7 Viral Pieces of Money Advice From Rachel Cruze and George Kamel

7 Viral Pieces of Money Advice From Rachel Cruze and George Kamel — Were They Right?

Quinlan Grim

Sun, Dec 1, 2024, 12:00 PM 4 min read

Money experts Rachel Cruze and George Kamel recently got together on the Smart Money Happy Hour episode to discuss some of their most viral pieces of financial advice. Some of their recent tips received a lot of hateful comments online. However, both influencers stand by what they said.

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So, were these viral pieces of advice actually correct? For the most part, yes — but everyone’s financial situation is different.

Here are seven viral pieces of money advice from Cruze and Kamel and how they can apply to your life.

$100,000 Isn’t Enough

In a viral clip from the Ramsey Show, Kamel explained that a six-figure salary isn’t enough to keep up with modern expenses if you let lifestyle creep get the best of you.

Lifestyle creep is the process of spending more as you gain access to more money. One hundred thousand dollars may seem like a lot at first, but when you add up the cost of mortgage payments, car payments, subscriptions, groceries and more, that salary may not be enough. In fact, around 11% of Americans claim they need to make $500,000 or more to keep up with their lifestyle.

This quote is correct when taken in context — $100,000 can be enough to break the paycheck-to-paycheck cycle with careful planning and budgeting, but not with unchecked spending.

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Share Finances Equally With Your Partner

Cruze gave this advice to a woman who called into her show complaining that her husband doesn’t provide her with spending money or share information about their finances. She explained that this is an example of financial abuse.

While every household is different, Cruze’s advice is generally correct. Some studies suggest that the earned income of a stay-at-home parent is as much as $200,000. Those parents are also working hard and deserve equal access to household finances.

Pause Investing Until You’re Out of Debt

Should you invest in your company’s 401(k) match program while struggling with debt? George Kamel says no. His recommendation is to focus on getting out of debt before making any investments.

While this is sound advice, it may not apply to everyone. Most Americans carry some debt, and families with children and minority groups are disproportionately impacted. Depending on the amount and type of debt you owe, it may make sense to start investing in your retirement savings today as long as it doesn’t hurt your debt repayment plan. This is a great question to bring to a financial advisor for personalized advice.

Minor Budget Cuts Will Add Up

In one viral video, Cruze encouraged her followers to assess their budgets and cut out:

Subscriptions
Luxury groceries
Dining out
Vanity or impulse purchases

This is helpful — if obvious — advice. Small changes to your lifestyle will add up over time. However, scrimping and saving alone won’t make you rich or get you out of debt. Take this tip into account alongside other practical financial choices, such as smart investments, debt consolidation, multiple income streams and limited lending.

Put On Your Own Mask First

This tip refers to saving for your child’s education. Kamel explains that taking on debt just so your child can avoid student loans is a bad idea.

While some of Kamel’s followers disagreed with this idea, it is generally good advice. Taking on new debt at a later age can ultimately harm the whole family, leaving you dependent on your adult children when you reach retirement age. Instead, think of the airline safety mantra: Secure your mask before you help your child.

Personal Finance Comes Down to Your Habits

Cruze takes Kamel’s advice one step further by stating that even a $200,000 salary won’t be enough if you don’t adjust your habits.

Remember that small budgetary habits alone won’t lead to financial success. However, changing your mindset is key to avoiding lifestyle creep. Studies show that people whose savings goals align with their personality are more likely to succeed [6]. Set goals that work for you, such as supporting your children or buying your dream home, and let go of short-term expenditures standing in your way.

Trying To Get Rich Quick Puts Your Money at Risk

In response to a young caller who wanted to earn $1 million in the next few years, Kamel explained that slow and steady always wins the race. He stands by this advice when revisiting it.

“Get rich quick” schemes, such as multi-level marketing initiatives or high-risk investments, rarely lead to a positive return. Rather than putting your money on the line with a risky investment, rely on tried-and-true financial choices to grow your wealth.

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