'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'
'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'
Casey B. RennerFri, April 3, 2026 at 7:01 PM UTC
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A dream car can feel like a reward for doing everything right.
For a 21-year-old about to graduate debt-free, that dream looked like a $20,000 Mustang. But a call to "The Ramsey Show" showed why timing mattered.
Caden, a college senior from Lincoln, Nebraska, told hosts Dave Ramsey and George Kamel he was finishing a business degree without student debt after getting help from his parents and working through school.
He said he had about $13,000 in a Roth IRA, another $14,000 in the bank and a full-time job lined up at a $45,000 base salary plus commissions. He said he also planned to sell his Subaru Crosstrek, which he valued at about $13,000, to help fund the purchase.
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On the surface, the plan fit Ramsey's guidelines: pay cash and keep the total value of vehicles under half of annual income. A $20,000 car would have fallen within that range, especially if Caden replaced his current vehicle.
"There's nothing devastatingly stupid about what you're talking about doing," Ramsey said.
The Mustang Dream Meets A Hard Reality
Caden said his new job would include a company vehicle he could use for personal driving.
"You’ve got the company car so this one’s going to be sitting around a whole bunch, isn’t it?" Kamel said. "It’s just kind of a weekend driver essentially."
Kamel said Caden needed to think about other goals, including saving for a house and investing for retirement. He said the $14,000 in cash appeared to be his emergency fund and should be left untouched, saying that it was also not a great time to buy a car.
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Ramsey said the bigger issue was not whether Caden could afford the Mustang, but how much of his money it would tie up early in his financial life.
"You are parking twenty thousand dollars in something that’s not going to go anywhere and it is most of your net worth," Ramsey said.
He said waiting until spring, or possibly longer, would give Caden more time before making the purchase.
"Don’t get too attached to this crap," Ramsey said. "It’s a car."
Making your first major financial decisions can be tricky. Platforms like AdviserMatch connect individuals with financial advisors who can help balance spending, saving, and investing priorities, ensuring you plan for emergencies, retirement, and big purchases wisely.
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