Dave Ramsey: You Shouldn’t Buy a Porsche Even If You’re Making $750K
Written by
Laura Beck
Edited by
Molly Sullivan
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A cardiology doctor called into The Ramsey Show with what he thought was a reasonable question. He’d worked hard through medical school, residency and fellowship training. Now he had a $650,000 annual contract starting, his wife made $100,000, and they were projected to earn $750,000 together.
He wanted to buy a Porsche. A $250,000 Porsche, to be specific. And he wanted Dave Ramsey’s blessing to do it.
The Doctor’s Financial Picture
The caller had saved $60,000 as an emergency fund and owned two homes. One in Florida was being rented out for $1,000 monthly profit after expenses but still had $150,000 left on the mortgage. Their current home was worth about $450,000 with $300,000 remaining on the loan.
The doctor was expecting a signing bonus of $75,000 to $100,000 and wanted to use that money toward the $250,000 car purchase.
When Ramsey asked how much cash he had to buy the car, the reality became clear: The doctor was planning to finance most of it.
Ramsey’s Reality Check
In true Ramsey fashion, his response was swift and uncompromising. “Have you ever heard me tell anybody in any situation to get a car payment?” he asked.
The doctor admitted he knew Ramsey’s stance against car payments but was “searching for some kind of approval” because he felt he deserved the expensive car after years of hard work.
Ramsey shut that down immediately: “I’m not going to give you approval to do something stupid. I love you too much to tell you to do something stupid.”
The Rules for Buying an Expensive Car
Ramsey laid out his conditions for purchasing a $250,000 Porsche: “If you want to buy a $250,000 Porsche, I’m fine with that with your income as long as you are debt-free and you have your emergency fund in place and you pay cash for it.”
This meant the doctor would need to wait about a year until he could pay off his debts and save enough cash for the purchase.
Ramsey also recommended selling the Florida rental property, calling the $1,000 monthly cash flow insignificant compared to the doctor’s income potential. “$1,000 a month is nothing. You want a $250,000 car, you make $750,000, you’re screwing around with 12 grand in Florida.”
The Alternative Approach
Instead of the $250,000 car, Ramsey suggested buying a used Porsche with cash — perhaps $75,000 to $100,000 — using part of the signing bonus.
“The difference in the $250,000 when you’re driving it and the $75,000 version that’s a few years old is not much. But the difference in the gastrointestinal distress when it hails outside is a lot.”
The Bigger Financial Picture
Ramsey painted a picture of what the doctor could accomplish with discipline: “With this income in one calendar year, you could have completely paid off your house. You could have no house payment for the rest of your life.”
He calculated that with just 18 more months of restraint, the doctor could have a paid-off house, $250,000 in cash for future children’s college funds, and still afford the expensive car.
“If you will just drive a $100,000 Porsche and if you can suffer through that for 24 months, you change the trajectory of everyone in your family.”
The Long-Term View
Ramsey’s advice is all about delayed gratification leading to true financial freedom. Rather than starting his high-earning career with debt payments, the doctor could establish true wealth that would make future purchases actually affordable.
The psychological benefit matters too. As Ramsey explained, buying the car with cash would feel like “something you earned” rather than “a guilty pleasure.”
Why Income Doesn’t Equal Affordability
This call perfectly illustrates why high income doesn’t automatically mean you can afford expensive things. The doctor’s $750,000 income was impressive, but his financial obligations included:
- $300,000 mortgage on current home
- $150,000 mortgage on rental property
- Minimal emergency fund relative to his expenses
- No mention of retirement savings or other investments
Even with a large income, financing a $250,000 car would have created cash flow pressure and prevented building more wealth during his peak earning years.
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