💸It is important to have a strong financial foundation before making luxury purchases.
🧐Consider the ratio between the cost of the luxury car and your annual income.
🏦Having a 3-6 month emergency fund is crucial before splurging on non-essential items.
🔥To truly enjoy a luxury purchase, it should not cause financial stress or put you at risk.
💰Wait to buy a luxury car until you have paid off your mortgage and saved enough to pay cash.
Is it morally wrong to buy an expensive car?
—No, buying an expensive car does not make you immoral. However, it is wise to ensure you are financially stable before making such a purchase.
How much should I have in savings before buying a luxury car?
—Dave Ramsey recommends having a 3-6 month emergency fund in place before considering a luxury purchase.
What is the rule of thumb regarding car purchases?
—The rule of thumb is to avoid spending more than half of your annual income on items such as cars or things with motors.
Can I enjoy my luxury car if I have no money left?
—To truly enjoy a luxury purchase, it is important to have financial stability and an emergency fund in place to avoid any potential stress or risks.
When should I buy a luxury car?
—Dave Ramsey advises waiting until you have paid off your mortgage and have saved enough to pay cash for the luxury car.
00:00In this video, Dave Ramsey advises against buying a luxury car without a strong financial foundation.
01:30Dave explains that spending on luxury items should not compromise your financial stability.
02:45He suggests having a 3-6 month emergency fund before purchasing non-essential items like luxury cars.
03:50Dave highlights the importance of enjoying a luxury purchase without any financial stress or risk.
05:15He recommends paying off the mortgage and saving enough to pay cash for a luxury car.
