Dave Ramsey shares 4 tips on how to become a millionaire, and they include shopping with coupons and spending $200 or less on restaurants monthly

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Becoming a millionaire is something that many Americans aspire to. We’ve been taught our entire lives that to have that kind of money requires either a good job, good investments or a lot of luck.

However, finance expert Dave Ramsey of “The Ramsey Show” once explained during an interview GoBankingRates that becoming a millionaire isn’t as difficult as one might think. In fact, according to Ramsey, you really only need to follow four steps.

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Step 1: Create a budget

Ramsey’s first step to becoming a millionaire is to create a budget. Outline your income and expenses, and then note the difference. Once you’ve done this, create a monthly budget that you can live by. According to Ramsey, to be successful, every dollar should be tracked and accounted for before the month even begins.

The budgeting app You Need a Budget (YNAB)* can help you do this with ease.

When you track your spending and set goals with YNAB, you can tackle your spending and saving all in one convenient place.* With features like goal tracking and spending reports, it’s easy to maintain your budget and stay on track.

Ramsey points out that wealthy people don’t “blow all their money on stupid stuff.” Instead, they shop with coupons, don’t carry a balance on their credit cards and spend $200 or less a month eating out.

Step 2: Get rid of debt

In order to build wealth, you need to get rid of any debt. There are several ways to do this, but Ramsey suggests the “snowball” method. This starts with paying off the smallest debts first, then slowly moving up until you finish with the biggest debt, regardless of interest rates.

Another option is to consolidate your debt. Credible’s* online marketplace of vetted lenders provides personalized debt consolidation loan offers based on your needs, so you can pay off your debt faster and at a better rate.*

Read more: Retire richer — why people who work with a financial advisor retire with an extra $1.3 million

Step 3: Build an Emergency Fund

With a budget in place and your debt paid off, you now have some extra funds to set aside. Ramsey says your priority should be an emergency fund, which is a savings account that you can rely on should you run into financial troubles. This could be anything from a job loss to a medical emergency or even a broken furnace or car repairs.

The amount set aside in an emergency fund will differ from person to person, based on living expenses. Many experts agree it should be enough to cover you for three to six months. Using a high-interest savings account  can earn you several times more interest than the average rate of 0.58 APY.

You can check out our guide to the Best High-Yield Savings Accounts of 2024 for a range of options to help you grow your savings.

Step 4: Invest

Finally, with an emergency fund in place, you can start to invest. Ideally, you should be investing 15% of your gross income into retirement accounts, Ramsey says.

With Acorns* — an automated savings and investing app — building your investment portfolio is simple.

When you make a purchase on your credit or debit card, Acorns automatically rounds up the price to the nearest dollar and places the excess into a smart investment portfolio* based on your finances and goals.

If you’re interested in getting into the commercial real estate market, you can do so with ease through the crowdfunding platform RealtyMogul.*

RealtyMogul gives you the tools and information needed to invest in property with high income potential without the stress of being a landlord.* You can explore institutional-quality real estate opportunities and review their performance history before deciding where to put your money.

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