Dave Ramsey shares how man, 25, can ‘double’ money to become millionaire in his 30s
Dave Ramsey received a call from a young man on his show who asked what the best way to invest is in order to become a millionaire.
Dave Ramsey gives advice to 25-year-old Nathan after receiving $200,000 inheritance
One of the US’ most popular personal finance experts is sharing how to become a millionaire in your 30s.Dave Ramsey regularly takes calls from listeners on his podcast, The Ramsey Show, who ask him for investing advice.
In a recent episode, the finance expert broke down the best way someone can invest to make millions. Nathan, 25, from Richmond, Virginia phoned into the show to ask for guidance on what he should do with his pending inheritance.
The young man is set to receive $200,000 and asks Mr. Ramsey how to invest that money to become a millionaire in his 30s.
He explained: “I’m getting money from my father who recently passed away. It’s going to be over $200,000. I’m not the best at money management.
“I’ve heard the saying: ‘It takes money to make money’. Should I invest this money into a business or should I save this money? What should I do if I want to become a millionaire by the time I’m in my 30s?”
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Outside of his coming inheritance, Nathan makes $35,000 a year from his current employment. After hearing his question, Dave Ramsey praised the 25-year-old for reaching out for advice on investing such a large amount.
Mr Ramsey replied: “I’ll start with ‘It takes money to make money’ is not a true statement. That’s a statement that broke people say. Can you make money using money? Sure.
“The vast majority of people who build wealth do not build it because someone handed them $200,000. They built it because of their habits and their character.”
The first piece of advice he shared with Nathan was to “slow way down” and realize his job is to manage the money “as if it’s someone else’s money”.
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Following this, Dave Ramsey shared his second piece of advice which is to “maximize” the inheritance amount.
He added: “Number one rule: Don’t put money in something you don’t understand. Don’t put money into something someone else tells you is a good idea.
“If you were to invest this money and not touch it in good stock growth mutual funds and if it made 10 percent rate on return on average, in seven years it would double.
“You would have $400,000. In seven more years, it would double again to $800,000. And in seven more years, it would double again and it would be $1.6million.
“That is a boring never-touch-it investment program. You’re probably not going to do exactly that, but I want a little of that in the formula.”
