Recently on The Dave Ramsey Show, a caller asked about buying a $250,000 Porsche. Ramsey surprisingly didn’t oppose it due to the caller’s high income. However, Ramsey advised against taking out a loan for the luxury car.

The caller, a new doctor earning $650,000 per year, wanted to splurge after a long training period. Ramsey suggested alternatives like buying a cheaper used Porsche with cash or selling a rental property to fund the purchase.

Ramsey emphasized the importance of being debt-free before making luxury purchases. He advised waiting a few years to buy the Porsche outright to maintain financial stability.

Ramsey highlighted the importance of prioritizing responsibilities like building an emergency fund, paying down debt, and saving for retirement before indulging in luxury purchases.

Ramsey encouraged delaying luxury purchases until you can afford them without borrowing, to ensure that the item adds enough value to your life.

Ultimately, Ramsey supported the caller’s desire for a Porsche, as long as it was done responsibly and without borrowing, emphasizing the importance of financial priorities.

Ramsey’s advice applies to anyone considering a luxury purchase, recommending waiting until you can afford it without compromising long-term financial goals.

Read more at Yahoo Finance: Dave Ramsey tells cardiologist earning $650K he doesn’t ‘deserve’ a $250K Porsche. What he says he needs to do first