It’s little wonder Rachel Cruze is a financial educator. Her dad is Dave Ramsey, a best-selling personal finance expert and host of a wildly popular radio show, whose financial recovery story is well-known.
Ramsey says in his mid-20s his net worth of more than $1 million, but he also had millions in debt. That debt caused him to lose everything and he filed for bankruptcy. Ramsey and his family recovered through a commitment to living a frugal, no-debt life. His experiences helped him develop his formula for smart money management, which has been shared in classes and coaching sessions across the nation.
Cruze, a married mom of one, is now successful in her own right as a financial wellness speaker and New York Times best-selling author. Her most recent book is Love Your Life, Not Theirs by Rachel Cruze: 7 Money Habits for Living the Life You Want.
In this episode, Cruze and I discuss the essential elements for a financially sound future and potential money pitfalls for moms. Some of the issues we discuss include:
- Instagram and Facebook pressures. Beautifully coiffed children in expensive designer clothes in a granite-tricked-out kitchen, or families giddily frolicking on Caribbean beaches during winter break — these are not real depictions of people’s lives, Cruze says. But they can have a real impact on what we think is “normal” and how we spend. “When we play the comparison game, we’ve entered into a game we’ll never win,” Cruze writes.
- #blessed vs. Blessed. Cruze pokes fun (and holes) in the trend of highlighting luxury shopping and travel and then excusing it by adding “#blessed” to the post. This, she says, is a symptom of warped ideas about money and entitlement — notions that easily lead to debt and a general lack of appreciation for actual blessings (no hashtag).
- Saying no to debt. “Debt allows you to have whatever you want immediately,” says Cruze. “But if you have debt, you don’t get to decide what to do with your money.” Align your spending with your values, she says.
- Picking the right partner. Cruze emphasizes the importance of married couples being financially compatible. When dating, don’t avoid the topic of money, she says. If you’re dating someone seriously, speak openly about finances early and often. Make sure you share common goals around budgeting, saving, and planning.
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