Dave Ramsey Calls Listener's Math The 'Most Ridiculous Thing I've Ever Heard', Proves Consistent $100 Investments Can Still Make Millionaires

Dave Ramsey says a $100 monthly concern tin marque millionaires, and he's bushed of skeptics who assertion astir savers volition dice earlier cashing in.

What Happened: During "The Ramsey Show," the personal-finance big dismantled a listener's math, noting that $100 a period compounded astatine 12% for 40 years grows to $1.176 million, not $5 cardinal arsenic claimed by the listener.

He added that U.S. beingness expectancy information contradicts the caller's fatalism: males who scope 65 unrecorded different 18 years connected average, to astir 83.

Ramsey's illustration echoes figures helium uses successful his publication Baby Steps Millionaires, which profiles first-generation wealthiness builders who followed his seven-step plan. "Almost nary 1 saves conscionable $100 for 40 years … It's an illustration saying if you'll prevention money, you tin physique wealth," helium told the caller, dismissing claims that contention oregon income doom savers to fail. “Skin pigmentation doesn't origin wealthiness gathering 1 mode oregon another.”

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“This is the astir ridiculous happening I’ve ever heard… what’s ridiculous is your statement due to the fact that you don’t cognize thing astir the numbers that you presented. They were each wrong. That’s what’s ridiculous.”

Why The Math Checks Out

Financial calculators corroborate that a $1,200 yearly publication invested successful a broad-based communal money earning the S&P 500's 40-year mean of astir 11.8% would apical $1 cardinal by twelvemonth 40. Ramsey notes the strategy hinges connected consistency, not timing markets — an attack the Federal Reserve's 2023 household-well-being survey shows fewer Americans adopt, arsenic astir accidental their status savings are disconnected track.

A Broader Wealth Gap

Critics antagonistic that median status balances for near-retirees beryllium beneath $200,000, suggesting galore households can't spare $100. Ramsey retorts that 89% of U.S. millionaires are first-generation, citing his National Study of Millionaires. "Roll up your sleeves, unrecorded connected little than you make, get retired of debt," helium said.

Context for 12% returns

While Ramsey's assumed 12% yearly instrumentality surpasses caller marketplace performance, semipermanent S&P information amusement rolling 40-year returns supra 10% are not unprecedented. Analysts caution that aboriginal returns whitethorn moderate, but adjacent an 8% complaint would crook $100 a period into astir $300,000 — acold supra today's median savings.

Ramsey's bottommost line: excuses bargain hope. "Quit your whining … If you privation to win, you tin spell win. We'll assistance you," helium said, pointing listeners to his "Baby Steps" model and urging them to commencement redeeming — adjacent if it's conscionable $100.

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Photo Courtesy: II.studio connected Shutterstock.com

Dave Ramsey Calls Listener's Math The 'Most Ridiculous Thing I've Ever Heard', Proves Consistent $100 Investments Can Still Make Millionaires primitively appeared connected Benzinga.com

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