5 Money Lies That Never Build Wealth, According to Rachel Cruze
If you're feeling behind financially, you might just be exactly alongside everyone else.
The Charles Schwab Modern Wealth 2025 survey found that 39% of Americans believed they'd never become wealthy and 27% felt that financial comfort was also out of reach. Building wealth has become harder due to inflation, rising debt levels, employment struggles and other issues. Additionally, some Americans might struggle with money management and wealth building due to their mindset.
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In a YouTube video, financial expert Rachel Cruze debunked these five money lies that won't help you build wealth. Find out if you believe any of these common misconceptions and take productive steps to improve your finances.
If I Work Hard Enough, I Can Have It All
There's a popular belief that a high income and hard work will make everything great for your finances and life. However, a 2025 Bank of America Institute report indicated that nearly 20% of high-income households were still living paycheck to paycheck.
Cruze said you also need to know how to use your hard-earned money wisely. This is where discipline and character play an important role.
If you're someone who doesn't budget and blows every paycheck, you'll have a hard time reaching your goals regardless of how much more you earn. On the other hand, a disciplined person with a modest income may find that their hard work pays off better.
Once I Can Afford ___, I'll Be Happy
Whether you have your eye on a nice car, a fancy house or a big promotion, you might base your happiness on having or achieving these things.
Cruze said this is a mistake since it becomes a cycle that doesn't lead to long-term satisfaction. Even if you get that one thing, you'll likely find it's not enough or fulfilling.
"Be present in the moment that you are and have that gratitude," advised Cruze. "Because if you keep looking to the next thing to satisfy you, again, you're going to run and run and your life's going to leave."
Wealthy People Never Suffer
Some people mistakenly think that money can protect you from experiencing suffering in life. However, Cruze said that unfortunate events like a health crisis, the loss of a loved one and general conflicts can happen to anybody, including the richest celebrities.
While money can help you handle certain problems better, avoid believing that a certain net worth will spare you from unpleasant things.
Also, keep in mind that being wealthy doesn't even promise financial peace. A 2025 Harris Poll survey found that even one-third of those earning six figures experienced financial distress, while 46% were financially anxious.
If I Have $___ in the Bank, I'll Be Secure
Cruze discussed how wanting a certain amount of money in the bank or income to feel secure becomes a never-ending chase. Even once you reach your target, you'll likely find that it still doesn't feel like enough to give you peace, so you'll aspire to reach some higher number.
It's true that money can provide you with some basic security, as Cruze said is the case for those with an emergency fund and no debt. But keep your expectations realistic.
"Above a certain point, that's where the lie is really magnified, that your security and your money, it can't be everything, you guys," Cruze said. "It just can't because it's not fulfilling."
Budgeting Restricts My Freedom
Like many others, Cruze once viewed budgeting as restrictive. However, she learned that it actually increases freedom because it offers a sense of control.
While unrestrained spending might feel comfortable, a budget gives you a plan for using your income wisely for your needs, wants and goals. It can help you avoid debt, which would decrease your freedom and build wealth, which leads to more flexibility later.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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