Millionaire Teachers: The Surprising Truth

Teachers are often stereotyped as being low-paid professionals, but the reality is far from it. According to a study by Dave Ramsey’s company, Ramsey Solutions, many teachers are consistently holding millions of dollars in their savings and investment accounts. In fact, teachers ranked third in the list of top millionaires, behind engineers and accountants.

In an interview with podcaster Theo Von, Dave Ramsey explained that teachers’ ability to become millionaires is not due to their high salaries, but rather their smart financial decisions. The majority of millionaires surveyed, 79%, had not received an inheritance, and eight out of 10 had invested in a 401(k) plan. Most millionaires didn’t have high-salary jobs, but instead, three out of four said they’d created wealth simply by working hard.

Key Takeaways from Dave Ramsey’s Survey

• 88% of millionaires had graduated from college, but only 8% attended elite schools.
• 52% of millionaires earned a postgraduate degree.
• Most millionaires didn’t have high-salary jobs, but instead, created wealth through hard work.

Investing in the Long Term

Millionaires are known for their steady investments over decades, not just in the run-up to their retirement. Making sure to set a little aside every month can scale your wealth massively in the ten years leading up to a traditional retirement, when compound interest really takes off.

One way to make securing your financial future second nature is by using an automated saving and investing app like Acorns. Acorns rounds up each purchase on a linked debit or credit card to the nearest dollar and invests the difference in a low-risk portfolio of ETFs.

Steady Investing and Methodical Shopping

• 85% of respondents use a grocery list, with nearly a third (28%) always sticking to it.
• 57% of respondents sort of stick with their list.

A surefire way to increase the odds you’ll make a list and actually stick to it is by preparing a budget. You can use a spreadsheet, but it’s often easier to work with specialists. Monarch Money’s expense tracking system makes managing your finances easier by seamlessly connecting all your accounts in one place.

By linking your credit card accounts, you can monitor your payment progress in real-time and set specific goals to free up more money for investing, a much-needed vacation, or a college fund.

Creating a Systematic Lifestyle

Millionaires are systems people who work with a set of principles and don’t have free rein to make up their own rules. Teachers have a lesson plan they have to follow, which is part of their systematic approach to life.

Having a written plan is key to creating a systematic lifestyle. It’s essential to have a clear plan and stick to it, even when life throws you a curveball. Having contingencies in place, like an emergency fund, can help you weather a short-term storm.

A high-yield account like a Wealthfront Cash Account can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it.

Following Your Dreams and Creating a Stable Financial Lifestyle

Dave Ramsey’s advice for picking your career is to do something you love and find a way to do it in an unusual way. It’s likely that teachers love their jobs, and they’ve figured out a way to create a lifestyle to support their work – not the other way around.

Don’t pick your career based on how much money you can make only, Ramsey said. Also, don’t pick a career that says you will be happy but broke. That won’t work either.