Personal finance expert and bestselling author Dave Ramsey gave tips on how to become a millionaire on Tuesday, emphasizing that “the most powerful wealth creation tool the typical person has is their income.”
The author of the new book, Baby Steps Millionaires, which reveals “how ordinary people build extraordinary wealth” and how others can, gave the “Morning with Mary” tips on Tuesday.
Ramsey, number one best-selling author and host of “The Ramsey Show,” said that anyone can become a millionaire, regardless of their starting point.
He noted Tuesday that “the average family pays $ 1,200 a month in non-mortgage debt” and stressed the importance of “breaking the personal debt” often associated with car payments, student loans and credit cards.
“You release that and put it in your 401 (k), which is going to be a million dollars in a few years,” Ramsey said Tuesday, noting that he discovered this while studying millionaires for his book.
“We did the largest study of millionaires ever in North America, over 10,000 of them.
“They fully funded their 401 (k) s, took advantage of the game and the Roth (IRA), went into individual Roths and good mutual funds, kind of boring, and they paid off their house and they look up and they’re you 46 years old, or are 36 years old, or sometimes 56 years old and have retired a million dollars, paid half a million dollars for the house and that’s their first million dollar net worth. ”
“There are about 15 million of them in America,” he continued.
Ramsey also stressed the importance of “living according to a plan”.
“Nobody wins in anything, in your marriage, your children, your life, your business without striving for something,” he told hostess Maria Bartiromo.
“There are quite a number of actions that you take on purpose and within the framework of personal finance called a budget, which tells your money what to do,” he added.
He went on to emphasize that in a company, “we have to tell our money what to do, we have to have a desired future for profits and losses for the quarter, and we have aim and strategic steps to make it happen . ”
Ramsey went on to say that “your personal life is the same.”
WHILE BITCOIN TEES OFF, INVESTORS DEBATE CRYPTO CURRENCIES
He stressed the importance of getting out of debt, building an emergency fund, and contributing to a 401 (k).
“I know it’s not as sexy and colorful as talking about Bitcoin, it’s actually boring, the difference is, it works every time,” emphasized Ramsey.
Regarding cryptocurrency, Ramsey told Bartiromo that he thinks “it’s kind of fun” and enjoys following her, but it’s an anomaly.
“It shouldn’t be a big part of a personal financial plan to build wealth,” he said. “It can be a small part of the conversation.”
He went on to say that one could consider investing in cryptocurrencies “as long as the commitment is money that one can afford to lose.”
“We have people mortgaging their houses, we have people who are taking their retirement from their 401 (k) s and putting them in crypto like it’s a proven process for building wealth, and it’s just not a proven process . ”Ramsey emphasized and admitted that the“ goods ”“ will be there ”.
Bitcoin has rebounded this year, with prices hovering above $ 42,000 on Tuesday after briefly falling to their lowest level since September 2021.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The slump is due to investor concerns over rising bond yields and concerns that the Federal Reserve may accelerate the timing of its rate hikes in 2022. In addition, a bitcoin mining outage caused by the internet shutdown in Kazakhstan over the weekend has also impacted crypto prices.
Bitcoin, which hit an all-time high of $ 69,990 in November, is down about 9% since the start of the year. Meanwhile, rivals Ethereum and Dogecoin are also experiencing volatility.
CLICK HERE TO READ MORE ABOUT FOX BUSINESS
Lucas Manfredi from FOX Business contributed to this report.