Experts always say to stick to a budget if you want to build wealth, but personal finance guru Dave Ramsey says being generous can also make you wealthy.
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Ramsey tweeted on April 28 that these five practices will make you wealthy:
- Have a written budget.
- Get out of debt.
- Live on less than you make.
- Save and invest.
- Be generous.
Twitter user “Chris, CPA” replied: “Number 3 and Number 5 are the only essentials in my experience. Why? Because they bleed in to every opportunity you pursue and generally make for a happier existence.” The same user suggested that “wealth” is subjective.
According to Ramsey, there’s a difference between being wealthy and being rich.
Rich means spending a lot of money, whether or not you have it. On the other hand, wealth means you have your finances in order and make smart money decisions. You’re focused on the long term and care more about building wealth than spending it and impressing others.
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“It’s being generous throughout their financial journey (even when it’s hard) that allows folks to win with money,” wrote George Kamel, personal finance expert and co-host on “The Ramsey Show,” in a blog post last year.
In another post, Ramsey wrote that giving away money is always part of his wealth-building tips. This is because being in a position to offer a blessing to others is one of the biggest motivators for building wealth in the first place.
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This article originally appeared on GOBankingRates.com: Dave Ramsey Says Being ‘Generous’ Will Make You Wealthy (Plus Four Other Things That Will Help, Too)
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