Money Motivator: Rachel Cruze’s Helpful Tips on Managing Money

Photograph from Ramsey Solutions

By Andrea Bosco Stehle | Photograph from Ramsey Solutions

Growing up as finance guru Dave Ramsey’s daughter, Rachel Cruze sought out to educate others. A seasoned communicator, she travels the country helping Americans learn the proper ways to handle money and stay out of debt. I first met Cruze in Orlando, Fla., at the dōTERRA East Leadership Retreat, where she presented tips from her New York Times best-selling book, “Smart Money Smart Kids,” which she co-authored with her father. Later, we caught up on her very tactical and realistic approach:

What are your steps for eliminating debt?

The very first thing you want to do is to set up a starter emergency fund of $1,000. That’s your safety net between you and life. List out all of your debts, smallest to largest, regardless of the interest rate and leaving out your mortgage; pay minimum payments on everything; and pay off the smallest debt first. Move on to the second smallest debt. This is really the most efficient and effective way to pay off debt, and it will require some sacrifice.

How does social media cause excessive spending among young people?

You’re constantly seeing what you don’t have and what everyone else has. It causes people to spend money that they don’t have, deepening debt.

On the bright side, how has social media connected you to your readers?

Social media is a great thing. I don’t want to blame social media; I think it can be the vehicle which takes us down the
road of comparisons. It’s very positive, especially if you’re starting a business — it’s free marketing! I’m able to hear questions that people have and I get to encourage people. It’s exciting to have that close connection with people that you would not have otherwise.

What is your best money advice for millennials?

Be intentional with your money. So many people live their lives and have no clue where their money is going. I really do believe being on a budget is key. John Maxwell says that a budget is simply telling your money where to go instead of wondering where it went. I love that quote because it’s so true. A written budget before the month begins will help you with that.

Ultimately, what do you hope readers will gain from your book?

Overall, really seeing people’s family trees changed, where the mistakes parents may have made with money don’t have to be passed down to their children. For parents to gain the understanding of, ‘OK, I can teach my kids how money works,’ and that it doesn’t have to be complicated or intimidating. As parents teach their kids how money works, I believe it really does change the family tree.

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Rachel Cruze,

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