The Rachel Cruze Show - Why Americans Don’t Want to Be Millionaires

Episode Date: September 23, 2024

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Well, hey, you guys. So according to a recent survey, more people say that they want to be financially comfortable than reach millionaire status. And funny enough, you know, I don't fully disagree with their sentiment. Now, it may come as a surprise to some of you because we often use words like babysaps millionaires or a million dollar net worth, all that. But I want to talk you through what my thought process is and you can decide for yourself what you think is better to live comfortably in general in your life, or is it better to become an actual millionaire? So listen, having money goals, I think is great.

But honestly, I think there's just something to say about, hey, I want to get to this place where I have peace with my money. And at the end of the day, because of life and compound interest and all the wonderful things comes with building wealth, if I end up hitting millionaire status one day, that's great. But I have found trying to hit this arbitrary number out there of like, I want to be a millionaire by 35,

sometimes can be a really empty goal. And there are a few reasons why. So the first reason is I think you will miss out on life. So say you reach it, but every other aspect of your life is so stretched thin for maybe eight years, 10 years, and you're just miserable. Because, again, this whole idea of building wealth long term,

I think is really key, but there is a group of people that are like, oh my gosh, I will do anything. just to hit millionaire status. I will overwork myself. I will not do anything fun, and I'm going to do anything I can just to hit it. And then you look at their life,

again, over the course of maybe eight years, a decade, however long it takes, and they have kind of just solely focused on that one goal and not the life that they have right in front of them. So, again, while reaching your money goals is great, and I understand even getting out of debt, there's going to be a period of sacrifice, and you're going to be really focused on that.

Like, all of that is good because it's so short term and it's to this point that it's building you up to get to a point of peace. It's not just this arbitrary idea of like, okay, I have to push myself all the way just to hit this status point for just the idea of having that status. All right. Now, the second reason you shouldn't focus on reaching millionaire status is that the more you have, the more you need and want. So again, I think it's this idea that you're like, okay, if I reach this. point, I'm going to be okay. If I have a million dollar net worth, everything's going to be fine. Where the truth is, the finish line keeps moving, you guys. If that's your only goal for the only reason of just seeing that number in your bank account and you get there, you may look

around and think, and for most people, well, is this in? Okay, well, I think I need like half a million dollars more. And you just keep pushing that goal and pushing that goal for the sake of just pushing that goal. Versus saying, okay, I want peace with my money. I want margin. I want to be able to take my family on a great vacation every year. I want to go out to eat twice a week or build a life that you want. And out of that, how much money is that going to take? So it's this idea of your value system driving you more than this number out there. And what happens is that number, and I think in America more than any other country,

becomes this idea that this is who we are, where your net worth becomes your self-worth. And I want to break those two things apart because the number in your bank account or in your retirement account or the lack thereof is not you. That is not who you are. So working on you and your character through the process and journey of getting financial peace and hopefully, again, building wealth at the end. I think that's, that whole idea is not wrong, but it's not that you're doing it to complete something inside of you. All right, the last reason that becoming a millionaire should not be your main goal is that compound interest will work best for you over time. That's right. So, Again, this idea of planning long-term is really key.

And when you invest a certain amount of money, we talk about 15% of your income. Over time, that compound interest is going to work for you. Proverbs 1311 says, whoever gathers money little by little makes it grow. Again, meaning that going all in and just like, I'm going to do whatever I can to be a millionaire in the next decade of my life and I'll do anything, that's an exhausting strategy versus saying, hey, I want to get myself on a level playing field. I want to be wise with my money. I want to get an emergency fund.

Again, the wise things, the grown-up things. But then just putting a portion of your money aside, month after month, year after year, investing 15% of your income, and it's going to grow over time. And that's the really beautiful thing that comes with building wealth is that you can do it and you can do it while you sleep.

It doesn't have to be this crazy intense goal. It's just this idea that you're forming a life where you're putting money aside and over time, you guys, that is going to grow. Compound interest is a beautiful thing. And if you've not checked it out, make sure to go to our compound interest calculator. Again, I'll put a link down below,

but just put some numbers in, and that may actually kind of ease you a little bit to say, okay, I'm going to be okay because you're going to see the power of compound interest. So here's the thing. I want you to have peace with your money. That's always my main goal. So when you have your eye on what really matters,

again, getting your financial house in order and being wise with the money that you have, again, the future will work out. When you have a plan and you know what's going on and you're intentional, you're going to be okay. And if some of your long-term goals, if they feel impossible, remember, just start somewhere, right? Just one step at a time. So more than likely, you guys, you're doing better than you actually think. So this whole idea may sound crazy coming from me, your money friend, that I'm like, you know, becoming a millionaire that may not be.

your long-term goal. Maybe the goal is actually getting peace with your money, and then the effect of that because of what you're putting out is actually that you probably will become a millionaire, but you're doing it in a more healthy way, holistic way, which is what I want for you. So make sure to check out the next video, though, on stealth wealth. It's very fascinating. All right, you guys, remember to take control of your money and create a life you love.