"I Spend $1,100 a Month On Gas"

Summary

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.

Transcript

[Dave Ramsey]

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[Micah]

I want to ask if it's a good decision to buy a Tesla Model 3 considering I spend a thousand dollars a month on gas.

[Dave Ramsey]

No.

[Ken Coleman]

Okay, hold on.

[Micah]

Tell me why.

[Dave Ramsey]

Well, what's the Tesla model. What's the Tesla Model 3 cost?

[Micah]

So I used Tesla long range. I can get for 20 grand. I put 8 down and the payment would be around 250.

[Dave Ramsey]

Okay. Why are you spending $1100 a month on gas?

[Micah]

So a year ago we moved 100 plus miles away from work and I commute every day.

[Dave Ramsey]

Why'd you do that?

[Micah]

Because of crime ridden, high priced area.

[Dave Ramsey]

What do you make a year?

[Micah]

It was time to leave. 135 plus.

[Dave Ramsey]

Doing what?

[Micah]

Construction. I'm an assistant a superintendent for a general contractor.

[Dave Ramsey]

Okay, Get a new job. Don't listen. Commuting 100 miles is a horrible life. You're destroying your vehicle. You're using up your entire life on the highway.

[Ken Coleman]

Do you feel that, Micah? Do you feel the strain of that? Regardless of car or not feel the strain.

[Micah]

The cars definitely feel the strain. But I actually have. This is my 26th year in construction and on average I've always done about 50, 75 a day and dealt with actually longer commutes due to a lot of gridlock traffic. So this is slightly. Maybe 40 minutes extra a day in the. In the vehicle.

[Dave Ramsey]

20 each way.

[Micah]

Say again?

[Dave Ramsey]

20 minutes each way.

[Ken Coleman]

20 more each way. Yeah. That his normal commutes have been.

[Dave Ramsey]

Well, I. It's hard for me to answer the question because there's no way in crud. I'm doing what you're doing.

[George]

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[Dave Ramsey]

Well, I. It's hard for me to answer the question because there's no way in crud I'm Doing what you're doing. I'm not gonna live in my car because I'm destroying my car. I'm destroying my life. I don't want to be in the chiropractor because I live in a freaking car. And you made the decision intentionally to do this. And so I don't know how to relate to that, because I wouldn' my commute is 12 minutes, and I designed my life that way, and you designed your life this way. You made this choice. You did it. And a Tesla doesn't save that. So whatever you drive, you're destroying it in terms of value because you're putting so many freaking miles on it. And whatever you drive, you're going to run a heavy maintenance bill on regardless. And by the way, Teslas aren't free. The electricity costs, too. So you're not getting. It's not a net gain of $1,100.

[Ken Coleman]

And you don't have the cash. Micah either. So, no, we're not going to tell you to go into debt for any car until you ever.

[Dave Ramsey]

Until you have the cash for any reason.

[Ken Coleman]

So that's the final answer. Regardless of it takes it off the table. You don't have the money. Even though a Tesla is a great.

[Dave Ramsey]

Option for a car, you know, you're in the category. I had an old boy, a friend of mine, that drove three miles to work, and he drove an 18 wheeler, and he drove the 18 wheeler six days a week. And so he'd drive his truck, and it would sit in the parking lot of the truck place for five days, and then he would drive it back one and a half miles each way. And I drove over there one night and I said, what'd you do? He's got a brand new pickup sitting there because he had a great old pickup. I said, what'd you do? He goes, I had to get a new truck. The gas mileage was killing me. And he got a $700 car payment to get rid of the gas mileage on a mile and a half. Now, yours is more legitimate in that you're actually running the miles, but you still can't justify this because whatever you drive, you are destroying it. And there's a dramatic curve on Tesla's between old ones and new ones in terms of the way they're staying together, the quality of them, the battery length. The old ones ain't holding up. The new ones are much better vehicles, apparently. And this is the stuff that's coming out in the data. And so, you know, you do whatever you want to do. But I'm not driving a freaking old battery mobile to do this. No way. And I'm definitely not going in debt to do it.

[Ken Coleman]

No, but, but here, Micah, this was advice you were not even asking for. But quality of life is a consideration. You didn't sound like you were going to budge on that. But honestly. And Ken Coleman always talks about that too when we're talking about your jobs, career, the quality of life and how much you're spending, how much time you are spending commuting, regardless of even if you did it in the past and.

[Dave Ramsey]

All of that like four hours a.

[Ken Coleman]

Day on the road over time. It's just exhausting. And. Yeah. Away from your family and all of it. So just another thing to consider does not.

[Dave Ramsey]

It didn't. It doesn't add up. So I agree with you. I. I'm starting there that this was a bad decision. And then I'm going to move from there and go, okay, how do we really fix this? And a Tesla doesn't fix it. So that's, you know, what's really solution down to the bottom. But either way, we're never in the history of 35 years going to tell you to borrow money to buy a car. I'd rather freakin bicycle first for sure. No way. No way, no possible way I would tell you to do that. And there's a whole lot of reasons in your specific case not to do it in addition to that. And so that ends the discussion before it starts. But the rest of it's just something for us to talk about. So good. Jane is with us in Memphis. Jane, welcome to the Ramsey show. By the way, he's buying the Tesla anyway. Hey Jane, what's up?

[Ken Coleman]

Mike is going to be a Tesla owner.

[Dave Ramsey]

He's completely buying that car. Okay. What's up? What's up, Jane?

[Jane]

I'm 54 years old. My husband is 54 and he retired last year. And I wanted to know if it's too early for me to retire if we still have enough money to live off of the rest of our lives without having to work.

[Dave Ramsey]

Wow. It just doesn't seem fair. You get to keep working. I'm quitting. And then we'll decide if we can afford for you to quit.

[Jane]

Well, no, he. He deserved to retire. And he was a police officer and he did his time and just thankful God he was able to make it out alive, so.

[Dave Ramsey]

Amen. Amen. Okay, so if you retire, what would your household income be?

[Jane]

He draws 44,000 a year.

[Dave Ramsey]

Would you draw.

[Jane]

Nothing until Social Security?

[Dave Ramsey]

Okay. And so your, your income right now is what, 50. Okay, so you're going to cut your household income in half.

[Jane]

Right.

[Dave Ramsey]

Can you do that? Sounds dramatic.

[Jane]

Well, I know. That's why I was going to give you the other numbers.

[Dave Ramsey]

Okay, what are the other numbers?

[Jane]

Okay, so we have like 780,000 in like IRAs. And his retirement, his 529 that he got.

[Dave Ramsey]

You're how old? 55.

[Jane]

54.

[Micah]

54.

[Dave Ramsey]

And he's how old?

[Jane]

54.

[Dave Ramsey]

Okay. You can't get to that for five years.

[Jane]

Right.

[Dave Ramsey]

Okay.

[Jane]

And then we have, let's see, we have 100, like $40,000 in a beneficiary IRA that I inherited last year that has to be depleted in the next nine years.

[Dave Ramsey]

Exactly.

[Jane]

And then we have like 130,000 liquid and some CDs and stuff. And we do have a mortgage left of 175, but that's our only debt.

[Ken Coleman]

How much is your monthly expenses? Like, what would it take to run the household mortgage and all?

[Jane]

It's like 6 rent. 6,000 for mortgage still.

[Dave Ramsey]

Okay, I agree with you that he deserved to retire after serving in the police force for those number of years. I'm with you on that concept. I'm not. Okay, you do nothing for the next 50 years of your life.

[Jane]

No, that's what we are.

[Dave Ramsey]

What's he doing? What's he do for a living now?

[Jane]

He works out and plays golf and he takes, he takes care and visits family members.

[Dave Ramsey]

So he's making no money. That's not okay. I don't want him working, doing no money for the next 50 years just because he served for the. Served as a cop with honor.

[Jane]

Yeah, I mean, he. If we need to, we, I mean, we want to volunteer. We want to travel and watch our son play baseball and go visit our grandchildren.

[Dave Ramsey]

That's not what I said.

[Jane]

Okay, you want him to.

[Dave Ramsey]

This guy is an able bot. I don't want him work full time on a job he hates. But he ought to go do something with his life and dream again and earn some money, you know, playing golf. Unless you're doing it for a living. And even if you are, you're probably not making any money. You know that, you know. No, I, I wouldn't do that. I'm 64. I don't have to work. Work a lot though, so I don't work as much as I used to say.

[Ken Coleman]

You're playing a lot of golf.

[Dave Ramsey]

I work. Well, but I work. I work. What? I work honorable Plenty. Yeah, you need to, you need to I. I just. I don't think that's 54. It's not healthy.

[Ken Coleman]

And at 54, you're young.

[Dave Ramsey]

54, good for him. You need to. You need to do something with your life. People die doing this. It's not good. So, yeah, I. No, I don't think you can afford to quit with the math you gave me. Create your free every dollar budget today. The simplest way to budget for your life.