How To Become A Millionaire - Dave Ramsey Rant

so let's say if you were to invest $100 a month from age 25 to age 65 or age 30 to age 70 40 years $100 a month let's put it in a Roth IRA so that it grows tax-free and I'm gonna recommend a good growth stock mutual fund that has an average annual return of 12% I own one that's done that for over 75 years average now some years it makes eighteen and some years it makes four but the average annual return is about 20 per is about 12% for 75 years so let's just say you did that now I know some people think that can't happen but this is an example to help you understand how numbers work and I've done it my 401k has been funded and my Roth IRAs have been funded and anything else I could fund has been funded because I even though I'm a natural spender I figured out that I would have more to give and more to live if I saved and invested and I've done a lot of that and good growth stock type mutual funds no where are you doing that in a growth stock mutual fund worried to average 12 percent were you to put $100 a month in now what do you spend $100 on I'll guarantee you this 95% of you listening to me right now do not do a unique written budget every month unique to that month almost no one does those that do however find all kinds of money that's being lost because your checking account is a freaking sieve money leaks out of it like you're sending it to Congress or something you have no idea where your money goes and you make more than your parents made you make than a lot of your friends make and you make more than any other country in the world virtually personal income and you're freaking broke and so let's just let's just establish here that you can find $100 latte breath let's establish that you could find $100 mr. and mrs. cable you spend $100 on things you don't even realize you did it you impulse more than a hundred dollars at Target every month the reason they check your receipts at Costco and Sam's on the way out the door is not to make sure you didn't shoplift it's because it's federal law you spend $200 or you're not allowed out I think it's easy if we sit here discuss in a minute to think about $100 hundred dollars there's a lot of money but $100 invested every month every month from age 25 to age 65 averaging 12% and a good growth stock mutual fund or Roth IRA is one million one hundred and seventy six thousand dollars so if you're listening to this show and you are under 40 years old and you don't retire with a million dollars that's no one's fault but yours it's your fault in this country if you retire broke it's your fault because you made a freaking fortune in your working lifetime you work your butt off your whole life and you have nothing to show for it nothing sure Nicholas it's absolutely ridiculous America it is way past time for a renaissance in the art of personal finance it is way past time for you to get your freakin act together for every one of you listening to not retire a millionaire is absurd it's absurd average household income in America today's $50,000 if you say 15% of that that's seventy five hundred dollars a year if you do that into decent in your 401k with no match into Roth IRAs and the good growth stock mutual funds you would retire with around seven and a half million dollars if you say fifteen percent of your income I don't know if I agree with your set of assumptions well shut up unless you do something about it because my set of assumptions have made me rich so why don't you use my set of assumptions that are your set of assumptions because you're sitting on your assumption doing nothing it's time for you to get up off your assumption and go save some money way past time don't you think so maybe I'm wrong seven and a half million let's say I'm half wrong so you end up with three million bucks shut up shut up maybe you can't save fifteen percent of your income because you're so deeply in debt and you've not followed these steps to get out of debt well then follow the steps and get out of debt so that you can well maybe you save half that amount and so you only end up with all let's say okay let's just do this instead of seven-and-a-half million let's say that I'm ninety percent wrong because you're a loser let's just call it that you're a loser and I'm ninety percent wrong that's seven hundred and fifty thousand dollars you would have which is a whole heck of a lot more than social insecurity some of you are walking around right now and your best shot at retirement is you're thinking I sure hope the government which is well known for its ability to handle money will take care of me well what a stupid but plan is that that's ridiculous $100 a month saved from age 25 to age 65 is 1 million one hundred and seventy six thousand dollars there is no excuse for you to retire broke 15 percent of the average household income in America saved from age 30 to age 70 age 25 to age 65 average household income being fifty thousand fifteen percent of that being 75 hundred is seven and a half million dollars if I'm half wrong it's three million dollars and let's just let's just go with the assumptions here for a second okay since we're talking about assumptions I set you up in an average household income and for forty years you never got a raise using those numbers now let me help you with this if you start at average and you don't get a raise for forty years you are a loser starting in average is one thing but if you started average and you don't get a dime raise for forty years you're a loser losers in our country can retire millionaires isn't that bizarre that's how dynamic this economy is but you're too freakin worried about the bachelor or who got thrown off the island to get control of your own life and your own expenses and sit down and do a budget and look in the mirror at your immature self and say no so you can put a couple of bucks away a month so you can retire with dignity instead of being a burden on society and on your children you can't give to anybody because you're too frickin broke to help anybody else and you've got all these great ideas about how other people need help you want to find out who needs help get you a mirror you need help it's time to save money people it's time to save money this is the Dave Ramsey show

Channel: The Ramsey Show - Highlights

Views: 2,974,327

Rating: 4.8623209 out of 5

Keywords: dave ramsey millionaire rant, how to become a millionaire dave ramsey, how to be a millionaire dave ramsey, how to retire a millionaire, dave ramsey retire a millionaire, how to become a millionaire - dave ramsey rant, dave ramsey how to become a millionaire, dave ramsey millionaire, dave ramsey how to be a millionaire, becoming a millionaire, become a millionaire, how to become millionaire, dave ramsey retirement, how to become a millionaire, millionaire next door dave ramsey

Id: 7wjuCgtL0yA

Length: 9min 52sec (592 seconds)

Published: Fri Feb 13 2015

Reddit Comments

[u/freexe]

No way you are getting 12% return. Much more likely that you'd be getting 3-5% after inflation. Which is more like $100-150k to retire on in todays money

[u/patchgrrl]

Was I the only one who got sick of the repetition while waiting for him to actually finish his damn statement?

[u/reno1051]

is there a step-by-step for dummies on how to actually do this?

[u/kellerglass]

Ya, long-term, 5-6% annual return is more likely after inflation. I do a lot of work with non-profits with large endowments run by really smart people, and 5% is the baseline they use for projecting endowment growth.

So, if you assume 5-6% annual returns, this strategy only makes sense if you have no debt at an interest rate that is higher than that. I think 6.8% is about average for student loan debt, so that pretty much discounts everyone under 35 from get go.

Take the $100 and add it to your debt payment to pay it down as fast as you can. Then start buying mutual funds.

[u/HeadbangsToMahler]

Wow, that guy got angry in the 4th minute! That escalated quickly ...

Clearly this guy has never been poor enough to not be able to afford gas, food, rent, etc.