Rachel Cruze: 4 Ways a Budget Gives You the Freedom to Spend
Written by
Heather Altamirano
Edited by
Maria Concepcion
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Today, Rachel Cruze is a popular finance expert and two-time #1 national bestselling author, but she wasn’t always great with sticking to a budget.
Cruze defines herself as a “natural spender” and “natural free spirit” who doesn’t like living by a budget. Although her dad, Dave Ramsey, a prominent financial advisor, has helped people get on track with their money for decades, Cruze wasn’t always aligned with his financial beliefs regarding budgeting.
“For me, it felt like every time the word budget was brought up, it was in a negative way, right,” she said in a recent Instagram post. “We can’t go on vacation; we’re on a budget. We can’t go out to eat; we’re on a budget. We can’t go shopping; we’re on a budget.”
Her dad taught Cruze how to avoid debt, manage money early on, and understand the importance of working hard. However, it took her much longer to grasp the value of creating a budget.
“I didn’t always love budgeting,” she wrote in her Instagram post. “The word budget sounded like a buzzkill. I used to think if you’re on a budget, it means you can’t spend any money, right? Wrong!”
Cruze initially thought “people on budgets aren’t fun people,” but eventually learned that budgeting “doesn’t limit your freedom; it gives you freedom.”
More Americans are also learning that budgeting is an effective tool for managing their finances. According to a recent Debt.com survey, 90% of the 1,000 participants budgeted, and 89% said budgeting helped them stay out of debt or get out of debt.
Here are four ways a budget gives you the freedom to spend, per Cruze. Also check out which age group is spending the most when it comes to monthly expenses.
You Know Where to Spend Your Money
Without a proper budget, you’re estimating how much you can spend and where your money goes.
“A budget actually gives you the freedom to spend because you’ve already decided ahead of time exactly how you’re going to use your money,” Cruze wrote. “It becomes fun when you can look forward to things without stressing if you have enough to cover the cost!”
You Often Find Extra Money to Spend When Budgeting
Cruze used the EveryDollar app to track her spending and explained in a blog post how it’s helpful.
“Budgeting makes you feel like you got a raise,” she wrote. “I mean, the average EveryDollar user says they find $332 in their first month using this budgeting tool. That’s money that was getting spent on who knows what before — but now you get to decide where it goes.”
Spend Without Guilt
When trying to save money or get out of debt, some people feel remorse about spending money other than paying bills or building up their savings accounts, but Cruze stated that budgeting helps eliminate guilt.
“If you’re the type who feels bad when you spend money, you can shop without guilt, knowing that expense is already in the budget,” she wrote in her post. “You’re just following the plan!”
Budgeting Helps Reach Your Goals
Tackling debt and other financial goals is easier when you budget, Cruze said.
“No matter what money goal you’re working on — whether that’s getting out of debt, saving for retirement, saving for a vacation, or just trying to keep your grocery bill from getting out of hand — budgeting is how you get there.
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