Dave Ramsey on why $60,000 teachers often become millionaires

School teachers, often underappreciated and underpaid, have long been society’s unsung heroes. Despite their modest salaries, many teachers are quietly building significant fortunes. According to a research project by Ramsey Solutions called the “National Millionaire Study,” many teachers are finding their way into the millionaire club.

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Dave Ramsey, a respected voice in personal finance and CEO of Ramsey Solutions, brought this surprising trend into the spotlight. “You don’t have to make a huge income to build wealth,” Ramsey said. “You can’t earn your way out of stupidity.” His words underscore a surprising reality: many millionaires aren’t big earners, but smart planners.

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According to the US Bureau of Labor Statistics, teachers are on the list of careers most likely to have millionaires, with an average annual salary of $61,690, just behind engineers and accountants. Meanwhile, despite their high salaries, doctors don’t even make the top five.

Based on a survey of 10,000 millionaires, the report found that most of them did not come from wealthy families. A staggering 79% did not inherit their wealth. Instead, they invested wisely—eight in ten had a 401(k). Interestingly, three-quarters of them did not have high-paying jobs, dispelling the myth that wealth is reserved for the super-rich.

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“These people are systematic,” Ramsey said. “They work with plans and follow the rules.” He highlighted the importance of well-planned spending and investment habits, stating that 85% of millionaires use a shopping list and 28% consistently stick to it.

Noting that many are working hard to build up their savings, Ramsey said some of the attractive deals are certificates of deposit (CDs) with good interest rates and fixed terms.

Another avenue Ramsey pointed out is high-yield savings accounts, which can generate returns of more than 4 percent. “A high-yield savings account is a no-brainer if you’re serious about growing your money. It’s about making your money work for you,” he noted.

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He also touched on how passion affects financial results. “Don’t take a job just because it pays,” he said. “You should make more money if you do something you love. You’re good at it, you care, you’re creative.” However, he cautioned against the belief that a high salary guarantees wealth.

Moderate earners like teachers can earn enough money to become rich with careful planning. “You don’t have to have a huge salary to have a secure financial future,” Ramsey said.

Ramsey’s insights also extend to the medical field, where many doctors struggle with debt and lagging investments despite their high salaries.

Brent Lacey, host of “The Scope of Practice” podcast, echoed that sentiment, noting that doctors often lose years of potential investment due to the burden of student loans. “After enduring so many sacrifices, they think it’s finally their turn to enjoy their earnings,” Lacey noted, contrasting this with his grandmother, a home economics teacher, who retired with a fortune.

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This article You Can’t Earn Your Way Out of Stupidity: Dave Ramsey On Why $60,000 Teachers Often Become Millionaires originally appeared on Benzinga.com

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