“Know Yourself, Know Your Money” by Rachel Cruze is a deep dive into the heart of your money. It is impossible to become debt-free and build an investment portfolio if you don’t know your limiting beliefs about money.
Rachel Cruze is Dave Ramsey’s daughter, by the way. She explains how it was growing up after her dad’s bankruptcy in the book. It is interesting because we would all assume Dave Ramsey was always good with money.
There is a lot to unpack in this book. It gives us many different comparisons to money mindsets and habits like “saver vs. spender,” “nerd vs. free spirit,” and “abundance vs. scarcity.”
It is always better to ground ourselves towards the middle, no matter where we fall across these different spectrums. Walking the line in the middle gives us a better understanding of other people, particularly our partners.
1) How we grew up watching our parents handle money harms our own money lives. She calls these different types of memories “classrooms.” The classrooms she lists are anxious, unstable, unaware, and secure. Knowing which classroom you grew up in is vital to overcoming residual scar tissue.
2) The seven different money tendencies can also affect our lives and relationships. I like the tendency “safety vs. status” because I see this play out almost every day in the Marines. Young Marines buy flashy cars, wanting attention while others save and invest. It is all fascinating to watch.
3) I found the comparison between “too much grace” and’ “not enough grace” to be fascinating. We all want to help people in need, but too much help can also “enable” the person. Not enough, and we are more concerned with our own money and “the rules.” It’s a fine line that we need to draw carefully.
4) Another comparison I found helpful was “dreamer vs. realist.” My wife and I fall on different sides of this, with me being the realist. However, I need to be careful not to stomp over her dreams because of my realism. Also, I need to allow myself time to dream as well.
5) Finally, I loved the “committed” versus “involved” comparison. You have to commit to the program you install to change your life. She talks about hitting a “sick-and-tired” moment. I reached mine in 2019 when I knew we would have to change to have the ability to travel overseas and see family. That instant, we became committed, and here we are today.
My favorite part of the book was how she defines “legalist.” Legalists fall into the “not enough grace” category and are strictly by-the-book leaders. I have seen this so much in the Marine Corps.
These seniors are leading with no compassion. I love how she described these people and gave them ways to improve this leadership style. We all need strict protectors of the rules, but we also need compassion and understanding. I will probably use this chapter to help some of my young Marines understand the true nature of leadership.
Overall, a fantastic book and great for anyone struggling with debt. Also, it is incredible for anyone who wants to understand more about the money mindset—which is vital to forming (and keeping) healthy relationships.
My next book will be a Dave Ramsey one. I have never read one of his books, but I find it intriguing after reading it from his daughter. I fall more into the Robert Kiyosaki line of thinking, but it’s always good to know both sides.
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. All Right Reserved Military Family Investing
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