Rachel Cruze Net Worth: Insights and Financial Lessons

May 24, 2024

Understanding and calculating your net worth is a crucial step for anyone looking to take control of their finances and build wealth. Many people either don't realize what net worth is or haven't taken the time to calculate it.

What is Net Worth?

Net worth is the difference between what you own and what you owe. Your assets include everything of value that you own, such as homes, cars, investments, cash in savings/checking accounts, retirement accounts (401k, 403b, Roth IRAs), real estate, vehicles, and valuable personal belongings like jewelry, art, and collector's items. Liabilities, on the other hand, include all your debts such as credit card debt, student loans, mortgages, car loans, and medical bills.

Importance of Knowing Your Net Worth

Knowing your net worth helps you keep track of how well you're doing financially. Simply owning possessions doesn’t always equate to financial success; understanding your net worth reveals your true financial situation. It is an essential part of financial planning, encouraging budgeting, increasing income, living below your means, and sacrificing certain lifestyle choices in order to pay off debts.

Step-by-Step Calculation

  1. Listing Assets: Identify and sum up all your assets, such as home value, retirement accounts, cars, and savings/checking accounts.
  2. Listing Liabilities: Identify and sum up all your liabilities, including credit card debt, student loans, mortgage balance, car loans, and medical bills.
  3. Calculating Net Worth: Subtract your liabilities from your assets. For example, if your assets total $294,000 and your liabilities total $233,000, your net worth would be $61,000.
Step Action
1. Listing Assets Identify and sum up all your assets, including home value, retirement accounts, cars, and savings/checking accounts.
2. Listing Liabilities Identify and sum up all your liabilities, such as credit card debt, student loans, mortgage balance, car loans, and medical bills.
3. Calculating Net Worth Subtract your liabilities from your assets. For example, if your assets total $294,000 and your liabilities total $233,000, your net worth would be $61,000.
"Just getting a book signed from Elena's former babysitter, Rachel Cruze! #SmartMoneySelfie" by AngieSix is licensed under CC BY-ND 2.0. To view a copy of this license, visit https://creativecommons.org/licenses/by-nd/2.0/.

Reflection and Financial Planning

Reflect on how your net worth makes you feel and consider what financial adjustments might be necessary. Are you saving enough for retirement? Do you have an emergency fund? Which debts need attention first? To reduce debt, you might use the debt snowball method, focusing on paying off the smallest debts first.

Building Wealth and Retirement Planning

It’s important to build an emergency fund with 3-6 months of expenses saved. Once your debts (except for mortgage) are paid off, allocate 15% of your income to retirement. Use tools available on financial planning sites to project the savings needed for retirement. Additionally, programs like Financial Peace University can help you eliminate debt and develop good money habits to grow your net worth.

Distinction Between Net Worth and Self-Worth

It’s critical to understand that your net worth should not define your self-worth. Financial success shouldn’t be equated with personal value, as this societal perspective can be emotionally and psychologically harmful.

Cultural Influence on Perception

Current culture often emphasizes material wealth, appearance, and social standing as measures of self-worth. This can lead to unhealthy emotional impacts. Instead, self-worth should be rooted in stable, internal aspects like being a good person and having strong values and principles.

Embracing Contentment

Contentment involves gratitude and humility, recognizing and appreciating what you already have. C.S. Lewis aptly noted, "Humility is not thinking less of yourself, but thinking of yourself less." Gratitude, humility, and generosity are key components that contribute to contentment, focusing on building a 'soul foundation' alongside a financial foundation.

"Can't wait to delve into the #SmartMoneyKids book by Rachel Cruze and Dave Ramsey. Preparing our kids to live life debt free!" by AngieSix is licensed under CC BY-ND 2.0. To view a copy of this license, visit https://creativecommons.org/licenses/by-nd/2.0/.

Actionable Steps for Financial and Personal Growth

Implement financial strategies such as building an emergency fund, clearing debts, and investing wisely. Cultivate personal qualities like gratitude, humility, and generosity to foster a balanced approach to life. Utilize resources like the Contentment Journal to maintain daily practices of gratitude and contentment.

The Richest Personal Finance YouTubers You've Probably Never Heard Of

Personal finance YouTube channels have become a popular medium for financial education, and some content creators are making substantial incomes through their platforms. This section reviews lesser-known but wealthy financial YouTubers and how they generate their income.

Three Richest Lesser-Known Personal Finance YouTubers

1. Rose Han

With an estimated net worth of $2 million and 692,000 YouTube subscribers, Rose Han had a challenging financial start, dealing with $100,000 in student loan debt. She generates income through her YouTube channel, Instagram presence, and personal finance courses.

2. Cherry Tung

Cherry Tung, with a net worth of $1.29 million and 20,700 YouTube subscribers, transitioned from a finance and accounting career to multiple income streams, ultimately retiring at 25. Her income sources include YouTube, Instagram, and various personal finance courses.

3. Justine Nelson

Justine Nelson, with an estimated net worth of $500,000+ and 67,300 YouTube subscribers, paid off $35,000 in student debt through stringent budgeting and earning extra income. She earns from her YouTube channel, Instagram, and personal finance courses.

These YouTubers exemplify how diversifying income streams can lead to significant wealth even with fewer subscribers. This strategy reinforces the financial principles they advocate through their content.

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JJ Sterling
As the co-founder of Urban Splatter and an architecture graduate from Chicago, I thrive on crafting a digital nexus where architectural innovation intersects with boundless digital opportunity. My academic roots in the Windy City's rich architectural tapestry inspire a unique vision for Urban Splatter's journey into the ever-evolving digital frontier of design. Join us as we navigate the exciting confluence of structure, style, and technology.

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