Rachel Cruze and Dave Ramsey: Change These 10 Money Habits Right Now
Written by
Ashley Donohoe
Edited by
Zuri Anderson
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If you want to build wealth, escape debt or manage money better in 2025, you should be open to making changes and sacrifices. This includes identifying habits you didn’t know were hindering you from reaching your financial goals.
Financial experts Dave Ramsey and Rachel Cruze recently sat down for a YouTube video about 10 common money traps Americans fall into. Here’s what you should avoid and what to do instead.
Not Paying Attention
“You can not let money happen to you; you have to happen to it,” Ramsey said.
If you’re not regularly assessing how you’re using your money, it becomes hard to progress toward goals or spot poor habits. Instead, regularly monitor your financial accounts to understand your situation, and have a budget that sets a plan for your dollars.
Not Reconsidering Your Investing Strategy
Some investors stick with a certain contribution strategy even if circumstances have changed. Unfortunately, this can become a roadblock to building wealth.
Ramsey suggested revisiting your plan and setting a goal of investing 15% of before-tax income if you still have a mortgage; ignore your employer’s match for that calculation. Once you’ve tackled the mortgage and saved for your kids’ college, you might boost that amount.
Being Stuck in the Comparison Trap
Even if you’re good with money, seeing others portray successful lives on social media can leave you thinking you’re doing something wrong. However, Ramsey explained that you don’t see the potential debt and stress those people have.
Rather than comparing yourself and trying to keep up with others, focus on pursuing your personal finance goals and living more peacefully.
Thinking Credit Cards Help You Win
“Credit card points are not designed for you. They’re designed for the bank and for Visa and Mastercard to get rich,” Ramsey said.
If you’re chasing credit card points to build wealth, you’re likely in for a disappointment. Not only are you risking incurring fees and interest for a small potential return, but Cruze also explained that credit cards encourage higher spending.
According to Ramsey, avoiding debt and saving is a more successful approach.
Not Getting Rid of ‘Manageable’ Debt
When monthly payments fit into the budget or are just a minor annoyance, you might become complacent about paying off the debts. However, you’re ignoring the extra costs paid and missed opportunities.
By getting out of debt, those monthly payments will become available for your goals and assist with building long-term wealth. You also won’t have to stress over debt anymore.
Not Saving for Emergencies
The recent Kashable State of Consumer Finance Report noted that only 19% of respondents had savings for emergencies. Lacking this important buffer puts your long-term finances at risk.
“If you never put in the work to save your emergency fund, you’re always behind paying off debt from the last catastrophe,” Ramsey said.
To be prepared and reduce stress, start with a $1,000 emergency fund. Ramsey suggested boosting it to three to six months of monthly expenses after you clear your non-mortgage debt.
Not Being Mindful of Subscriptions
Monthly subscriptions can easily dent your finances if you’re not regularly tracking the cost and purpose of each one. Cruze gave an example of an indoor trampoline park membership her family hadn’t used in months.
Develop a habit of regularly reviewing your recurring charges and canceling subscriptions that you don’t need. Also, avoid thinking an unused subscription will eventually save you money.
Avoiding Money Talk With Family
Some families avoid discussing money over concerns about potential conflict. However, this means missing out on providing your children with a financial foundation and being more open with your partner.
Ramsey and Cruze discussed encouraging children to work, give to others, spend mindfully and practice contentment. One approach is to naturally integrate these topics into everyday life. Additionally, regularly discuss important decisions and your family’s finances with your partner.
Upgrading Paid-Off Vehicles
Edmunds reported that around 19% of new car buyers had $1,000 or higher car payments in the last quarter of 2024. So, if you usually pay off your car just to borrow money for a new one, you could find yourself in a big financial hole rather than building wealth.
Cruze suggested a wiser strategy of using that paid-off car while you put the previous car payment money toward your savings for an eventual replacement. Depending on your savings, you might have to get a used vehicle, but you’d at least avoid debt for a fast-depreciating asset.
Not Being a Generous Giver
“There’s a power in living life with open hands and making that a rhythm and a part of your financial journey, regardless of where you are financially,” said Cruze.
If you’re not already giving when you can, consider building that habit for self-improvement. While giving others cash is one option, you can also simply help them with everyday tasks.
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