The Rachel Cruze Show - Why You Shouldn’t Make New Year's Resolutions This Year

Starting point is 00:00:05 Hey guys. So what if I told you that you don't have to make New Year's resolutions this year? Uh-huh. As I feel great, did I just free you? Well, listen, having goals, it is very important when it comes to building wealth. But when it comes to achieving those goals, my hot take is that resolutions aren't always the best way. So today we're going to unpack that. And I'll also share a step-by-step plan that you can follow to achieve your money goals this year. But before we dive in, make sure to subscribe, but share this episode with a friend. let's get to it. So first, can we just take a minute and appreciate the fact that fresh starts even exists? Yeah, listen, the new year just creates new opportunity. It feels like a clean slate. It always feels like we can do something different this year. I can change, do something bigger and

Starting point is 00:00:52 better. Like, there's just something refreshing about a clean start. So always remember, regardless of where we are on the calendar, it is never too early or too late to make a change, but always in the new year, it's a good time to start. All right, let's jump in. to my hot take on opting out of New Year's resolutions. Okay. Resolutions are great. People do it all the time. It's like, again, this idea of, okay, we're going to transform this part of my life and I'm going to, you know, have a resolution out there. But in 2023, research showed that only 9% of Americans completed their New Year's resolutions. Resolutions feel more just like a trend, you know? It's like, oh yeah, we're just going to do that thing because everyone's doing it. And it doesn't like stick. It doesn't stick. But what sticks are how.

Starting point is 00:01:35 habits. And James Clear always writes about this. I think it is so important is that he talks about you actually becoming the person you want to be right now. So instead of being like, oh yeah, I want to do this, you are the person that does that, right? And as the words of T Swift, they said, babe, you got to fake it to you make it. And I did. Because sometimes you're just have to become that person. So if you want to become debt-free, you are someone who doesn't use debt anymore, right? And then you use a process to get out of debt. Or if you want to be generous, you are a person who is generous. That is who you are. It's not always what you do, but when you start with an identity, it is easier than that the outflow of that identity is your actions,

Starting point is 00:02:20 which turn into who you are, which are your habits. So I think that is such a great point. And I love that idea of habits because, again, it's more like second nature. It's who. you are. And so that identity piece is really, really big. And there are some, you know, bad financial habits, some things that are in us from an identity standpoint that I want out for you. You know, you may say, well, I've never been good with money. That's just not my thing. Or, you know, no one taught me about this stuff growing up, so this is just who I am. This is what my life is going to be. Or I'm bad at math, so, like, I'm never going to be able to do a budget. Like, those identities need to change in order for you to win financially, that you are somebody

Starting point is 00:02:57 that may not love to budget, but you are a budgeter, right? Like, you can change and shape those parts in you, and then the outflow is great money habits. So be thinking about that because I think that's really, really key. Now, I'm excited to share some more about these great money habits, but first I do want to tell you about Christian health care ministries. Just about everything costs more these days. So if you're looking at your health care options during open enrollment,

Starting point is 00:03:22 check out Christian health care ministries. CHM is not health insurance. It's a biblically based health cost-sharing ministry that's helped hundreds of thousands of families like yours with health care costs without sacrificing freedom. And you can join CHM at any time like now. So learn more at ch ministries.org slash budgets. That's CHministries.org slash budgets. So the first thing to remember when you're trying to ditch bad habits and incorporate better ones is to add an element of excitement to your new routine. and this is so helpful.

Starting point is 00:03:55 So maybe you download a podcast or listen to an audiobook on your daily walks. Think about even reading your Bible. If you want to, you know, dive into that more and study it more, grab some colorful pins and, you know, make some notes in the margin. Like, do something that is different. It doesn't have to cost a lot of money.

Starting point is 00:04:13 But to set yourself up for success, do something different. And again, I was talking about audiobooks earlier, but that's something I've done. I'm trying to get my steps in. It's my new thing, is walking. and I find it to be so much more enjoyable when I'm listening to something. And sometimes podcasts, it's like over and over again. It's like you're learning a lot, and I'm always like, sometimes it just feels like a lot.

Starting point is 00:04:33 So I've learned audiobooks. It's like, amazing, amazing, great ones, thrillers, romance. I don't care. But just having a story being read to me as I'm walking makes it go by faster. So whatever that new habit is, whatever that thing is, maybe it's with your money or not, have some excitement in it, okay? That's really going to help you with that change. All right, let's talk about seven habits.

Starting point is 00:04:54 that you should be prioritizing when it comes to building wealth. And these habits are actually more like steps, and we call them the baby steps. So if you're not familiar with this, and maybe this is the new year that you're changing what you want to do with your money, this plan is so helpful. So the first step is to get a $1,000 emergency fund. Baby step two is to pay off all of your consumer debts by doing the debt snowball, which is paying off the smallest debt first. Once all your consumer debt is gone, then you're going to bump up that starter emergency fund

Starting point is 00:05:23 to three to six months of expenses. That's Baby Step 3. Now, once those are done, you're going to move on to four, five, and six. Baby Step 4 is funding 15% of your income into retirement. Babyset 5 is funding kids college. Baby Step 6 is paying your house off early. And then once that's done, you move on to babysap 7. And that is to build wealth and be extremely generous. So this is a plan that can be really helpful for you to get on track with your money, have some goals, and get control of it this new year. And obviously, this logic can break down if spending money is the only thing you're doing to achieve a new goal. So I don't want you just like spending, spending, spending on all your new goals. Sometimes you need a goal of maybe saving money or doing something different. You know, I had a goal of

Starting point is 00:06:11 running a marathon. I hate running. I can walk. I hate running. And I went and bought all this new gear to train for this marathon and I hated it and I quit. And I was like, yeah, that doesn't like, even though it's exciting and like I got something new, it didn't fulfill me long term, right? So again, don't feel like you have to spend all this money on your new habits or your new way of life. Just, you know, dip your toe in. And then if it keeps going and going and going, then maybe you spend a little bit more on that. But ultimately, your behavior change has to come first.

Starting point is 00:06:41 Now, if you're looking for more ways to change your behavior around spending, make sure to check out the Every Dollar Budgeting app. This is an amazing tool. We have a free version and a premium version. but this is going to help you when it comes to your financial goals specifically to stay organized to get control of your income. It is so key to do a budget, you guys, every single month. So make sure to check out every dollar. I'll leave a link in the description so you can check that out. So developing new habits, you guys, it is very important when it comes to money, but that's half the

Starting point is 00:07:10 battle. So to be sure that you're ditching the bad financial habits that are holding you back, check out this habit is keeping you broke. A great episode. You can click here. or if you're a podcast listener, click down below and listen there. All right, you guys, remember to take control of your money and create a life you love.

The Rachel Cruze Show - Why You Shouldn’t Make New Year's Resolutions This Year

There aren't comments yet for this episode. Click on any sentence in the transcript to leave a comment.