The Ramsey Show Highlights "You Make $400,000 And Owe $700 On A Mattress?"
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Nov 2, 2025 A caller grapples with whether to splurge on a $10,000 watch despite making $400K a year. Dave dives into financial wisdom, urging him to clear debts like a mattress and car before luxury spending. He emphasizes the importance of using cash to eliminate unnecessary loans and even hints at paying off the mortgage for peace of mind. The takeaway? Celebrate debt freedom before indulging, and always follow a solid financial plan!
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Eliminate Small Debts Before Splurging
- Pay off small consumer debts immediately instead of buying luxury items on credit.
- Write checks from cash reserves to eliminate car and mattress debt now.
Mortgage Broker With Odd Debt Mix
- Jake is a 41-year-old mortgage industry professional who expects to make $400k this year.
- He has about $1.2M in cash assets but still owes on a car and $700 on a mattress.
Reward Yourself After Becoming Debt-Free
- Celebrate debt freedom but only after becoming 100% consumer-debt-free.
- Buy a luxury watch with cash once you pay off car, mattress, and mortgage if desired.