Dave Ramsey Millionaire Study

[HDRider]

Three out of four millionaires (75%) said that regular, consistent investing over a long period of time is the reason for their success.

Despite what society might believe, only a small number of wealthy people inherited their money. The overwhelming majority (79%) of millionaires in the U.S. did not receive any inheritance at all from their parents or other family members. While one in five millionaires (21%) received some inheritance, only 3% received an inheritance of $1 million or more.

15% of millionaires were in senior leadership roles, such as vice president or C-suite roles (CEO, CFO, COO, etc.).

Only 31% averaged $100,000 a year over the course of their career, and one-third never made six figures in any single working year of their career.

Eighty-eight percent (88%) of millionaires graduated from college, compared to 33% of the general population. And over half (52%) of the millionaires in the study earned a master's or doctoral degree, compared to 12% of the general population.

https://cdn.ramseysolutions.net/media/company/pr/everyday-millionaires-research/National-Study-of-Millionaires.pdf

 

[Brute 23]

Yup. I'm a DR fan. Been listening since I was a teenager.

 

[shaz]

I would imagine there's a few on this board. Anyone with a decent size farm that's paid for and a house probably has a million net worth but, they also have cows and are likely cash poor.

 

[callmefence]

Is a millionaire even considered wealthy anymore. I sure wouldn't think so.

 

[HDRider]

Is a millionaire even considered wealthy anymore. I sure wouldn't think so.

A million today is worth $108K in 1960. Maybe that gives some point of reference. Neither of my grandfathers had anywhere near that when they died. One died in 1964, the other in 1974.

There are 20 million millionaires in the US. There are 258 million adults in the US.

 

[Rafter S]

Yup. I'm a DR fan. Been listening since I was a teenager.

I haven't been listening to him since I was a teenager, because when I was a teenager he was too, but I have been listening to him for a long time.

Is a millionaire even considered wealthy anymore. I sure wouldn't think so.

I guess it depends on how you look at it. I'd consider someone with that much in cash to be wealthy, or close to it. If it's tied up in the land you live on, with very little cash on hand, then maybe not.

 

[shaz]

Is a millionaire even considered wealthy anymore. I sure wouldn't think so.

No, not anymore.
If you're in your 50's and have a million dollar net worth you're probably still worried about retirement.

 

[Brute 23]

Is a millionaire even considered wealthy anymore. I sure wouldn't think so.

Depends on where you are in life and how much you need to live on.

 

[Little Joe]

I'm "Dave-ish" as he puts it. Been following him for years as well, I actually like Hogan better than Dave. Dave is a little arrogant at times, but still good teaching overall. I've got my son following him as well.

 

[Son of Butch]

Is a millionaire even considered wealthy anymore. I sure wouldn't think so.

A hundred years ago: 1 million in 1921 = 15.3 million today

Wealth is relative.
A young fellow was chiding an old man about hesitancy to invest, saying $40,000 isn't that much money, to which the old man replied, it is if it's your last 40,000.

 

[Brute 23]

I'm "Dave-ish" as he puts it. Been following him for years as well, I actually like Hogan better than Dave. Dave is a little arrogant at times, but still good teaching overall. I've got my son following him as well.

I am too now but when your first learning to cook its nice to be able to follow the recipe.

 

[D2Cat]

Much of DR teachings came from Larry Burkett.

 

[TennesseeTuxedo]

Much of DR teachings came from Larry Burkett.

I thought they came from someone's grandmother. Very common sense.

 

[jltrent]

It wouldn't take long to lose a million dollars farming.

 

[Lucky]

I listen to Dave some but, I don't follow his methods. If I understand him correctly you should always save and pay cash, never get a loan. By his thinking inflation would kill you now days.

The millionaire study he did was very interesting. I was told these days you need to be somewhere in the 7-10 million in net worth range before you have a million or so on hand at all times. I'll probably never know

 

[herofan]

No, not anymore.
If you're in your 50's and have a million dollar net worth you're probably still worried about retirement.

That also depends on whether you will be drawing a good pension when you retire. If one has that "mailbox money" coming in, that makes a huge difference. I know a few guys in their 50s who don't have jobs with a retirement; they are getting a little nervous.

 

[Buck Randall]

I listen to Dave some but, I don't follow his methods. If I understand him correctly you should always save and pay cash, never get a loan. By his thinking inflation would kill you now days.

The millionaire study he did was very interesting. I was told these days you need to be somewhere in the 7-10 million in net worth range before you have a million or so on hand at all times. I'll probably never know

Agreed. Most of what I've heard from him is very basic advice for avoiding financial catastrophe. People with some sense can use debt as a tool to get ahead.

 

[Lucky]

Agreed. Most of what I've heard from him is very basic advice for avoiding financial catastrophe. People with some sense can use debt as a tool to get ahead.

My thoughts exactly. There's good debt and bad debt but I never hear him talk about good debt. Borrowing money to buy a new speed boat when your stretched out is totally different than borrowing money to expand a growing business. I also understand he's trying to appeal to a certain audience. He does make some really good points though, my favorite is about why you shouldn't pay off high interest loans first. He also tells people to start a Balance Sheet. I know some people that seem to be living high on the hog but if they ever did a balance sheet would be worried sick.

 

[greybeard]

I listen to Dave some but, I don't follow his methods. If I understand him correctly you should always save and pay cash, never get a loan. By his thinking inflation would kill you now days.

"save and pay cash" can mean many things besides socking money away in a savings account or spare pillowcase.
What little Dave Ramsey I have listened to or read, I believe he means for people to invest a good sized portion of their discretionary income into a financial vehicle that offers some return on the investment other than a few % interest points at your local bank.

 

[Dave]

My sister and her husband say that you now have to be a multi millionaire to be considered rich. When I was first buying this place I posted information on here about it and how to find it on the realtor's website. I was referred to by one member here as "money bags". I certainly never considered my self to be anything close to wealthy. I think wealth is a matter of perception.
I have known 3 really wealthy people in my life.
A. A good friend for years never had two cents in his pocket. Won the lottery for 13+mil. That was in 1990. He is basically dead broke now and has been for years.
B. Was a late in life child who lost both parents while still very young. The parents must have had some money. Had an older brother who was an investment banker who was to handle the money until she reached 21. Suddenly at 21 she was a multi millionaire. Last I knew she still had her wealth. They were living very well just off the interest .
C. Is one of the hardest workers I ever met. He is focused and very intelligent. He was a self made millionaire by the time he was 30. He did inherit some money but he was already a multi millionaire by the time that happened. He has the ability to recognize opportunity when it comes along. And of course once a person has wealth it give you the ability to take advantage of those opportunities.