Becoming a Millionaire on an Average Salary

Here's a video from Dave Ramsey detailing the story of a millionaire who never had a large salary.

The overview:

Jason averaged around $70,000 a year while serving 31 years in the military, and has now built a $2 million net worth.

His keys to success:

• No debt
• Save for a long period of time to let compound interest work
• Live below your means
• Educated himself on how to handle money
• Worked to earn more (being deployed)
• Took advantage of tax-advantaged investments and benefits
• Automated his investments
• Ignored the financial news -- stayed the course

Great, basic advice.

He also said that anyone can become a millionaire no matter what they earn. It's simply saving as much as you can for a long period of time and letting your investments compound.

So consider this post one for those who do nothing but make excuses. If you want to become wealthy, it's not that hard. Just do the basics over time and the rest takes care of itself.

Comments

[freebird]

This story reminds me of his "Helen from Houston" call last year, which started out on another topic and meanders into the same idea if you listen to the whole thing: Do I Have Too Much Money In The Bank? https://www.youtube.com/watch?v=3PonjgJ5klU

I think the interesting part is how a healthy net worth can "fall into your lap" if you set it up right and have the patience and fortitude to stick to it. She didn't seem to have a specific wealth goal in mind and didn't even realize where she was until Dave brought it up. Another lady worth listening to: https://www.youtube.com/watch?v=UfqZAv3slNM

[Chloe Lee]

Very inspiration story. I love how he said anyone can be a millionaire regardless of what their income is.

My goal is not to reach a $2 million net worth when I am 51. My goal is to reach $6 million by the time I retire.

Thanks so much.