Dave Ramsey is always direct when it comes to building wealth, and this time he's making it straightforward, too. If you're 25 and don't end up a millionaire, you “might need a wake-up call.” The good news is that even if you start late, you can still hit $1 million before retirement.
In a social media post, Ramsey recently broke down the math behind becoming a millionaire, and it's surprisingly simple. If you start investing just $100 a month at 25 and keep it up until 65, historical S&P 500 returns of 10% to 12% could turn that into over $1.1 million. That's less than many people spend on random daily purchases they don't even think about.
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If you think you’re too old to become a millionaire, Ramsey has a plan for that too. If, in his example, you start at 40 and invest $1,000 a month, you can still reach $1 million by 60. The key, he says, is to stop making excuses about age or income and focus on what you can control—your spending and investing habits.
Small Daily Expenses Add Up Fast
A major part of Ramsey's financial advice revolves around cutting wasteful spending. He recently pointed out that spending just $13.70 a day on unnecessary things—like impulse buys, fast food, or streaming services you don't even use—adds up to $5,000 a year. That's money that could be growing for you instead of disappearing into things you won't even remember buying.
He urges people to be intentional with their money by directing it toward meaningful goals:
- Paying off debt
- Building an emergency fund
- Investing for retirement
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Tracking where your money is going and making small tweaks can result in major financial progress. Ramsey's approach is simple: You don't have to be a genius to build wealth—you just have to be consistent.
Rethink Debt As ‘Normal’
A big part of Ramsey's philosophy is challenging the idea that debt is just part of life. He often jokes about how people treat student loans and credit card debt like permanent houseguests. His advice is to kick them out.
He frequently reminds people that “your No. 1 wealth-building tool is your income.” The more of it you keep—by avoiding debt and unnecessary expenses—the faster you can build wealth.
See Also: Are you rich? Here’s what Americans think you need to be considered wealthy.
Time and Compound Interest Are on Your Side
The earlier you start investing, the less you have to put in to reach $1 million. But even if you're starting late, focusing on cutting wasteful spending, avoiding debt, and investing consistently can still set you up for a solid financial future.
In Ramsey's world, excuses don't build wealth—action does. Whether you're 25 or 40, the path to $1 million is open if you take control of your finances today.
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