Rachel Cruze Answers 8 Burning Money Questions
Written by
Ashley Donohoe
Edited by
Zuri Anderson
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Whether you have a question about investing, buying a property or managing bills, it’s helpful to hear a financial expert’s take rather than simply relying on advice from random people online.
Financial expert Rachel Cruze is known for appearing on “The Ramsey Show,” where she addresses callers’ questions, and interacting with users on her social media channels.
In a recent video, the Ramsey personality answered eight burning money questions from Instagram users. Even if you don’t have these exact questions, you’ll likely still learn some valuable tips.
How Much Should I Save for Car Repairs or Replacement?
Cruze recommended having a sinking fund in your budget for car repairs and replacement and noted that the specific amount will depend on factors like your car’s mileage, age and history.
While $100 to $200 per month might be enough for potential repairs, expect to save significantly more cash each month for a future car purchase. For example, Kelley Blue Book noted average transaction prices of nearly $26,000 for used and $50,000 for new vehicles in October 2025.
You can look at car listings online to get an idea of what’s realistic for your budget and divide that amount by the number of months until you expect to replace the car. Also, take Cruze’s advice to use a separate savings account for your car money.
How Do I Manage My Money Better?
Cruze responded to a single parent who was juggling multiple expenses and debt and wanted to manage money better. She recommended using a budget, prioritizing needs and wisely using leftover income for wants and goals. Plus, she advised following Dave Ramsey’s 7 Baby Steps to build up emergency savings and reclaim income taken by debt payments.
Cruze added, “If you took that amount of money that you’re spending just on payments and that was not leaving your paycheck, that’s just yours to keep, then suddenly you have so much power and so much margin, which is what we’re shooting for.”
Does Term Life Insurance Make Sense If I’m Single?
If you’re single and unsure whether to get a term life policy, Cruze said it mainly comes down to whether you have dependents who need your income. If so, this type of policy can be wise, especially since the premiums are relatively affordable. Otherwise, you could still get a policy if you’d like to do something nice for loved ones or cover funeral costs.
In any case, Cruze advised against purchasing costlier whole life insurance and encouraged having a will, which is important for estate planning. Also, consider saving money for end-of-life expenses.
Do I Add My Future Husband To My Home’s Deed?
For those who marry after buying a home, Cruze advised having both spouses on the deed and combining finances in general. Keep in mind, though, that this won’t add the other spouse to the mortgage, which usually requires refinancing. Also, understand the legal implications.
“Now, if something were to happen to the marriage and majority of states, that’s going to be seen as a marital asset,” Cruze explained. “It probably will be split anyways, but depending on what state you live in is how specific all of that gets.”
How Do You Figure Out a Wedding Budget?
According to Zola’s First Look Report, a wedding in 2025 comes at an average price of $36,000. However, your city, chosen venue, number of guests and other factors play a role.
Cruze recommended considering your income and financial goals as a couple to decide how much you’re comfortable spending and avoiding taking out debt in the process. She also suggested an engagement ring budget of no more than one to two months’ pay.
Is It Wise To Cash Out Investments for Debt Payoff?
One user asked if they should cash out their non-retirement investments to pay off debt, and Cruze agreed this was the right move. After all, those investments, such as savings bonds and stocks in a brokerage account, may be earning much less than the interest charged on the debt.
However, if they were retirement investments in an IRA or 401(k) plan, early withdrawal penalties would likely make this an unwise decision.
Is It Wise To Buy Condos To Lease Out in a College Town?
Cruze weighed the benefit of easily finding tenants in this situation against the risks, including potentially messy tenants and shorter longevity. While she wasn’t against the user’s idea, Cruze said she’d probably prefer renting to older clientele who might keep things cleaner and stay longer.
She also advised, “I want you paying cash for any real estate that you’re going to be doing when it comes to investing and that kind of thing.”
Which Retirement Account Should a Young Adult Start With?
Cruze recommended a Roth IRA for working young adults, as this account is easy to open and offers the perk of tax-free earnings. It allows for up to $7,000 in contributions if you’re younger than 50, but you can’t exceed certain income requirements, per the IRS. Cruze also suggested contributing up to your employer’s match if you have a 401(k) account.
However, she added that neither is recommended until you’re free of non-mortgage debt and have an emergency fund with three to six months’ worth of expenses.
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