Is the Boat I Want to Buy Too Expensive? (More Than 100% of My Annual Income)

Summary

Ramsey Everyday Millionaires

Episode: Is the Boat I Want to Buy Too Expensive? (More Than 100% of My Annual Income)
Date: May 22, 2026
Hosts: Dave Ramsey, Jade Warshaw (with some input from a third host)
Featured Caller: Paul from Tampa

Main Theme

Balancing Wealth with Major Purchases in Retirement:
This episode centers on a caller, Paul, who is planning to buy an expensive boat in cash as he nears retirement. The discussion explores the Ramsey principles around large luxury purchases, particularly the guideline of not spending more than half of one's annual income on "boats, motors, and wheels." With Paul’s high net worth ($4 million), the hosts dive into whether these rules still apply and offer nuanced advice on responsible spending, wealth-building, and avoiding financial and social guilt.

---

Key Discussion Points & Insights

Paul’s Dilemma: Is It Okay to Splurge If You're Wealthy?

• Paul's Situation:
  • Nearing retirement, lives near the water, wants to buy a ~$400,000 boat in cash
  • Annual income: $250,000
  • Net worth: ~$4 million
  • The price of the boat is more than 100% of his current annual income but only about 10% of his total net worth
  • Wondering if buying the boat goes against the "half your income" rule frequently discussed on the show

Does the Boat-Purchase Rule Apply?

• Ramsey Principles:

  • The classic Ramsey guideline:
    “Don’t have more than half your annual income tied up in ‘boats, motors, and wheels.’”
  • Context matters: For retirees or those with a substantial net worth, this rule might not be applicable in the same rigid way

• Dave Ramsey Clarifies:

  • “When you're in a no income, low income portion of retirement and a huge net worth, that rule does not apply.” [01:15]
  • It’s about ratios: For most, the rule is a check against overleveraging on depreciating assets, but tremendous net worth can override the strict income formula

• On Measuring Appropriateness:

  • Dave also points out a mental test:
    “If I burn that much money in the middle of the floor, would my life change? And the answer is no. And that's because your net worth is so high, not because your income ratios are correct on this.” [03:17]

Detailed Scenario Discussion

• Specifics of the Boat:

  • 40-foot Great Harbor trawler, double engines, relatively slow
  • Hosts confirm it’s a meaningful yet reasonable purchase for Paul’s situation

• Dave’s Verdict:

  • “Yes, I would buy that boat. That’s based on the ratio to your net worth… I would buy that boat for sure. It's a sweet boat.” [02:14]
  • Depreciating assets are inevitable – “100% of boats go down in value” [04:05], but it’s a manageable expense given Paul’s finances

The Real Cost and Maintenance

• The hosts briefly discuss costs beyond purchase: docking fees, insurance, fuel, but clarify it won’t be “hundreds of thousands” [04:19] per year for a boat this size
• Larger yachts are a different world – referencing Mark Zuckerberg's mega-yacht with a crew of 59

Social and Emotional Dimensions

• On Envy and Judgment:

  • Dave criticizes financial shaming and “redneck envy”:
    “No one should ever have a car that nice. There’s starving children somewhere. Like your car caused children to starve. Would you shut up?” [05:41]
  • Urges listeners not to judge others’ spending but to focus on their own financial discipline

• Delayed Gratification and Generosity:

  • “You live like no one else. Later you can live and give to the starving children like no one else.” [06:02]

• Humor and Tone:

  • Dave quips about car choices among the over-savers:
    “And you're overspending and you're not a good steward. Oh, bullcrap. It's actually not a Camry, it's an Accord, because Jesus said it – they're all in one Accord. Dad joke.” [06:31]
  • The hosts poke fun at themselves and the absurdity of extreme financial policing in some circles

Final Takeaways

• Ratios over Absolutes:

  • Large purchases should be guided by percentage of net worth, especially for high-net-worth individuals.
  • The classic income rules are most relevant for the average person, but flexibility is needed for those with substantial assets.

• Personal Responsibility and Avoiding Envy:

  • Focus on "managing your own life."
  • “The person in your mirror is a problem child. Work on that one instead of working on fixing everybody else’s spirituality.” [06:51]

• Hard Work and Reward:

  • The pursuit of wealth through discipline and responsible choices leads to financial freedom, including the enjoyment of meaningful purchases without guilt.

---

Notable Quotes

Dave Ramsey: “When you're in a no income, low income portion of retirement and a huge net worth, that rule does not apply.” [01:15]

Dave Ramsey: “If I burn that much money in the middle of the floor, would my life change? And the answer is no. And that's because your net worth is so high, not because your income ratios are correct on this.” [03:17]

Dave Ramsey: “100% of boats go down in value.” [04:05]

Dave Ramsey: “No one should ever have a car that nice. There's starving children somewhere. Like your car caused children to starve. Would you shut up?” [05:41]

Dave Ramsey: “You live like no one else. Later you can live and give to the starving children like no one else.” [06:02]

Dave Ramsey: “The person in your mirror is a problem child. Work on that one instead of working on fixing everybody else's spirituality.” [06:51]

---

Timestamps for Important Segments

• [00:22] – Paul introduces his question and personal scenario
• [01:12] – Dave explains how the usual “half-of-income” formula does not always apply
• [02:14] – Dave gives direct advice: “I would buy that boat”
• [03:17] – Dave shares the “burn that much money” test
• [04:05] – Depreciation of boats (and all luxury vehicles) acknowledged
• [05:41] – Dave discusses envy and financial judgment
• [06:02] – Importance of delayed gratification and generosity
• [06:51] – Emphasis on personal responsibility over judging others

---

Conclusion

This episode provides a practical, relatable exploration of how financial wisdom adapts as one’s wealth grows—challenging the notion that rules for average earners must strictly govern millionaires and retirees. The hosts use humor and real-world context to encourage responsible enjoyment of wealth, communal generosity, and self-accountability, making their timeless advice accessible but flexible. The key message: build wealth mindfully, but don’t let guilt or envy rob you of true financial freedom.

Transcript

[A]

Foreign. This episode is brought to you by SmartVestor. Connect with an investing pro near you at RamseySolutions.com SmartVestor Paul's in Tampa. Hey, Paul, what's up?

[B]

Hi, sir. Thank you. Jade and Dave, you're a blessing to our nation. We really appreciate you so much.

[A]

Thank you.

[B]

I have. Thank you. I have a question. I see a couple principles that you've talked about are in opposition. In my life. I'm nearing retirement. I have the money to buy a boat in cash. We live near the water. It is going to be more than half of our annual income in boats, motors, wheels, etc. Which you say not to do. On the other hand, we have the money in cash and it will burn in the middle of our living room. It wouldn't be the end of our world.

[A]

So what's your net worth?

[B]

About 4 million.

[A]

And what. Wait a minute. And so are you counting the income that that 4 million would be creating or just your little.

[B]

You're just counting yourself 401k and real estate and the boat money is separate.

[A]

No, that's not what I meant.

[C]

He's saying to make the rule work.

[A]

Number one, you're right. When you're in a no income, low income portion of retirement and a huge net worth, that rule does not apply. The half of your income in boats and motors and motors and wheels, that does not. Rule does not apply. So if you're worth $10 million and all of your investment income is rolled back into your investments and you don't count that income in the equation, and so you're, you know, you're living on a $70,000 pension or something, but you're worth $10 million, then we don't apply that formula. Okay, but if you take all of your net worth and use the income off of your net worth, you probably would. The formula would probably work, but we don't have to do that.

[B]

Is the boat about 400,000?

[A]

Okay. And you have $4 million. So it's 10% of your net worth.

[B]

Correct.

[A]

And what is, how old are you?

[B]

60.

[C]

60.

[A]

Okay. And what is, what is your income right now?

[B]

It's about 250.

[A]

Okay, yes, I would buy that boat. Okay. But that's based on the ratio into your net worth and based on the fact that you're. And again, if your NET worth was 40 million and you made 250, you know, you still could not buy the boat. If we only use the 50% of your income. But most people were not dealing with a net worth as Substantial when we apply that formula. So yeah, I would buy this boat for sure. It's a sweet boat.

[B]

What is, is a trawler, a 40 foot trawler.

[A]

Ah, triple engines or quadruple?

[B]

Double engines.

[A]

Double what? Horsepower.

[B]

Yeah. Oh, slow with the trolley. Doesn't go very fast.

[A]

Okay. All right. And what brand?

[B]

It's Great Harbor.

[A]

Oh, yeah. Okay. Yeah. And you're. You're what on the coastal waterway?

[B]

We have access. Yes.

[A]

Okay. All right. Wow.

[B]

Yeah.

[A]

Good for you. Yeah. I mean, you're in a position to

[B]

do that because after all this hard work.

[A]

Yeah, yeah.

[B]

You.

[A]

That the bottom line is the, the, that the decision makes sense is the other rule that you used is if I burn that much money in the middle of the floor, would my life change? And the answer is no. And, and that's because your net worth so high, not because your income ratios are correct on this. And so that, that's. If we were doing it off your income, you know, we'd be going, okay, $100,000 if you burn that. But, but if I'm in your shoes, I'm buying that. I would buy that boat. Yeah, that's, that's what I would do. If you want a boat. I mean, that's a lot of money in a boat. But. But it's a small percentage of your net worth is tied up and, and trawlers go down in value too. Just like cars. Just like. I mean, 100% of boats go down in value.

[C]

What's maintenance on a boat like that a year, you know?

[A]

No, I don't. But it's, it's, it's the docking fees and the insurance and the gas and. Or the fuel. Probably maybe diesel, but I don't know.

[C]

It's something to.

[A]

I'm sure he's considered that probably pretty substantial, but it's not hundreds of thousands on that because you don't need a crew and all that on that thing. So he's the crew. 38ft long. I mean, it's not so. Yeah, but that's. Yeah. When you get into a thing where like Zuckerberg shot. Pulled up the other day.

[B]

Yeah.

[A]

Rachel was putting that up on her Instagram. Right. You know that sucker's got like 59 people or something on it. Yeah, just the, the daily rate to keep that thing running is a small city, but that's a different world. But again, as a percentage of his net worth. Yeah, it's nothing.

[C]

Nothing.

[A]

One of the wealthiest guys in the world, you know, so it's a 300 foot yacht that's probably worth, I don't know, a billion or half a billion, something like that. Maybe nothing for him though. But again, he's got hundreds of billions and this is a half of one of them, you know, I mean, so it's hard to get your head around when you're like regular people. But it's. If you, it helps you. If you just go. It's ratios. Look at the ratios. What ratio is this? What percentage of this? And it keeps you from saying stupid, stupid stuff. Here's what stupid people say. They're envious. And I actually have said it, but I hadn't said it in 35 years. Yeah, about 35 years ago, I quit being that stupid. No one should ever. That's redneck envy. Okay? That's trashy. No one should ever have a car that nice. There's starving children somewhere. Like your car caused children to starve. Would you shut up? Unbelievable. Of course you should get that car.

[C]

Yeah.

[A]

You live like no one else. Later you can live and give to the starving children like no one else. But these over saved people that think they're Jesus that are gonna tell you that the only car you can drive and still be Holy is a 93 Camry. And that's the car of the evangelical. Anything beyond that, any car beyond that is not holy. And you're overspending and you're not a good steward. Oh, bullcrap. It's actually not a Camry. It's an Accord. Because Jesus said it. They're all in one Accord. Dad joke. Okay, anyway.

[C]

All right, I'll let that slide.

[A]

Just keep that one going. Just keep on moving past that. All right? But, yeah, but the. Seriously, I mean, the judgment of other people's decisions.

[C]

Yeah, it's, it's.

[A]

Would you please manage your life? It's like a full time job to manage you. It's like, you know, the person in your mirror is a problem child. Work on that one instead of working on fixing everybody else's spirituality. Gee, some of you people. So, yeah, that's, that's the problem with stuff like this.

[C]

Yeah. So it's a very small.

[A]

So when I look out there and I see Zuckerberg shot, I go, not a big Facebook guy, but man, he killed it. Good for him.

[C]

Well, I mean, how mad can you really get? Because here you're probably on Meta somewhere. You're probably on Amazon paid for a

[A]

few days of that thing to operate.

[C]

Yes, that's what I'm saying.

[A]

With the Facebook ads that Ramsey buys. So it's probably my fault, but. Yeah, but money well spent, Mark, you know, it's like you're living life large, so. But yeah, I mean there's nothing wrong with it. I'm, I'm, yeah, I, I honestly, I've never had, you know, 300 billion, so my mind can't get my emotions, can't get my head around that. But it is throwaway money for him. And that's what we're keep talking about here. You know, work hard so when you're old you don't have to work at McDonald's, you're not a Walmart greet.