On a recent episode of The Ramsey Show, a caller faced a dilemma many people can relate to – finding the right way to balance love, financial responsibility, and big purchases. The caller, who earns around $50,000 a year, asked if he should sell his paid-off truck to pay off $2,000 in credit card debt and buy a $6,000 engagement ring in cash. Dave Ramsey, the show's host, offered his guidance.
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The caller explained that he works for a company that provides him with a truck, which he can use for personal and professional purposes. “So, it's a truck you don't need,” Ramsey responded. He admitted that if it were the caller’s only mode of transportation, he would have suggested taking a different approach, like working a side hustle to save for the ring and pay off the debt.
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However, since the truck wasn't essential, Ramsey considered selling it a practical move. “You can knock it out in one fell swoop,” he told the caller. By selling the truck, the caller could pay off his credit card debt, buy the engagement ring, and still have some cash left over.
Ramsey did warn the caller to be careful about his financial habits moving forward. “Be careful not to return to your old habits," Ramsey advised. "Make sure that the guy in your mirror says, ‘I’m chopping up all these credit cards.’"
The conversation then turned to the engagement ring. The caller planned to spend $6,000, which was more than one month's salary. Ramsey's typical advice is to spend around one month's pay on an engagement ring, and while the caller’s plan was slightly over that, Ramsey didn't push too hard. “There's no correlation between the size of the ring and the length of the marriage … except possibly an inverse correlation,” Ramsey joked, noting that some of the longest-lasting marriages involved modest rings.
Some people may look at $6,000 and think that's a lot for a ring – John Delony, co-host on the Ramsey Show, even said, "That's a lot of ring, man." But the national average cost for an engagement ring is around $6,000. It does vary depending on where you're located, though. For example, in the mid-Atlantic, it's closer to $6,900; in the Midwest, it's closer to $4,900.
Delony suggested putting aside some extra money as an emergency fund in case the caller's work truck was unavailable for personal use. Ramsey agreed, pointing out that with the money from the truck sale and existing savings, the caller could cover his immediate needs and start building a stronger financial foundation.
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Ramsey's advice ultimately supports his philosophy that major financial decisions, even (or maybe especially) those tied to emotional decisions like buying an engagement ring, should be made with long-term stability in mind. You can't put a price on love, but keeping your financial future in mind is always a good idea.
As you navigate big financial decisions, it can be helpful to consult a financial advisor. Whether you're looking to pay off debt, save for a large purchase, or start securing your future, they can offer advice tailored to your circumstances.
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