‘Please don’t do this’: Dave Ramsey says to ditch this one household expense keeping Americans from becoming wealthy

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When it comes to the relationship one has with their car, you come first; The car comes second.

That's the advice financial guru Dave Ramsey offered Carl from New York when the 29-year-old father called into The Ramsey Show (1).

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"Love yourself enough not to go into car debt," Ramsey told him. "If you want to be middle class, stay in car debt. You will never build wealth because it will suck the bone marrow out of your money."

Carl added that he recently got a pay bump from $85,000 to a possible $95,000 after six months and his current Honda isn't worth fixing. He has $20,000 in savings for a new car, but the one he wants costs $25,000.

"Don't celebrate your new job with a car payment. That's kind of dumb," Ramsey said. "You have $20,000 and an $85,000 job in New York City. You can go buy a $20,000 car and not a dime more," Ramsey said.

He told Carl his budget is whatever he sells the Honda for, plus the $20,000. According to a recent study, $100,000 in Manhattan is equivalent to about $30,362 — the lowest purchasing power of any city on a list of 20 (2).

Ramsey linked the affordability crisis to high car payments. A Bank of America report found that in 2025, nearly a quarter of households live paycheck to paycheck (3).

"Ford Motor Company screwed you. Lexus and Toyota screwed you," he said. "They got you to go far in debt because you had to have something shiny with a toxic plastic smell."

Ramsey used Carl's situation to make a broader point, citing internal research of more than 10,000 millionaires showing that 84% credited ditching car payments as key to building their wealth.

Ramsey suggested that Carl stop caring about what people think and move away from seeing his car as a status symbol.

"Decide who you want to impress. People you're likely never going to meet, or your grandchildren," he added. "Because you can change your family tree if you don't impress the people at the stoplight," Ramsey said.

"You are upgrading so far from the hooptie you've been driving, you ought to be dancing in the streets with that $20,000, acting like you have got a new Porsche," Ramsey added.