Yahoo Finance Rachel Cruze: How To Become a Millionaire Making $60K or Less
Dave Ramsey’s daughter, Rachel Cruze, is a financial expert known for her no-nonsense money advice. Unlike many of her contemporaries, Cruze and her father advocate a slow and steady approach to wealth. They steer away from “get rich quick” schemes and encourage financial stability by getting rid of debt and regularly investing.
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On a recent episode of The Rachel Cruze Show, the bestselling author explained to her followers that they, too, can become millionaires, making an average or mid-range salary. She notes that you do not have to make a six- or seven-figure salary to retire a millionaire. Instead, she advocates consistent investing to build wealth.
What Does the Average Person Make?
A 2023 survey conducted by GOBankingRates found that the majority of Americans make $60,000 or less. Of the over 1,000 people surveyed, more than 67% responded that they made this amount each year.
Many people assume that this mid-range salary is simply not enough to solidify yourself as a millionaire or even retire comfortably. Rachel Cruze, however, thinks otherwise. She noted that of those she has surveyed, “one-third of millionaires never made more than $100,000.”
How Do People Making an Average Salary Become a Millionaire?
Cruze said on her YouTube channel that many of the millionaires she had spoken with had never made a “high” salary but that they always worked toward retirement.
She explained, “eight out of 10 millionaires invested consistently in their 401(k) throughout their career,” and she added that “three out of four millionaires say that regular, consistent investing is what ultimately brought them success.”
She indicated one of the most telling statistics is that teachers regularly rank in the top five careers of millionaires, despite the career bringing in a salary, on average, of $51,000 a year.
Learn More: 7 Ways the Upper Middle Class Can Become Rich in 2024
Following the Baby Steps To Become a Millionaire
If you are even a casual follower of Dave Ramsey and his daughter, then you have likely heard of the “baby steps.” The 7 Baby Steps is pretty much their go-to guide for getting yourself out of debt and securing a more stable financial future. When discussing The Fastest Way to Become a Millionaire, Cruze sat down with her father to discuss the last several steps that can help you achieve this goal.
These steps include investing 15% of your income toward retirement, saving for your children’s college education, paying off your house and building wealth and giving. Again they reiterate that it doesn’t take an above-average income to achieve wealth. Ramsey tells his daughter, “The average household income in America is $60,000; you invest 15% of that from age 30 to age 65, you are going to have $5 to $10 million in your Roth IRAs.”
What To Do Differently This Year
In January, Cruze posted 8 Things to Do Differently with Money in 2024 with Dave Ramsey. The first thing she advocated is to “Get on the same page with your spouse.”
While she said she gets a lot of negative comments about this, she still advocates for it. Ramsey noted that many millionaires they surveyed sighted working with their spouses as a way they built their wealth.
Next, the father-daughter duo recommended that you “[g]et on a budget.”
They noted that building wealth doesn’t happen by accident. Having a plan, which ultimately means getting on a budget, is an important step.
Other steps that you can take include paying off your student loans, protecting your emergency fund, starting a side hustle and prioritizing contentment. Each of these things can help you protect your money while helping you build wealth. The two also recommend being aware of “lifestyle creep,” which involves not living beyond your means and buying a house, but only when you are ready. Using this advice can help you achieve financial stability and freedom from debt regardless of your actual salary.
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This article originally appeared on GOBankingRates.com: Rachel Cruze: How To Become a Millionaire Making $60K or Less
