'There's Nothing Devastatingly Stupid' About It, Dave Ramsey Told 21-Year-Old Caller — But A $20K Mustang Could Tie Up 'Most Of Your Net Worth'

A imagination car tin consciousness similar a reward for doing everything right.

For a 21-year-old astir to postgraduate debt-free, that imagination looked similar a $20,000 Mustang. But a telephone to "The Ramsey Show" showed wherefore timing mattered.

Caden, a assemblage elder from Lincoln, Nebraska, told hosts Dave Ramsey and George Kamel helium was finishing a concern grade without pupil indebtedness aft getting assistance from his parents and moving done school.

He said helium had astir $13,000 successful a Roth IRA, different $14,000 successful the slope and a full-time occupation lined up astatine a $45,000 basal wage positive commissions. He said helium besides planned to merchantability his Subaru Crosstrek, which helium valued astatine astir $13,000, to assistance money the purchase.

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On the surface, the program acceptable Ramsey's guidelines: wage currency and support the full worth of vehicles nether fractional of yearly income. A $20,000 car would person fallen wrong that range, particularly if Caden replaced his existent vehicle.

"There's thing devastatingly anserine astir what you're talking astir doing," Ramsey said.

Caden said his caller occupation would see a institution conveyance helium could usage for idiosyncratic driving.

"You’ve got the institution car truthful this one’s going to beryllium sitting astir a full bunch, isn’t it?" Kamel said. "It’s conscionable benignant of a play operator essentially."

Kamel said Caden needed to deliberation astir different goals, including redeeming for a location and investing for retirement. He said the $14,000 successful currency appeared to beryllium his exigency money and should beryllium near untouched, saying that it was besides not a large clip to bargain a car.

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Ramsey said the bigger contented was not whether Caden could spend the Mustang, but however overmuch of his wealth it would necktie up aboriginal successful his fiscal life.

"You are parking 20 1000 dollars successful thing that’s not going to spell anyplace and it is astir of your nett worth," Ramsey said.

He said waiting until spring, oregon perchance longer, would springiness Caden much clip earlier making the purchase.

"Don’t get excessively attached to this crap," Ramsey said. "It’s a car."

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