Dave Ramsey Shares His Secret To The Fastest Path To Millionaire Status

Dave Ramsey, best-selling author and personal finance expert, has been teaching people how to build wealth since 1992. He’s the host of “The Ramsey Show,” a radio show and podcast with over 20 million listeners per week, and has appeared on more TV shows than you can count, including “Good Morning America,” “CBS Mornings,” “Today,” Fox News and CNN.

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According to GOBankingRates, Ramsey is one of Money’s Most Influential and is tied for the No. 1 spot among the most popular and well-known money experts. So, what’s his secret to building wealth? 

First, have a budget. It’s that simple. Next, get out of debt and stay out of debt. Your income is your greatest wealth-building tool, and sending payments to Sallie Mae and credit card companies isn’t going to help you accumulate wealth.

Contrary to popular belief, the typical millionaire isn’t living the high life with Ferraris and lobster dinners every night. According to Ramsey’s National Study of Millionaires, the wealthy don’t blow all their money on frivolous things. They live below their means, never carry a credit card balance and still shop with coupons. Who knew millionaires loved a good bargain?

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Building Wealth

Consistently invest over a long period of time. Don’t get distracted by get-rich-quick schemes or market swings. It’s not flashy or trendy, but it works. This kind of investing can pay off in the long run.

Ramsey is a big advocate for impact investing, which means investing in companies that align with your values and have a positive social or environmental impact. It's not just about making money — it’s also about making a difference. One of Ramsey’s favorite investments tends to be real estate, but the investing world is quickly changing. Changes in federal allow anyone to invest in startups on platforms like StartEngine and Wefunder then hold for the long term. Investors can invest in startups then become customers to become impact investors. 

Once you’re debt-free (except for your home) and have an emergency fund of three to six months of expenses saved, invest 15% of your gross income into retirement accounts like a 401(k) and Roth IRA.

But what about paying off debt while building wealth? Ramsey’s advice is simple: Get out of debt first and have an emergency fund saved before you start investing for retirement. It’s important to pay off your debts in a way that keeps you motivated, so use the debt snowball method. List all your debts from smallest to largest and make minimum payments on all except the smallest. Throw as much money as you can at the smallest debt and then apply its payment to the next smallest while continuing to make minimum payments on the rest. Repeat until all your debts are gone.

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