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Struggling to build wealth? There’s a good chance you may practice, or believe, poor money habits designed to keep you from getting ahead financially.
In a recent episode of The Rachel Cruze Show on YouTube, money expert Rachel Cruze revealed five types of common money habits that keep you broke. From thinking it’s OK to have debt to 30-year mortgages that last all 30 years, here are the top harmful beliefs holding you back from a rich life.
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1. Debt Isn’t a Big Deal
Cruze cited Ramsey Solutions’ The State of Personal Finance Q3 2025 report which said 49% of Americans live paycheck to paycheck as of September 2025.
Debt may be normalized in the United States, but Cruze said if the average person is living paycheck to paycheck, you don’t want this to be you. It’s better to normalize becoming debt-free and having most of your paycheck go toward yourself and your savings than toward paying off student loans, credit cards and car payments.
2. Debt Will Get You Ahead
Certain types of debt are considered good investments, like taking out a student loan to go to college. The subtle message that getting into debt ultimately helps you get ahead is one we hear frequently when the truth is the borrower becomes beholden to the lender.
Instead of thinking that you need to owe something to get ahead, Cruze recommended asking yourself how you can wisely use the money you have to become successful.
3. Maintaining Debt Isn’t Harmful
If you can make the minimum monthly payment on your debt, that’s fine — right?
“Just because you can afford to make the payment doesn’t mean you can afford it,” Cruze said.
She used the example of how wealthy people won’t buy anything if they’re unable to buy something with cash because they know debt steals your income. Not having these payments, or any outstanding debt, is crucial to build long-term wealth.
4. You’re 'Losing Money' If You Don’t Use Miles or Points
Many people think they’re losing out when they’re not using credit cards that offer cash back or rewards, like airline miles, for making purchases.
Cruze said most people tend to spend more money with credit cards and on these programs. Often, the amount they’re spending could pay for an airline ticket on its own.
5. It’s OK To Keep Your Mortgage Around for 30 Years
It’s not uncommon for people to take out a 30-year mortgage when buying a home and keep it around for 30 years.
Cruze used the example of buying a $400,000 home with a 20% down payment and a 30-year fixed rate mortgage at a 6.5% interest rate. Your monthly payment would be $2,023. Over the course of 30 years, this means you’re paying the bank more than $408,000 in interest alone. That’s more than the original cost of your home, FYI.
Conversely, if you decided to take out a 15-year fixed rate mortgage at a 5.75% interest rate, your monthly payment would be $2,657. This is $634 more every month than the 30-year mortgage, but Cruze said you only lose $158,300 in interest over those 15 years.
Not only do you get a better deal with a 15-year mortgage, but you might have your home paid off long before that deadline. According to Ramsey Solutions data, Cruze said that most people surveyed said they paid off their homes within nine years on average.
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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