Dave Ramsey has shared his opinion on the real key to building wealth on his podcast.
Mr Ramsey also debunked the plethora of get-rich-quick scams on social media which are affecting peoples’ finances.
Platforms, such as TikTok, feature a slew of finance and business advice content which is viewed by millions daily.
Despite its popularity, Mr. Ramsey is sounding the alarm that all advice is not necessarily good advice.
In a clip posted on Twitter, Dave Ramsey outlined the principles people should adhere to if they want to become rich.
As well as this, he offered a hypothetical scenario of what would happen if someone fell for “get-rich-quick cr**” on social media.
The personal finance expert shared: “The thing that keeps people from becoming wealthy is A: they don’t apply themselves to a simple set of principles.
“B: by not applying themselves to that simple set of principles to these get-rich-quick cr** and they have these tremendous setbacks.
“I bought ten houses and put them on Airbnb and leveraged them all to their eyeballs only to find out that Airbnb is illegal is now illegal in two of those cities.
“I found out Airbnb in the rest of those cities is completely flooded and I can’t keep them full.
“So I’m not making any money and the guy on TikTok lied to me because he didn’t know what the flip he’s talking about.”
In another episode of his show, Mr Ramsey shared advice for those looking to “double” their wealth.
Specifically, he was responding to a caller who wanted to know what he should do with his $200,000 inheritance.
The podcast host added: “Number one rule: Don’t put money in something you don’t understand. Don’t put money into something someone else tells you is a good idea.
“If you were to invest this money and not touch it in good stock growth mutual funds and if it made 10 percent rate on return on average, in seven years it would double.
“You would have $400,000. In seven more years, it would double again to $800,000. And in seven more years, it would double again and it would be $1.6million.”