Dave Ramsey says 79% of US millionaires didn’t receive any inheritance from their parents or family members — here’s how they made the big money

'Made, not born': Dave Ramsey says 79% of American millionaires didn't inherit from their parents or family — this is how they made their fortunes.

‘Made, not born’: Dave Ramsey says 79% of American millionaires didn’t inherit from their parents or family — this is how they made their fortunes.

Want to know what it takes to become a millionaire? Well, Ramsey Solutions went straight to the source and surveyed 10,000 of them. And some of the findings were surprising. As in: eight out of 10 used the company’s 401(k) plan.

But wait. Shouldn’t the multi-millionaires be living off Mumsy’s savings and nurturing the family’s wealth in their Martha’s Vineyard mansion? Not really – in fact, not close. Dave Ramsey, financial expert and founder of Ramsey Solutions, says this myth of first inherited wealth is “absolutely false”.

When the National Study of Millionaires asked Ramsey where their wealth came from, they found that over 79% did not receive an inheritance from parents or other family members. Not one cent. Probably an unpaid bill (even if the course didn’t ask). But the wallet and blue stock? No.

Also Read :  Saving on Groceries, Cars and TV, and an I-Bond 'Surprise'

So how did they achieve millionaire status, and what can you do to replicate their success?

Don’t forget

Choose the right job

The Ramsey study found that five professions produced the most millionaires: engineering, accounting, management, lawyers and teachers.

Although these jobs strongly associated millionaire status with higher education, they did not require attending high school. In fact, only 8% of those in the study attended a “prestigious private school,” and 62% attended public schools.

And an important detail to note: Millionaire status is not the same as a high salary.

“Only 31% made an average of $100,000 a year in their lifetime,” the study said, “and a third never made six figures in a single career year.”

Moreover, the millionaires in the Ramsey survey did not necessarily hold a significant leadership role: only 15% were in that category. In contrast, more than nine in 10 (93%) said they got rich because they “worked hard”.

Also Read :  Brokerages have given National Bank of Canada (TSE:NA) a consensus rating of "Moderate Buy." -

Where to find hard work

Great career success goes into financial hyperdrive when combined with serious retirement planning. In fact, the survey found eight out of 10 invested in the company’s 401(k) plan. These plans not only offer tax breaks when you save but also feature, in many workplaces, an employer match that can be up to 6% of your salary.

Careful spending is also important as 94% of respondents said they “live on less than they earn”, while three-quarters “never carried a balance”. credit card in his life”.

Read more: The Great Escape: Rich Young Professionals Making Over $100K Are Fleeing California and New York — Here’s Why and Where They’re Going

The key is to create a budget and stick to it. These millionaires spend less than $200 a month on restaurants, and 93% use coupons when shopping.

(Think, though, if there were better ways to spend your time. It might be better to spend an extra hour at work than to spend that time printing out $10 coupons.)

Also Read :  Lam Research Whale Trades For September 19 - Lam Research (NASDAQ:LRCX)

Wake up to the American Dream

If Ramsey’s research highlights one salient fact, it’s this: Bad attitudes, inaction, and spending habits can be the biggest obstacles to millionaire status.

To put it another way: You have to believe it. You need to take responsibility. You must protect yourself from unnecessary spending and embrace smart savings. This is what the American Dream is made of, and what turns it into a million dollar reality.

What to read next

  • Inflation draining your budget? Here are 21 things you should never buy at the grocery store if you’re trying to save money

  • US diesel supplies are now running at just 25 days — the lowest since 2008. That’s even more alarming than the dwindling ‘oil piggy bank’.

  • ‘It’s not the time to be greedy’: The US housing recession is burning household waste, slashing prices to cut losses – for two main reasons.

This article is for informational purposes only and should not be construed as advice. It is provided without warranty of any kind.


Leave a Reply

Your email address will not be published.