Ramsey Everyday Millionaires: Episode Summary - "I Just Bought My Dream Car - Should I Return It?"

Podcast Information:

• Title: Ramsey Everyday Millionaires
• Host/Author: Ramsey Network
• Description: Listen to how ordinary people built extraordinary wealth—and how you can too. Learn how millionaires live on less than they make, avoid debt, invest, and maintain discipline and responsibility! Featuring hosts from the Ramsey Network: Dave Ramsey, Ken Coleman, Rachel Cruze, George Kamel, Jade Warshaw, and Dr. John Delony.
• Episode: I Just Bought My Dream Car - Should I Return It?
• Release Date: April 18, 2025

Introduction

In the April 18, 2025 episode of Ramsey Everyday Millionaires, the hosts delve into the financial and emotional implications of purchasing a high-value depreciating asset: a luxury car. The episode features a heartfelt discussion between Landon, a 27-year-old in Baby Step Seven of Dave Ramsey's financial plan, and Ramsey Network hosts George Kamel and Dave Ramsey. This episode provides listeners with valuable insights into balancing financial goals with personal desires.

Landon’s Dilemma: Should He Return His Mercedes S Class? [00:17 - 07:44]

Landon's Concern: Landon reaches out to the Ramsey Network with a predicament: he recently purchased a Mercedes S Class for approximately $35,000 after taxes and fees. While his net worth is robust, primarily tied to his paid-off house, he's grappling with the emotional aftermath of spending a significant amount on a vehicle that depreciates in value.

• Landon: "I feel like I spent way too much money on something that goes down in value... should I take this stupid car back?" [00:26 - 00:57]

Financial Overview: Landon outlines his financial position:

• House: Paid off, valued at around $750,000.
• Cars: Total value approximately $45,000, including the new Mercedes.
• Household Income: Averaging $250,000 over the past two years.

George Kamel and Dave Ramsey analyze these figures, highlighting that Landon's investment in vehicles, while substantial, aligns with his overall financial health.

• George Kamel: "If all the things with wheels... adds up to more than half of your annual income, you're off track. That's simply too much." [05:31]

Emotional vs. Rational Decision-Making [01:45 - 06:18]

Emotional Conflict: Landon expresses regret over the purchase, feeling that the money could have been better invested in appreciating assets like mutual funds or retirement accounts.

• Landon: "Emotionally, it just doesn’t feel right to write a check when I could... put that in something like some mutual funds, retirement, whatever." [01:45 - 02:10]

Dave Ramsey challenges Landon's emotional reasoning, prompting him to reflect on past decisions where emotions overshadowed rationality.

• Dave Ramsey: "Have you ever acted out of emotion before and realized that your emotion was wrong?" [01:45 - 02:00]

Landon acknowledges his emotional-driven decision-making but struggles to reconcile it with his logical understanding.

• Landon: "I mean, intellectually, I get that. Like, I do get that, but..." [02:06 - 02:10]

Hosts' Insight: George Kamel and Dave Ramsey emphasize the importance of balancing emotional satisfaction with financial prudence. They reassure Landon that owning a luxury car at his stage is manageable and won’t derail his financial goals.

• George Kamel: "There are people who have a negative net worth who bought more expensive cars than you today. It's going to be okay." [02:38]

Balancing Financial Goals with Personal Desires [03:09 - 07:09]

Understanding Financial Ratios: The hosts discuss Landon's net worth distribution, noting that a significant portion is tied up in his house, which is common for young individuals in the early stages of wealth building.

• George Kamel: "When you're young, more of your house is going to make up your net worth... by the time you retire, your house will probably be a third of your net worth." [03:09 - 03:20]

The Three Pillars of Money Management: George introduces the concept that money can be used for giving, saving, and spending. Overemphasis on one aspect can lead to financial imbalance.

• George Kamel: "There are three things you can do with money, Landon. You can give it, save it, spend it." [03:22 - 03:24]

Personal Struggles with Spending: George shares his own experience of the emotional difficulty in spending after years of aggressive saving, illustrating that Landon's feelings are common among disciplined savers.

• George Kamel: "When you stroke a check for my wife's last car we bought her, it hurt my soul." [03:30 - 03:57]

Landon’s Family Perspective: Landon reveals that his wife supported his decision, even suggesting he buy the car, indicating a shared understanding and mutual support in their financial decisions.

• Landon: "We went up to the dealership and she said, buy whatever you want...." [06:10 - 06:20]

• George Kamel: "It's a good woman right there." [06:19 - 06:20]

Reframing Financial Choices: Embracing Lifestyle and Enjoyment [04:21 - 07:44]

Living to Enjoy: George emphasizes the importance of enjoying the fruits of one's labor. He explains that while financial discipline is crucial, so is allowing oneself to enjoy significant purchases responsibly.

• George Kamel: "You have to do something called enjoying life. And I'm scared because you're kind of like me... you have to let go." [07:09 - 08:34]

Dave Ramsey’s Reassurance: Dave Ramsey supports the notion that Landon’s purchase is within reasonable bounds and encourages him to appreciate his hard-earned success without guilt.

• Dave Ramsey: "I drive a used Mercedes as well. If you take good care of it, it'll last forever... listen, you've been shooting all over yourself and you need to stop." [04:29 - 04:43]

Humorous Interlude: A light-hearted exchange about biscuits and personal preferences provides a moment of levity, strengthening the rapport between the hosts and Landon.

• George Kamel: "I'll do half butter, half jelly. Both. Best of both worlds." [08:34 - 08:52]

Conclusion: Embracing Financial Success with Balance [07:44 - End]

Final Encouragement: The hosts conclude by affirming Landon's financial standing and encouraging him to maintain a balanced approach to spending, saving, and giving. They highlight that his decision to purchase the Mercedes is a testament to his hard work and financial acumen.

• Dave Ramsey: "Relax. You worked really hard. It is impossible for me to conceive of a scenario where Landon does something dumb with money." [07:42 - 07:52]

Closing Remarks: George Kamel reinforces the message by comparing financial ratios and reminding listeners that enjoying life is a crucial aspect of financial success.

• George Kamel: "Here it is. If all the things with wheels... adds up to more than half of your annual income, you're off track. You are not even close to that." [07:42 - 08:34]

Final Thoughts: The episode wraps up with practical advice and support for listeners facing similar dilemmas, encouraging them to find a harmonious balance between financial responsibility and personal enjoyment.

• George Kamel: "Let go. It's called double entendre." [04:46 - 04:57]

Notable Quotes

• Landon: "Emotionally, it just doesn’t feel right to write a check when I could... put that in something like some mutual funds, retirement, whatever." [01:45 - 02:10]

• Dave Ramsey: "Have you ever acted out of emotion before and realized that your emotion was wrong?" [01:45 - 02:00]

• George Kamel: "There are people who have a negative net worth who bought more expensive cars than you today. It's going to be okay." [02:38 - 02:40]

• George Kamel: "There are three things you can do with money, Landon. You can give it, save it, spend it." [03:22 - 03:24]

• Dave Ramsey: "You've been shooting all over yourself and you need to stop." [04:29 - 04:43]

• George Kamel: "You have to do something called enjoying life... you have to let go." [07:09 - 08:34]

Final Takeaway

This episode of Ramsey Everyday Millionaires skillfully navigates the complex emotions and financial strategies surrounding significant purchases. Through Landon's story, listeners learn the importance of balancing disciplined saving and investing with the joy of rewarding oneself. The hosts provide reassurance that achieving financial goals doesn't mean foregoing life's pleasures but rather integrating them thoughtfully into one's financial plan.