5. Work with an investing professional
If you want to become a millionaire, you may spend a lot of time thinking or even fantasizing about reaching that seven-figure mark. But the above steps are often against our urge to spend, and the temptation to get sucked into comparison culture.
Working with a trusted professional is a great way to avoid those traps. And according to Ramsey, it’s one of the smartest things you can do for your money.
With Advisor.com, you can find the right financial professional to help you fulfill your wealth goals. It’s a free service that helps you find the right financial advisor for you,by matching you with a small list of the best options for you to choose from.
Set up a free, no-obligation consultation with one of their pre-screened financial advisors today.
4. Cut unnecessary expenses
The research also found that most millionaires relied on making a grocery list, and sticking to it, when shopping. Ramsey suggests this is because they stay focused on buying what they need, not just what they want.
This strict spending also applies to bills and monthly or yearly expenses. With both home and auto insurance, you want to ensure you’re not overpaying for protection.
You can compare rates offered on auto insurance by various lenders through OfficialCar Insurance. All you have to do is enter some basic information about yourself and the vehicle you drive, and OfficialCarInsurance will show you rates offered by leading insurance providers like Progressive, Allstate, and GEICO. You can then compare the rates and select one best suited to your budget.
You can find rates as low as $29 per month for free through OfficialCarInsurance within minutes.
Another expense that likely takes a big chunk out of your monthly paycheck is home insurance premiums. In 2023 alone, home insurance costs rose by an average of 12%, according to the S&P Global Market Intelligence analysis. On top of this, insurance rates rose by 6.9% in the first half of 2024.
But you don’t have to keep overpaying for this expense. You can shop around for rates and save up to $980 per year through BestMoney.com.
The process is simple: Enter some information about your home and finances, and BestMoney.com will show you a list of lenders near you offering competitive rates. You can review all the offers in one place and find the coverage you need at the lowest possible cost.
3. Make savings a priority
Dave Ramsey will be the first to tell you: Once you’ve started saving, you have to stick with it.
According to Ramsey, the goal should be to put at least 15% of your income into tax-advantaged accounts like a 401(k) and Roth IRA. Investing 15% of your income toward retirement can shorten the time it takes to hit the millionaire mark by 20 years or less. That’s the power of securing high-interest accounts and capitalizing on compound returns over time.
For instance, Discover offers certificates of deposits with maturities ranging from three months to 10 years.
Right now, Discover is offering 4.10% APY on a 12-month term — which is much higher than the average 0.05% APY offered on some accounts offered by other big banks across the U.S.
Discover has no fees associated with its accounts and you don’t need a minimum deposit to start.
However with CDs, if you withdraw the money before the end of the term, you’ll face penalty fees. But there are options for your accessible cash well.
Then there’s Public’s high-yield cash account, with an industry-leading 4.6% APY. While that’s slightly lower than Discover’s CD rate, this account differs from a CD because you can withdraw at any time.
There are also no fees and no minimum balance required, allowing your cash to grow more effectively over time.
To pick a high-yield savings account that is best for you, check out the Moneywise list of the Best High-Yield Savings Accounts of 2024 to compare your options. These accounts promise to earn you a greater return than just keeping cash in any old checking account.
2. Invest early and consistently
Once you’re debt-free (that doesn’t include your mortgage) you want to start saving as early and often as you can.
In fact, most of the millionaires Ramsey surveyed said they reached that milestone through consistent investing.
Platforms like Acorns make consistent investing easy by allowing you to save and invest just by making your everyday purchases. When you make a purchase on your credit or debit card,
Acorns automatically rounds up the price to the nearest dollar and places the excess into a smart investment portfolio. This way, even the smallest spending translates to money saved for the future.
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1. Stay away from debt
And the first step to money management is avoiding debt, according to Ramsey. Of course, that’s easier said than done for most Americans.
According to the U.S. Department of Labor, 77% of households have at least some type of debt. If you’re among this group, you’ll want to make sure you’re getting the best possible rate.
Credible is a free online service that shows you the best lending options to pay off your credit card debt fast, while saving interest.
Credible’s platform lets you compare loans and interest rates, and in just two minutes, you can browse available lenders offering debt consolidation loans.
The other three rules on Ramsey’s list are:
- Increase your income to reach your goal faster Ramsey’s next step is to boost your income in order to speed up the process. But bear in mind that one-third of all surveyed millionaires never made a six-figure salary in a given working year.
- Keep your millionaire goal front and center: This one may seem easy, but it’s the next step that really helps you lock it in.
- Put your plan on repeat: Last but not least, you want to give yourself time to let compound growth do its thing. Ramsey’s key piece of advice is believing in the process and sticking with it, even when the going gets tough.
