Personal Finance

Dave Ramsey shares his "shortest, fastest, correct route that gets you to a million-dollar net worth" - and it might not be what you think

Kristin Hitchcock

Published: October 19, 2024 11:22 am

24/7 Wall St. Key Takeaways: 

• While it may be tempting to build wealth as quickly as possible, Ramsey recommends the opposite approach. 
• Ramsey’s approach is built on budgeting and debt elimination. 
• Also, read “The Next NVIDIA.”

Everyone wants to “get rich quick.” It’s only natural to look for shortcuts or the “easy button” to achieve financial success. But Dave Ramsey once said: “Human nature is that we want to hit the easy button. We want to know the shortest possible path to wealth. I want to show you the shortest, fastest, correct route that gets you to a million-dollar net worth. Just know, it’s actually a slow, steady process—like The Tortoise and the Hare fable.”

Simply put, the fastest route to wealth really isn’t that fast at all: it’s about following a slow, steady process. In fact, trying to build wealth quickly often leads to setbacks!

Ramsey’s philosophy emphasizes that true wealth is built overtime form discipline and consistency. By sticking to proven (but boring) strategies like budgeting and eliminating debt, just about anyone can achieve financial independence. 

Let’s take a closer look at Ramsey’s philosophy and key principles:

1. Budgeting and Debt Elimination

Ramsey is a huge proponent of financial success, which is built on budgeting and eliminating debt. Living within your means and paying off high-interest debts gives you the wiggle room you need to focus on building wealth. 

We have a whole article on Dave Ramsey’s savings advice, which should be a part of your budgeting process. 

2. Investing Over Time

Ramsey is also a big proponent of simple, long-term investment vehicles like mutual funds. Instead of a high-risk strategy, he suggests taking a slow approach to investment. This approach builds wealth more gradually but very steadily. 

3. Patience and Consistency

Like the tortoise in the fable, financial success requires patience. Sticking to a steady plan and avoiding impulsive decisions makes reaching financial goals much more doable. Ultimately, this method may be slow, but it provides a consistent approach to building lasting wealth.