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Hisinvestmentphilosophy focuses on getting people out of debt and into low-risk assets that reliably build wealth over time.
But what does that mean in practice?
If you want to follow Ramseys philosophy, which assets should you own?
An estimate by Ramsey suggests the company brings in about $300 million in annual revenue.
Thepopular financial advisorhasnt shared the exact amount of wealth hes invested in his businesses.
Ramsey invests in his business because it enables him to earn more money.
For the average person, that could mean investing in a car to start driving for a ride-sharing service.
Or you might spend money to build an online store to sell crafts you make.
If youre considering investing in a personal business, chart a course toward profitability first.
Remember, Ramsey holds wealth in his company only because it earns him money.
Debt-Free Real Estate
Ramsey is also a big fan of investing in real estate.
However, he used leverage in this market when he was younger and went bankrupt as a result.
Today, Ramsey still believes inreal estate investments, but he no longer uses debt to make those purchases.
In other words, he uses mortgages as a tool to gain more exposure toreal estate marketshe likes.
That being said, there are ways to invest in real estate without buying a property outright.
For example, you might purchase shares in something like areal estate investment trust.
This gives you exposure to a broad portfolio of properties without requiring much upfront cash.
Mutual Funds
Finally, Ramsey is a big believer in mutual funds and exchange-traded funds.
These track the performance of broad market segments, like the S&P 500.
Warren Buffett also recommends investing in these, as weve previouslyreported on.
Even though it can decrease from year to year, the long-term trend is strong.
Ramsey and Buffett recommend passively investing in these funds.
For example, you might put $100 into the S&P 500 monthly.
The idea is that over time, your wealth will grow as long as you keep at it.
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