10 Ways To Become a Millionaire From Scratch According to Dave Ramsey Host George Kamel
Written by
Katie Wudel
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In a world where wealth building seems like a complex maze, Dave Ramsey host George Kamel brings a fresh perspective. Kamel shares his insights on how anyone can start from scratch and climb the ladder to millionaire status. His approach steers clear of get-rich-quick schemes and focuses on foundational strategies. Here is his advice for how to become a millionaire from scratch.
1. Align With Your Spouse on Money
Kamel emphasizes the importance of being on the same page with your spouse regarding financial goals. He points out that disagreements over money can be a significant roadblock in wealth building. Aligning with your partner creates a solid foundation for financial progress.
“A Ramsey Solution study found that money is the number one issue married couples argue about,” said Kamel during an episode of his show. “If you and your spouse aren’t working toward the same money goals, you’re going to have a really hard time building wealth.”
2. Set Clear Financial Goals
Clear financial goals will help you reach your goals. Without a guide, it will take longer to get your finances in order.
“Setting a financial goal is super important,” Kamel said. “Whether it’s saving for a vacation or aiming for millionaire status, having specific, measurable goals with a deadline is crucial.” Kamel recommends writing down these goals and regularly revisiting them to stay on track.
3. Understand the Power of a ‘Why’
Having a strong “why” is essential for enduring tough times. This driving force could be anything from family well-being to philanthropic desires. Kamel stresses that your “why” needs to be more potent than any excuse to stay committed to your financial journey.
4. Avoid Debt
Debt, according to Kamel, is a significant obstacle to wealth accumulation. He advocates for living within one’s means and avoiding consumer debt, which includes steering clear of credit cards and car loans. Building wealth, in Kamel’s opinion, requires a strict no-debt policy.
5. Increase Income Through Side Hustles
Kamel suggests leveraging your skills and experiences to find side hustles. These extra income streams can significantly accelerate your journey to becoming a millionaire. He also encourages considering career changes or skill development to increase income potential.
6. Avoid Lifestyle Creep
Lifestyle creep occurs when increased income leads to increased spending. Kamel warns against this and advises sticking to a zero-based budget, living on less than you make, and focusing on wealth building rather than keeping up with others.
7. Build an Emergency Fund
An emergency fund acts as a financial safety net. Kamel recommends having 3 to 6 months of expenses saved to handle unforeseen events without disrupting financial goals. This fund should be for emergencies only, not for investments.
8. Invest in Retirement
Investing in tax-advantaged retirement accounts like 401(k)s or Roth IRAs is important. Kamel dismisses misconceptions about 401(k)s and emphasizes their role in many millionaires’ success stories.
9. Buy a Modest Home
Real estate can be a significant wealth builder. Kamel’s strategy involves purchasing a modest home to avoid being house poor, allowing for investment in other wealthbuilding avenues.
10. Be Patient
Kamel concludes with a reminder that building wealth takes time. He encourages setting long-term goals and focusing on gradual progress rather than instant results. Patience, combined with consistent effort, is key to achieving millionaire status.
The Takeaway
Kamel’s approach to becoming a millionaire from scratch revolves around practical, time-tested principles. His emphasis on goal setting, debt avoidance, income increase, and patience provides a blueprint for anyone aspiring to financial success.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.
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