Dave Ramsey: There Are More Millionaire Teachers Than Lawyers — 3 Things They Never Waste Money On
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David Nadelle
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Nicholas Morine
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Choosing to work in a profession often described as underappreciated, teachers might garner more respect — and pay — in a perfect world.
While their positions may not pay as well as many other salaried jobs, a new study has found that teachers are more likely to have millionaires among their ranks than attorneys or business professionals.
To find out how millionaires made their fortunes — and what factors were involved for the average American to reach that wealth goal — Ramsey Solutions surveyed over 10,000 millionaires. The survey found that teachers rated behind only engineers and accountants in the millionaire count.
According to its “largest survey of millionaires ever,” Ramsey Solutions — founded by radio personality and bestselling author Dave Ramsey — indicated millionaires working in certain professions share commonalities. They are careful, methodical and disciplined.
“They are systems people. They work with a set of principles and they don’t have free rein to make up their own rules,” said Ramsey in regard to the study’s results.
The National Study of Millionaires, and Ramsey himself, want to dispel the myth that to become wealthy in your lifetime, you need to be making a high salary or inherit money from a parent or family member. The average American’s dream of becoming a millionaire can be accomplished by focusing on how they earn and spend their money.
Per the survey results, here are 3 things millionaires never waste money on.
Millionaires Don’t Spend Frivolously
Ultra-careful spending habits and budgeting are fundamental to growing wealth. A telling trait shared among many millionaires surveyed was the dependence on a simple shopping list to keep their spending in check. According to The National Study of Millionaires, 85% of respondents use a written grocery list when shopping. The survey found that 28% of participants always stick to their list while 57% “somewhat stick to it.”
Non-millionaires spend about 57% more on groceries than millionaires ($647 per month for non-millionaires vs. $412 for millionaires), according to a related post on the Ramsey Solutions site. Millionaires also spend $200 less per month at restaurants. Surprisingly, 93% of millionaires use coupons either all the time or sometimes when buying groceries or eating out.
Millionaires Don’t Rely on Single Stocks or “Once in a Lifetime” Opportunities
As the Ramsey Solutions study noted: “The story about the young computer genius who developed an app that earned millions overnight is the exception, not the rule.” Reaching a million-dollar net worth is a slow and steady process — and 75% of those who have hit that plateau did so by practicing consistent long-term investing.
Eight out of 10 millionaire respondents owed their financial success to investing in their company’s 401(k) plan and three out of four diversified by investing outside of employer-sponsored plans. Not one of the over 10,000 study participants said that single-stock investing was an important factor in their financial success, per Ramsey Solutions.
Millionaires Don’t Carry Debt
A whopping 93% of respondents said they built their wealth through working hard, not by making huge salaries or inheriting money from their parents of family members. Working hard means spending frugally, investing wisely and understanding the importance of maintaining a good credit history. It also includes a focus on paying off balances on time to prevent being burdened by debt.
With Americans currently owing almost $1 trillion on their credit cards, credit card debt is the most significant contributor to consumer debt by number of users. As one would reasonably expect, financially successful people avoid debt “like the plague.” A full 94% of respondents claimed they lived on less than they make and almost three-quarters have never carried a credit card balance in their lives.
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