Courtesy of The Ramsey Show <\/p>\n
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Sometimes you can get the best advice by poking the bear.<\/p>\n
One write-in guest on The Ramsey Show found out the hard way after trying to \u201cmake sense\u201d of Dave Ramsey\u2019s investment advice.<\/p>\n
\u201cYou keep saying to invest $100 a month beginning at age 30 and you\u2019ll be worth $5 million at 70 years old,\u201d wrote a man named Isaiah. \u201cThat\u2019s the most ridiculous thing I\u2019ve ever heard.\u201d<\/p>\n<\/p>\n
Isaiah pointed out that the life expectancy of a white American male is 72 years old, while for a Black male it\u2019s 68, meaning \u201cmost people will never live to see $5 million.\u201d He asked Ramsey to help him \u201cmake sense of this advice.\u201d<\/p>\n
Ramsey, who called Isaiah \u201centitled\u201d and \u201cbelligerent,\u201d said the real issue is the idea \u201cyou\u2019re supposed to get rich in 10 minutes.\u201d<\/p>\n
Here\u2019s why investing still makes sense \u2014 even if America\u2019s lifespan stats suggest many men won\u2019t live long enough to enjoy all their savings.<\/p>\n
Ramsey admitted that Isaiah isn\u2019t completely wrong about life expectancy, but said he was putting words in his mouth.<\/p>\n
Ramsey said that saving $100 a month was an example \u2014 the idea is to save something every month and start building a \u201cmoney mindset.\u201d<\/p>\n
\u201cWe have never said $100 a month from [ages] 30 to 70 is $5 million \u2014 it\u2019s not,\u201d Ramsey said, in a recent episode. \u201cIt\u2019s $1,176,000, and that would be true of \u2026 any 40-year period of time you wanted to pick.\u201d<\/p>\n
But getting started on that investment journey can be overwhelming, especially if $100 a month isn\u2019t possible for you quite yet. The important thing is to start saving with Ramsey\u2019s 40-year horizon in mind.<\/p>\n
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