Rachel Cruze: 3 Ways You Can Put Money Back Into Your Account Each Month
Written by
Yaël Bizouati-Kennedy
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Zuri Anderson
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Personal finance expert Rachel Cruze recently said that “adulting is hard” when it comes to handling money and savings. Yet, she added that implementing a few simple changes in the way you manage your finances can help you put money back into your account each month.
In a recent Instagram video, Cruze laid out three simple, actionable steps that can save you money on a monthly basis. Here are the ways you can put back money into your account each month, according to her.
The money expert also revealed how to finish the year financially strong.
Switch to Term Life Insurance from Whole Life Insurance
As Cruze noted, if you have life insurance, “it’s 17 times more expensive than term life insurance.”
“Make that change,” she recommended in the video.
These two types of insurance vary wildly in prices because of their different coverage periods. As Experian explained, term life insurance generally covers you between one and 30 years.
“Generally, premiums remain the same throughout the policy’s term, and the policy pays a death benefit to your beneficiaries if you die during the covered term,” according to Experian.
Now, whole life insurance — as the name implies — covers you for your entire life.
“Your policy will pay out a death benefit if you die at any point up to age 100,” according to Experian.
Another factor to consider is that term life insurance “has no cash value like a whole life insurance policy,” personal finance expert George Kamel wrote in a Ramsey Solutions article.
“And that’s actually what makes term life insurance a much better deal than whole life,” he added, echoing Cruze’s sentiment. “You’re only paying for life insurance — not some wonky cash value account that grows slowly (like over your whole life).”
Adjust Your Tax Withholdings
As Cruze noted, if you received a significant tax refund last year, that could be a sign that “much of your paycheck was leaving each week.”
“Make sure to look at your tax refund. If you got a big one last year, that means the government is holding your money as we speak. That should be in your paycheck, so adjust your withholding,” said Cruze.
Dave Ramsey also reiterated this tip, including in a post on X (formerly Twitter), saying that going forward, all you need to do “is adjust your withholding with your employer on your W-4 form.”
“They can easily help you do that, so you can keep more of YOUR money,” said Ramsey.
And as Kamel explained in a Ramsey Solutions article, the goal should be to have a refund as low as possible, “because who wants to loan the government their money for free?”
“We want that money working for you,” he said.
For instance, in 2023, the average refund amount was $2,812, according to the Internal Revenue Service (IRS).
In turn, as Kamel further argued, if you are paid twice a month and receive that average refund, it could translate into an additional $118 in every paycheck.
“Think of what you could do with $236 or more each month!” he added.
Shop Your Insurances
According to Cruze, a lot of people buy insurance policies “and forget it.” That’s why she recommended doing research and shopping around for the best deals for all your insurance policies.
“Shop your insurance, all your insurances, because it’s a great place where you can save some money. Again, people buy a policy, forget about it, pay it year after year, so go and shop it,” she said.
A report from Jerry found that only 38% of all respondents said they shopped around for car insurance in 2023, yet 60% of people who did end up finding a lower price on car insurance and hence saved money.
The same goes for other types of insurance, such as homeowners policies.
For instance, Matt Frankel, CFP, wrote in a Motley Fool article that his previous homeowners insurance cost him $4,230. After shopping around, he found one that had “the exact same level of coverage and deductibles, and has a premium of $3,189.”
“That’s an annual savings of $1,041, which is 25% less than my old premium,” he said.
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