‘They are awful’: Dave Ramsey is fed up with millennials and Gen Z and claims they don't work but want to own homes — here’s what he says you need to be a successful investor

Em Norton
‘They are awful’: Dave Ramsey is fed up with millennials and Gen Z and claims they don't work but want to own homes — here’s what he says you need to be a successful investor
‘They are awful’: Dave Ramsey is fed up with millennials and Gen Z and claims they don't work but want to own homes — here’s what he says you need to be a successful investor

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Dave Ramsey has never been shy about what really grinds his gears when it comes to the financial habits of young Americans.

In a recent interview with Fox News, Ramsey — a boomer — shared his true feelings about millennials and Gen-Z’s financial habits: ”They are awful. They live in their mother’s basement. They can’t figure out why they can’t buy a house because they don’t work.”

While this sentiment may ring true for people of any generation, younger Americans certainly have some odds stacked against them amidst high home prices and interest rates.

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A Consumer Affairs report found that Gen Z’s money had 86% less purchasing power than baby boomers did when they were in their twenties.

Despite these daunting economic circumstances, it is still possible for millennials and Gen Z to invest in the real estate market even if they are priced out of buying a home right now.

Investing for the future

Ramsey is a big proponent of the importance of investing for the long term. In a February blog post, he wrote: “A solid investment strategy gives you focus, clarity and direction — and you need all three to become a successful investor.”

But having this clarity and direction is easier said than done, whether you're just starting to build your portfolio or looking to expand it.

Luckily, there are investing platforms out there that come equipped with expert guidance so you can start building your wealth without having to become an investing savant.

Wealthfront Investing is an automated stock trading platform that offers customizable portfolios and guides new investors in identifying, tracking and achieving their financial goals.

You can open an account with as little as $500 and after you’ve answered a few questions about your finances, you only need $500 to open an account.

From there, Wealthfront will customize a portfolio based on your risk tolerance and financial goals. Plus, they'll rebalance your portfolio as needed so you don’t have to worry about developing an investing strategy all on your own.

For active traders, tastytrade is a modern platform with all the trading tools you need.

tastytrade provides an extensive range of tools for risk management and informed investment choices. The platform also delivers interactive content with daily valuation trading insights.

With no additional charges for broker-assisted trades and a competitive margin base rate of 10%, tastytrade aims to lower costs for margin trading so you can build a portfolio worth bragging about.

Read more: Car insurance rates have spiked in the US to a stunning $2,150/year — but you can be smarter than that. Here's how you can save yourself as much as $820 annually in minutes (it's 100% free)

Grow your money with real estate

Research published by The National Association of Realtors in February found that home prices are on the rise in 85% of U.S. cities, with the median price of a new home sitting at $417,300 in June according to The U.S. Census Bureau.

With mortgage rates also still hovering near 7%, it shouldn’t come as a shock that many Gen Zers and millennials aren’t yet able to purchase their first home.

That being said, even if you’re not able to purchase a home, you can still invest in the real estate market in a number of ways.

Ramsey himself is passionate about earning passive income through real estate, and in a March blog post suggested investing in residential and vacation rentals, with the caveat that “renting out a house isn’t for the faint of heart — even if you hire a property manager.”

Backed by world class investors like Jeff Bezos, Arrived makes it easy to fit rental properties into your investment portfolio regardless of your income.

Arrived’s easy-to-use platform offers SEC-qualified property investments without all the hassles of property and tenant management.

You can easily browse a curated selection of homes and vacation units. Once you find a property you like, you can choose the number of shares you want to buy and start investing in real estate right away.

Similarly, Ark7 is another fractional real estate investment app that you can use to get into rental real estate, and its barrier to entry is even lower with its accessible minimum investment.

Through Ark7, you can invest in shares of single and multi-family rental units that are in demand.

When you create your account, you can browse their available properties and learn about their share price, monthly rent amount, total target return, neighborhood information and more.

With a low minimum investment requirement of just $20, you can start investing in rental properties that drive return and save yourself the hassle of day to day property management.

Prioritize planning

Recently, the hashtag #daveramseywouldntapprove on TikTok has appeared across thousands of posts and millions of views. In these videos, millennials and Gen Z are exposing their money habits that the financial guru in question definitely wouldn't approve of — like a Disney World shopping spree on credit or a $16 cocktail.

Creating a budget and overall financial plan can be the exact spark you need to ignite to improve your financial situation. In a video with his daughter Rachel Cruze on her YouTube channel, Ramsey shared that getting on a budget is one of the best things you can do with your money in 2024.

He quipped that “no one accidentally wins the Super Bowl, The World Series or the World Cup.”

In other words, you can’t expect wealth to fall in your lap without effort, and we can’t all call in to the Ramsey Show when we need advice. But, hiring a professional near you could help ensure your financial plan is comprehensive.

With Advisor.com, getting set up with a suitable — and professionally-vetted — financial advisor is easy. All you need to do is answer a few questions about your financial situation, and they'll match you with advisors who suit your needs.

Then, you can set up a free consultation with no obligation to hire to ensure you find the right fit for your wealth-building goals.

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

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