Rachel Cruze: Start These 6 Money Habits To Help Improve Your Finances

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Your lifestyle might affect your financial future in more ways than you realize. Rachel Cruze, a personal finance guru, money expert and Ramsey Solutions personality, recently shared a video offering advice to help improve your finances — with a minimalist approach.

Sure, you’re aware that you should try to pay off debt, build an emergency fund or improve your credit score, but what day-to-day saving and spending habits could you start to boost your financial health? Here, Cruze has highlighted some ways to approach small financial decisions that can be implemented to simplify and improve the bigger picture of your finances.

Simplify Your Schedule

Too much rushing around and being busy affects your money and peace of mind, Cruze said. This isn’t healthy for you, so she advised scheduling your life more intentionally.

Slowing down can help improve your financial situation in a variety of ways. For example, you might have more time to make dinner, meaning you’re spending less on takeout. Or you could slow down when shopping to save another swipe on your credit card. The term “slow shopping” means thinking about each purchase carefully before buying, which can help pad your savings account.

Spend Money on Experiences Over Possessions

Instead of constantly using your money to acquire new possessions — especially those you don’t need — Cruze advised spending it on experiences. She said experiencing things with people you love will make you happier. Keep that in mind the next time you are creating a budget.

“Stuff will not bring you joy,” Cruze said.

Of course, she emphasized that you also need to make sure the experiences you book fit into your budget. She also noted that it’s fine to have some stuff, but just avoid continually buying things, as doing so won’t make you happy.

Live on Less Than What You Make

This one should be obvious, but many people need this reminder when it comes to saving money. Prioritize funding your retirement account as opposed to leaning into lifestyle creep. 

Cruze said having money left over at the end of the month is a peaceful place to be. If you’re having trouble staying on budget, she recommended eliminating costs like dining out, buying expensive coffee, and paying for subscriptions and memberships you’re not using.

It’s estimated that the average American spends more than $1,000 each year on subscription services. So trimming down on these costs alone could help you out quite a bit.

Declutter Your Spaces

If your home is filled with clutter, Cruze suggested getting rid of unwanted items. Creating more physical space in your home will also free up mental space, as you’ll have less to maintain.

“You’re minimizing not just the space that you’re in, but the brain calories it takes to make decisions within those spaces,” she said.

After freeing up more mental space, you’ll have a greater capacity to focus on your finances.

Cut Out Toxic Relationships

“Sometimes we have relationships in our life that can be very draining, and there may be a time and a place to set boundaries,” Cruze said.

Of course, she said this can be more complicated if the person you need space from is a family member or a friend who has been in your life for a long time. Regardless, if you’re able to cut this toxic relationship off or at least distance yourself from the person, she said it will give you some peace.

This can tie into your finances in a variety of ways. For example, you may be channeling the stress of dealing with this person into shopping. Or perhaps they’re taking up so much of your energy that you’ve found yourself ordering takeout more than usual because you’re too tired to cook. Either way, this kind of emotional debt has too high an interest rate.

Do a ‘No-Spend Challenge’ That Works for You

Maybe the secret to financial success isn’t paying more than the minimum monthly payments on your credit card bill, but rather, having no balance at all. You may have done a no-spend challenge in the past, but Cruze said you can tailor it to fit your unique goals.

For example, she said you could challenge yourself to not buy anything you don’t need for a month — focusing solely on food, shelter, utilities and transportation. However, you could also get specific, like choosing not to dine out for an entire month or pledging not to buy shoes for six months.

To set yourself up for success, Cruze advised finding a category or a specific time frame that’s reasonable for you. She said you’ll be amazed at the discipline you’re able to display and the amount of money you’ll save during the experiment.

Caitlyn Moorhead contributed to the reporting for this article.

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