Dave Ramsey: Wealth Building and Compound Interest


Dave Ramsey explains wealth building and compound interest. He uses an example of two brothers, Ben and Arthur, and how each of them end up at age 65 based on compound interest and the saving choices they made.

Today, we are debt free!

Want to learn more? Visit http://www.daveramsey.com/



  1. I want to know how ben is getting 12% interest!!!!

  2. im 18, so if i put $10,000 in a savings account now, you're saying i will have over 1 million dollars at 65?

  3. Why didn't they show this in school. Dave sir thanks for all the teaching skills.

  4. Why does Dave say people should stop investing when they are getting out of debt? Every dollar invested will be much more valuable after compounding, isn't it smarter to at least keep you employer matched 401k?

  5. this video just gets more and more interesting

  6. Mr Ramsey what type of account should I ask for at the bank for compound interest

  7. Somebody please tell me where are these magnificent places where money compounds like this? I've been hearing about this compound interest thing for a long time but nobody ever says what exact accounts to put your money in. It cant be the banks since they pay so little

  8. I'm gonna start early! I am 16 right now!

  9. 12% interest per year is 1% per month.
    Do banks pay interest per month?

  10. 16 years old and I'm lucky enough to have a teacher show me this video, here I am watching it again. I'm definitely using this knowledge to my advantage and starting EARLY.

  11. What confounds me is that I allegedly received a good education at "excellent schools" yet was never given ANY training
    in personal finance! What skill could be more important to your future no matter what career path you choose?
    I have heard this is slowly changing(?).
    The only good news is that a good education equips you to learn and research independently but this topic is too critical to
    learn about possibly too late.

  12. Can you please list some banks in SF bay area which offers good compound interest rate?

  13. I've been researching this for a few weeks and I understand it. What I don't understand is where to put your money? How do I earn compound interest? Where do I put my money, in the bank? I keep watching videos and videos explaining what it is but where do I actually put the money in goddam it.

  14. I am so glad I understand compound interest so early

  15. +o1wall 1wall The point of the video is really about investing in mutual funds. Depositing money in a bank doesn't create as much interest as mutual funds. Investing in stocks alone can be riskier than mutual funds. If you want to learn more you can visit http://www.daveramsey.com

  16. This compound interest worked a lot better 50 years ago. If you invest right now, you are lucky if you reach $500k after 30 years (with only $35k start up). The only real way of building wealth is to put the money in to your own BUSINESS AND MAKE A LOT MORE THAT WAY!! You are better off taking risks and make a lot more (or maybe even lose some) rather than let the banks use your money for mortgage lending, loans, insurance etc.

  17. I have two questions.

    1) If you had say $3000 dollars to invest per month, would it be better to save $1000 in three different fixed accounts and wait for them to grow or is it better to invest the full amount in a single account and reach significant interest faster?

    2) Is the money you have invested over the 50 years taxable when you choose to close the account?

  18. too bad the interest rates are less than ONE Percent…. this chart means nothing at the current time!  you would need to live for 800 years to become a millionaire by investing 18k today. 

  19. Compound interest is amazing.  I am working a second job so I can invest as much as possible and retire at age 50.  Like others have mentioned you need to pay attention to the percentage you are getting in return.  Instead of being super optimistic like Dave, I crunch my numbers in a really conservative way expecting 7.5% instead of 12+.  Anyone that's been in the market 5 years or less will think they are a stock market genius.  In the real world getting over 9% is pretty darn good.  Find a compound interest calculator online and crunch the numbers.  You can be rich if you invest as much as you can NOW.

  20. Brilliant video, more people should be aware of this!

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