What does Dave Ramsey define as "wealth building"?

Wealth building, as defined by Dave Ramsey, focuses on the long-term accumulation of assets and investments that generate income in the future. This definition emphasizes a strategic approach to financial health where individuals invest in various forms of assets such as real estate, stocks, or mutual funds, which can appreciate over time and provide a reliable income stream, particularly during retirement. This process requires discipline, patience, and an understanding of financial markets to allow for the best possible growth of investments.

The concept of wealth building is distinct from the accumulation of credit card points, which may provide short-term benefits but do not contribute to financial stability or future income. Additionally, borrowing money to invest, particularly in high-risk ventures like startups, can be precarious and does not align with Dave Ramsey's principles of financial prudence, which advocate for avoiding debt. Living frugally, while important in managing expenses and saving money, is more about managing current spending rather than focusing on the proactive growth of wealth. Thus, accumulating assets and investments is clearly the most aligned with Ramsey’s philosophy of building true wealth over time.