Dave Ramsey Calls Listener's Math The 'Most Ridiculous Thing I've Ever Heard', Proves Consistent $100 Investments Can Still Make Millionaires

Dave Ramsey says a $100 monthly investment can make millionaires, and he's tired of skeptics who claim most savers will die before cashing in.

What Happened: During "The Ramsey Show," the personal-finance host dismantled a listener's math, noting that $100 a month compounded at 12% for 40 years grows to $1.176 million, not $5 million as claimed by the listener.

He added that U.S. life expectancy data contradicts the caller's fatalism: males who reach 65 live another 18 years on average, to roughly 83.

Ramsey's example echoes figures he uses in his book Baby Steps Millionaires, which profiles first-generation wealth builders who followed his seven-step plan. "Almost no one saves just $100 for 40 years … It's an example saying if you'll save money, you can build wealth," he told the caller, dismissing claims that race or income doom savers to fail. “Skin pigmentation doesn't cause wealth building one way or another.”

“This is the most ridiculous thing I’ve ever heard… what’s ridiculous is your argument because you don’t know anything about the numbers that you presented. They were all wrong. That’s what’s ridiculous.”

See also: Dave Ramsey Tells Woman Whose Boyfriend Thinks 401(k)s Are A Scam: ‘Don’t Marry This Guy, He Ain’t Worth It,’ Calling Him An ‘Immature’ Man Who Doesn’t ‘Want To Think About The Future’

Why The Math Checks Out

Financial calculators confirm that a $1,200 annual contribution invested in a broad-based mutual fund earning the S&P 500's 40-year average of about 11.8% would top $1 million by year 40. Ramsey notes the strategy hinges on consistency, not timing markets — an approach the Federal Reserve's 2023 household-well-being survey shows few Americans adopt, as most say their retirement savings are off track.

A Broader Wealth Gap

Critics counter that median retirement balances for near-retirees sit below $200,000, suggesting many households can't spare $100. Ramsey retorts that 89% of U.S. millionaires are first-generation, citing his National Study of Millionaires. "Roll up your sleeves, live on less than you make, get out of debt," he said.

Context for 12% returns

While Ramsey's assumed 12% annual return surpasses recent market performance, long-term S&P data show rolling 40-year returns above 10% are not unprecedented. Analysts caution that future returns may moderate, but even an 8% rate would turn $100 a month into roughly $300,000 — far above today's median savings.

Ramsey's bottom line: excuses steal hope. "Quit your whining … If you want to win, you can go win. We'll help you," he said, pointing listeners to his "Baby Steps" framework and urging them to start saving — even if it's just $100.

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