Rachel Cruze, a Ramsey Personality and the daughter of Dave Ramsey, is a financial expert and best-selling personal finance author in her own right. She has hundreds of thousands of social media followers who rely on her financial expertise and watch her YouTube videos.
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She recently published a video on YouTube called “Why Being Boring Is the Best Way to Build Wealth.” In it, she explains that getting wealthy isn’t about overnight successes or hot stock picks. Rather, it’s about making a series of smart, but somewhat boring, decisions repeatedly over time.
Here are some examples she mentioned in her video of “boring” ways to get wealthy.
Invest in Broad Market Index Funds
Rachel Cruze referenced a video by JC Rodriguez on Instagram where he interviewed a couple who said they retired at 55 by taking advantage of work-sponsored retirement plans and investing in low-cost exchange-traded funds (ETFs) and index funds. Cruze said the couple was the perfect example of people taking the “boring” path, living within their means, and living a debt-free life.
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Buy Used Cars
The couple Rodriguez interviewed said they always bought used cars, even when they were millionaires and completely debt-free. Cruze fully supports this, as the Ramsey Solutions team also teaches their followers to buy used cars whenever possible.
The reason is new cars depreciate in value 20% or more during the first year of ownership, according to Kelly Blue Book. So, buying a car that is one to two years old can help you save money on a car purchase.
Have an Emergency Fund
Cruze said another important step to building wealth is to have a three- to six-month emergency fund in a high-yield savings account. Having an emergency fund can help people when the unexpected happens, whether that includes a trip to the ER or a job loss.
Having money set aside also prevents people from getting into high-interest credit card debt that can be very difficult to escape.
Keep It Basic
Throughout her video, Cruze reminds her viewers that building real wealth is more basic than people realize. These simple steps work over time, Cruze said, and the result is quiet millionaires.
Ultimately, she stated being wealthy doesn’t have to be flashy. It’s about being steady, not giving in to emotional spending and not needing to have the latest or greatest of everything. Cruze explains that having steady money principles and continuing to honor them over time can build wealth and allow people to be incredibly generous later in life.
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This article originally appeared on GOBankingRates.com: The Single Best Way To Build Wealth, According to Rachel Cruze
