If you think you need a six-figure salary to become a millionaire, Dave Ramsey has news. In an April 2023 Facebook post, he revealed: “69% of millionaires did not average $100,000 or more in annual household income – and (get this) a third of millionaires have never had a six-figure household income in their entire careers . “
That’s right – most millionaires didn’t get there because of a huge paycheck. Instead, Ramsey says it’s all about two key steps: consistently investing in retirement accounts and owning a paid-for home.
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According to Federal Reserve data analyzed by Business Insider, the average age of a millionaire rose from 57 to 61 between 1992 and 2022. In 2022, more than 80% of millionaires are 50 years or older. With home prices soaring and wages not keeping pace, young people face a tougher climb to financial independence. But Ramsey’s advice proves that the climb is not impossible; it just takes patience and discipline.
Invest consistently in retirement accounts
One of the biggest factors Ramsey emphasizes is investing for the long term. In his 2024 study, he found that eight out of 10 millionaires participated in their company’s 401(k) plan and that 75% also invested outside of these plans. 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 investing in individual stocks 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 almost three-quarters of millionaires saying consistency was a key factor in their success. It’s a slow and steady approach, but it works.
Related: It’s No Wonder Jeff Bezos Owns More Than $70 Million in Art — this alternative asset has outperformed the S&P 500 since 1995, with an average annual return of 11.4%. Here’s how regular investors get started.
Owning a paid for house
The second key factor Ramsey mentions is owning a home. His research found that the average millionaire had between $500,000 and $600,000 of his wealth in a paid-off home. Homeownership isn’t just about having a place to live – it’s about building equity and long-term financial security.
