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Heres what she said.
Your Outstanding Debt
Debt is one of the biggest obstacles to building wealth.
Thats how impactful debt is on your ability to build wealth.
Start by listing all of your outstanding debt balances so you know exactly how much you owe.
Youre working to bring this total down to zero.
Cruze recommends the snowball method for paying off your debt.
In this method, you listeach debt balancefrom smallest to largest, regardless of interest rate.
Your Savings Balance
To build wealth, you also need savings.
before you get going paying off your debt, Cruze recommends building anemergency fundof $1,000.
So, building a $1,000 emergency fund would put you ahead while giving you some peace of mind.
Track your savings balance over time to monitor your progress toward securing your financial future.
As Cruze explained, Your income is your largest wealth-building tool.
You need a reliable income to reach any of your financial goals.
The first step is to figure out exactly how much money you earn every month after taxes.
Dont just include the money you make from your primary job.
Any income you earn from side hustles or investments should also be part of this number.
Each additional dollar you bring in beyond your expenses contributes to your wealth-building goal.
The Amount Youre Investing
You also need to monitor how much of your income youre investing.
The more you invest, the faster youll grow your wealth, thanks to the power of compounding returns.
Your money starts to work for you, growing even when you sleep.
If youre already investing, calculate how much youre investing as a percentage of your income.
Ideally, youll work toward increasing your investments to reach a higher percentage of your income.
Invest what you’re free to now and attempt to increase those investment contributions over time.
Your Housing Costs
The final financial number Cruze recommends tracking is your housing costs.
Whether you rent or own your home, your housing bill is likely one of your biggest monthly expenses.
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