In The Military And Want To Become A Millionaire? Dave Ramsey Explains How To Do It Painlessly Even On A $30,000 Salary

In a classic episode of "The Dave Ramsey Show," financial expert Dave Ramsey broke down how anyone can retire a millionaire — even if they never earn more than $30,000 a year.

A caller named Haley asked how someone in the military could retire as a millionaire. Ramsey said the secret is saving regularly, making smart choices, and using good investment options. However, he didn’t stop at that.

Military Promotions and Steady Pay Increases

Ramsey pointed out that a military career comes with promotions over time. Staying at entry-level pay for 40 years without any promotion is highly unlikely in any field, including the military.

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But even if someone did stay at the same low pay their entire career, Ramsey explained that reaching millionaire status is still possible.

The Power of the Thrift Savings Plan

The key tool Ramsey highlighted is the military’s Thrift Savings Plan, specifically the C Fund. This fund is made up of stocks from large U.S. companies, similar to an S&P 500 index fund, and has historically averaged around 10% annual returns. Ramsey emphasized that the TSP offers military members a simple, low-cost way to invest, with automatic payroll deductions making it easy to build wealth over time. He also pointed out that the military gives extra money to match what some service members save, which helps their savings grow faster and easier.

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If you start saving $160 a month at age 25 and keep doing so until age 65, your money could grow to $1 million thanks to compound interest. That $160 a month adds up to about $1,920 a year, which is a small portion of a $13,000 annual salary.

Ramsey often advises saving 15% of your income. As he further explained to the caller, if you make $26,000 a year and save 15%, he'd be putting away $320 a month instead of $160. This would get him to $1 million much faster.

"I've made less than that," Ramsey admitted during the call, emphasizing that building wealth isn't just for high earners. The key is to stay out of debt, build an emergency fund, and invest consistently.

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A Military Veteran’s Perspective

One comment under the video highlighted how some civilians misunderstand military careers. The commenter, a retired military member, noted that they retired at 38 with a pension and started a second career, adding, "No one retires as a private!"

Another commenter shared a similar story: "I did the same, retired with 20 years from the Air Force at 38 years old and now I'm working on my second retirement as a federal employee. If I play my cards right, I'll retire at 62 with two pensions, Social Security, my VA benefits, and that's not even counting what I make from my TSP or my spouse's retirement. Just wish I knew about Dave Ramsey 20 years ago."

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