Rachel Cruze Reacts to 5 2025 Money Predictions — and What They Could Mean for Your Wallet

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Whether you’re considering what to invest in, deciding on a big purchase or just examining your financial stability, understanding what might lie ahead for the economy and financial markets this year can help you plan to make better decisions for your wallet. 

In a recent YouTube video, money expert and author Rachel Cruze reacted to five big money predictions from experts for 2025. Here’s what they might mean for your finances, along with some helpful tips from Cruze.

AI Stock Price Increases

Since artificial intelligence (AI) has grabbed the attention of businesses and even the government, investing in related tech companies can seem appealing. Cruze discussed how some experts predict that AI companies will see higher earning expectations and stock prices this year, as reported by Forbes.

However, while AI has some promising benefits, think twice before betting on the next new AI company or allocating a big portion of your portfolio to AI stocks. “You also want to make sure when you’re putting your money into anything — whether it’s a new industry or a new company — always be a little bit cautious,” Cruze said.

Diversifying your portfolio can help you benefit from potential AI stock price jumps without taking on too much risk. Cruze also advised against having too much invested in one company’s stock.

AI-Driven Personal Finance Tools

Cruze discussed another Forbes article that discussed more AI tools coming out that can help with managing personal finances. Some existing AI-powered apps on the market include Magnify for investing and Cleo for budgeting and money advice.

When used properly, these tools might help your wallet by identifying avoidable expenses, helping you plan to pay off debt and suggesting good investments. But Cruze explained that you’ll still need to be involved with your money and not expect these apps to fix your finances.

“My fear is a little bit that if AI takes over so much, it’s going to be making decisions almost for you without you being the decision maker,” Cruze said.

Lower Mortgage Rates

According to recent Freddie Mac data, the national average 30-year fixed-rate mortgage rate sits at 6.87%. With the Federal Reserve likely to cut rates again this year, several financial institutions and agencies expect some relief for mortgage borrowers in 2025. 

While Cruze discussed predictions of mortgage rates getting as low as 5.6% by the end of 2025, more recent numbers suggest less of a drastic drop. For example, Fannie Mae’s January 2025 report predicted a 6.5% mortgage rate at the end of 2025.

Cruze explained that elevated rates shouldn’t put you off from buying a house this year if you’ve got your finances in order since refinancing later is an option. She recommended an emergency fund, a 5% minimum down payment and a mortgage payment that doesn’t take up more than 25% of your monthly after-tax earnings. 

Rising Gold Prices

Cruze discussed the Goldman Sachs’ prediction of a troy ounce of gold reaching $3,000 in 2025. Such increases often happen when people are scared about the economy and view the precious metal as an alternative for financial protection in bad times. 

These rising prices could be good news for your wallet if you have some gold to sell for a profit. But if you’re thinking about purchasing gold, be cautious if you expect the commodity to make you rich or save the day.

Cruze explained that the long-term return on investment isn’t so great mathematically and that other items, like basic supplies, would be more useful in a real economic disaster. 

Stock Market Growth

Cruze mentioned that stock market predictions this year vary wildly. In fact, Forbes stated that 2025 stock market growth predictions range from a 5% drop to a nearly 20% increase. Plus, tariffs, trade tensions and the prospect of fewer Federal Reserve rate cuts have increased unpredictability for investors. 

However, such ups and downs are normal for the stock market. So think carefully before selling investments or cutting your retirement plan contributions out of fear of what’s happening in 2025. 

“When it comes to investing, you guys, it is the long game. We are not looking at a singular calendar year when it comes to investing,” Cruze said.

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