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The Truth Behind Dave Ramsey’s Millionaire Study: What the Numbers Really Say
We’ve all heard it: “The largest study of millionaires ever done.” Dave Ramsey’s team surveyed 10,000 millionaires, and it’s become the go-to proof that the only way to wealth is through paying off your house early and maxing out your 401(k).
But here’s the problem that study doesn’t tell the whole story.
As someone who’s been in the financial trenches for over two decades, I’m all about truth and results. So today, let’s pull back the curtain and see what the data really says about millionaires, mortgages, and how wealth is actually built.
What the “10,000 Millionaire Study” Really Was
Before anyone grabs the pitchforks, let me be clear: I’m not here to bash Dave. He’s done a lot of good for people struggling with debt and overspending. But when it comes to wealth creation that next level beyond debt freedom there are some cracks in his narrative.
The 10,000 Millionaire Study was not an independent, scientific analysis of millionaires nationwide. It was a survey of his own followers, conducted between late 2017 and early 2018.
That means the respondents were already Dave Ramsey fans people who had followed his teachings to a T. Naturally, they had 401(k)s, lived debt-free, and worked as engineers, teachers, or accountants the very careers Ramsey emphasizes.
So when he says, “We never found millionaires who invested instead of paying off their home,” that’s not a discovery that’s a self-fulfilling prophecy.
Correlation Isn’t Causation
Here’s what’s missing from the conversation: correlation and causation are not the same thing.
It’s like saying, “Ice cream causes drowning.” Sure, both happen more in summer but one doesn’t cause the other. The same goes here: being a debt-free teacher doesn’t cause wealth; it simply describes who follows that particular financial path.
Ramsey’s followers became millionaires slowly, through long-term saving and mortgage payoff. That path works but it’s not the only one. And for many people, it’s not the fastest or most efficient.
What Real Data Shows About Millionaires
Let’s look beyond one community to broader, independent data sources.
The Federal Reserve’s Survey of Consumer Finances paints a much wider picture. Roughly 42% of millionaire households still carry a mortgage. In fact, the higher the net worth, the more likely they are to use debt strategically because they understand leverage.
Meanwhile, the Spectrum Group and Capgemini Wealth Report show that wealthier individuals tend to diversify beyond retirement accounts. They hold about 19% of their portfolios in real estate and another 15% in alternative investments. These aren’t day-traders or gamblers; they’re strategic investors focused on cash flow and tangible assets.
Then there’s the Tiger 21 network, made up of ultra-high-net-worth investors (typically $100 million+). Their portfolios? A mix of real estate, private equity, and cash reserves not just 401(k)s.
The Business Owner Factor
According to the Federal Reserve, about 20% of millionaires are business owners, even though only about 10–15% of Americans own a business. That means business ownership doubles your odds of becoming a millionaire.
It’s not hard to see why: owning something that produces income whether a company, a rental property, or another asset accelerates your wealth growth far faster than saving alone.
How Real Millionaires Think About Mortgages
Let’s talk about the paid-off house myth.
Yes, many millionaires end up with no mortgage eventually. But most don’t start there. Early on, they use leverage to grow. Later, once cash flow and net worth are strong, they may pay off the home for simplicity, not strategy.
Personally, I’ve got a 2.75% mortgage. I could pay it off today. But why would I tie up cash that can earn 8–10% elsewhere in passive investments? I’d rather have liquidity and opportunity. When I’m done chasing growth, maybe I’ll kill the mortgage but only then.
It’s not about “right or wrong.” It’s about timing and purpose.
What I’ve Seen Work Faster
Since 2006, I’ve helped thousands of clients move from the “save-and-wait” model to a cash-flow model building real passive income through alternative investments like real estate funds, notes, and business partnerships.
I’ve watched clients go from a few hundred thousand in net worth to over a million not in 30 years, but in 5–10. And they didn’t do it by clipping coupons or praying the stock market goes up. They did it by making money work for them.
The Bottom Line: Question Absolutes
When someone says “always” or “never” in finance, that’s your cue to ask questions. Because in real life, wealth is nuanced.
Some people build it through discipline and time; others through creativity and cash flow. The key is to know which season you’re in and what tools fit your goals.
So, don’t take any financial study even mine as gospel. Dig deeper. Understand the context. And remember, your path to financial freedom might not look like anyone else’s.