Podcast Summary: Ramsey Everyday Millionaires

Episode: Can We Spend $15k For A Vacation?
Release Date: June 27, 2025
Host/Author: Ramsey Network
Participants: Dave Ramsey, Co-hosts, Caller

Introduction

In this episode of Ramsey Everyday Millionaires, the Ramsey Network team delves into the financial considerations of allocating significant funds for vacations. The discussion centers around a caller’s query about spending $15,000 annually on travel and how it fits into a millionaire’s financial strategy.

Caller’s Scenario and Question [00:17 - 02:35]

The episode opens with a caller, Sam from Buffalo, New York, reaching out to Dave Ramsey. Sam and his wife, both physicians, have a combined income approaching half a million dollars over the past five years. They have diligently managed their finances by living conservatively, paying off student loans, and maintaining an emergency fund of over $100,000.

Caller’s Background:

• Income: Nearly $500,000 over five years (approximately $100,000 per year)
• Debt Status: Recently paid off student loans; currently paying $500/month for a second car, intending to clear it within the year
• Assets: Emergency fund exceeding $100,000
• Concerns: Observing family members facing unforeseen health issues and financial instability, raising concerns about their own future security.

Caller’s Question: "Is it okay to spend, say, $15,000 to $20,000 a year traveling and creating memories?"
[02:34]

Dave Ramsey’s Response [02:35 - 05:21]

Dave Ramsey responds affirmatively to the caller’s question, outlining the foundational financial "Baby Steps" that guide his advice:

1. Baby Step 1 & 2: Establishing a $1,000 emergency fund and paying off all debt except the house, which Sam and his wife have accomplished.
2. Baby Step 3: Building a fully funded emergency fund (Sam has over $100,000).
3. Baby Step 4: Investing 15% of household income towards wealth building and retirement.

Key Points:

• Debt Management: Ramsey emphasizes the importance of eliminating debt, highlighting the caller’s responsible financial behavior.
• Spending on Experiences: Encourages intentional spending, suggesting that with a stable financial foundation, allocating $15,000 to $30,000 annually for vacations is financially insignificant for someone with their income level.

Notable Quote:

"$15,000 worth three times a year... you need to spend more than $15,000 on a vacation."
— Dave Ramsey [05:12]

Co-hosts' Insights [05:21 - 07:15]

The co-hosts expand on Ramsey’s advice, emphasizing the importance of aligning financial decisions with personal values and love languages.

Key Insights:

• Value of Experiences: Recognizes that for some, like the caller’s wife, experiences are a primary value and a form of expressing love.
• Intentional Spending: Highlights the necessity of understanding the purpose behind expenditures, ensuring that spending aligns with what the couple values most.

Notable Quote:

"It's not because it's too expensive... if you can look at it and realize that’s why you don’t want to spend the money."
— Co-host [07:00]

Final Thoughts and Encouragement [07:15 - 08:14]

Dave Ramsey and the co-hosts conclude the discussion by reinforcing the message of living intentionally and generously. Ramsey shares his personal approach to vacations and financial generosity, underscoring that responsible spending enables greater generosity.

Key Points:

• Live Like No One Else: Encourages living beyond mere financial conservatism to enjoy life’s pleasures while maintaining financial health.
• Generosity: Emphasizes that financial stability allows for increased generosity towards others.

Notable Quote:

"Live like no one else so that you can live and give like no one else."
— Dave Ramsey [07:50]

Conclusion

The episode underscores the balance between financial responsibility and enjoying the fruits of one’s labor. For high earners like the caller, Ramsey advocates for intentional and generous spending on meaningful experiences, provided that foundational financial security is in place. The conversation reassures listeners that with proper financial management, allocating substantial funds for vacations is not only permissible but can enhance overall quality of life.

Key Takeaways

• Financial Foundations: Prioritize eliminating debt and building an emergency fund before significant discretionary spending.
• Intentional Spending: Allocate funds for experiences that align with personal and relational values.
• Generosity: Use financial stability as a means to enhance both personal enjoyment and generosity towards others.
• Personalization: Financial advice should be tailored to individual circumstances, income levels, and personal values.

Notable Quotes with Timestamps

• "Is it okay to spend, say, $15,000 a year traveling with my life, creating memories?"
  — Caller [02:35]

• "$15,000 worth three times a year... you need to spend more than $15,000 on a vacation."
  — Dave Ramsey [05:12]

• "It's not because it's too expensive... if you can look at it and realize that’s why you don’t want to spend the money."
  — Co-host [07:00]

• "Live like no one else so that you can live and give like no one else."
  — Dave Ramsey [07:50]

This episode of Ramsey Everyday Millionaires provides valuable insights into balancing financial prudence with the joys of life, especially for high earners seeking guidance on intentional spending. It reinforces the philosophy that with a strong financial foundation, one can afford to create lasting memories without compromising long-term financial goals.