Ramit Sethi vs Caleb Hammer: Do They Agree on These 4 Money Issues?
Written by
Catherine Collins
Edited by
Amber Barkley
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Ramit Sethi and Caleb Hammer are both well-known money experts with large YouTube followings.
Hammer is best known for his confrontational approach to people’s spending habits. He often tells guests that their purchases are “stupid,” and because of his approach, he has amassed a large following of people who are drawn to his money critiques.
Sethi is also known for having strong opinions. Unlike Hammer, though, Sethi rarely judges the guests who come to him for his advice. Instead, he focuses on the psychology behind why people make the money decisions that they do and the emotional roots of their financial habits.
Recently, Sethi published a YouTube video reaction to several of Hammer’s videos. In the video, Sethi explained whether or not he agrees with Hammer’s approach.
Oversized Truck Payments
Even modest vehicles are more expensive than they used to be. In 2025, the average new car payment grew to $742 per month, according to data from Experian.
In the video, Hammer berated a guest for spending over 30% of his income on a huge, expensive truck with a higher than average payment. Sethi entirely agreed that a vehicle should not take up 30% of anyone’s income.
However, Sethi critiqued Hammer’s delivery, because Sethi doesn’t believe in shame tactics.
‘Investments’
Both Hammer and Sethi are against people mislabeling things as “investments,” a position that became clear in their reactions to a guest on Hammer’s show who was overspending on luxuries like designer clothes and eating at restaurants as an “investment” to save time so she could work on her business.
Sethi said many people call luxuries like personal trainers or expensive mattresses “investments,” when in reality, these items are luxuries. Sethi explained that more needs to be done to teach people about what an investment is.
He disagreed, however, with Hammer’s shaming of the guest. He pointed out that it takes courage to come on a show like that and said, “People deserve to be treated with respect, even if they are making bad decisions.”
Phantom Costs
Both experts also agreed about something called “phantom costs,” which came up in response to a guest who told Hammer he was losing money working for Uber.
For example, there are phantom costs when you’re an Uber driver, because many drivers don’t calculate expenses like their car’s depreciation and maintenance, Sethi pointed out. He explained that people need to be more aware of operating costs, especially when it comes to life’s bigger purchases and owning a business.
Sethi agreed with Hammer’s reaction to this guest, as well, saying the conversation was “well done [on] both sides.”
Dave Ramsey
Both Hammer and Sethi disagreed with some of Dave Ramsey’s advice.
Hammer offered the common criticism that Dave Ramsey’s $1,000 emergency fund is not enough and might land people in a worse financial situation, because “it’s not enough money to cover anything in this world.”
It is important to note that the $1,000 emergency fund is the first of Ramsey’s “baby steps” — step three is to save a full emergency fund of three to six months of expenses.
But that’s not the only criticism of Ramsey’s advice. Sethi took the opportunity to critique other Ramsey teachings, including Ramsey’s belief that people can see 12% investment returns from mutual funds.
Final Thoughts: Key Differences
Both Hammer and Sethi have large followings based on their advice. However, they differ in how they relay that advice. As evidenced above, these two financial experts agree on several things, but the main difference is their delivery.
Hammer is known for his blunt and often harsh way of speaking. Sethi is not a fan of breaking people down; he tries to understand why people make the money decisions they do.
While tough love can be helpful, Sethi’s quest to find the human aspect of people’s money stories means he can reach people in a different way.
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Sources
- I Will Teach You To Be Rich, YouTube, “Money Expert Reacts to Caleb Hammer’s WILDEST Financial Audits.”
- Experian, “Used Car Loans and Financing for 2025.”
- Ramsey Solutions, “The 7 Baby Steps.”
