Dave Ramsey Says He Won’t Spend Money on This — Here’s Why
Written by
John Schmoll
Edited by
Rebekah Evans
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
In the world of personal finance, Dave Ramsey is well-known for his views on spending and debt. He believes people should avoid debt at all costs and optimize their spending through a budget.
Given his beliefs, it would make sense that he hates frivolous spending. In a recent “Smart Money Happy Hour” episode, he was asked what he won’t spend money on and why.
Quality Over Cheap Costs
Spending on quality over quantity is a personal choice. It’s easy to believe that opting for a cheaper alternative saves money. Over time, that might not be the case. Ramsey gave his insight when he was asked on the episode, “What’s one thing you still refuse to spend money on?” He didn’t hold back in his response.
“What I learned from watching rich people, is what I want to model [after that, is that] if I’m going to spend what feels like a lot of money on something I want to get something of high quality that’s going to last maybe even generationally,” Ramsey said.
That viewpoint isn’t surprising given that most wealthy people spend differently than other Americans, according to the NY Times.
Ramsey avoids spending on cheap items. “What I refuse to spend money on is cheap stuff that’s not going to last. Instead I’ll double the amount and buy one good one instead of five bad ones,” Ramsey said.
Host George Kamel asked how that philosophy related to his Amazon purchase history. “I don’t have an Amazon history, that’s how light it is,” Ramsey said. He avoids spending on trivial items that bring little value to his life. When he does spend, he does so purposely to avoid wasting money.
Is Ramsey Against Spending on Luxury Items?
It would be easy to think that Ramsey is against purchasing items that communicate a certain affluence. The zero-based budgeting philosophy he promotes is often viewed as rigid. Instead, Ramsey follows a simple wait-and-see approach. “If something is expensive in ratio to your life, I spend enough time thinking about it and I don’t impulse that stuff,” Ramsey explained.
Ramsey isn’t opposed to spending on luxury. He shared a story of receiving a substantial check after closing his “Total Money Makeover” book deal. “The check hit my account the day I got to New York City to start the book tour,” he said. “I had been researching an expensive watch and I thought I’m going to celebrate this largest check I’ve ever seen in my life.” The watch in question was a $13,000 gold Breitling watch he still owns to this today.
Spending Isn’t the Issue
It’s understandable to view Ramsey’s philosophy as being opposed to spending. That’s not the case. The issue isn’t spending; rather, it’s about forgoing less expensive purchases when possible.
In an X post, Ramsey explained this point further. “Winning with money isn’t about being perfect — it’s about being intentional. Stop letting debt rob your future and take control today. The best time to start was yesterday. The second-best time is now. You’ve got this,” Ramsey said.
Not all Americans may be able to follow Ramsey’s advice to avoid spending on cheap items altogether. However, starting today can help bring efficiency to a budget and allow you to free up funds for purchases that add value to your life.
More From GOBankingRates
