Dave Ramsey: Here’s when it’s better to accumulate money than invest

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Editor’s Note: Money expert Dave Ramsey is CEO of Ramsey Solutions. He is the author of seven bestselling books, including “The Total Money Makeover”. His radio show “The Dave Ramsey Show” is listened to by more than 16 million listeners every week on 600 radio stations and multiple digital platforms. Each week, he answers a question about personal finance in his column “Dave Says”.

Cher Dave,

What advice would you give to students who want to plan for their future and start building wealth? I will be finishing my Masters in Marketing in less than two years, and I have been very lucky so far because my parents paid for their education. I earn about $ 2,200 per month from my job and have $ 24,000 in savings.

Alex

Cher Alex,

If I were you I would get really good at all of marketing. At this point in the game, you are your best investment. You’re a go-getter, so go ahead and get it.

If you continue down this path, and by that I mean work, go to school, and accumulate money, you are going to be able to put that marketing know-how to good use.

You will be able to use some of the money you have stored to settle into your new life.

What you do now, in your situation, will give you a mathematically better return than a mutual fund.

Do you understand what I say?

An education that is usable is more valuable to you at this stage of the game than investing.

Now when you are done with your education and starting to live your new career, I recommend some good growth mutual funds. And at this point if you have $ 30,000 or $ 40,000 more, that’s even better.

Good start, Alex. Good game!

—Dave

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