In the episode, Cruze discussed the challenges of living in a world with pervasive social media images about other people’s lives. She explained that she herself feels financially behind when she scrolls through her feed. She mentioned comparing herself to other people’s homes, trips, closets and even their pearly white teeth.
After speaking with her team about it, she realized that she is not the only one who suffers from comparison culture. That’s why she decided to create an episode about the dangers of comparing yourself to others and how it can lead people to being broke .
Cruze said much of what we see in the media and online is simply an illusion. The truth is many people are struggling right now, and social media images are often not representative of how someone truly lives.
Cruise mentioned a 2023 Bank of America study that found a 36% increase in people making hardship withdrawals from their retirement accounts. This data shows a much more accurate picture of what’s currently happening in America.
With rising inflation affecting the cost of everyday items like groceries, many families across the country find it difficult to get ahead. That’s why Cruze suggested families make plans for their money and work hard to stick to them to avoid having financial stress.
Cruze is the daughter of Dave Ramsey, author of “The Total Money Makeover,” wherein he teaches something called the Baby Steps.
Cruze brought up the Baby Steps in this video as a recommendation for people who might be struggling with their bills and feeling down because of comparison culture.
Here are the seven steps:
Save $1,000 for an emergency fund
Pay off all debt, starting from smallest to largest
Save an emergency fund that’s up to 6 months of expenses
Start investing 15% of your income into a retirement fun
Save for your children’s college
Pay off your mortgage
Finally, give to others and build your own families well.
Cruze said the Baby Steps are a road map people can use in order to feel more financially secure. For some people, the Baby Steps will take longer than others. But the steps have worked for millions of people and helped them pay off debt and move forward.
Even completing Baby Step 1, saving $1,000, can go a long way toward improving how you feel about your finances.
The Millennial Generation
Cruze is a millennial, and she said she often hears that her generation has to wait a long time to buy a house when previous generations bought houses for much less money. She argued, however, that you can’t compare “apples to apples” these days.
Although things are different today than in years past, she said, there are also many more income opportunities and ways to earn extra money, start businesses and build wealth. The world today is very different. She acknowledged it is expensive to buy a house. At the same time, she said, each generation has its own hardships.
Cruze encouraged people to focus on the present. She encouraged her listeners to take responsibility for their actions and circumstances, instead of focusing on what’s different in each generation.
Finding Gratitude
Finally, although Cruze issued some harsh truths and tough love, she also emphasized, “Everyone really is fighting a battle that we can’t see.”
She explained that even if someone’s life looks perfect on social media, it’s likely a highlight reel.
Everyone has challenges and hardships that they endure from time to time. The best thing you can do, she said, is to resist temptations and comparisons. Comparisons are the No. 1 thing that makes people broke because when we feel less than, we tend to overspend to try to keep up with others.
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