Rachel Cruze: 3 Wealth-Building Hacks Anyone Can Use
Written by
Ashleigh Ray, AI Editor
Edited by
Ashleigh Ray
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When it comes to building wealth, it’s important to treat the process like a marathon and not a sprint. While we might all dream of overnight riches, the reality is that sustainable wealth is built over time, through wise decisions and consistent effort.
In a recent video on her YouTube channel, money expert, Rachel Cruze, outlined three long-term strategies anyone can use to build wealth, because as she so aptly puts it, “slow and steady wins the race” when it comes to money management.
If you’re looking to increase your net worth, keep reading as we dive deeper into just how you can use Cruze’s “wealth-building hacks” to improve your finances.
Leverage Your Income
According to Cruze, your income is your greatest asset and your most valuable tool in wealth building.
The goal? Get your income to work for you, and not the other way around. Here’s how Cruze suggests you do it:
- Raise or Promotion. If you’re content at your job, it might be time to discuss your future with your leader. Letting your intentions be known can pave the way for your financial growth within your current role.
- Career Pivot. Not feeling fulfilled or adequately compensated? Research and networking could open doors to opportunities that are not only more satisfying but also more lucrative.
- Side Hustle. If your primary income isn’t cutting it, consider temporary side gigs. From food delivery to freelance photography, extra income streams can significantly impact your financial goals.
Remember, increasing your income is a game-changer, but beware of lifestyle creep. Budgeting apps like EveryDollar can help you allocate that extra cash wisely so you’re less tempted to spend it.
Invest Wisely
Investing is your ticket to long-term wealth, especially for retirement.
Here’s what Cruze recommends: ensure you’re debt-free (except for your mortgage) and have a safety net (3-6 months of expenses saved) before diving in. Then, aim to invest 15% of your income. This disciplined approach sets you up for enjoying the magic of compound interest over time.
Consider diversifying your investments across 401(k)s, 403(b)s and Roth IRAs to maximize your retirement savings. The sooner you start, the better, thanks to compound interest.
And for a bit of homework, check out investing calculators to get a sense of how much you should be stashing away monthly.
Pay Off Your Mortgage Early
Cruze also noted a wealth-building strategy that often flies under the radar: paying off your mortgage sooner than later. Your home is likely your biggest monthly expense, so imagine the freedom and financial flexibility you’d gain without that mortgage payment.
Accelerating your mortgage payoff not only boosts your net worth, but it also unlocks a level of financial freedom that’s hard to beat. Many have found that aiming to pay off their mortgage within a decade is an achievable and transformative goal. Tools like mortgage payoff calculators can help you map out a plan tailored to your circumstances.
The Takeaway
By sharing these insights, Rachel Cruze details a path toward financial independence that’s built on prudent planning, hard work and smart decisions.
Your journey to wealth doesn’t have to be complex. By focusing on boosting your income, investing with intention and eliminating your biggest debts, you’re laying the groundwork for a future where you’re not only surviving financially, but thriving.
Remember, the key to building wealth is to take control of your money and craft a life you love — one smart financial decision at a time.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.
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