self-awareness of how we're viewing our money and or we don't feel like we have the margin for it. But can I just tell you your character during this process as you start working your way out of debt

Starting point is 00:07:28 and building wealth and investing and all of it, having giving as part of the formula, even from the beginning, is going to change who you are. And that is a huge part of winning financially. It's not just the numbers and the dollars, but it is truly not only what you're doing for people, but what is helping inside of you? What's changing you? And so there's something very transformative about giving. And if you are doing that on a consistent basis, I'm going to say you are doing great financially. Okay, so these were some of the signs that you are doing better than you think. But have you ever wondered where your money habits placed you in terms of wealth building? Well, make sure to check out the episode.

Starting point is 00:08:04 Are your habits broke, average, or wealthy? That's coming up next. And if you're listening on podcast, I will 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 - Signs You’re Better at Money Than You Think

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