Dave Ramsey shares the ‘biggest 2 elements’ that will make you a millionaire, but is he right? Here’s the math

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In a May episode of The Ramsey Show, Dave Ramsey shared the two major things he believes help people become millionaires: “steadily investing in retirement” and having “a paid-for house (1).”

According to Ramsey, “those two are the biggest two elements that we see cause people to be a millionaire.”

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That said, saving for retirement and paying off a home are two of the hardest things for Americans to do in the current economy.

In January 2026, mortgage rates dropped to 5.99%, down from their record highs of about 7% in 2022 (2), but are currently sitting at 6.30% as of the beginning of mid-April (3). Meanwhile, the median sale price of a home remains high at $436,705 as of March 2026 (4).

Alongside the affordability crisis, a 2025 study from the Schwartz Center for Economic Policy Analysis found that only 35% of Americans approaching retirement feel they are on track to be financially secure (5).

If that number seems high, it’s worth noting that the elder poverty rate in the U.S. is around 23% — double the rate in Canada, which is about 12%.

These realities may be enough to deter you from thinking you can reach that millionaire milestone, but in an April 2025 blog post titled “How to Become a Millionaire,” Ramsey said it himself: “No matter how old or young you are, it is never too late or too early to get started (6).”

One big obstacle to becoming the millionaire you always wanted to be is debt — and these days, the average American has an almost insurmountable affair with what they owe.

The total American household debt hit $18.8 trillion in the fourth quarter of 2025, rising by $191 billion from the previous quarter, according to the Federal Reserve Bank of New York (7).

And Americans are struggling to pay down this record-setting figure. Research from the Education Data Initiative shows that the average student loan borrower takes a whopping 20 years to pay off their debt (8).

But that’s just the average. Some graduates with professional degrees take more than 45 years to pay off their loans — likely longer than their actual careers. Moreover, they report that the average medical school first-year resident salary isn’t enough to make their monthly student loan payments.

In addition to the burden of student loans, the average American Gen Xer owes nearly $10,000 in credit card debt, according to 2025 data from Experian (9). Millennials owe a little less at $7,068, while baby boomers still owe $6,766.

With average interest rates for credit cards at 21.00% as of February 2026, it can be difficult to pay down these balances, making debt even more expensive (10). For example, Business Insider found that a credit card holder with a balance of $10,000 would take 127 months to pay off their balance if they made only the minimum payments (11).

Of course, the more debt you’re burdened with, the more difficult it will be to pay off your home.

It might sound obvious, but paying off your other debts helps you work on one of the two biggest plays for millionaire status, according to Ramsey: the equity you get from a paid-off home.

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As mortgage rates have come down from the highs of 2022 and are currently hovering just above three-year lows, refinancing your mortgage at a lower interest rate could help you pay it off faster.

Plus, shopping around and getting multiple quotes from lenders can help you save substantially. According to LendingTree, borrowers could save an average of $80,024 over the life of a 30-year fixed-rate mortgage — or roughly $2,667 a year — by shopping around and choosing the best rate offered (12).

To make this process easier, places like the Mortgage Research Center (MRC) can help you quickly compare rates and estimated monthly payments from multiple vetted lenders.

By simply entering basic details — such as your zip code, property type, price range and annual income — you can view mortgage offers tailored to your needs and shop with confidence.

After all, even a small rate reduction can translate into significant savings over the life of a loan.

If you don’t yet have a home, you can still invest in the housing market and take advantage of its passive income opportunities through platforms like Arrived.

Backed by world-class investors, including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, earning a passive income stream without the extra work that comes with being a landlord of your own rental property.

To get started, simply browse through their selection of vetted properties, each picked for their potential appreciation and income generation. Once you choose a property, you can start investing with as little as $100, potentially earning monthly dividends.

For a limited time, when you open an account and add $1,000 or more, Arrived will credit your account with a 1% match.

Another way to diversify your real estate portfolio is by investing in multifamily properties. However, finding and sourcing these properties yourself can be cumbersome, capital-intensive and full of headaches.

But there are plenty of real estate investment opportunities out there, so long as you know where to look. Plenty of opportunities are marketed to accredited investors, but not all opportunities are created equal.

Accredited investors can now tap into this opportunity through platforms such as Lightstone DIRECT, which gives accredited investors access to single-asset multifamily and industrial deals.

Lightstone DIRECT’s direct-to-investor model ensures a high degree of alignment between individual investors and a vertically-integrated, institutional owner-operator — a sophisticated and streamlined option for individual investors looking to diversify into private-market real estate.

With Lightstone DIRECT, accredited individuals can access the same multifamily and industrial assets Lightstone pursues with its own capital, with minimum investments starting at $100,000.

Studies show that Americans believe they’ll need to save roughly $1.46 million for retirement (13). This is a pretty hefty number, so getting started sooner rather than later and ensuring you’re putting your retirement fund in the most effective savings vehicle is important.

Ramsey is a proponent of using tax-advantaged retirement accounts — like IRAs — for building your retirement fund.

In fact, in a blog post, he proclaimed “invest[ing] 15% of your income in tax-advantaged retirement accounts” as the second principle of his investing philosophy. He wrote: “You’ll get the most bang for your buck by using tax-advantaged investment accounts (14).”

One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold.

Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainty.

To learn more, you can get a free information guide that includes details on how to get up to $10,000 in free silver on qualifying purchases. Just keep in mind that gold is typically best used as one part of a well diversified portfolio.

Finally, if you feel unsure about the best way to save for your retirement, — whether it’s gold, real estate or simply time in the market — you can also easily connect with a professional through Advisor.com to find an approach that’s right for you.

Advisor.com is an online service that matches you with vetted financial advisors suited to your unique money goals and needs.

Just enter a few details about your finances and goals, and Advisor.com’s AI-powered matching tool will connect you with a qualified expert best suited for your needs based on your unique financial goals and preferences.

Finding the right advisor isn’t always easy — there’s no one-size-fits-all solution. That’s why Advisor.com lets you set up a free initial consultation, with no obligation to hire, to see if they’re the right fit for you.

— With files from Em Norton

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@TheRamseyShowEpisodes (1); CNBC (2); Federal Reserve Bank of St. Louis (3); Redfin (4); Schwartz Center for Economic Policy Analysis (5); Ramsey Solutions (6), (14); Federal Reserve Bank of New York (7); EducationData.org (8); Experian (9); Board of Governors of the Federal Reserve System (10); Business Insider (11); LendingTree (12); Northwestern Mutual (13)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.