The Rachel Cruze Show Common Things People Overlook When Trying to Build Wealth
Oct 31, 2025
Discover the overlooked pitfalls in wealth-building! Learn why it's wiser to pay down debt than to stash large savings, and where to safely keep your emergency fund. Find out the best way to manage house payments and avoid lifestyle creep with every raise. Hear why credit cards can derail your budget and the importance of investing at least 15% for retirement. Plus, embrace generosity as a financial habit to foster a healthier relationship with money. Unlock the secrets to financial peace and control!
AI Snips
Chapters
Transcript
Episode notes
Don’t Let Savings Delay Debt Payoff
- If you have savings but still carry debt, prioritize paying down debt while keeping a $1,000 starter emergency fund.
- Pause the debt snowball to use emergency funds when necessary rather than hoarding large savings that slow progress.
Separate Your Emergency Savings Account
- Move your emergency fund out of your regular checking into a separate high-yield savings account.
- Keep access (a card) but add friction so you avoid emotionally spending the emergency money.
Keep Mortgage Under 25% Of Income
- Keep your mortgage payment at or below 25% of your monthly income to preserve budget margin.
- Delay buying or adjust expectations to avoid a house payment that crowds out investing, giving, and living expenses.