If you think you need a six-figure salary to become a millionaire, Dave Ramsey has some news. In an April 2023 Facebook post, he revealed, “69% of millionaires did not average $100,000 or more in household income per year – and (get this) one-third of millionaires never had a six-figure household income in their entire careers.”
That’s right – most millionaires didn’t get there because of a massive paycheck. Instead, Ramsey says it’s all about two key moves: consistently investing in retirement accounts and owning a paid-for home.
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From 1992 to 2022, the average age of a millionaire increased from 57 to 61, according to Federal Reserve data analyzed by Business Insider. As of 2022, over 80% of millionaires are 50 or older. With housing prices soaring and wages not keeping up, younger people face a tougher climb toward financial independence. But Ramsey’s advice proves the climb isn’t impossible – it just takes patience and discipline.
Consistently Invest in Retirement Accounts
One of the biggest factors Ramsey highlights is long-term investing. In his 2024 study, he found that eight out of 10 millionaires participated in their company’s 401(k) plan and 75% invested outside of those plans as well. Why? Compound interest. Over time, reinvesting earnings can turn consistent contributions into a small fortune.
Interestingly, none of the millionaires in Ramsey’s study relied on single-stock investments to build their wealth. Instead, they stuck with diversified portfolios and mutual funds, which offer stability and predictable growth. Ramsey also emphasized the importance of regular contributions, with nearly three-quarters of millionaires saying consistency was a major factor in their success. It’s a slow and steady approach, but it works.
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Owning a Paid-For House
The second key factor Ramsey mentions is owning a home outright. In his study, the average millionaire had $500,000 to $600,000 of their net worth in a paid-off house. Homeownership isn’t just about having a place to live – it’s about building equity and long-term financial security.
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