Most people dream of financial freedom, but the path to becoming a millionaire often seems complicated. For Dave Ramsey, a well-known personal finance guru, reaching $3.6 million by age 65 is achievable for anyone willing to follow a consistent plan. In a recent tweet, Ramsey outlined a simple investment strategy that – while simple – requires discipline and patience.
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According to Ramsey, if you invest 15% of the average American household income ($77,000) in growth stock mutual funds, you can reach $3.6 million by the time you reach retirement age, investing at a 10% annual return, too starting at age 30 and continuing until you are 65. As Ramsey puts it, “It really is that simple, but it’s not easy. If it were easy, everyone would be a millionaire.”
Ramsey’s advice is most effective when combined with a consistent investment strategy. Saving 15% of your income each year may seem like a lot, especially when it comes to bills and other obligations, but Ramsey’s approach focuses on the long game: gradual accumulation that will pay off big by the time you retire. Compound interest is the real magic here: the sooner you start, the more time your money has to grow.
Making small, regular contributions to growth stock mutual funds can lead to big returns over time. This idea is not new, but people often forget about it because they think they need a high income to build wealth. What you really need is a plan to keep investing regularly, not a huge paycheck.
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As Ramsey notes, while the strategy itself is simple, it is not necessarily simple. Most people have trouble committing to a plan that spans decades. When life gets in your way—emergencies, lifestyle upgrades, unexpected expenses—sticking to the 15% rule requires financial discipline, a budget, and often some very difficult choices.
