Dave Ramsey: Here’s What the Poor, Middle Class and Rich Do Differently
Written by
Adam Palasciano
Edited by
Zuri Anderson
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Generally, we’d all like to be rich. Not having to worry about money seems like a pipe dream for most of us. However, financial guru Dave Ramsey said that “the rich get richer and the poor get poorer.” Well, he’s correct.
According to the Federal Reserve Bank of St. Louis, as of Q2 2024, the wealth gap in the U.S. is massive. Here are two important statistics to note:
- The top 10% of households by wealth had $6.9 million on average. As a group, they held 67% of total household wealth.
- The bottom 50% of households by wealth had $51,000 on average. As a group, they held only 2.5% of total household wealth.
While these figures are jarring, Ramsey explained that the reason for the wealth gap is the financial moves people continue to make.
“It’s not that a person is better by character than another by doing these things,” Ramsey said. “These are just the financial moves that cause you to stay in one of these areas.”
Here are the key differences between the rich, the middle class and the poor, according to Ramsey.
The Rich Avoid Payments
Ramsey highlighted that rich people don’t ask “How much down?” or “How much per month?” They simply ask: “How much?”
The rich tend to pay for things upfront or not buy them at all. By avoiding payments, the rich save money on interest, which can ultimately eat a hole in your wallet over time.
He says this principle is “what got them to be rich and what keeps them rich.”
The Middle-Class Make Payments
Ramsey expressed that the middle class does things like make car payments, thinks they can get rich on airline miles from their credit card and takes out HELOC loans to pay for home improvements.
These types of financial behaviors may keep the middle class from becoming rich.
The Poor Take on Too Much Debt and Play the Lottery
Ramsey says that poor people use payday lenders and pawn shops, take out title loans and use rent-to-own services to “buy” furniture and appliances.
Additionally, people who stay poor focus on playing the lottery with a belief that it will “make them rich.” In fact, he said that 78% of lottery tickets are sold in poor zip codes.
If you want to become rich, consider your financial moves and think about how you can change them to achieve wealthy status.
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