The Ramsey Show Highlights: "I Spend $1,100 a Month On Gas"

Release Date: May 21, 2025
Host: Ramsey Network
Duration: Under Ten Minutes

Overview

In this episode of The Ramsey Show Highlights, listeners are presented with two compelling financial dilemmas: Micah's excessive monthly gas expenses and Jane's considerations about early retirement. Hosted by experts from the Ramsey Network, including Dave Ramsey and Ken Coleman, the episode delves into practical advice on managing large expenses and making informed retirement decisions. The discussions are enriched with expert insights, relatable anecdotes, and actionable solutions to guide listeners toward financial stability and improved quality of life.

Listener Call-In: Micah's $1,100 Monthly Gas Bill

[00:06] Micah's Concern:
Micah begins by expressing his frustration over spending $1,100 a month on gas. He is contemplating purchasing a Tesla Model 3 as a potential solution to curb these costs.

[00:15] Dave Ramsey's Initial Response:
Dave Ramsey immediately advises against the purchase:

"No."
[00:36] Micah's Tesla Plan:
Micah explains that a used Tesla Long Range would cost him $20,000, with an $8,000 down payment and monthly payments of approximately $250.

[00:40] Dave Ramsey Probes Deeper:
Dave questions Micah's high gas expenditure:

"Why are you spending $1,100 a month on gas?"

[00:48] The Extended Commute:
Micah reveals that a year ago, he moved 100+ miles away from his workplace to escape a crime-ridden, high-priced area, resulting in a daily long-distance commute.

[00:55] Financial Overview:
Micah shares his annual income of $135,000+ as an assistant superintendent in construction.

The Experts Weigh In

[01:07] Dave Ramsey's Critique of the Commute:
Dave passionately states:

"Commuting 100 miles is a horrible life. You're destroying your vehicle. You're using up your entire life on the highway."
He emphasizes that the Tesla wouldn't alleviate the core issue of an unsustainable commute and high vehicle usage.

[01:27] Ken Coleman's Perspective on Quality of Life:
Ken Coleman adds:

"Do you feel the strain, Micah? Regardless of car or not, feel the strain."
He underscores the broader impacts of such a long commute on personal well-being beyond just financial strain.

[02:03] Micah’s Commute Reality:
Micah clarifies that his previous commutes involved 40 extra minutes daily, commonly dealing with traffic gridlocks, which now extend to 20 minutes each way.

[03:57] Financial Prudence Advocated:
Dave Ramsey firmly advises against incurring debt for a vehicle purchase:

"We're never in the history of 35 years going to tell you to borrow money to buy a car."
He suggests alternative approaches, emphasizing the importance of financial stability over immediate solutions.

Transition to Second Caller: Jane's Early Retirement Query

[05:49] Introduction to Jane:
Jane from Memphis joins the conversation, seeking advice on whether it's too early to retire at 54 years old. She and her husband are evaluating if their savings are sufficient to sustain their lifestyles without further employment.

Analyzing Jane’s Retirement Situation

[06:54] Jane's Financial Snapshot:

• Household Income: Currently $50,000, which would drop to $44,000 post-retirement when her husband stops working.
• Savings:
  • $780,000 in IRAs
  • $100,000 in a beneficiary IRA with a nine-year depletion requirement
  • $130,000 in liquid assets and CDs
• Debt: Remaining $175,000 mortgage
• Monthly Expenses: Approximately $6,000

[08:16] Dave Ramsey’s Assessment:
Dave points out the financial shortfall:

"With your current numbers, you can't afford to retire."
He highlights that Jane's household income would be halved, creating a significant gap between income and expenses.

[08:53] Exploring Retirement Viability:
Jane expresses a desire to engage in leisure activities like volunteering, traveling, and spending time with family, but acknowledges the financial constraints given the reduced income.

[09:05] Dave's Strategic Advice:
Dave urges Jane's husband to seek employment to bridge the income gap:

"He ought to go do something with his life and dream again and earn some money."
He emphasizes the necessity of maintaining income streams to support their financial obligations and desired lifestyle.

[10:03] Ken Coleman’s Encouragement:
Ken adds support to Dave’s advice, reinforcing the importance of continued financial contribution to ensure a secure retirement.

Key Takeaways

1. Assessing Major Expenses:
   High recurring expenses, such as Micah's gas bill, require a thorough evaluation of lifestyle choices and their long-term financial implications.

2. Debt Avoidance:
   Incurring new debts, especially for non-essential purchases like a Tesla, can exacerbate financial strain without addressing underlying issues.

3. Quality of Life Considerations:
   Extended commutes not only drain financial resources but also impact personal well-being and time management.

4. Retirement Planning:
   Early retirement decisions must be backed by a robust financial plan that ensures sustainability. Reducing household income significantly without adequate savings can jeopardize long-term financial security.

5. Employment Continuity:
   Continuing to earn an income, even post-retirement age, can provide financial stability and enable individuals to pursue personal interests without economic pressure.

Notable Quotes

• Dave Ramsey on Commuting:
  “Commuting 100 miles is a horrible life. You're destroying your vehicle. You're using up your entire life on the highway.” [01:07]

• Dave Ramsey on Car Debt:
  “We're never in the history of 35 years going to tell you to borrow money to buy a car.” [03:57]

• Ken Coleman on Quality of Life:
  “Do you feel the strain, Micah? Regardless of car or not, feel the strain.” [01:27]

• Dave Ramsey on Retirement Affordability:
  “With your current numbers, you can't afford to retire.” [08:16]

Conclusion

This episode of The Ramsey Show Highlights underscores the significance of prudent financial planning and the importance of aligning lifestyle choices with one's financial capacity. Whether it's addressing exorbitant monthly expenses or making critical decisions about retirement, the advisors emphasize the value of sustainable financial practices to ensure long-term stability and quality of life.

For personalized budgeting tools, listeners are encouraged to utilize resources like the EveryDollar app, as mentioned earlier in the episode, to take control of their financial futures.