Why Dave Ramsey Says Your "Typical Millionaire" May Look Just Like Your Next Door Neighbor

Dave Ramsey has made millions as an investor and an author, but you might not know it by looking at him. He once said in a Facebook post "Most millionaires don't drive fancy cars—and that might surprise you. The truth is most millionaires live simple, disciplined lives. They don't waste money on luxury cars or big mansions. Instead, they follow a proven plan, avoid debt, and let their wealth grow over time." 

The 24/7 Wall Street website also quoted Ramsey as saying, “A typical millionaire lives in a middle-class house, drives a two-year-old or older car, and buys blue jeans at Walmart.” It sounds more like Ramsey is describing your door neighbor than a millionaire, but his words are profound. Ramsey knows being worth over $1 million doesn't guarantee a lifetime of financial security, which is also why he's a proponent of developing passive income streams.

Don't Miss:

• Are you rich? Here’s what Americans think you need to be considered wealthy.
• These five entrepreneurs are worth $223 billion – they all believe in one platform that offers a 7-9% target yield with monthly dividends

Being worth $1 million may have allowed you to live a high lifestyle in the mid to late 20th century, but the relentless march of inflation means $1 million doesn't go nearly as far as it used to. The median American household income is $80,610 per year, according to the US Census. So, theoretically, every $1 million you have will allow you to live like an average American for 12 years.

It would take $3 million to go over thirty years without working, but your money won't last nearly that long if you're buying luxury cars, dining out, and living an excessively lavish life. Remember, inflation is going to be climbing for every one of those years, so you don't have much choice about leading a relatively modest lifestyle if you want your money to last.

That assumes your net worth is all cash, which it likely isn't. Most Americans have a significant portion of their net worth tied up in their homes, and the Federal Reserve says the median home sale price for American homes was $419,200 in Q4 2024. However, that includes millions of properties in less expensive regions like the Plains, the South, and the Upper Midwest.

Trending: BlackRock is calling 2025 the year of alternative assets. One firm from NYC has quietly built a group of 60,000+ investors who have all joined in on an alt asset class previously exclusive to billionaires like Bezos and Gates.

Median home prices over $1 million are becoming increasingly common in America's major metropolitan areas, especially on the coasts. So, you could be a typical homeowner in Los Angeles or San Francisco and have a net worth that approaches or exceeds $1 million. However, you wouldn't be super rich, and you would have no illusions about the fact that you were not super-rich.

You'd likely be living as frugally as possible to maximize your money. That would mean living in a regular, middle-class house, not a mansion. You would probably drive a slightly older used car and not buy the newest model year as soon as it came out. You might even shop at a Walmart. In other words, your life would sound a lot like the one Ramsey described.

Read Next:

• Can you guess how many Americans successfully retire with $1,000,000 saved? The percentage may shock you.
• Dogecoin millionaires are increasing – investors with $1M+ in DOGE revealed!