“You work too hard to get to the end of your life and have nothing to show for it! Today is the day. Today is the day you can decide to change your life,” he wrote in a Sept. 29 post on X, the platform formerly known as Twitter. “Your income is your most important wealth-building tool. And when your money is tied up in monthly debt payments, you’re working hard to make everyone else rich.”
In a video accompanying the post, Ramsey elaborated on how this can be achieved. First, as he noted, all of the millionaires he has interviewed — unless they inherited their money — built their wealth by saving their money and investing theirincome.
“They did not give their income to Sallie Mae. They did not give their income to Best Buy. They don’t get screwed around and give their income to Lexus and Toyota and Ford and General Motors and American Distress and MasterCard,” he said in the video.
According to him, it boils down to one simple concept.“It’s a mathematical thing,” he said. “When you give your income to someone else, you don’t have it anymore.”
In turn, he argued that credit cards, student loans, car payments, or borrowing money on your house to put granite countertops in, is all “stupid.”
As Ramsey Solutions explained in a blog post, the only “good debt” is paid-off debt.
“Your most powerful wealth-building tool is your income. And when you spend your whole life sending loan payments to banks and credit card companies, you end up with less money to save and invest for your future. It’s time to break the cycle!” the post read, in part. “Trying to save and invest while you’re still in debt is like running a marathon with your feet chained together.”
As Ramsey Solutions explained in a blog post, the only “good debt” is paid-off debt. “Your most powerful wealth-building tool is your income. And when you spend your whole life sending loan payments to banks and credit card companies, you end up with less money to save and invest for your future.
While get-rich-quick schemes sometimes may be enticing, the tried-and-true way to build wealth is through regular saving and investing—and patiently allowing that money to grow over time. It's fine to start small. The important thing is to start and to start early. Earn money and then save and invest it smartly.
That's why it's often important to start as soon as you can. Even if you're starting small. “The first step to building wealth is to start creating strong habits to stay consistent with your saving and investing plans,” Chelsea Ransom-Cooper, a CFP with Zenith Wealth Partners in New Jersey, tells CNBC Make It.
Save And Invest. The goal is to save and invest your money so that your funds are growing for you. Ramsey wants you to start with an emergency fund and then focus on investing your money for the future.
Your number one wealth building tool is your income. All of the millionaires that we interview, unless they inherited the money, which is very, very few of them, less than 10% of them inherited the money, did it by saving and investing their income.
Financial guru Dave Ramsey recently shared his No. 1 wealth-building tool: your income. “You work too hard to get to the end of your life and have nothing to show for it! Today is the day.
If you want to be a millionaire, start saving as soon as you start working to let the magic of time and compound interest work for you. “Pay yourself first” by saving a significant percentage of your income every month.
Barbara Stanny describes the four stages of wealth as Survival, Stability, Wealth, and Affluence. Based on thousands of hours as both a client and a counselor in the money coaching process, here is my understanding of each stage.
His research concluded that 20% of millionaires made their first million in their mid-to-late 30s despite having middle-class incomes. They accumulated wealth by practicing frugality and regularly saving and investing about 20% or more of their income. Around 28% of millionaires rolled the dice to become wealthy.
Bank or credit union account — If you have an account with a bank or credit union—generally considered one of the safest places to put your money—it might make sense to have a dedicated account where you can keep and maintain these funds.
Net worth is a better measure of someone's financial stability than income alone. A person's income could be disrupted by job loss or reduction in work hours. Income doesn't indicate how much debt someone has or how much savings or other assets they have.
Income and wealth are essential components of individual well-being. Income allows people to satisfy their needs and pursue many other goals that they deem important to their lives, while wealth makes it possible to sustain these choices over time.
Labor income is the most important determinant of wealth, except in the top 1%, where capital income and capital gains on financial assets become more important.
Hobby: Gunsmithing, Embroidery, Parkour, Kitesurfing, Rock climbing, Sand art, Beekeeping
Introduction: My name is Roderick King, I am a cute, splendid, excited, perfect, gentle, funny, vivacious person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
