How Does Your Net Worth Compare to the Average American?

Summary

Smart Money Happy Hour: How Does Your Net Worth Compare to the Average American?

Podcast Information

• Title: Smart Money Happy Hour with Rachel Cruze and George Kamel
• Host/Author: Ramsey Network
• Episode: How Does Your Net Worth Compare to the Average American?
• Release Date: July 24, 2025

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Introduction

In this insightful episode of Smart Money Happy Hour, financial experts Rachel Cruze and George Kamel delve into the topic of net worth, comparing individual financial standings against the median figures of average Americans. With a blend of personal anecdotes, statistical analysis, and practical advice, the duo provides listeners with a comprehensive understanding of where they stand financially and how to improve their net worth over time.

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Personal Financial Journeys

Rachel Cruze’s Path

Rachel shares her financial journey, highlighting significant milestones achieved in her 20s and 30s. She emphasizes the importance of starting without student loan debt, thanks to her parents' support, which allowed her to build wealth early on.

“We were very much set up so well. So I see that as a huge head start in our money journey.”
— Rachel Cruze [04:15]

Key milestones in her 20s included getting married, buying a house during a recession, and starting a family with two children. These early decisions laid a strong foundation for her financial stability.

George Kamel’s Path

George contrasts his experience by detailing his struggles with debt in his 20s. Graduating with $36,000 in student loans and $4,000 in credit card debt, he shares his rapid turnaround, paying off all debt within 18 months through side hustles and strategic financial planning.

“Most people overestimate what they can accomplish in a year. They underestimate what they can accomplish in a decade.”
— George Kamel [08:20]

George’s journey from negative net worth to millionaire status in a decade serves as a testament to disciplined saving and investing.

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Net Worth Statistics by Age

Rachel and George break down the median net worth of average Americans across different age groups, providing a stark comparison to their personal successes.

35 and Under

• Median Net Worth: $39,000 (2022)
• Quote: “If you're listening to the show, you're probably on the right track, if you know what I mean.”
  — Rachel Cruze [02:55]

This figure has more than doubled from $16,230 in 2019, indicating gradual improvement. Strategies to increase net worth in this age group include eliminating consumer debt, establishing an emergency fund, and beginning to invest.

35-44

• Median Net Worth: $135,300
• Quote: “At 44, to have a $100,000 net worth, it still shows me that you're not investing enough.”
  — George Kamel [18:17]

Although a significant increase from the previous decade, George highlights that many in this group may still struggle with insufficient investments and debt.

45-54

• Median Net Worth: $246,700
• Quote: “Birthday money should probably be more than $40.”
  — Rachel Cruze [15:54]

This age group sees a substantial increase, yet George points out that many may not be investing adequately to secure a comfortable retirement.

55-64

• Median Net Worth: $364,270
• Quote: “At 60, you're in your early 60s and you don't have much to show for it... You've worked your entire life, 40 years now, and you don't even have a few hundred thousand in retirement account.”
  — George Kamel [22:35]

While nearing retirement, the median net worth suggests that many Americans may not be fully prepared financially, often relying heavily on home equity and having limited retirement savings.

65-74

• Median Net Worth: $410,000
• Quote: “Your net worth is and you're 20, you know.”
  — George Kamel [26:50]

At this stage, the peak median net worth shows slight decline beyond 75 years, emphasizing the importance of adequate retirement planning earlier in life.

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Strategies to Improve Net Worth

Rachel and George outline actionable steps to enhance one’s net worth, applicable across various age groups:

1. Eliminate Consumer Debt

   • Prioritize paying off high-interest debts to free up financial resources.

2. Establish an Emergency Fund

   • Save three to six months’ worth of expenses to safeguard against unexpected financial setbacks.

3. Invest Wisely

   • Allocate at least 15% of income towards retirement accounts to leverage compound growth over time.

4. Build Home Equity

   • Investing in property can significantly contribute to net worth as the property value appreciates.

“Once you get older, it's not that you can't, it just gets harder.”
— Rachel Cruze [23:57]

These foundational steps are crucial for building and maintaining a healthy net worth, enabling financial security and growth.

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Digital Privacy and Financial Security

The episode also touches on the rising threat of financial fraud and the importance of protecting personal information online.

“Delete Me goes in and removes that information from these data broker websites.”
— George Kamel [21:20]

Rachel and George discuss the increasing instances of fraud, phishing attacks, and the necessity of services like Delete Me to safeguard personal data, thereby minimizing financial risks.

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Reflections on Aging and Financial Goals

As Rachel and George reflect on their personal lives in their 30s, they emphasize setting meaningful financial goals beyond mere numbers. They advocate for goals that enhance life quality, such as buying a pool or traveling, rather than chasing arbitrary net worth milestones.

“We don't want money to be the center part of your life. So how do you create a sense where you have it under control and then it is a tool, it is the thing that helps you live your life. It's not your life.”
— George Kamel [36:43]

This perspective encourages a balanced approach to wealth, where money serves as a means to enrich life experiences rather than becoming an end in itself.

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Conclusion

In conclusion, Rachel Cruze and George Kamel provide a thorough analysis of average American net worth across different age groups, contextualizing it with their personal financial journeys. They offer practical advice on debt elimination, savings, and investments to help listeners improve their financial standing. Additionally, they highlight the importance of digital privacy and setting meaningful financial goals that enhance life quality.

Notable Quotes:

• “Comparison is the thief of joy, but also, how do you stack up against the average American financially?”
  — George Kamel [00:05]

• “The older you get, the harder it is to undo a lot of this and to make progress.”
  — George Kamel [23:57]

• “Money is a tool to bless others, to impact your family, to be generous, to live your best life.”
  — George Kamel [36:31]

Key Takeaways:

• Early Financial Planning: Starting without debt and investing early can significantly enhance net worth through compound growth.
• Debt Management: Prioritizing debt elimination is crucial for financial health.
• Investment Strategies: Consistent saving and investing, particularly in retirement accounts, are vital for long-term financial security.
• Digital Security: Protecting personal information online is essential to prevent financial fraud.
• Balanced Goals: Setting financial goals that improve life quality rather than chasing arbitrary numbers leads to greater fulfillment.

By understanding these principles, listeners can better assess their financial standing and take proactive steps towards achieving a secure and fulfilling financial future.

Transcript

[George Camel]

Yes, comparison is the thief of joy, but also, how do you stack up against the average American financially? Today, we're practicing safe comparison. Oh, boy. I was really hoping for more because what we see there, it didn't go up by that number.

[Rachel Cruz]

It's not enough for you. I hope your children feel encouraged in life.

[George Camel]

George, I'm glad we have a drink because this is a sobering episode. Tell you that much.

[Rachel Cruz]

Hey, guys, I'm Rachel Cruz.

[George Camel]

George Camel.

[Rachel Cruz]

And this is Smart Money Happy Hour. Well, this is the show where two friends who happen to be money experts talk about what you're talking about. Everything from pop culture, current events, and money.

[George Camel]

Before we get to the content, let's talk about what we're sipping on.

[Rachel Cruz]

I love it. It's a specific fruit that I'm okay with. It's not my favorite fruit, but, man.

[George Camel]

Let me tell you, this is a banana old fashioned. And I hate bananas. Vehemently. That's one of my fun facts. Yeah. But I really enjoy this drink. Surprisingly.

[Rachel Cruz]

Yeah. It's not too strong.

[George Camel]

That's how good it is. So stick around till the end. We're gonna give you our rating and reveal the cost per glass. You don't want to miss it. Have you ever been at a church event or maybe fighting for your life in the cold and flu aisle at Target and someone says, how are you really? I don't like that energy, personally.

[Rachel Cruz]

Yeah. Because it does feel like I don't want to be one of those people that's just like, oh, how are you? You want to be like, I want to get to the depths, but it.

[George Camel]

Always comes from someone who I don't want to talk to at most.

[Rachel Cruz]

Isn't that so true?

[George Camel]

My truest friends don't ask that.

[Rachel Cruz]

You're like, sandra, I'm not going to. I don't really want to tell you what I'm like.

[George Camel]

I just tell my friends I'm fine.

[Rachel Cruz]

That's right. That's right. I don't wait for permission to dissect it in Walgreens with Sandra. I get it. Well, I do think, though, you know, how are you really? Is true when it comes to money. Because we hear from you guys listening and watching a lot that people love to know how they stack up against other people when it comes to their money. Whether it's like debt levels, income levels, housing, even, like, how is my house compared to the median house in America? I mean, there's a ton of comparison and none of it's bad. I think there's a natural curiosity of how am I doing?

[George Camel]

So today we're gonna focus on the healthy side where it's more of I just wanna understand my progress. And so we're gonna talk about that. And we have some stats that will help paint a picture of what money looks like for the average American. And as two net worth millionaires, we're gonna share what our paths have looked like so far as well.

[Rachel Cruz]

And then most importantly, we are gonna talk about the actual measuring stick that you should be comparing your life against and how to get to a place financially where you do feel safe and secure. Because that's the goal.

[George Camel]

Yes. And I'll say based on these numbers, everyone's going to feel like they're doing pretty good.

[Rachel Cruz]

So if you're listening to the show, you're probably on the right track, if you know what I mean.

[George Camel]

So the data we have starts with the age range of 35 and under, which we can all agree is a pretty wide range. I'm assuming we're talking about adults here and not a baby's net worth.

[Rachel Cruz]

I would agree with that.

[George Camel]

Although some babies are doing great. I mean, if you got a 529 plan and no debt, you're doing better than most Americans.

[Rachel Cruz]

Or if you're. The Olsen twins. I don't know why I thought of the Olsen twins thing, but they were working since birthday.

[George Camel]

They're doing great, God bless them. Are they, are they thriving? I think they're thriving now.

[Rachel Cruz]

Oh, no, I think they are.

[George Camel]

There's probably a period of time in there that was a dark time. It was probably on your prayer list.

[Rachel Cruz]

I don't know. I don't know. Yeah, the Olsen twins were never on the prayer list. You know, I think I may be putting Katy Perry on it.

[George Camel]

Is she next?

[Rachel Cruz]

I don't know. Since she went to space. I just wanna make sure she's okay, you know, Went to space.

[George Camel]

I think she's okay. I don't think everyone's okay with her. It's a very different scenario.

[Rachel Cruz]

Yeah, I know, but anyways, it's great. No, the Olsen twins. I just feel like, yeah, there's some kids, you know, once in a lifetime opportunities as babies and you're making a lot of money. So their net worth is more than ours. Probably at the age of nine months.

[George Camel]

A lot of time for compound growth to do its thing.

[Rachel Cruz]

That's right.

[George Camel]

Well, since our life and financial changes fall more in our 20s versus 30s, we're going to share our personal money milestones based on those two decades first. So let's start with 20s. Okay, let's talk about where Rachel Cruz was or Rachel Ramsey.

[Rachel Cruz]

That's right.

[George Camel]

As she was known.

[Rachel Cruz]

As I was known. That's right.

[George Camel]

Back in college.

[Rachel Cruz]

I know I did a lot in my 20s, so I, as of from today's standards, from like life situations, I think I did things earlier than most people are. Meaning I got married, had kids in my 20s and stuff. So I'd say, yeah, I got married. Winston and I started off working and I will say we were both very blessed that our school was paid for. So we did not start off with student loans. So I see that as like a huge head start in our money journey. I do not think we just got here because of us. We were very much set up so well. So I do wanna thank our parents for that. Because honestly, when you start off financially without student loan debt as a 21 year old and you're graduating like you're start. Like when you get your first salary, your first paycheck, that's yours, that you get to start building wealth with pretty immediately. Right. Besides the emergency fund. So that is a huge head start that we had. So I'm very grateful for that. So, yeah, we started doing that. So we got a dog in our 20s, we bought a house, and we did it out of the recession where it was basically still in the middle of the recession.

[George Camel]

So you got a deal.

[Rachel Cruz]

We got a deal. Which was very nice. Yeah. So I feel like we had some luck on our end with all of that. And then we didn't really do much, I would say in our mid-20s when we just invested in like that. And then we had kids. Kids came in my late 20s. I had two kids in my 20s.

[George Camel]

Wow.

[Rachel Cruz]

And I had 27 and 29.

[George Camel]

So only Charles was into your 30s.

[Rachel Cruz]

My 30s, okay. Yeah. So that was us. So we had a lot. We lived a lot of life. First house, first dog, two kids and a 401k.

[George Camel]

Beautiful.

[Rachel Cruz]

So, yeah, that was my 20s. Was yours, George?

[George Camel]

What'd you do a little different? I had some. I had. My. My growth was stunted financially and physically, obviously. But we're going to focus on the financial part today. Okay. I don't know how to fix the physical one, but I fixed the financial one. So I graduated in my twenties with 36 grand in student loan debt. I had about 4 grand in credit card debt. And even then there was a pretty quick turnaround from, you know, 23 to 25, where I paid off my consumer debt, got the emergency fund in place, which is.

[Rachel Cruz]

You did all that in two years.

[George Camel]

Yeah.

[Rachel Cruz]

Okay.

[George Camel]

18 months from going 40 grand in debt to no debt.

[Rachel Cruz]

Another six years that time. Do you remember?

[George Camel]

Probably, I would say upper 30s, maybe in like around 40 plus with side hustle.

[Rachel Cruz]

I mean, do you like, literally live on half of that and pay? Because, I mean.

[George Camel]

Oh, yeah, no, I. I did a lot of side hustles. I was like building websites, marketing consulting, Uber and Lyft and, you know, I was all about the side, which.

[Rachel Cruz]

Those would have been new during that time. Yeah, that was like.

[George Camel]

They were new to Nashville and so I got a thousand dollar bonus from each of them because they were new to the Nashville area and they were like desperate for drivers.

[Rachel Cruz]

That's a great.

[George Camel]

So that really helped. I made two grand from that. I was doing music gigs and licensing stuff, and so I was just trying to find money anywhere.

[Rachel Cruz]

Okay, so you're making a couple thousand here or there just by that.

[George Camel]

And even the marketing consulting, I think I probably made like 20 grand in a year. So I. Oh, wow. Effectively myself. A 50% raise.

[Rachel Cruz]

You were a consultant at what age? 24.

[George Camel]

Yeah, I was working. My buddy had a. An agency, so he'd work with clients. And I was like, I can build websites and help you launch a podcast and do all these things.

[Rachel Cruz]

Yes.

[George Camel]

Help you launch a book. And so that was.

[Rachel Cruz]

I know who the person is.

[George Camel]

Yeah. Kevin. Kevin Jennings.

[Rachel Cruz]

Was it really? I did not realize that.

[George Camel]

Yes. Still one of my best friends to this day.

[Rachel Cruz]

Is he.

[George Camel]

Yeah, he was a groomsman in my.

[Rachel Cruz]

Way, with his bow ties.

[George Camel]

Bow tie guy.

[Rachel Cruz]

Miss you, Kevin.

[George Camel]

So, yeah, he was. He was so great. Gave me an opportunity to help his clients and helped me get out of debt faster.

[Rachel Cruz]

Look at you, George.

[George Camel]

So I did all of that and I bought a house.

[Rachel Cruz]

Yes.

[George Camel]

And got married.

[Rachel Cruz]

And so a lot of life first or got married.

[George Camel]

First married.

[Rachel Cruz]

First married. And then how much. How fast did you and Whitney.

[George Camel]

That was a year after.

[Rachel Cruz]

Okay.

[George Camel]

We were. Once we got married, I was in a much better place.

[Rachel Cruz]

Yeah.

[George Camel]

So when I married Whitney, she was debt free. She was like, you got college paid for. Was in a great place financially. And I was kind of holding us back, but once we got married, we were in an awesome place.

[Rachel Cruz]

Yeah.

[George Camel]

And we were able to save up a down payment with our dual income. No kids, no dogs yet. And so we just. Yeah, we just saved up aggressively.

[Rachel Cruz]

Yeah.

[George Camel]

And then ended up paying off our house as we entered our 30s.

[Rachel Cruz]

Okay. That's amazing.

[George Camel]

So that was kind of my money journey that I went from negative net worth to millionaire in 10 years.

[Rachel Cruz]

Yes.

[George Camel]

From, you know, 23 to 33. And so all that to say, no matter where you're starting, a lot can change in a decade. And I love this quote. Most people overestimate what they can accomplish in a year. They underestimate what they can accomplish in a decade. So it's comforting because it looks like, oh, my gosh, how are we gonna do this? And, yeah, in a year, only so much progress is made.

[Rachel Cruz]

Right.

[George Camel]

If you look at a 10 year picture, 33 is gonna be very different than 23.

[Rachel Cruz]

Totally. Oh, that's great, George. Good for you. So when you hit 30, what happened there?

[George Camel]

Oh, boy. Well, you know, I. Cause you're what, right now I'm 36.

[Rachel Cruz]

Okay. And I'm 37.

[George Camel]

Congratulations.

[Rachel Cruz]

Yeah, thank you.

[George Camel]

I'm catching up.

[Rachel Cruz]

You are. Slowly but surely. Okay, so more dogs. Yes.

[George Camel]

More kids.

[Rachel Cruz]

Okay. Okay.

[George Camel]

We. We bought another house. Paid off that house. And so I think it was. It felt easier because you kind of know what. What's coming. Yeah. But having a kid added a layer.

[Rachel Cruz]

Of just like, y' all are going to move again. Is this me all? His third house is a.

[George Camel]

We love to move the camels. About every three years we go, it's time. What if we just had pain and suffering in our life?

[Rachel Cruz]

What if we just continued this craziness?

[George Camel]

And every time we move, we're like, we didn't need to do that. But it's just. I think we always love a little challenge.

[Rachel Cruz]

You think you'll be like that? I've had friends like that where they move every four to five years.

[George Camel]

I think I'm done after because I'm currently packing up our house and I'm like, why did we do this to ourselves?

[Rachel Cruz]

So funny.

[George Camel]

So I don't know if it's a milestone, but when did you have me?

[Rachel Cruz]

How old were you when you had me?

[George Camel]

30, 34.

[Rachel Cruz]

Okay. Yeah.

[George Camel]

She's about to be two.

[Rachel Cruz]

Yes. Okay. Okay. And then the two dogs and then two French bulldogs.

[George Camel]

We got another kid on the way.

[Rachel Cruz]

Okay.

[George Camel]

Surprise. I don't know if they knew that. But now you do. By the time this airs, I think this child will be on this earth.

[Rachel Cruz]

Maybe. Could be. No, not quite. I'm being told when you'll be very pregnant.

[George Camel]

I'm being told the baby is not born yet, but yeah. So there's a lot of excitement and we're. I'm very privileged in my own way to have the life that I have and have this blessing. You know, there's a lot of this, like, I Don't deserve to have a life this good. You know what I mean? Like, 23 year old George is like, you what?

[Rachel Cruz]

Yeah.

[George Camel]

Like, look at your life.

[Rachel Cruz]

I know.

[George Camel]

Your family, your house, the doll, everything.

[Rachel Cruz]

You know, there's something to say about that because I do think we can live life looking at the next thing and it's like the stuff you've prayed for. It's here. Like, you know what I mean? I feel that sometimes I'm like, just sit in it, Rachel. Like, this is amazing. This is what you've wanted for your life. There's something beautiful.

[George Camel]

And I'm so future focused. I have to really work hard to.

[Rachel Cruz]

Be in the present, to focus on.

[George Camel]

The present and look at the past. I'm just like, well, what's the next thing? And what's the next thing? And so I'm very driven that way. So my wife has to remind me.

[Rachel Cruz]

Yeah.

[George Camel]

Hey, slow down, pause. Enjoy life instead of looking at the next thing. Thing ahead of you.

[Rachel Cruz]

So I'll say, george, in all my spiritual research that I've been doing, she's.

[George Camel]

Been on her own journey.

[Rachel Cruz]

Staying in the present is like a really. It's a big deal. Like, it doesn't. People don't do that. But contemplative thoughtfulness of being in the moment is like a sign of like real deep peace. Like there's something there that we don't.

[George Camel]

I need to hang out with a monk, I think, to get there.

[Rachel Cruz]

No, I want to too.

[George Camel]

Should we do it?

[Rachel Cruz]

Should we go visit a monk?

[George Camel]

Well, I don't know. They. Do they accept visitors? Is that a thing?

[Rachel Cruz]

I think so. I think you can. Yeah.

[George Camel]

Okay.

[Rachel Cruz]

Or there's priests that like, you know, mystical priests in the Catholic Church that have. Yes. That they like kind of live a certain way again. It's a slower pace of life.

[George Camel]

Yes.

[Rachel Cruz]

That I think we need more of.

[George Camel]

I think Americans naturally love.

[Rachel Cruz]

I think the west kind of sucks. That's what I'm realizing. You know, there's something in the east that they just, they. They just. They have a level of calmness to them that I think overtime is good.

[George Camel]

And especially like Spain. I mean, they're doing siestas, like three hour lunch.

[Rachel Cruz]

They close everything in the middle of the day. I know. Leave work and the walkability in Europe. We need to take that here to the new world.

[George Camel]

100%, you know, all right. We can learn some things.

[Rachel Cruz]

Okay. We should take over the world, George. Maybe that's what we should do.

[George Camel]

Wow, that's a strong statement.

[Rachel Cruz]

Anything get all the answers.

[George Camel]

I'm curious what changed in your 30s? I mean, you guys have had a lot of life change, even the last five years.

[Rachel Cruz]

Yeah, we had third kid. We moved, built a home and moved. Winston quit his job.

[George Camel]

That was big.

[Rachel Cruz]

Started a career. Complete career shift.

[George Camel]

He's on his own journey.

[Rachel Cruz]

Yeah. So, yeah, we had a big career change in our house because up until that point, y', all, Winston and I were doing basically the same stuff that we were doing from when we got started, our careers, six months into marriage. So it's been a while. So, yeah, there's been some good shifts, but I think my 30s have been my favorite.

[George Camel]

Is it because of your stage of.

[Rachel Cruz]

Life with the kids right now? Yes. I do think not everyone feels this way. Personally, I think the kids have gotten more fun the older they've been, like, right now in life. This last spring break trip we took, which was about probably two or three months ago from when we're filming this, Winston looked at each other multiple times on the trip, and we're like, this is, like, actually genuinely so enjoyable. Cause for so long, it's like you're not on vacation, you're on a trip if you have the kids with you, and then something just shifts when they can.

[George Camel]

Like, what age is that? Like five?

[Rachel Cruz]

I think five. I think five is kind of that magical number.

[George Camel]

I'm looking forward to that.

[Rachel Cruz]

Yes. You got five years at least till the. Yeah. Yeah. Unless you have another one. Oh, my God, you're going to start over. And it's beautiful and it's great and it's chaotic, and there's, like, beauty in every season, you know, all the things. But there's something about the older kids and older elementary school age.

[George Camel]

And I think you guys have matured, too. I mean, you've done some work. You've been working out physically.

[Rachel Cruz]

Yes.

[George Camel]

You know, therapy.

[Rachel Cruz]

Done a lot of therapy. We've. Yes. I don't know, it just feels. I feel like we're in a really good season.

[George Camel]

Just more, like, settled and less. Just searching.

[Rachel Cruz]

More comfortable, too.

[George Camel]

Yeah.

[Rachel Cruz]

Winston phrase a lot. It all belongs. So even when there's, like, chaos and we still have moments of, like, nuttiness or stuff that's happening.

[George Camel]

Is Winston a monk?

[Rachel Cruz]

I think he might.

[George Camel]

He feels very monkey.

[Rachel Cruz]

I know, but he's like, listen, this is all part of it. And the moment you try to, like, reject stuff and be like, I gotta fix and control you. Miss it. Like, there's a part of, like. I know.

[George Camel]

What a great reminder. Who knew you were going to get this out of a net worth episode, guys. This is free content.

[Rachel Cruz]

I'm telling you.

[George Camel]

Put this behind the paywall. This is some serious wisdom, Rachel.

[Rachel Cruz]

That's how I feel about my 30s and I can't wait for my 40s. I feel like it's going to get even better. Right, Kelly, is the 40s great? I think the 40s are great. I think you become honestly the older you get. I do think you just become more and more and more secure with yourself. And there's something about that that it's like less performative.

[George Camel]

Yes. Well, I think you also really enjoyable. The older you get, the less you care. What other. Which is really the best part of life.

[Rachel Cruz]

Very freeing. Yes. Yeah, yeah, yeah. And I'm not sipping on a banana old fashioned.

[George Camel]

We're having a good time.

[Rachel Cruz]

This is a great.

[George Camel]

This is good, great episode so far. Any notes from the crew? All right, there's passing notes back there. So I was wondering if they had notes for us.

[Rachel Cruz]

Oh, my gosh. All right, let's talk about. Let's talk about America.

[George Camel]

Should we though?

[Rachel Cruz]

Let's do the breakdown.

[George Camel]

We were having such a good time.

[Rachel Cruz]

All right, Were we?

[George Camel]

Let's talk about the data. Average net worth by age. Again, the Data starts with 35 or under. According to a survey of consumer finances published by the Federal Reserve, as of 2022, the average American has a median net worth of approximately $39,000 at age 35 or under.

[Rachel Cruz]

All right. And in 2019, just three years prior, that number was just at 16,230. So it's more than doubled.

[George Camel]

There's some good news.

[Rachel Cruz]

Yeah, you're doing great.

[George Camel]

But you think about the average net worth of $39,000. That's a little bit depressing to me at 35. Yeah. 35 or under.

[Rachel Cruz]

Think about a car and some equity in some house should probably be more than 40.

[George Camel]

Yeah, right.

[Rachel Cruz]

If you combine all of that like.

[George Camel]

But that tells me is retirement.

[Rachel Cruz]

Thing about retirement.

[George Camel]

Yeah. They're not investing. They're probably in some pretty crippling, say.

[Rachel Cruz]

Probably debt because it's taking away from the net worth number. So. Yeah.

[George Camel]

And just a reminder, the way you calculate your net worth is you take everything you own. That's your assets, so cars, the home equity, your savings, your retirement minus what you owe liabilities. So that's any debt you have. And so that total average 39 grand for 35 or under. So let's talk about, you know, the way to increase your net worth is twofold. Number one, putting money away and Savings and investing. And number two, is your home equity growing once you are a homeowner?

[Rachel Cruz]

Yeah. And paying off debt.

[George Camel]

Yes. Paying off the debt will also increase. Number one, get rid of the.

[Rachel Cruz]

Get out of the hole first and foremost. Right. And then start saving. And then. Yeah. If you own a home, the equity in it will go up year after year, which is a beautiful thing.

[George Camel]

So it's a big part of your net worth. So when and how to invest? The simplest answer is once you're out of debt with a fully funded emergency fund of three to six months of expenses. That's the foundation Rachel's talking about. I'm just getting to the black.

[Rachel Cruz]

Yeah, totally.

[George Camel]

Instead of being in the red. So that's a big part for. That's a big milestone. That's why we celebrate, you know, the debt free scream on the Ramsey show.

[Rachel Cruz]

Yes.

[George Camel]

Because it's huge.

[Rachel Cruz]

And for a lot of people, once they get out of debt, there's like an automatic increase with their net worth. Like once they say, okay, I don't owe anything, automatically what's been in the 401k that I've been putting away, even if it's a little bit, they've been putting away even before they started paying off debt. Because as you pay off debt, we say to pause retirement investing. But usually most people have some level of investing that they've done and then. Yeah. And if they own a home. So it really is a great thing.

[George Camel]

Yeah. So if this is you, if you're 35 or under, these are your goals, is to get out of all consumer debt, get that emergency fund, and then begin investing 15% into retirement. If you can do that before you're 35, you're in a great place because you still have 30 years of a working career to build up that nest egg and have compound growth work for you.

[Rachel Cruz]

So amazing.

[George Camel]

That's my advice to those folks.

[Rachel Cruz]

All right, next up, we have 35 to 44. The average American median net worth is about 135,300. Feels like a lot. That's. That's almost $100,000 jump.

[George Camel]

Yeah.

[Rachel Cruz]

From the previous decade.

[George Camel]

Yeah, between. Almost. So I think that's a good. It's a good start.

[Rachel Cruz]

Okay. George is so not impressed.

[George Camel]

Well, I'm just. I'm going. Time is of the essence here. And at 44, to have 100 grand net worth, it still shows me that you're not investing enough. You're probably still dealing with debt. Now, this is for the average American. I hope people watching this. My guess is Anybody that watches this show is doing far better than the average American. So again, this is the suck bar, as we say here at Ramsey. But it's still at least, hey, sick. If you have a six figure net worth from 35 to 44, we're making progress.

[Rachel Cruz]

It feels like a lot to me.

[George Camel]

It bodes well that we're at least moving up.

[Rachel Cruz]

Okay, all right, we got 45 to 54. Average American's median net worth is about $246,700.

[George Camel]

Okay. About a quarter million.

[Rachel Cruz]

Yep.

[George Camel]

How does that hit you?

[Rachel Cruz]

Less impressive? I don't know why.

[George Camel]

Wow. What does it take to impress Rachel?

[Rachel Cruz]

The other one was impressive to me. 35 to 44 at 135,000.

[George Camel]

But I feel like you're headed.

[Rachel Cruz]

But when you're. Yeah, yeah, that's right what I'm thinking. I mean, you're almost, you're getting there. And this is again, including your home equity and retirement. And at 54, like, you're starting to turn that corner.

[George Camel]

I'm guessing a lot of these folks was probably. Now this is the median, not the average. And so the median is just the number in the middle because the averages can skew it. Because some people might have $40 million.

[Rachel Cruz]

Right, right.

[George Camel]

But I think looking at this median, I just go, they're probably not investing. And if they are investing, they're not investing enough. And they haven't changed their lifestyle for decades now. They're still kind of living above their means, still hanging on to a car payment. Maybe they're still paying off student loans or credit card debt. And so I, I think this, what we're seeing is the sooner you clean this mess up, the higher your net worth will be.

[Rachel Cruz]

That's right. Yep. So good. Well, here's another average American stat for you. In 2024, consumers reported losing over $12.5 billion to fraud. A 25% increase from 2023.

[George Camel]

Wow.

[Rachel Cruz]

That means our information on the Internet is accessible and people are taking it and they are not doing great things with it because we are losing money. And that's why delete me is so important to get.

[George Camel]

Yeah. This service will go across the entire Internet with a real person behind the scenes and manually remove your data from these data broker sites. So anytime you've googled yourself and you're like, how do they know my address and my phone number and my email, that's scary enough. But the problem is scammers, spammers, AI impersonator, digital harassers, they can use this information against you to Then cause some financial stress in your life.

[Rachel Cruz]

The new thing is phishing.

[George Camel]

Oh, the phishing attacks where they make you believe it's a real company, a real person happening.

[Rachel Cruz]

It's like the advanced versions of scams, basically. And it gets so real because of technology and AI and everything. So you really want to protect yourself because honestly, your. Your information, your family's information is too important for it to be a billboard across the Internet. So again, delete me goes in and removes that information from these data broker websites. And this is what really gets me. These data brokers make money off of your information.

[George Camel]

It's just all gross.

[Rachel Cruz]

You don't get to do that. That's my home address. Don't make money off me. I don't know you. I don't know you.

[George Camel]

This is a very dystopian world we live in. And so delete me keeps me safe, helps protect my family, gives me peace of mind, and it's very affordable. I mean, we're talking about nine bucks a month if you use our code. If you go to joindeleteme.com smartmoney, you'll get 20% off their annual plans. And we can also put a link in the description below if you want to check it out. This is worth it. We talk about taking control of your money now we got to take control of your digital privacy along with that.

[Rachel Cruz]

Yes, very, very important. All right, next age group is 55 to 64.

[George Camel]

Oh, is this leaning into the boomers?

[Rachel Cruz]

Yes, it is the boomers. All right, so average Americans, median Net Worth here, 364,270. So if you've been watching, George, it's been about 100ish, 110,000.

[George Camel]

Per decade.

[Rachel Cruz]

Per decade, yes. Does that feel like a right?

[George Camel]

It does. It's still very depressing to me because, I mean, think about this. You're 60, you're in your early 60s, and you don't have much to show for it. You've worked your entire life, 40 years now, and you don't even have a few hundred thousand in retirement account. This looks like they probably have some equity in their home. They've been putting a little bit of money away.

[Rachel Cruz]

Okay, so the median house price right now is around $400,000 in America. Right. So let's say your house is valued at 400,000 as the media. Okay, so let's say half of your mortgage is paid at this point. That's 200,000 of it. So that means you have 164,000 in retirement.

[George Camel]

That's not Going to get you very far.

[Rachel Cruz]

That's right. That's what you're saying. Like when you actually break down the numbers, that scares me. Yeah.

[George Camel]

And what that also tells me is people have been going backwards for a long period of time. Now. They've likely taken the HELOC to do the home renovation. So they've, they've been turning to debt as a shortcut and solution for a long period of time. And the truth is, the older you get, the harder it is to undo a lot of this and to make progress. It's still possible. We get some inspiring calls of people who are like, hey, I was in my 50s when I heard about you guys and now I'm 65 and retired and have a great life. But we also get some sad calls on the Ramsey show where they're in their 60s and they're calling us saying, hey, I haven't invested anything. What do I do? I want to retire. And we have to tell them, hey, retirement is not an age, it's a financial number. And you have haven't prepared for this stage of your life.

[Rachel Cruz]

Well, the truth is we say, like, it's never too late, right? Like, so there is a hope there, right? You can, it's never too late, but also time is on your side. And the earlier you start with all of this, obviously the better off you're going to be. So as you do get older, it's not that you can't, it just gets harder. So I think that's what's difficult.

[George Camel]

And when you look at the power of compound growth in your 20s, every dollar you invest turns into like $20 in your nest egg. But when you're in your 50s and 60s, that dollar might turn into two.

[Rachel Cruz]

Right?

[George Camel]

There's just less time for compound growth to work. And so that's the hard reality of that. And so my, the sad joke is your best bet is to build a time machine, go back in time and invest.

[Rachel Cruz]

George. Geez, that's it. That's not helpful. There's hope be present, George.

[George Camel]

Remember, if we can send Katy Perry to space, we can build time machines. I'd love to build a time machine where Katy Perry never went to space and we didn't have to see her kiss the ground and say she found love.

[Rachel Cruz]

George.

[George Camel]

I love that reality. Moving on. Oh, we're getting, we're getting old.

[Rachel Cruz]

All right, here we are.

[George Camel]

Elderly.

[Rachel Cruz]

Oh my gosh, 65 to 74. We're gonna have some 76 year olds. They'll be like, George, I don't know.

[George Camel]

The definition of elderly, but I feel like 74 is up.

[Rachel Cruz]

Okay, well, I will say 65 to 74. Young and smart.

[George Camel]

That's Dave Ramsey.

[Rachel Cruz]

My parents are 65.

[George Camel]

Sharon lives like a 44 year old.

[Rachel Cruz]

Yes.

[George Camel]

She's very active. I would say she's in great shape. She eats very healthy. I'm not gonna speak to Dave. You can do that.

[Rachel Cruz]

Yeah, I think Dave is fine.

[George Camel]

He's doing great.

[Rachel Cruz]

He will barefoot ski still once a year. He walks with Bella.

[George Camel]

He golfs all the time.

[Rachel Cruz]

And he golfs. Yeah. So there's some activity there.

[George Camel]

He's always doing something exciting.

[Rachel Cruz]

But so. Yeah, but once you hit, I mean, the 70s, George, like, yeah, you're getting there. So you do have to genuinely think so. You may start slowing down. There may be more sicknesses, prone to health stuff. Right. The older you get. So this is a time period to think about, but this is the peak of the data. Are you ready for this?

[George Camel]

All right. What's the median net worth?

[Rachel Cruz]

$410,000.

[George Camel]

Oh, boy. I was really hoping for more, because what we see there, it didn't go up by that number.

[Rachel Cruz]

It's not enough for you. I hope your children feel encouraged in life, George.

[George Camel]

I'm just saying.

[Rachel Cruz]

I was just hoping for more. Is that what you're gonna say when they come in like, dad, I got a 94 on my mouth chest? I was hoping for more.

[George Camel]

I'd be like, that will be me, George. My kids will be acing their tests. No, they won't. I don't care. Tests are stupid. It's my hot take.

[Rachel Cruz]

Me, too.

[George Camel]

How's your social skills? That's what's more important in this life, actually. Your test taking abilities.

[Rachel Cruz]

There have been studies on this that in the workplace you could advance with who you know and who you're friends with. More.

[George Camel]

That's. I've seen it.

[Rachel Cruz]

Yes.

[George Camel]

I've been here a long time. The people who win, they're just good with people. And you have to be good at your job. But just because you got an A doesn't mean you're going to be great in the workplace. Yeah, no, that's my hot take. Yeah, 410,000. Because I think about this, you are like knee deep in retirement at this point with your entire net worth being $400,000. And what we've seen is in our millionaire study, where we surveyed 10,000 of them, the average millionaire hit that at 49 years old, and they're not even halfway there into their 60s.

[Rachel Cruz]

Oh, wait, so say that again. That's good.

[George Camel]

The average millionaire in our millionaire study hit that net worth milestone at 49 years old.

[Rachel Cruz]

49 versus 64 to 74.

[George Camel]

So that's where I'm like, you're not even halfway there.

[Rachel Cruz]

Okay.

[George Camel]

And you're 20, you know.

[Rachel Cruz]

Yeah. That's just that when we say about investing that you can live off of the returns. Right. Once you get, you know, you don't have to touch the principal. But again, 410,000, let's just say 200,000 is in the house and 200. And that's 20,000 a year.

[George Camel]

Yeah.

[Rachel Cruz]

At 10%, not great.

[George Camel]

I don't know about you, but that's poverty line.

[Rachel Cruz]

Yeah, that's right.

[George Camel]

So not great. Does it go now? That was the peak, so it's got to go down. 75 down.

[Rachel Cruz]

So 75 plus is 334,700 net worth. That's kind of depressing that it goes down. I guess because you're not, you're not putting more in because of it. No income because you're retired.

[George Camel]

Yeah. Yeah, that's true. You're no longer contributing and you're only depleting at this point.

[Rachel Cruz]

Yeah.

[George Camel]

I'm glad we have a drink because this is a sobering episode. Tell you that much. I knew this was not going to be our most fun episode. We, we decided we're going to make it fun.

[Rachel Cruz]

We're going to try to.

[George Camel]

But so far these stats are not great. But I hope at the very least it gives you sort of a baseline to know that you're, you're doing okay.

[Rachel Cruz]

Yes.

[George Camel]

This is what's average. Again we say average sucks. Don't be average. Don't be normal. Be weird. And I think everyone watching the show, I hope you all retire with at least an million dollar net worth. Not because it's a flex, but because you're gonna have a better life. You can retire with dignity.

[Rachel Cruz]

Yeah. You know what creates a better life for me?

[George Camel]

What's that?

[Rachel Cruz]

Cozy Earth sheets.

[George Camel]

Oh my goodness. Just placed an order last night.

[Rachel Cruz]

Yes.

[George Camel]

He was like Christmas morning. I can't wait to get it.

[Rachel Cruz]

What'd you buy?

[George Camel]

I got the clogs that I've mentioned.

[Rachel Cruz]

Yes. Okay.

[George Camel]

Can't wait to see. That doesn't mean my like my house slippers.

[Rachel Cruz]

Yes.

[George Camel]

I needed an upgrade.

[Rachel Cruz]

I love it.

[George Camel]

Got some joggers.

[Rachel Cruz]

Yes.

[George Camel]

A little matching tee. Good to wear out errands on a, on the weekends.

[Rachel Cruz]

Got a set.

[George Camel]

Yeah. I got a button up shirt.

[Rachel Cruz]

That stuff is going to be. Is it the soft stuff?

[George Camel]

It's buttery.

[Rachel Cruz]

Oh, my gosh.

[George Camel]

It's like the brushed bamboo.

[Rachel Cruz]

Yes, it's the bamboo stuff. And that's what's great for summer because this stuff is like breathable. So whether it's the sheets or that material that you got for your, for your clothes, that bamboo, it's like, it's light, it's easy. I mean, it is so nice.

[George Camel]

It was buttery. I can't wait to wear it. I'm going to impress you. And I got some no show socks. As you know, I'm hanging on to the millennial dream. He loves an ankle showing a little skin. I don't know what Gen Z is doing with these knee high socks with weird shorts and their broccoli haircuts, but I'm not falling for it. I'm personally done with it.

[Rachel Cruz]

Yeah, so. And your socks are gonna say Cozy Earth.

[George Camel]

That's true.

[Rachel Cruz]

Cozy Earth products, you guys, it is worth it. And even this summer, they have so many great options. And you actually bought a button up. Yes, you showed me. That looks nice too.

[George Camel]

Well, they have the whole, you know, like this beat the heat vibe on Cozy Earth. And so I went for all the things that are cozy. But also, I won't sweat it. I know, because you know me, if I sweat, I'm going home.

[Rachel Cruz]

You're done.

[George Camel]

I'm. Yeah, I'm taking my ball and I'm going home. If I break a sweat.

[Rachel Cruz]

Not doing that. Not living this hard life. Too hard for that. Because, yeah, it's. It is amazing. And we have an amazing discount for our viewers.

[George Camel]

Yes. Up to 40% off if you use the code Smart Money at checkout. You can go to cozyearth.com smart money. We'll also drop the link in the description below. Have a cozy summer and beat the heat out there. How about that?

[Rachel Cruz]

All right, George, let's wrap it up with what are your future goals? Like when you look, we're both in our late 30s. We got our 40s, we got our 50s. We are 60s. We still got three solid decades. Oh, God, maybe even our 70s.

[George Camel]

I'm tired thinking about that.

[Rachel Cruz]

I mean, like, that's a. We got a lot. It's great. What do you like? What do you want?

[George Camel]

What are you thinking at this stage of life? I'm thinking about how to set up my kids for financial success, how to not ruin them with entitlement. Because truthfully, my kids are gonna have such a different life than the one I grew up with. And I had a great life growing up.

[Rachel Cruz]

Sure. Yeah.

[George Camel]

We've worked so hard to get ourselves to a great place financially that it's like, how much do I give my kids a leg up versus sort of letting them earn it and feel that sense of independence.

[Rachel Cruz]

Yes.

[George Camel]

So that's kind of the struggle now. And then also figuring out, okay, we're doing some great saving goals. How do we now enjoy some of our money and spend it more? How do we give more to things that we really care about? So those are the good problems to have in your 30s and also bumping up, you know, the comfort level in our life. So those are our kind of big goals. How about you guys?

[Rachel Cruz]

Big goals? I would say, yeah, the kids thing is big. I would totally echo everything you just said. And it's a. It's a pretty constant conversation in our household of like, okay, how do we do this? Well, you know, how do we raise them? How do we manufacture some grit? Because it's like, guys, you're going to have to figure this world out. I would say generosity has been big for me recently because it is weird that. And I feel like I don't want to feel out of touch by saying this, but it's just where we're at that I'm like, you can be in a rhythm of giving money because we've been in that rhythm for 15 years of our marriage.

[George Camel]

It was a habit early on for you. Yeah.

[Rachel Cruz]

And it's just a continual thing and it's beautiful and wonderful, but the commodity that now I hold so precious now has shifted from money to time. And so giving that part is harder for me. That's more of a sacrifice. And so Winston and I have talked about that. How do we take that part? Include the kids with, you know, levels of generosity where we actually physically go and do stuff and we're with people and we serve and we do all of that. So that's something that I've been thinking about. And then travel. There's something about the experiences that I love. I just love it.

[George Camel]

You do love to travel.

[Rachel Cruz]

I will plan a vacation on a vacation. I'm like that kind of person because I'm just like, there's something about getting away, seeing other cultures, too. Like, I want to go big. So, like, I have Asia on my bucket list.

[George Camel]

Oh, that's fun. That would be fun anywhere specific. That's a pretty big.

[Rachel Cruz]

Thailand would be fun.

[George Camel]

Yep.

[Rachel Cruz]

I mean, Bora Bora, while we're over there, you know, Might as well.

[George Camel]

Might as well.

[Rachel Cruz]

Might as well just stop by.

[George Camel]

What about an overwater bungalow? Is that in the pictures? Yes.

[Rachel Cruz]

Isn't that a bucket list thing for me? You see them everywhere on Instagram. Like, that would be so fun. Tokyo. I would go, like, big city. Like, yeah, all of that. I want to take my kids to Israel. Oh, that's a bucket list for me. Once they, like, hit middle school, high school. I don't know. There's something about going and traveling that I would. I would put my money there over, like, upgrading a car or something.

[George Camel]

Just stuff.

[Rachel Cruz]

Yeah. I think I'm at that point.

[George Camel]

Yeah. Especially while the kids are young and can enjoy it. And you're creating some amazing memories, building character.

[Rachel Cruz]

Are you ready for this? Winston said this the other day, and I was like, oh, gosh. He said, with amelia, she turned 10. He said, now I've shifted from counting up to counting down. Like, now we only have eight more years with her. Like, you kind of shift as a parent, where before you're like, I can't wait till they get to this. And you kind of have this. Like. And then now it's like, oh, my gosh. Now we're looking at when they're leaving us. Like, we're kind of at that, which is so weird.

[George Camel]

Yeah. I went to one of these, like, baby blessing things, and they have, like, the marbles in one jar and then the empty one, and they go for every one.

[Rachel Cruz]

It's like a baby blessing.

[George Camel]

I don't know what it's.

[Rachel Cruz]

Is it Orthodox?

[George Camel]

No.

[Rachel Cruz]

Oh, man.

[George Camel]

I forget what it's called. I'm probably just missing. It's not a baptism.

[Rachel Cruz]

Okay.

[George Camel]

Dedication.

[Rachel Cruz]

Oh, a dedication. Sure.

[George Camel]

I don't understand why we do that, but it's a beautiful thing.

[Rachel Cruz]

Like, in front of the church.

[George Camel]

Yeah.

[Rachel Cruz]

It's not like a Baptist.

[George Camel]

It was, like, just close friends and family. Wasn't part of a church service.

[Rachel Cruz]

Oh, okay.

[George Camel]

It was like, care baby's getting dedicated. So it was a beautiful thing. But they have this thing with the marbles, and they go, okay. Every one of these marbles represents a week of your child's life.

[Rachel Cruz]

Okay.

[George Camel]

And so you see the marbles start to dwindle and start to go, oh, there's less on this side now.

[Rachel Cruz]

Oh, yeah.

[George Camel]

So, like, when you think about Amelia, you're like, we have eight summers left with her.

[Rachel Cruz]

Yeah.

[George Camel]

And that's if she doesn't go away one summer to a camp, you know? It's just crazy to think about.

[Rachel Cruz]

Yes, it is weird. It is.

[George Camel]

But right now, I'm in the phase of like, oh, my gosh, I can't wait till they're older and we can, you know.

[Rachel Cruz]

Yes, that's it. That's it.

[George Camel]

That's the story.

[Rachel Cruz]

And I do, and I do have another side of me. Is that where I'm like. Because I'll see Instagram videos and they're like, you only have 18 summers with your kids. You know. But then I'm like, my parents are over at our house.

[George Camel]

Yeah.

[Rachel Cruz]

You know, you mean like, you're like you're still in relationship with your kids? Like, and my parents would say this is the most fun. They like having adult kids and grandkids so they can send back with us. Like they. So I do think there's a life after them obviously turning 18 for sure. I recognize that. But I do think their ability to be with you in those times is way less than when they're under your roof. So there's something about them being captive under our roof where I'm like, what can we do with you while you're here? And you don't have any other options.

[George Camel]

Yeah, you're stuck with us.

[Rachel Cruz]

You're stuck with us.

[George Camel]

You're going to Thailand.

[Rachel Cruz]

You're going to Thailand. You're going to Thailand. So.

[George Camel]

Yeah. That's beautiful.

[Rachel Cruz]

Yeah.

[George Camel]

Well, I think it ties back into this net worth conversation because we talk about how parents need to put their own mask on first. They need to be investing in retirement before they try to help their kids and invest in college. Make sure that you're prepared for retirement.

[Rachel Cruz]

Yeah.

[George Camel]

So that your kids don't have to take on the burden of covering your lack of retirement plan.

[Rachel Cruz]

That's right. That's right.

[George Camel]

Those are some heartbreaking calls in the Ramsey show of, hey, my mom's 78, she has nothing invested.

[Rachel Cruz]

We get that a lot. And we have grown kids calling us about their parents not being able to do stuff. We get that a lot.

[George Camel]

Generation. They're stuck between trying to take care of their kids financially and take care of their parents financially. And so my goal is to never be a burden to my kids. I love that financially, I will be, I'll be, I will bother them, I will annoy them to no end for the rest of their life. But I don't want to be a financial burden.

[Rachel Cruz]

Yeah, that's fair.

[George Camel]

So, yeah.

[Rachel Cruz]

And if you guys, you know, need a starting place, maybe you are kind of newer to all of this. FPU is a great place to go. It is our nine lesson course that basically gives you the rundown of all of this to set you up. Well, so that. Yeah. So as you get older, you can have dignity in yourself with your finances, you're not having to depend on other people. And there's something beautiful about that.

[George Camel]

Absolutely. And I talk about this concept in my book, Rachel, of I want to talk about money so that we can stop talking about money. As nerdy as I am, and I love talking about it, I think it's wise to talk about it to get our money right so that we can focus on other things that actually matter in our life. Because we talk about how money is a tool, it's not the end goal.

[Rachel Cruz]

That's it.

[George Camel]

And the same applies to your net worth. What are you doing with that net worth? Well, wealth is a tool to bless others, to impact your family, to be generous, to live your best life.

[Rachel Cruz]

That's right.

[George Camel]

And when you don't have it, it's just harder to do that.

[Rachel Cruz]

That's right.

[George Camel]

And so that's why it's a decent measuring stick. But it's not the end all, be all.

[Rachel Cruz]

Well, it's weird on both sides of the spectrum. It's an idol. So it's an idol if you are spending it out of control, trying to be something and live this life that's above your means, but yet you're like coveting it and you're like, this is all I want. But then it can be an idol if you hold it so closely and so tight. Or maybe you're obsessed because you don't have it and it's stressing you out and it's all you think about. Right. So like we don't want money to be the center part of your life. So how do you create a sense where you have it under control and then it is a tool, it is the thing that helps you live your life. It's not your life.

[George Camel]

And we've said that money just makes you more of who you are.

[Rachel Cruz]

Yeah.

[George Camel]

And so it's not like your life's going to be so much better because you have a $5 million net worth. You go with you.

[Rachel Cruz]

Yes.

[George Camel]

And so if you haven't had a purpose behind all of that, you're just going to go, well, I guess the goalpost needs to move now to $10 million. You're just going to keep chasing the next net worth goal with no real purpose. And so I think it's wise to realize you shouldn't be chasing status at the expense of enjoying your life. But also don't procrastinate future wealth building at the expense of present day comfort. So it's all about balance.

[Rachel Cruz]

I love it. I think it's true. It's so true.

[George Camel]

Beautifully said.

[Rachel Cruz]

So good, George.

[George Camel]

I really enjoyed this episode.

[Rachel Cruz]

Man, are we monks? We might be monks. I don't know.

[George Camel]

I don't know if they'd let me. I never met a monk with glasses. It's anecdotal. I'm sure they're out there, but I.

[Rachel Cruz]

Think they have prescriptions.

[George Camel]

But then, do I need to shave my head?

[Rachel Cruz]

Prescription lenses?

[George Camel]

Can I have, like. Can they use hair products?

[Rachel Cruz]

No, I'm not sure.

[George Camel]

Do they own blow dryers? I have a lot of questions.

[Rachel Cruz]

That's a good. You know, I feel a little ignorant now. I opened up this door, and I can't walk fully through it with complete confidence, so I can't give any more information.

[George Camel]

Can I tell you one reason Rachel can't be a monk? She likes to talk. It's like the whole point of monkdom is to just shut it. Oh, we found a monk with glasses. Oh, okay. Is that what you're showing us?

[Rachel Cruz]

We're good.

[George Camel]

What about with hair? Hey. All right.

[Rachel Cruz]

Okay.

[George Camel]

Good luck.

[Rachel Cruz]

We got this.

[George Camel]

What's a female? Are there female monks? Are they called funks? More questions have arisen.

[Rachel Cruz]

We have a lot of studying to do.

[George Camel]

Is it like a pope where they have to be male?

[Rachel Cruz]

I don't. I mean, honestly, I'm not sure. The monks are called nuns. Oh, wow.

[George Camel]

That's on the Catholic side, though, right?

[Rachel Cruz]

Yeah. Cause it's Buddhist monks.

[George Camel]

Yeah, like a Buddhist monk.

[Rachel Cruz]

There's a Buddhist monk. In Buddhism, female monks are called nuns. Oh, still? All right. We're still the same word.

[George Camel]

Okay. I just learned today that nuns are not relegated to Catholicism. Me, too.

[Rachel Cruz]

No, there's Anglican nuns.

[George Camel]

Egg on my face.

[Rachel Cruz]

I. Y', all, this is it. This is why we need to go to Thailand. We need to learn more.

[George Camel]

Can I be honest? Most of my knowledge of this world comes from nacho libre, which I can't imagine is accurate, but it is entertaining.

[Rachel Cruz]

Probably not, man.

[George Camel]

Here we go. I'm glad we ended on a high note of me being an idiot.

[Rachel Cruz]

I think it's a big world out there, George. We gotta go explore it. And that's why you need money to go and travel and explore this world.

[George Camel]

Way to put a bow on it, right?

[Rachel Cruz]

Oh, my gosh. All right, before we spill the tea on our Guilty as Charged segment, share what was in the drink, George?

[George Camel]

This is the banana Old fashioned. This cost $2.69 per drink. The ingredients are simple. Bourbon, banana syrup, and black walnut bitters. And mixologist Michael told us he Made the banana syrup from scratch instead of using, like, a banana liqueur, which could be used to sweeten it.

[Rachel Cruz]

Yeah.

[George Camel]

He decided to go the extra mile, and he said it's a. It's lighter because of that. The banana flavor is not as forward, but I enjoy that because, again, I don't love banana. I think it's too strong of a flavor.

[Rachel Cruz]

Yes.

[George Camel]

If it's in a smoothie, you're just drinking a banana smoothie with a hint of strawberry.

[Rachel Cruz]

Okay.

[George Camel]

You know what I mean? It's like mustard. It's just gonna punch through.

[Rachel Cruz]

Just gonna happen.

[George Camel]

And be the star, the lead, the main character.

[Rachel Cruz]

Yeah. Dang it. Dang you, banana. Just be a little more humble.

[George Camel]

But goodness gracious, this is good. What's your rating on it?

[Rachel Cruz]

I mean, y', all, I make a 10 out of 10. I like an old Fashioned, and this has an interest to it. This would be a fun drink that if you knew a bartender, could make it really well somewhere for a group of friends. Like, guys, I have had a banana Old Fashioned. Y' all are gonna love it. Let's all order one. Like, it'd be a fun, like, party trick kind of drink. You know what I mean?

[George Camel]

I love that.

[Rachel Cruz]

I think it would be more of a social trick for me, like, a social drink than, like, if I was out on a date night. Like, if I was just with Winston, I'm probably going, like, my dirty martini. But this would be, like, a peak of interest of, like, guys. Have you heard?

[George Camel]

Oh, so Rachel would do it, impress her friends, but not Winston, because Winston is not impressed.

[Rachel Cruz]

That's. This drink for me.

[George Camel]

It's not as, like, exciting to do this with Winston. He's like, rachel, it's just a banana.

[Rachel Cruz]

Yeah. It's a party trick drink to me.

[George Camel]

I'm going to go 10 out of 10.

[Rachel Cruz]

Yeah. But it's delicious.

[George Camel]

And coming from a guy who hates banana. So I say that to say, you should go make this recipe is in the show notes. Prove us wrong.

[Rachel Cruz]

All right, George, now it's time for guilty as charged. And this is where we ask each other a new guilty charged question every week. And if we're guilty, we take a sip. All right, George, you ready?

[George Camel]

Hit me.

[Rachel Cruz]

Have you ever been underwhelmed or unfulfilled after achieving a financial milestone?

[George Camel]

Oh, it's a pretty deep cut.

[Rachel Cruz]

I know.

[George Camel]

I'll say. For the camels, I think paying off the house while a really fun milestone. It was a little bit underwhelming. Was it okay from the experience at the bank, which was lackluster to say the least. You know, I expected like a confetti, a balloon music. It was just like 10 minutes of a lady typing, trying to like do a wire transfer to the mortgage company.

[Rachel Cruz]

Totally. Yeah.

[George Camel]

And then she's just like, all right, it will be complete in 24 to 48 hours. Like it didn't even just happen. I have to then still wait totally for a wire. And it's not like they notify you.

[Rachel Cruz]

Yes.

[George Camel]

And so the most exciting part is like two weeks later you get a thing in the mail that's like mortgage payoff paper. Congratulations, you're done with us. So that was a little bit underwhelming, the experience. And then on the other side you're like, well, there's still more expenses. You still got to cover your property taxes, your insurance, every other bill you had in your life. So it was a really fun milestone. It did free up a lot of margin that we could now use to give, save and spend and more important things. Yeah, it was just one of those, like, I thought there was going to be a little more fan party.

[Rachel Cruz]

Where's my party? Yeah, that's fair.

[George Camel]

You guys.

[Rachel Cruz]

Winston and I, we were probably, gosh, maybe three or four years into marriage and I think it was his idea. He was like, hey, let's have this money goal to get to X amount in our savings, like in our money market account. So we kind of like, yeah, cuz having a goal is good. So we're like, yeah, let's like, you know, not just spend everything, but we'll figure out. And then we hit the goal. And it was kind of like, okay, that's what I'm gonna do with that. Like, you know, it's beyond our.

[George Camel]

The money didn't have a goal. The goal was just like build this exact stack.

[Rachel Cruz]

Yeah, it was like a number goal. And to me.

[George Camel]

Do you think that's why?

[Rachel Cruz]

I think because I was like, there.

[George Camel]

Was no real why, but it wasn't.

[Rachel Cruz]

An emergency fund of like, oh gosh, I need some cash in the bank just in case something happens. And that feels good. Like it was just a number. And so that's why I think since that experience, I just don't. I'm not a big fan of like a goal as a number. Like, I want to have a million dollars by the time I'm 50 or whatever.

[George Camel]

Like again, milestone for the sake of milestones.

[Rachel Cruz]

Yes. Because I'm like, okay, well you get that. But like, what are you gonna do with that? Like, what do you Like, I would rather have a goal where there's an experience or a purchase attached to it.

[George Camel]

Like your pool. That was more fun for you. Cause you're like, well, there's a pool instead of a number.

[Rachel Cruz]

And I've impressed by that. Like, we've used it. I mean, it has been like a. An element of our family that has been so fun. And it's only been, like, three months, but.

[George Camel]

And you haven't even invited me over yet, so just wait until that. Then it's gonna really feel fulfilling, and then it'll be like to have the camels over.

[Rachel Cruz]

He made it. He made it.

[George Camel]

I'm excited for the kids to teach me how to swim, too. You have floaties in my size.

[Rachel Cruz]

George, you can swim?

[George Camel]

Sure.

[Rachel Cruz]

Okay. Do you do this as swimming?

[George Camel]

I'm not gonna drown. You're just gonna go. You call that swimming? It's more of that. You know what I mean?

[Rachel Cruz]

Yeah. Okay.

[George Camel]

I hang in the shallow end with Charles. He'll be all right. George, we brought down with our mocktails. That's fun. That's a fun one. But that's a good reminder to everyone that money is not going to make or break you. And hitting a certain goal is not going to make like, yes, I'm fulfilled now.

[Rachel Cruz]

That's right.

[George Camel]

Continue your joke. I know you're laughing at my jokes.

[Rachel Cruz]

I keep laughing at me. And I did this.

[George Camel]

Is that a heart I couldn't see from my angle.

[Rachel Cruz]

Yeah, I said, love you, George.

[George Camel]

See, I feel like it's condescending and sarcastic when you do the motion with it.

[Rachel Cruz]

No, it's just a Taylor Swift thing.

[George Camel]

Oh, is it?

[Rachel Cruz]

Yeah.

[George Camel]

I didn't know that.

[Rachel Cruz]

Yeah. All right. Okay. Tell people to DM us.

[George Camel]

Dms Your guilty as charged questions. I've been getting a bunch lately, and we love them. I send them to the producers, and then we use them in future episodes. So Instagram at Rachel Cruz or at George Camel with a K. And we will use them in a future episode if they're good and we haven't used them before.

[Rachel Cruz]

That's right.

[George Camel]

So there you go.

[Rachel Cruz]

Love it, George. Thanks so much. And listen, it's one thing to be at peace when we compare ourselves to other people, but have you ever felt like our parents had it way easier than we did when it comes to wealth building? Well, make sure to check out our episode. Do we have it harder financially than our parents? So click there. Or if you're listening on podcast, we will leave a link below. Make sure to subscribe so you don't miss an all new episode of Smart Money Happy Hour.