Rachel Cruze: 5 Habits That Can Help Make You a Millionaire

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For many of us, the idea of becoming a millionaire lives in the realm of pure imagination. The real median household income was $80,610 in 2023 — but, of course, that’s before federal taxes are taken out, and if you live in a state that imposes state income taxes, you have to account for those, too. With the cost of living constantly ticking up, it’s tough to carry out all our financial responsibilities (pay mortgage or rent, buy groceries, cover utility bills, etc.) and attain millionaire status. 

But how tough is it, really? It’s not tough to the extent that it’s impossible. In a recent video posted on her YouTube channel, financial expert Rachel Cruze discussed how she became a millionaire — with the help of the following five habits. Each of these habits can be adopted by anyone, no matter your wealth status. 

Live a Debt-Free Life 

The first habit Cruze swears by is living a debt-free life. This one may sound intimidating because the vast majority of Americans are saddled in debt — and that includes high-interest credit card debt which is basically a financial plague. Even if you’re among these folks, you do have ways to live a debt-free life. 

Cruze shared that her parents, Dave and Sharon Ramsey, were able to go debt-free after filing for bankruptcy (this was back in the 1980s, well before Ramsey had launched as a financial guru and influencer). Cruze grew up in a post-bankruptcy household where taking on debt wasn’t even an option. 

“That has forced me to live within my means,” Cruze said. “It’s this idea that ‘we have this much money a month, so what are we going to do with it?’ And when you live a debt-free life … instead of paying a bank, you could be investing that, making you and your family money off of those investments.”

You can start living a debt-free life right away — even if you have debt. You just need to cut yourself off from credit cards and resolve existing debt. Cruze recommended paying off your smallest debts first. In all, this may be a challenging journey (and probably the toughest habit on this list), but you’ve got to start somewhere and this habit is key to building wealth.

Live Below Your Means 

Cruze grew up in a home where living below one’s means was the norm, and she’s continued to embrace this habit throughout her adult life. It’s helped her become a millionaire, and can help you, too. And you have to do it if you want to live a debt-free life. To live below your means, you need to implement a realistic and discerning budget and stick to it through and through.

“Budgeting really helps with your spending to know, OK, we don’t want to spend beyond what we’re making, and we want to spend reasonably in all of these different categories,” Cruze said. “The budget will also help you save up an emergency fund, you’re able to have sinking funds within your budget so you save a little bit every month towards something — even with investing.”

Get Comparison Out of Your Life

Here’s a habit you should embrace regardless of whether you want to build wealth: eliminating the tendency to compare yourself to others. The old saying “comparison is the thief of joy” should be taken seriously. And it can also be the thief of wealth. 

“There is always going to be someone who seems more wealthy than you, more successful than you, more creative than you — fill in the blank,” Cruze said. “You have to understand that you are an individual, and making decisions for you and your life is what’s going to be key.” 

Your budget may look different than your cousin’s. Your debt repayment plan may not match your sister’s. You may find it’s financially smarter to rent rather than buy a home — even if all your close friends own. Don’t think about everybody else when it comes to your money and your wealth-building journey. This belongs to you, not them. 

Invest In the Future 

“Live in the moment!” We hear that an awful lot, and there’s inspiring merit to this sentiment, but not much when it comes to building wealth. Cruze insists that if you want to become a millionaire, you need to make a habit of investing with a future-minded outlook. 

“When you invest, your money makes money, and almost no one with a high-net worth has personally just saved every single dollar to retire with,” Cruze said. “They are doing things like investing their money.”

You don’t need to invest a hundred thousand bucks into the stock market to adopt this habit. Cruze pointed out that even just investing in a Roth IRA and maxing it out annually is a great baseline for building wealth. 

Have a Long-Term Mindset 

This habit is related to the previous one, but Cruze emphasized its importance. Investing and building wealth in general is not an overnight affair; it’s a long-term game of strategy. Don’t give up if you don’t see compound interest rapidly accumulate. That’s not how it works. 

“There’s a level of instant gratification that a lot of us live in, and over time you end up spending so much money on that, it doesn’t even make you happy long term,” Cruze said. 

Ditch the feel-good buys, the impulse purchases, the “just this once” splurges (unless you can comfortably afford them and they’re very infrequent). Unless you win the lottery (you won’t), you won’t instantly become a millionaire unless you make decisions that will satisfy the many needs tomorrow will bring.

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