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Yahoo
4 days ago
- Business
- Yahoo
Couple Making $200K Wants To Invest 60% of Their Income—Dave Ramsey Says That's Great, But 'Build Up A Fat Juicy Down Payment' For A House Instead
Most people call into "The Ramsey Show" wondering how to climb out of debt. But one recent caller? He and his wife are trying to do the opposite. They're in their 20s, fresh out of college, no debt, $200,000 combined income, six months of emergency savings—and their big question was whether investing 60% of their take-home pay was a little too much. Turns out, it might be. Not because they're saving too aggressively—Dave Ramsey loves intensity—but because they're skipping a key step almost every millionaire he's studied has taken. "Very, very few people that we have studied... that became wealthy used that plan," Ramsey said. "Instead, what they have done is they bought and then paid off a home." Don't Miss: Hasbro, MGM, and Skechers trust this AI marketing firm — Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — The couple, who just got married and are currently renting, laid out their plan: live on her $60,000 salary and invest his $85,000 take-home in 401(k)s, HSAs, and other vehicles. Their goal? For her to eventually become a stay-at-home mom. But Ramsey had one question that changed the tone: "What about your house?" They didn't have one. And to him, that's a red flag—because he's seen what happens when people rent for life. "You can 100% count on rent going up your entire life as long as you rent," he said. "Your largest item is out of your control." In his book "Baby Steps Millionaires," Ramsey details a study of 10,000 net-worth millionaires. Most of them followed a path that involved a modest home, a long-term mortgage, and slow, steady investing. That's not to say saving 60% is bad—it's just rare, and in Ramsey's view, less efficient. "I would save a maximum of 15% of my household income into retirement... stop the HSA, build up a fat juicy down payment, and buy a house in Texas," Ramsey said. Trending: Maximize saving for your retirement and cut down on taxes: . And he's not just talking theoretically. The data backs him up. According to the Federal Reserve, the median net worth of homeowners is around $400,000, while the median for renters is just $10,400. That's not a typo—renters, on average, have less than 3% of the wealth homeowners do. Ramsey even got a little nostalgic about the power of real estate: "Think about the neighborhood that you might buy in... what you could have bought that house for 15 years ago. That's what it's going to be 15 years from now." And while the husband might be fine roughing it for now, Ramsey warned him not to bank on his wife feeling the same. "When she becomes a stay-at-home mama, I promise you this—she's gonna want a house." Ramsey's final take? This couple's drive is rare, and they're already ahead of the game. "You're not going to be a broke guy because you're actually paying attention," he told the caller. But even the most disciplined saver needs a solid foundation—and in his world, that foundation has a deed and a mortgage. Read Next: Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – Invest where it hurts — and help millions heal:. Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Couple Making $200K Wants To Invest 60% of Their Income—Dave Ramsey Says That's Great, But 'Build Up A Fat Juicy Down Payment' For A House Instead originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
5 days ago
- Business
- Yahoo
Couple Making $200K Wants To Invest 60% of Their Income—Dave Ramsey Says That's Great, But 'Build Up A Fat Juicy Down Payment' For A House Instead
Most people call into "The Ramsey Show" wondering how to climb out of debt. But one recent caller? He and his wife are trying to do the opposite. They're in their 20s, fresh out of college, no debt, $200,000 combined income, six months of emergency savings—and their big question was whether investing 60% of their take-home pay was a little too much. Turns out, it might be. Not because they're saving too aggressively—Dave Ramsey loves intensity—but because they're skipping a key step almost every millionaire he's studied has taken. "Very, very few people that we have studied... that became wealthy used that plan," Ramsey said. "Instead, what they have done is they bought and then paid off a home." Don't Miss: Hasbro, MGM, and Skechers trust this AI marketing firm — Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — The couple, who just got married and are currently renting, laid out their plan: live on her $60,000 salary and invest his $85,000 take-home in 401(k)s, HSAs, and other vehicles. Their goal? For her to eventually become a stay-at-home mom. But Ramsey had one question that changed the tone: "What about your house?" They didn't have one. And to him, that's a red flag—because he's seen what happens when people rent for life. "You can 100% count on rent going up your entire life as long as you rent," he said. "Your largest item is out of your control." In his book "Baby Steps Millionaires," Ramsey details a study of 10,000 net-worth millionaires. Most of them followed a path that involved a modest home, a long-term mortgage, and slow, steady investing. That's not to say saving 60% is bad—it's just rare, and in Ramsey's view, less efficient. "I would save a maximum of 15% of my household income into retirement... stop the HSA, build up a fat juicy down payment, and buy a house in Texas," Ramsey said. Trending: Maximize saving for your retirement and cut down on taxes: . And he's not just talking theoretically. The data backs him up. According to the Federal Reserve, the median net worth of homeowners is around $400,000, while the median for renters is just $10,400. That's not a typo—renters, on average, have less than 3% of the wealth homeowners do. Ramsey even got a little nostalgic about the power of real estate: "Think about the neighborhood that you might buy in... what you could have bought that house for 15 years ago. That's what it's going to be 15 years from now." And while the husband might be fine roughing it for now, Ramsey warned him not to bank on his wife feeling the same. "When she becomes a stay-at-home mama, I promise you this—she's gonna want a house." Ramsey's final take? This couple's drive is rare, and they're already ahead of the game. "You're not going to be a broke guy because you're actually paying attention," he told the caller. But even the most disciplined saver needs a solid foundation—and in his world, that foundation has a deed and a mortgage. Read Next: Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – Invest where it hurts — and help millions heal:. Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Couple Making $200K Wants To Invest 60% of Their Income—Dave Ramsey Says That's Great, But 'Build Up A Fat Juicy Down Payment' For A House Instead originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
15-05-2025
- Business
- Yahoo
Dave Ramsey Calls Listener's Math The 'Most Ridiculous Thing I've Ever Heard', Proves Consistent $100 Investments Can Still Make Millionaires
Dave Ramsey says a $100 monthly investment can make millionaires, and he's tired of skeptics who claim most savers will die before cashing in. What Happened: During "The Ramsey Show," the personal-finance host dismantled a listener's math, noting that $100 a month compounded at 12% for 40 years grows to $1.176 million, not $5 million as claimed by the listener. He added that U.S. life expectancy data contradicts the caller's fatalism: males who reach 65 live another 18 years on average, to roughly 83. Ramsey's example echoes figures he uses in his book Baby Steps Millionaires, which profiles first-generation wealth builders who followed his seven-step plan. "Almost no one saves just $100 for 40 years ... It's an example saying if you'll save money, you can build wealth," he told the caller, dismissing claims that race or income doom savers to fail. 'Skin pigmentation doesn't cause wealth building one way or another.' Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — 'This is the most ridiculous thing I've ever heard... what's ridiculous is your argument because you don't know anything about the numbers that you presented. They were all wrong. That's what's ridiculous.' Financial calculators confirm that a $1,200 annual contribution invested in a broad-based mutual fund earning the S&P 500's 40-year average of about 11.8% would top $1 million by year 40. Ramsey notes the strategy hinges on consistency, not timing markets — an approach the Federal Reserve's 2023 household-well-being survey shows few Americans adopt, as most say their retirement savings are off counter that median retirement balances for near-retirees sit below $200,000, suggesting many households can't spare $100. Ramsey retorts that 89% of U.S. millionaires are first-generation, citing his National Study of Millionaires. "Roll up your sleeves, live on less than you make, get out of debt," he said. While Ramsey's assumed 12% annual return surpasses recent market performance, long-term S&P data show rolling 40-year returns above 10% are not unprecedented. Analysts caution that future returns may moderate, but even an 8% rate would turn $100 a month into roughly $300,000 — far above today's median savings. Ramsey's bottom line: excuses steal hope. "Quit your whining ... If you want to win, you can go win. We'll help you," he said, pointing listeners to his "Baby Steps" framework and urging them to start saving — even if it's just $100. Read Next: Hasbro, MGM, and Skechers trust this AI marketing firm — Invest before it's too late. Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – with $1,000 you can invest at just $0.30/share! Photo Courtesy: on Send To MSN: Send to MSN Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article Dave Ramsey Calls Listener's Math The 'Most Ridiculous Thing I've Ever Heard', Proves Consistent $100 Investments Can Still Make Millionaires originally appeared on Sign in to access your portfolio
Yahoo
15-05-2025
- Business
- Yahoo
Dave Ramsey Calls Listener's Math The 'Most Ridiculous Thing I've Ever Heard', Proves Consistent $100 Investments Can Still Make Millionaires
Dave Ramsey says a $100 monthly investment can make millionaires, and he's tired of skeptics who claim most savers will die before cashing in. What Happened: During "The Ramsey Show," the personal-finance host dismantled a listener's math, noting that $100 a month compounded at 12% for 40 years grows to $1.176 million, not $5 million as claimed by the listener. He added that U.S. life expectancy data contradicts the caller's fatalism: males who reach 65 live another 18 years on average, to roughly 83. Ramsey's example echoes figures he uses in his book Baby Steps Millionaires, which profiles first-generation wealth builders who followed his seven-step plan. "Almost no one saves just $100 for 40 years ... It's an example saying if you'll save money, you can build wealth," he told the caller, dismissing claims that race or income doom savers to fail. 'Skin pigmentation doesn't cause wealth building one way or another.' Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — 'This is the most ridiculous thing I've ever heard... what's ridiculous is your argument because you don't know anything about the numbers that you presented. They were all wrong. That's what's ridiculous.' Financial calculators confirm that a $1,200 annual contribution invested in a broad-based mutual fund earning the S&P 500's 40-year average of about 11.8% would top $1 million by year 40. Ramsey notes the strategy hinges on consistency, not timing markets — an approach the Federal Reserve's 2023 household-well-being survey shows few Americans adopt, as most say their retirement savings are off counter that median retirement balances for near-retirees sit below $200,000, suggesting many households can't spare $100. Ramsey retorts that 89% of U.S. millionaires are first-generation, citing his National Study of Millionaires. "Roll up your sleeves, live on less than you make, get out of debt," he said. While Ramsey's assumed 12% annual return surpasses recent market performance, long-term S&P data show rolling 40-year returns above 10% are not unprecedented. Analysts caution that future returns may moderate, but even an 8% rate would turn $100 a month into roughly $300,000 — far above today's median savings. Ramsey's bottom line: excuses steal hope. "Quit your whining ... If you want to win, you can go win. We'll help you," he said, pointing listeners to his "Baby Steps" framework and urging them to start saving — even if it's just $100. Read Next: Hasbro, MGM, and Skechers trust this AI marketing firm — Invest before it's too late. Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – with $1,000 you can invest at just $0.30/share! Photo Courtesy: on Send To MSN: Send to MSN Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article Dave Ramsey Calls Listener's Math The 'Most Ridiculous Thing I've Ever Heard', Proves Consistent $100 Investments Can Still Make Millionaires originally appeared on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
