Rachel Cruze: Adopt These 6 Habits for a Better Life and Finances
Written by
Ashley Donohoe
Edited by
Amber Barkley
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According to a recent Empower study, 91% of Americans were focusing on becoming financially happier and healthier, while the reported financial happiness score was just 4.97 out of 10.
If you want to boost your financial health and live a happier, more peaceful life, some of the best moves involve simplifying your lifestyle, home and spending. In a recent YouTube video, money expert Rachel Cruze suggested adopting these six minimalist habits to enjoy a better life and finances.
Keep a Simple Schedule
If you’ve felt like you just can’t catch up on everything, your schedule could be the problem. Cruze explained that schedules can get complicated as you move through life and have more obligations. This busyness can cost you more money and leave you mentally and physically drained.
Cruze recommended being pickier with your schedule, like she did when she cut back on her kids’ activities. You should prioritize what’s important and leave extra time to account for the unexpected, which could otherwise throw off your day. You might even save money with fewer activities.
Buy Experiences, Not Possessions
Cruze said, “It’s OK to have some stuff, but actually start navigating and prioritizing experiences over stuff, and that will help with the minimalism in your life.”
This means focusing on using your money to have joyful experiences with your loved ones rather than chasing physical things, which often don’t provide lasting satisfaction. Plus, having less stuff can save you money further when you’re not paying for storage units or more organization bins.
Cruze said it’s important to include these experiences in your budget with your other expenses and avoid choosing experiences you can’t afford. Otherwise, you’ll likely make your financial stress worse with added debt.
Live on Less Than You Earn
A recent Northwestern Mutual survey found that around half of U.S. adults expected rising inflation and more slowly growing household incomes in 2025. When your earnings can’t keep up with rising prices, you can end up with stress, debt and financial insecurity.
So you have more financial peace, Cruze advised having margin in your budget, which is money left after covering your needs. While she mentioned cutting expenses like subscriptions and restaurant meals, you can also consider options like working a side hustle or sharing household costs.
The extra money gives you flexibility for when your costs do go up. Plus, you can put some toward goals, emergency expenses or little luxuries.
Declutter Your Space
According to a Talker Research study done for The Container Store, 70% of Americans want to get clutter out of their homes this year.
While having your place look better is nice, Cruze discussed other benefits of decluttering, including having less to clean and think about. She also talked about cleaning out her closet, which provided an opportunity to donate some items, as well as simplify her wardrobe choices.
Cruze explained, “You’re minimalizing not just the space that you’re in but the brain calories it takes to make decisions within those spaces.”
Cut Out Toxic Relationships
While relationships with friends and family are important, some people can destroy your peace and be too demanding, disrespectful or negative. And if they come to you about financial issues, they might even cost you money.
Cruze’s advice for handling toxic people was to set boundaries with them so your life is more peaceful. She explained that doing this requires considering your relationship with the person.
You can try discussing the issue and the limits you’re setting with them. If they don’t respect boundaries, you might need to break from that relationship.
Do an Annual No-Spend Challenge
Cruze recommended doing an annual no-spend challenge, which will help you avoid more clutter, save money and put existing items to use. She discussed different variations, like cutting all nonessential expenses or just a certain category, like dining out. You can pick a specific time period.
Cruze added, “When you do this, it’s amazing to know that not only do you have the discipline for it, but then you also realize how much money you end up spending on stuff that you don’t need, and usually that stuff ends up taking up space in your life.”
Your kids can also get involved and learn financial discipline. Cruze tried a no-spend challenge with hers when they kept spending their chore money.
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