Can We Afford A $9K Family Vacation?

Summary

Ramsey Everyday Millionaires: Can We Afford A $9K Family Vacation?

Release Date: April 9, 2025
Host: Ramsey Network (Featuring Dave Ramsey, Rachel Cruze, Ken Coleman, George Kamel, Jade Warshaw, and Dr. John Delony)

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Introduction

In this engaging episode of Ramsey Everyday Millionaires, the Ramsey Network delves into the financial planning behind an extravagant family vacation. The episode, titled "Can We Afford A $9K Family Vacation?", features Jeff from Oklahoma City seeking advice on whether his family's planned vacation aligns with sound financial principles. The discussion emphasizes responsible spending, strategic saving, and the pursuit of happiness through meaningful experiences rather than material possessions.

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Guest Introduction: Jeff from Oklahoma City

[00:14] Dave Ramsey: "This hour, we have Jeff in Oklahoma City. Hi, Jeff. Welcome to the show."

Jeff introduces himself as a family man in his early to mid-40s with a household gross income ranging between $335K to $370K, including annual bonuses. He outlines his intention to take a seven-day, all-inclusive Caribbean vacation costing approximately $9,200, covering travel, accommodation, and additional expenses like vehicle rental and excursions.

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Financial Overview

Jeff provides a comprehensive breakdown of his family's financial status:

• Income:
  • Gross Household Income: $335K to $370K annually
• Debts:
  • Mortgage: $273K remaining on a house purchased in 2021 at a 3% fixed rate
• Assets:
  • Home Valuation: $620K
  • IRA: $396K
  • 401(k): $27.5K
  • Emergency Fund: $53,600 (covering six months)
  • Additional Savings: $53K in a separate savings account
  • Bank Account: $15K

[02:05] Jeff: "So the emergency fund, we've got $53,600, which a six month emergency is 24.5."

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Vacation Plan Analysis

Jeff details the vacation plan:

• Duration: 7 days (2 days of travel)
• Location: Caribbean, oceanfront all-inclusive resort
• Total Cost: Approximately $9,200
  • Breakdown: $4,000 allocated to various expenses, including local food despite the all-inclusive package

[00:24] Jeff: "So here, here's. I'll tell you a little bit of the history and then we'll get into the numbers."

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Hosts' Feedback and Insights

Financial Health Assessment:

• Dave Ramsey: Commends Jeff for his detailed financial planning and disciplined spending.

  [01:53] Dave Ramsey: "You've done your due diligence, Jeff."

• Rachel Cruze: Applauds Jeff's meticulous approach to budgeting for the vacation.

  [02:36] Rachel Cruze: "If this was the voice, I'd hit the buzzer, I'd spin my chair and switch."

Encouragement and Affirmation:

• Hosts express admiration for Jeff's financial stability and prudent decision-making, highlighting his ability to balance enjoyment with financial responsibility.

  [03:27] Jeff: "So in the knee trade account, we've got $27,500."

  [03:51] Rachel Cruze: "You've raised some great kids."

Principles of Money and Happiness:

Dave Ramsey references Arthur Brooks' five ways money can influence happiness:

1. Giving: Generosity can enhance happiness.
2. Saving: Progress in savings contributes to a sense of well-being.
3. Buying Time: Investing in services that free up personal time.
4. Experiences: Creating lasting memories with loved ones.
5. Materialism: Purchasing stuff offers only temporary happiness.

[05:10] Dave Ramsey: "The fourth way to literally buy happiness is to buy experiences with the people you love."

Contentment and Prioritization:

Dave emphasizes the importance of contentment and aligning financial priorities with personal values.

[07:09] Dave Ramsey: "One of the most powerful financial principles is contentment. And Jeff, you just sound like such a content guy."

Practical Recommendations:

• Encouraging Jeff to slightly upgrade his vacation experience, such as first-class travel, without compromising financial stability.

  [06:16] Rachel Cruze: "Tell your wife Rachel said we could. And then when you get back from the trip, everyone gets a thousand dollar shopping spree."

  [07:46] Dave Ramsey: "No. Because then you're buying stuff."

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Conclusion

Jeff's careful financial planning and disciplined approach exemplify the principles discussed on Ramsey Everyday Millionaires. The hosts unanimously support his decision to take a $9K family vacation, affirming that his financial foundation is robust enough to accommodate such an expense without jeopardizing long-term goals. The episode underscores the importance of balancing financial responsibility with the pursuit of happiness through meaningful experiences, reinforcing that true wealth lies in the contentment and well-being of one's family.

[08:09] Rachel Cruze: "Send us a picture when you come back."

Jeff's story serves as an inspiring example for listeners, illustrating that extraordinary wealth is attainable through ordinary, disciplined financial habits.

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Key Takeaways

• Financial Responsibility: Jeff's ability to plan an extravagant vacation without incurring debt showcases effective financial management.
• Prioritizing Experiences: Investing in family experiences can lead to lasting happiness and fulfillment.
• Contentment: Being satisfied with one's financial situation enables responsible spending on meaningful activities.
• Strategic Saving: Maintaining a substantial emergency fund and investing wisely ensures long-term financial security.

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This episode of Ramsey Everyday Millionaires offers valuable insights into balancing financial prudence with the desire to enjoy life's pleasures, demonstrating that with careful planning, families can achieve both financial stability and memorable experiences.

Transcript

[Rachel Cruze]

This episode is brought to you by SmartVestor. Connect with an investing pro near you at RamseySolutions.com SmartVestor to kick us off.

[Dave Ramsey]

This hour, we have Jeff in Oklahoma City. Hi, Jeff. Welcome to the show.

[Jeff]

Hello, how are you today?

[Dave Ramsey]

We are doing great. How can we help?

[Jeff]

Well, my question is we are looking to take what I would consider an extravagant vacation this summer.

[Dave Ramsey]

Oh, my favorite thing in the world, Jeff.

[Rachel Cruze]

That is called the right person. She's gonna say yes.

[Jeff]

Well, then let's just, let's just get the yes and move on. Basically kind of looking for confirmation that it's something that would be okay to do. So here, here's. I'll tell you a little bit of the history and then we'll get into the numbers. My wife and I were early to mid-40s. We've got three kids at home. One of them graduates next year and will have to report to school sometime summer of next year for sports. So this is kind of the last year to be able to take a family vacation and have that oldest one go with us. All in. We're looking at like $9200. It is seven days. Two days is travel. Okay. Oceanfront, all inclusive resort and going to the Caribbean and about 4,000 of that 92 is light. Oh, yeah, getting out of the Midwest is horrible.

[Dave Ramsey]

Yeah, it's terrible.

[Jeff]

And that includes, you know, vehicle rental when we get there, excursions, you know, going out to eat a little bit. Even though it is all inclusive, you know, trying some of the local food.

[Dave Ramsey]

You've done your due diligence, Jeff.

[Rachel Cruze]

You have, you travel plan like no one else.

[Dave Ramsey]

You have, you have detailed it out. Okay, so where are you guys financially? Do you guys have debt? Do you have savings?

[Jeff]

So this, I'll run through all the numbers here. Household income gross is 335 to 370, depending on bonuses, which, you know, happens every year, so probably close closer to that 370 number. The only debt that we have is our house. We owe 273 on purchased it in 2021, 3% fixed, bought it for 370 valuation of 620.

[Rachel Cruze]

How much in savings?

[Jeff]

IRA? We've got 396.

[Rachel Cruze]

They're just your normal cash savings, like emergency fund plus whatever else.

[Jeff]

So the emergency fund, we've got $53,600, which a six month emergency is 24,5. All right, another savings account.

[Rachel Cruze]

If this was the voice, I'd hit the buzzer, I'd spin my chair and switch.

[Dave Ramsey]

I want you to upgrade Your room and spend a little bit more and go upstairs.

[Rachel Cruze]

I'm actually. I'm a little miffed. You're only spending nine grand.

[Dave Ramsey]

I know. Go, go. Upgrade you and your wife to first class. Spend a little more. Jeff, I'm not kidding. Like you are 100%. Okay. And if anything, yet. You got some wiggle room, Jeff. I mean, yeah. Okay. That was fun. In your IRA, $396,000 is what you said. What do you guys have in your 401k?

[Jeff]

So in the knee trade account, we've got $27,500. 401k is horrible. But we're now putting 15% in, so it'll be caught up very quickly. 246 between the both of us. And then outside of the emergency fund of 53, 6, just in another savings account, we've got 53,000 and then around 15,000 in the bank account.

[Rachel Cruze]

I've lost track of how much money you guys have. You have that much? You're doing great. Is your wife the same way as you?

[Dave Ramsey]

Yeah, yeah.

[Rachel Cruze]

Does she have fun?

[Dave Ramsey]

Do you have fun?

[Jeff]

I've got three kids, so, yeah, you know, so we're always chasing them around.

[Dave Ramsey]

Sure, sure. I'm messing with you, Jeff. I'm messing with you.

[Jeff]

Yes. We don't live extravagant or anything. Vehicles are paid off. They are, you know, a few years older, but, you know, there's no sense in buying a new vehicle when you get one a few years older. That's low miles for half the cost. So.

[Dave Ramsey]

Jeff, you're. You're a jewel of a human being.

[Rachel Cruze]

You're my spirit animal. Jeff, I appreciate you.

[Dave Ramsey]

George wants to be you when he grows up.

[Rachel Cruze]

Is basically, that is a good seven years from now. This is what I have to look forward to. My wife convincing me when she goes.

[Jeff]

I'd much rather have more than 246 in the 401k.

[Dave Ramsey]

Jeff. I think you all are going to. Yeah, I think you will be totally fine. And I'm really excited for you. Jeff. I. I've talked about this a lot on the show because I think it was like one of these moments that I heard this and I thought, that is so good. Arthur Brooks talks about there's five things you can do with money. Four will actually buy you happiness. Like your brain scientifically has a level of happiness in it. One thing you can do with money that does has no happiness. The first one is to give. Be generous. You actually can buy some happiness. Doing that, saving actually creates a level of happiness because there's Progress being made. And in our psychology, it's good for us to see progress. There's one about buying your time back. So having someone mow the lawn, right? And you use that time to go.

[Jeff]

We do that.

[Dave Ramsey]

Yeah. Hang with a friend. And then the fourth one, Jeff, you ready? The fourth way to literally buy happiness is to buy experiences with the people you love. So that can be a great dinner out, that can be a vacation. So I'm saying. Oh. And then the fifth thing that does not buy happiness is buying stuff. You get a temporary hit and then no long term happiness through that. So you are doing this very wisely. And this is something that you, we always say you want to give, you want to save, you want to spend. And this is your spend. And I want you to spend it in this way because I think it's going to be such a fun week for you and your family. And yes, you have our full permission and you have my permission to upgrade you and your wife to first class. So just, just take that, take that little bit.

[Rachel Cruze]

Tell your wife Rachel said we could. And then when you get back from the trip, everyone gets a thousand dollar shopping spree. Here we go.

[Dave Ramsey]

Stop. No. Because then you're buying stuff. George, he's not going to get happiness doing this.

[Rachel Cruze]

I'm just saying I feel like the kids would really like you for that.

[Dave Ramsey]

Yeah, no, it's, it's great.

[Jeff]

The kids, I will say the kids do not want for anything, but they also have got reasonable expectations as well because we've tried to, you know, raise them to not want what everybody else has.

[Dave Ramsey]

So good.

[Rachel Cruze]

You've raised some great kids. I'm just surprised they want to go on vacation with you guys at this stage of their life. That's the best part, that you raise kids who like you.

[Jeff]

Yeah, well, you know, the, the oldest one, the 17 year old, you know, it depends on the day. But the other two, you know, they're under 12, so mom and dad are still pretty awesome.

[Dave Ramsey]

This is gonna be, this is gonna be so fun. And you know, I'm kind of, I'm kind of messing with you, but one of the most powerful financial principles is contentment. And Jeff, you just sound like such a content guy. Like your priorities are so in line. And when you live like no one else, we always say you get to live and give like no one else. And Jeff, they're gonna be living like no one else in the Caribbean with paid for vacation, making great money and I mean, and just doing it, it's, it's awesome.

[Rachel Cruze]

And Jeff will be tracking it in his Excel spreadsheet.

[Dave Ramsey]

Jeff will be.

[Rachel Cruze]

He's the dad who had. He had the MapQuest printed out, ready to go for the trip. Like, this is the Dad. I aspire 100%.

[Dave Ramsey]

Jeff. Jeff's going to know.

[Rachel Cruze]

And they make such a great income. I am not worried for a second about their retirement.

[Dave Ramsey]

No. No. And it's $9,000, right? It's not 29,000 or something? You know, we're not, we're not talking about that.

[Rachel Cruze]

So based on what he said, they're already. Baby steps. Millionaires are very close to it, in their early 40s.

[Dave Ramsey]

Jeff, I really am. I'm so excited for you and your family. Enjoy that Caribbean vacation. It's going to be so fun.

[Rachel Cruze]

Send us a picture when you come back.