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In arecent videoon her YouTube channel, Cruze broke down six of the most common money misconceptions circulating today.
Heres her take on each one, includingwhy its false and how the truth can set you free.
Budgeting Means Not Having Fun
People tend to associate budgets with discipline and self-denial.
Either you deny yourself the pleasures of life, or you indulge and feel guilty.
Cruze believes this mindset misses the point of budgeting.
She believes a budget permits you to spend money when and where it makes sense.
When youve allocated your funds for each category, you could let that money go without guilt.
She encourages people to monitor their budgets throughout the month and adjust them as necessary.
You Need Debt To Survive
Its easy to believe that everyone is in debt.
The median debt balance per household is $80,000.
Most people are in debt and most people are struggling.
According to arecent survey, 65% of middle-class Americans dont see a way out of that struggle.
Cruze said thats no coincidence.
Debt is definitely normal, Cruze admitted, but its not inevitable.
Thats just not the truth, Cruze said.
You are who you are until you decide to change, and thats self-work.
That has nothing to do with what you buy.
For Cruze, the antidote is contentment.
Cruze believes that society needs to break this pattern.
Were made to live life with other people, she said, and money habits are no exception.
She encourages everyone to have at least one person they can talk openly with about personal finances.
That person doesnt have to be apartner or close family member.
Youll Start Saving After …
Cruze knows the stories people tell themselves.
Theyll start saving after something, like the holiday season or abig family vacation.
Many people dont even have a milestone, telling themselves theyll start saving somewhere down the road.
But down the road comes faster than you think and often brings financial burdens.
Onestudyof older Americans revealed that 58% regret not saving more and earlier.
You cant start saving yesterday, but you’ve got the option to start today.
This process is called compounding, and its one of the best arguments for along-term savings habit.
Giving Is an Extra
For Cruze, giving is an important part of a healthy budget.
When you give, you avoid tunnel vision and maintain connections with others.
You see money as a way to create the world you want even if its on a small scale.
Then, as you earn more, you might give more.
Its all about adjusting and doing what works for you according to your values and what you have.
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