Personal finance expert breaks down the No. 1 rule on the road to becoming a millionaire
FILE - U.S. one hundred dollar bills are being shown in this picture illustration taken in Buenos Aires, Argentina, on Dec. 15, 2023. (Photo by Matias Baglietto/NurPhoto via Getty Images)
If you want to set yourself up for success in retirement, personal finance expert and "The Ramsey Show" co-host Rachel Cruze explains the top rule to help you get on the path to millionaire status.
The expert joined FOX Business' "Mornings with Maria" on Monday and provided advice when it comes to saving for retirement, and explained how one can reap the rewards and benefit from utilizing your job's 401(k) plan.
"What's so great is that so many 401(k) programs, when your company has a match, to go up to that match and then even use programs like a Roth IRA, when you put up to $7,000 in that per year and that's [a] tax advantage, right?" Cruze pointed out. "So when you take that out, you're not going to have taxes on that."
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Cruze agreed with host Maria Bartiromo, who suggested "the No. 1 rule towards becoming a millionaire" is putting money into your company's 401(k) plan early on – without touching it – and taking advantage of a Roth IRA plan, if the company offers one.
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Tucking money away into a 401(k) plan is a strategy for the future that will pay off in the end, "The Ramsey Show" co-host, who focuses on helping people take control of their money, emphasized.
"It's a long-term mindset," the personal finance expert said, while also pointing to concerns from younger generations and investors.
"I think the issue is, especially for younger people, we're talking to Gen Z and even some millennials, as a retirement feels so far off that it almost feels like you're putting money in a black hole, and you're like, 'I'm not going to see that, and so I have to take care of issues today.'"
She explained how one of the "big messages" the Ramsey Solutions team shares is getting people confident, out of debt and building out a financial game plan.
"So getting out of debt again is one of our big messages," Cruze continued, "and then to be able to say, 'Okay, we have an emergency fund with some cash that's liquid and a high-yield savings account of three to six months' of expenses."
In addition to being debt-free, having an emergency fund as well as a high-yield savings account, the "Ramsey Show" co-host also suggested putting "15% of your income into retirement."
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Cruze remarked on how there are "many great options" for people to plot out their financial strategy and become a millionaire.
"To be able to go and talk to your [human resources] department and make it consistent, that's the other thing," she added. "And then don't pull your money out of the market dips because people freak out and pull their money out and that hurts them in the long run as well."