Want Financial Freedom? 4 Pieces of Honest Advice From Rachel Cruze To Achieve It
Written by
Adam Palasciano
Edited by
Zuri Anderson
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Achieving financial freedom is crucial to success. This might include living comfortably (but not necessarily being rich), being debt-free, being able to regularly meet all financial obligations and still have some money left over each month and not having to worry about money overall.
Sadly, only a sliver of the American population said they feel financially free.
According to a 2023 survey from Achieve, only one in ten (11%) of Americans report they are living their definition of financial freedom. If you fall in the other 89%, there are several things you can start doing to achieve your own financial freedom.
Here are four pieces of honest advice to achieve financial freedom, according to financial guru and Ramsey Show money expert, Rachel Cruze.
Get Over Yourself
Cruze said the first step is to get over yourself. This means not spending on expensive Christmas gifts you can’t afford or keeping up with the Joneses. At the end of the day, spending more than you can really afford will spell financial trouble.
“So much of our ego… is attached to our decision making,” highlighted Cruze.
Your financial decisions truly matter, and spending money just to impress people (even those we don’t really like) isn’t a smart move.
“We got to get over ourselves because if our ego drives all of our decision-making, we’ll probably end up broke for the rest of our lives,” said Cruze.
Be an Adult and Budget
Whether you believe it or not, part of being an adult is budgeting. Cruze stresses that you have to know where your money is going each month and consistently budgeting can help you do that.
“This (budgeting) is such a powerful tool when it comes to your money, and I say be an adult because a lot of people give a lot of excuses for budgeting,” said Cruze.
If this is you, try not to make excuses. Even if you have an irregular income or believe that budgeting doesn’t work for you, there are many different types of budgeting you can try. Consider the 50/30/20 method or the zero-based budgeting method to get started.
Do Some Fifth Grade Math
Be careful not to carry too much debt, like car payments. Making interest payments to the bank or a lender eats into your ability to invest over time, which can mean far less investment growth for you.
“I want you to see how much your debt is actually costing you,” highlighted Cruze.
Investing early and often is the name of the game if you’re looking to grow your money in a big way. For example, Cruze explained that if you invest $1,200 every month for 20 years with a projected 10% rate of return, you’d end up with about $2.7 million. Meanwhile, if that $1,200 per month is direct to car payments instead, it will seriously hinder your long-term investment growth potential.
It’s Not All About You
Cruze emphasized that at the end of the day, your money isn’t all about you. Of course, it’s very important to get out of debt and build an emergency fund to maintain financial security. But, after you’ve achieved those goals, consider other people.
“That is where generosity comes into play, because there is not this amount of money that’s going to make you happy,” said Cruze.
There’s an illusion that if you have more and more, you’ll be okay and happier, when in fact the research shows the opposite. Cruze said that to have a “holistic and healthy life when it comes to your money,” generosity must be a part of the equation.
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