7 Things That Are Keeping You Broke

[Music] hey guys welcome to the rachel cruz show all right doing this for almost 12 years now there is a theme that i do hear from people and it's kind of this idea of like rachel i'm trying i'm trying and i'm doing what i can but i feel like i'm not making progress because money can be a really tough subject in your life and so whether it's life circumstances that are happening whether it's choices that you've made that are not catching up with you it doesn't matter like whatever is going on around you money can be difficult and you may be like i just feel broke like i feel like i'm living paycheck to paycheck i'm not getting traction what do i do well in this video in this episode i want to walk through reasons that maybe that's happening and if something kind of oh maybe that is what's going on in my life this is an opportunity to change it so i'm hoping i can point some things out that might be going on in your life so that you can change not just your mindset but also your money habits so you don't feel like your entire life you're running and running this race and you're getting nowhere so number one you might have a mindset problem what i mean by this is you have the wrong mindset maybe you have believed because of people around you or situation it's just that like well i'm just never gonna get ahead whatever i do it's not gonna matter my parents were like this i you know i'm gonna be like this my friends are like this that you just really don't even have the belief and that mindset that stays with you like that for years and years and decades for some people then that's gonna be the result then you are just gonna stay like that but if you flip your mindset and say okay maybe i actually have power over my money maybe i actually can say no to a purchase that i would have normally bought but i'm gonna i'm gonna say no to that i'm gonna save that money instead maybe i actually i'm gonna start giving to people who are struggling and find the joy in that maybe i am gonna put the blinders on and not compare my life with everyone else's because it seems like everything that everyone else is doing is taking my money because i keep spending it maybe i can set a financial goal and actually accomplish it like maybe i can do these things and you guys guess what you can you can do these things but a lot of reasons in our life can make us believe that we can't and you can even look back i i even like to say in the household you grew up in like think back to your parents is there anything there of well how the the habits your parents had with money or maybe how they talked about money uh their belief system around about money maybe you've adopted that subconsciously if it's negative and it's become your way of life and you have to kind of go back and and undo some of those lessons that you learned by putting in new informations whether it's listening to uh you know the rachel cruz podcast maybe it's listening to the ramsay show or reading books like the total money makeover know yourself know your money or dreaming about the future or just believing that it is possible changing that mindset you guys is so so key number two lifestyle inflation so this happens when maybe you get a little bump of income because of a raise or bonus and you take your lifestyle right up with it you're like okay now that we're making this much then we can afford some more payments we can afford to take on more debt we can afford a bigger house we can keep acquiring the stuff and if you let's just take the average income in america was around 65 000 and you were you were living up to that right and maybe even beyond that if you had debt and then you maybe bump up to seventy thousand like well now we have seventy thousand so now we can bump up our lifestyle five thousand more and just keep keep going going going going no no no no no you can't do that okay so what you wanna do is you wanna fix what's going on and instead of increasing your lifestyle take some extra money that you have and actually use it for your good and that's paying off debt or an emergency fund all these things versus saying oh we made more money so again let's spend more on vacation let's just spend more and let our kids be in 80 000 things that cost billions of dollars like no don't do that okay focus on how you can use that extra income to better your life all right number three that you're not intentional with your time and money so it doesn't matter what your income is if your spending is completely out of control so the income is not always the problem sometimes it's the spending and that we are not intentional and really the intentionality is the budget and the budget's saying hey here's where you can spend in each category per month to reach your goals to live below your means all of this you guys i mean it is so so key i understand it's easier just to kind of wing it and yeah just buy whatever you want at the grocery store go online and shop and not worry go on vacation and just do whatever and charge it all on credit cards and it's not a big deal you end up over spending and that you don't need to so again the budget is so so key john maxwell says that a budget is simply telling your money where to go instead of wondering where it went and i love that is that a budget it does not limit your freedom your budget gives you freedom okay so that's the intentionality on your money side let's talk about intentionality around your time so think about what do you do on the weekends what are you doing at night if you get home from work is it that you're just i don't know watching tv and on social media and just numbing out we all do that every now and then i totally get it maybe you can use that time especially depending on where you are financially to actually use it to better your life whether that is maybe looking through your bank statements and cutting out stuff that you don't need maybe it's decluttering your house and selling stuff that you're not using maybe it is uh going and getting a new job maybe at night a part-time job maybe it's using my meal planner and grocery guide to save you money on groceries you can get that at ramseysolutions.com meal planner and that you're intentional with your grocery shopping uh you know i don't care what it is so making sure that you are intentional with your time is going to help you when it comes to your money number four you're not saving so only four in ten americans had savings to use to pay for an unexpected emergency last year according to bankrate four out of ten you guys i mean 60 of people had something come up that they didn't have the money for this is why it is so key to have an emergency fund the safety net between you and life because if you are in that cycle just living paycheck to paycheck you keep doing it you're not going to get out of it okay so that living the paycheck yes you can do what we've talked about already shifting your mindset looking to make it some extra money living on a budget and cutting out expenses you don't need you know all of that are really big key pieces but the emergency fund is that first step to really say hey here's where you can put all the intentionality and actually have a safety net so that when something does come up you're not going deeper into debt for those emergencies you actually have the money there so you can save for that that starter thousand dollar emergency fund once you're out of debt you can save up your three to six months worth of expenses emergency funds you can even think about the future and think okay how am i going to save for retirement once i get there like all of these things are so so key but savings has to be part of this this mindset shift so that you don't stay broke number five you're still using credit cards so we have a thing we say around our around ramsey we're like you can't be ramsey-ish right it's like well i'm kind of doing it but i'm kind of doing my own thing i'm kind of over here listen the fastest way to get to point a to point b we have figured out that's why we teach the ramsey baby steps i always say don't use debt and to be able to really get in control of your money because when you are using credit cards especially studies show you end up spending more the average family has around 16 000 in credit card debt okay so think about the interest on top of that and you end up it's kind of this enabler that it you spend the money that you don't have and you can justify it you don't really even feel it emotionally but it's not setting you up to win long term so getting on a plan covering your bases with your budget so that you have money for your bills and that the credit card is not going to be your safety net okay so getting rid of your credit card so so important to this process number six you haven't learned delayed gratification and this is when it comes to buying and shopping i understand it feels good right if you're stressed uh because of life yeah it feels good to buy something because oh i don't know the dopamine hits and the adrenaline goes and it's like oh that was fun that was enjoyable i totally get it okay but when you live in that you're going to stay broke you have to be able to have the mindset to say i'm gonna say no to stuff that i want and i tell people to add to your cart just add your cart you know do a little shopping add it to your cart and then don't buy it don't buy it just get rid of it because usually it's stuff that you just want in the moment that you don't really want long term but if there is stuff that you think no i really do want this write it down and wait one month look up in a month and say okay do i still really want x y and z do i still need x y and z and it's amazing what happens when you actually delay gratification all right last but not least number seven you haven't set financial goals this is a big part of winning with money zig ziglar always says if you aim at nothing you'll hit it every time you got to aim at something you got to have a goal for your money again whether it's hey i'm going to just save a hundred dollars this month or maybe i'm going to try to get my emergency fund in 30 days or less like i don't care what it is but you have a goal we want to pay off debt i want to have x amount at retirement have goals that you are shooting for so here's some ways to set goals write them down it's amazing writing it down and just having a sheet of paper in your car or at your desk at work or on your bathroom mirror of what those goals are are so so key make them specific know exactly what you are shooting for so the idea of saying i just want to be better with money it's not going to work but if you say i'm going to pay off 10 000 of my debt this year then that is exact it's not vague you know exactly what it is and you want to be measurable so if you want to say okay i want to pay 10 dollars toward my debt next year that means i i'm gonna have to have 835 extra dollars every month just to put towards my debt or 210 dollars a week breaking it down into these bite-sized chunks is going to help you see these many goals throughout the process and how you can actually hit your goal and also give yourself a deadline don't just say someday i would love for this to happen actually have a finish line that you are working towards and when you are setting goals make them for you make it a goal that you want so the idea that your sister and brother-in-law are getting out of debt it sounds kind of cool it's like okay but if you don't want that for you you're not gonna do it like you have to find the why in you to be able to say these are the goals that i want to hit so if you're ready to do this you guys it is possible it's possible to change the way you view and you handle your money if you do not like the result of where you are today financially you have to change change what you've been doing change the way you've been thinking about money and ultimately that will help you take control of your money and create a life you love

Channel: The Rachel Cruze Show

Views: 46,475

Keywords: the rachel cruze show, the rachel cruze show youtube, money, budget, how to save money, budgeting, personal finance, rachel cruze, save money, how to budget, debt, saving money, save, how to make money, ramsey, finance, how to get out of debt, debt free, 7 Things That Are Keeping You Broke

Id: 2HICwnv2bOg

Length: 12min 0sec (720 seconds)

Published: Fri Jan 21 2022