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It turns out that school teachers may be fair game, as they play a vital role in society but earn relatively little annually.
That justice is reflected in the many people who consistently hold millions of dollars in their savings and investment accounts, according to the National Study of Millionaires, a research project conducted by personal finance expert Dave Ramsey’s company, Ramsey Solutions.
Ramsey explained in a 2024 interview with podcaster Theo Von that teachers rank third, behind engineers and accountants (2). Fourth or fifth? Work in business or management and work as a lawyer.
So how is it possible that teachers tend to be millionaires, earning an average of $72,030 a year, while doctors aren’t even in the top five (3), according to the National Education Association?
Ramsey’s top five list comes from a survey of 10,000 millionaires. The majority (79%) did not receive an inheritance. Eight in 10 people have invested in a 401(k) plan, and most millionaires surveyed don’t have high-paying jobs. Instead, three-quarters said they had created wealth simply by working hard.
“In other words, you can’t make money by being stupid,” Ramsey said of the study’s findings(4).
They may not hold high-paying jobs, but Ramsey’s survey found that millionaires are an educated bunch, with 88 percent graduating from college. However, only 8% attended elite schools and 52% earned a graduate degree.
What they all have in common is the steadfastness to invest for the long term and stick with it. They’re also organized shoppers: 85% of respondents use a shopping list. Nearly a third (28%) always stick to their list, while 57% are somewhat stuck on it.
One sure way to increase the likelihood of making a list and actually sticking to it is to prepare a budget.
If managing a budget feels overwhelming, apps like Rocket Money can simplify the process.
Rocket Money tracks and categorizes your spending, providing a clear view of your cash, credit, and investments in one place. It can even uncover forgotten subscriptions, helping you cut unnecessary costs and save hundreds of dollars every year.
For a small fee, the app can also negotiate a lower rate on your monthly bill, making it a valuable tool for keeping your finances on track.
“They are systems people – they work by a set of principles, they don’t have the freedom to make their own rules,” Ramsay said. “Teachers have lesson plans that must be followed.”
If you also consider yourself a systems person, then a high-yield account could be the ideal way to launch your future career as a millionaire.
An account like Wealthfront Cash can be a great place to systematically grow your emergency fund and take advantage of compounding returns.
Wealthfront offers competitive interest rates and easy access to cash when you need it.
They offer a base variable APR of 3.30% as of January 30, 2025, with new customers receiving a boost of 0.65% from the scheme bank who have not invested cash in the first three months, for a total APR of 3.95%.
That’s 10 times the national savings rate, according to the FDIC’s January report.
Does Ramsay have any advice on career choices? “Do something you love and find a way to do it in an unusual way. If you’re a teacher, that doesn’t necessarily mean you’re in a classroom.” He explains that there are ways to achieve your dreams while building a stable financial lifestyle.
Teachers most likely love their jobs and they have found a way to create a lifestyle that supports their work rather than the other way around.
“Don’t choose your career based solely on how much money you can make,” Ramsey said. “Also, don’t choose a career that says you’ll be happy but broke. That won’t work either. If you do something you love, you should make more money because you’re good at it, you care about it, you’re creative, and you have energy. You should make more money, not less.”
You don’t need to take home a huge paycheck to build a solid financial future. As long as you manage your money with purpose, you can build wealth. A financial advisor can help you crunch the numbers to create a workable plan.
But hiring an advisor is a long-term commitment that could impact your retirement. This means finding a reliable advisor is crucial.
That’s where Advisor.com can help. The platform connects you with experts near you for free. Advisor.com does the heavy lifting for you, vetting advisors based on track record, client ratio and regulatory background.
Just enter a few details about your finances and goals, and Advisor.com’s AI matching tool will connect you with qualified experts who best fit your needs.
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Read more: Nearing retirement but no savings? Don’t panic, you’re not alone. Here are 6 easy ways you can catch up (and fast)
You might be surprised to know that many high-paying professions, such as doctors, didn’t make Ramsey’s top five list.
But according to the Education Data Initiative, the average medical school debt will be $216,659 by 2025, and 30% of physicians expect it will take more than 10 years to pay off their debt (5).
This means doctors may miss out on years of investment as they work to establish themselves and ultimately earn high salaries.
But if you just wait for a higher paycheck to come, you’ll miss out on the potential for incremental gains along the way.
With Acorns, an automated savings and investing app, securing your financial future can become second nature.
Acorns is a mobile app that automatically invests your spare change for you so you can reap the benefits of compound interest through recurring investments.
All you have to do is open an account and link your cards. Then, every time you spend like normal, Acorns automatically rounds your most recent purchase to the nearest dollar and invests the difference in a diversified portfolio.
Sign up now and get a $20 investment bonus.
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Ramsey Solutions (1); Theo Feng (2); National Education Association (3); Ramsey Show Highlights (4); Education Data Initiative (5)
This article provides information only and should not be considered advice. It is provided without any warranty of any kind.