The Rachel Cruze Show - Worst Ways to Invest Your Money in 2026

Episode Date: January 5, 2026

💰 Plan and build wealth for the future with Ramsey’s Complete Guide to Investing.   When it comes to money, you need to be aware of the don’ts just as much as the do’s. Today, I’m sharing the worst ways to invest your money so you can avoid the traps and start building wealth the right way.    Next Steps: 🎥 Watch my video 6 Questions That Reveal if You Can Retire Early. 💵 Start your free budget today! Download the EveryDollar app. 📈 Are you on track with the Baby Steps? Get a free personalized plan.   Connect With Our Sponsors:   Learn more about Christian Healthcare Ministries. Get 20% off when you join DeleteMe. Go to FAIRWINDS Credit Union for an exclusive account bundle! Turn to Minno for kids shows you can trust. Use code RACHEL for $10 off an annual plan with a seven-day free trial.    Explore More From Ramsey Network: 🍸 Smart Money Happy Hour 🎙️ The Ramsey Show  💸 The Ramsey Show Highlights 🧠 The Dr. John Delony Show 💰 George Kamel 🪑 Front Row Seat with Ken Coleman 📈 EntreLeadership   Ramsey Solutions Privacy Policy Learn more about your ad choices. Visit megaphone.fm/adchoices

There are a lot of clashing ideas floating around when it comes to personal finance, and sometimes you need to know the don'ts as much as the do's. So today we're going to talk about the worst ways to invest your money so you can avoid the traps and importantly find out what to do instead. Be sure to like, subscribe, and share this episode with a friend. All right. One of the fails I think that people really jump into is falling for flashy new real estate trends.

So there's all these new startups, you guys, that's like popping up everywhere of like, whether it's your primary home, we're doing investing. And so, like, there's a company called Splatero, and they basically lead with the perk of receiving a lump sum of cash in exchange for owning a share of your home's future value. So ultimately, it puts you at risk for losing a significant amount of equity from your home's appreciated value down the road. And then if you don't pay back, like all the back charge and stuff, like, it's crazy. But people see this, like, oh, if you need $30,000 to start your business, it's, I mean, not really a HELOC at all. it's kind of like this other way of doing it. But these companies are popping up everywhere,

and people are very intrigued and they sounds good. But listen, if it sounds too good to be true, it is. All right. Speaking of HELOCs, let's talk about HELOCs. A HELOC is a home equity line of credit. So you're basically taking equity out of your home. And usually people will do it to add value to their home, like in addition, or they're putting in a pool or they're doing renovations inside, whatever it is, they're thinking, oh, I'm adding value. but basically you're going deeper in debt. You're losing the value of your home. So if you're wanting to do any of the above, just move at the speed of cash. So you want to save up, which means it's going to be slower, maybe not as like, you know, beautiful and glamorous as you want it to be. But honestly,

getting to the point that you are debt-free is a huge goal financially for not only the peace of mind, but also financially for your income and continuing to build wealth long-term. And so instead of going backwards in your home's equity, continue to move forward. Next is investing in single stocks. So investing in single stocks, it's kind of a little bit more of a gamble, y'all. And a lot of people will do this. They'll do it with their companies that they work for even. But listen, when you are putting all your eggs in one basket and it's gone, it's gone.

Versus diversifying. That's why I love index funds or mutual funds because you're putting your money in 90 to 200, it up to even 500 companies that are spreading out. And what's great about it is as the economy does well overall, your value is going to go up versus even just one. And some people jump in, you know, whether it was like the tech bubble in the early 2000s, a lot of people like jumped into stocks there. Right now, AI, I feel like a lot of people are jumping into that. Listen, stay diversified. Spread your money out long term because it's going to be better for you than the risking the one stock. Now, before I share more of what to do and what not to do, I do want to

tell you about one of our sponsors, Fairwinds Credit Union. So you don't need a new you this year. You just need to stick with what works. And that's your budget and your plan. And Fairwin's credit union can help. So with their smart bundle, it gives you a no-feet checking, a high-yield savings account, and the new Ramsey debit card that says, dead as normal, be weird. And this is not just a card. It is a reminder that you are doing money differently. I love this card. So this year, on your plan and partner with a credit union that helps you make real progress in the baby steps. Visit fairwinds.org slash Ramsey to open up your smart bundle today. All right, if you need a simple, affordable way to protect your info online, you need to check

out, delete me because one thing at most people forget to clean up in the new year is their digital life. And with every coupon and newsletter and giveaway that you sign up for, your personal information spreads to shady data broker websites that you never even heard of. And that is why Delete Me's team of privacy experts finds your info on those sites, gets it removed, and keeps it off, like a digital cleaning crew,

protecting your name, address, and even your personal information about your kids. So start your year off right with DeleteMe. Go to join DeleteMe.com slash Rachel and use code Rachel to get 20% off. All right, jumping into some not great investing tactics, and that is investing in the next big trends. So again, you're going to see things pop up that everyone's like, oh, this is on point, this

is on point. So it may be new things, you know, like Bitcoin or crypto. It could be old things, like investing in gold or precious metals. So whatever the hot thing is in the moment, remember to think, okay, if this is working, if it has a long-term track record, then I will do it. but if it doesn't and you see things that are so volatile stay away and so whether it's crypto or even gold you guys gold is one of those things it is very very volatile it goes up and down and so it really rides on people's fear basically of what you see so investing i really do believe just in the market

long term is going to allow you to build wealth and it's not this get rich quick scheme again it is something that has a long truck record so let's talk about what we should do because i just kind of it, but I think it really is important. And that is, number one, to invest in something that you understands. And what has worked for majority of people long term? That track record is a really big deal, you guys. And so from a long-term perspective, it just works. It works. So if you need to understand, okay, I'm kind of new to this, but I really want some direction. Make sure to check out Ramsey's investing guide. It has in-depth insights that are easy to follow and will leave you feeling empowered and not overwhelmed. I will put a link down below so you can check it out. And again,

get on track with investing because it is one of the best things you can do when it comes to building wealth. And to find out if you are headed for early retirement, check out my episode six questions that reveal if you can retire early. You can click right here or click the link below if you're listening on podcast. All right, you guys, remember to take control of your money and create a life you love.