Rachel Cruze, Dave Ramsey’s daughter, grew up learning how money works. She has a heart to empower this generation to save, give and live intentionally.
Rachel Cruze recently posted a list a strongly agree with: Twenty-five things you should know before 25, but I think everyone should know this list, so I am sharing it with you. You can find more financial tips from Ms. Cruze at her website: www.rachelcruze.com/
1. Credit cards will make you broke. Two words: stay away!
2. Car payments are not a way of life. You can pay for a nice used car with cash and avoid the average $500/month car payment.
3. Budgeting is your best friend. It is simple: people who make a plan for their money end up winning with money.
4. The Joneses are broke. Do not try to keep up with the Joneses. They might look nice, but they are in debt up to their eyeballs and one emergency away from financial disaster.
5. It’s okay to say no. If a friend asks you to go on a trip or out to dinner, and you do not have the money, there is nothing wrong with saying no. Your friends will understand. In addition, if they do not, you should find new friends!
6. Your parents will eventually get old. That means you will need to have “the conversation” with them about wills and estates before it is too late.
7. You can be a student without a loan. Part-time jobs, scholarships, grants, more affordable schools—there are many ways to pay for college without debt.
8. Retirement matters as much now as it does 30 years from now. Start saving for retirement as early as you can, put compound interest to work for you.
9. Wealth is not evil. Many people these days like to criticize rich people, but wealth is not evil. The Bible never condemns money, only the “love of money.”
10. Giving is one of the best things you can do with money. The more you have, the more you can give away to bless others.
11. The tortoise beats the hare every time. When it comes to money, patience will always pay off. Save and pay cash for stuff instead of using debt to “buy” them instantly.
12. Your first job might not be your dream job. See #11. Learn, get experience and build your career. The corner office might not come right away.
13. Your first house might not be your dream house. Remember, your parents took 20 years to get their house. Do not expect that level of house right away.
14. You should only get one type of mortgage: a 15-year, fixed-rate. Your monthly payment should be no more than 25% of your take-home pay. Stay away from 30-year mortgages and ARMs no matter what!
15. Marriage is much more difficult when you disagree with your spouse about money. Money fights are going to happen, but it is extremely important that you agree on the basics of money—like budgeting, no debt and saving.
16. Be happy with what you have. One word: contentment.
17. You will not get out of debt until you get mad. To get out of debt, you have to get sick and tired of being in debt. If you sorta, kinda want to get out of debt, you will never make it.
18. Personal finance is 80% behavior and only 20% head knowledge. It is all about behavior change. We all know if we are being irresponsible with money. However, many times, we go ahead and make bad choices anyway. That has to change!
19. Get-rich-quick schemes are good for one thing: making sure, you get broke quick. There is no magic pill to get rich. It takes time and hard work.
20. Your parents were not perfect, but they probably knew more than you gave them credit for. The older you get, the smarter your parents get.
21. Never, trust a payday lender. Never. Payday lenders are the worst. The worst! They will charge you 300% interest with a smile.
22. Don’t travel the world unless you can pay for it. Moreover, by “pay for it,” I mean do not use credit!
23. It is okay to have stuff. Just do not let your stuff have you. Do not mess up your priorities and let materialism get the best of you.
24. Your parents’ house is not a bed and breakfast. Move out! By the time you are 25; you should be long gone from your parents’ house and out on your own. Sure, you might have transitional periods where you stay for a few weeks, but do not become a boomerang kid.
25. Eating out every night is a really quick way to go broke. You can $10 yourself to the poorhouse if you are not careful. The occasional night out is fine, but do not make it a habit, especially if you are already in debt.
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