Yahoo Finance Dave Ramsey: What You Do With Your Money Matters More Than How Much You Make and Here’s Why
Financial guru and host Dave Ramsey believes that what you do with your money matters more than how much you make.
“1/3 of millionaires NEVER made six figures in any single year of their career. What you actually do with the money you make matters more than the amount of money you make. There are plenty of people making a LOT of money who live paycheck to paycheck,” Ramsey posted on X, the platform formerly known as Twitter.
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In the post, Ramsey reiterated findings from a Ramsey Solutions study, The National Study of Millionaires. It found that only 31% averaged $100,000 a year over the course of their career, and one-third never made six figures in any single working year of their career.
So, what did they do with their money? More importantly, how can you learn from it to help you manage your own money?
Wealthy people know the best money secrets. Learn how to copy them.
Build Wealth Slowly and Steadily
It’s easy to think that you can attain significant wealth by having lightning strike–a stroke of good luck such as a sudden windfall or a radically innovative idea in business or technology. However, you’d be quite wrong with this assumption. Based on the study’s insights, most millionaires build their wealth slowly and steadily, and often by employing conventional tactics.
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According to the study, eight out of 10 millionaires invested in their company’s 401(k) plan, which was key to their financial success. These millionaires were wise to take advantage of the opportunities in front of them, and a number of them look toward the horizon on other forms of investing.
In addition, 75% of the surveyed millionaires also said that regular, consistent investments over a long period of time were the reason for their success. Instead of focusing on single-stock investments or getting drawn into supposedly blockbuster opportunities, these savvy investors applied a more judicious approach.
“So, the story about the young computer genius who developed an app that earned millions overnight is the exception, not the rule,” according to the study.
Top Jobs for Millionaires
Given that most millionaires didn’t inherit their wealth or become a tech impresario, the study dove into the question of how they earn their money. The truth is that millionaires have some of the most popular, everyday jobs anyone could hold. According to the study, these are the top five jobs for millionaires, in no particular order:
Engineer
CPA
Teacher
Management
Attorney
If you’re looking for a new line of work to help you make your first million, think less about creating the latest flash-in-the-pan app and more toward becoming an accountant.
Know Your Money Long-Term
You might think that achieving your first million is grounds for a big-time celebration or splurge. However, keeping a steady hand on the till of the ship of your finances will help you sail onto your next million.
Even when the millionaires who were surveyed reached their millionaire milestone, they still proceeded carefully with their money and their spending. They applied good old-fashioned commonsense when it came to spending and saving.
For instance, the study found that 94% said they live on less than they make, and nearly three-quarters of the millionaires have never carried a credit card balance in their lives. You might also be surprised to find that they spend $200 or less each month at restaurants. This frugality carries over to grocery shopping, with 93% of millionaires using coupons all or some of the time when shopping.
“By staying out of debt and watching expenses, they’re able to build their bank accounts instead of trying to get out of a financial hole every month,” according to the study.
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Yaël Bizouati-Kennedy contributed to the reporting for this article.
This article originally appeared on GOBankingRates.com: Dave Ramsey: What You Do With Your Money Matters More Than How Much You Make and Here’s Why
