'What Are You Smoking?' Dave Ramsey Blasts $130K-Income Couple After $315K Home Flip, $22K Car And 'Stupid Cars' Spiral'

'What Are You Smoking?' Dave Ramsey Blasts $130K-Income Couple After $315K Home Flip, $22K Car And 'Stupid Cars' Spiral'

Casey B. Renner

Sun, January 4, 2026 at 3:00 PM EST

3 min read

A $100,000 home sale gain unraveled into financial chaos after a couple used the cash on cars instead of obligations.

Logan, calling from Lexington, Kentucky, contacted "The Ramsey Show" seeking clarity on the tax impact of a recent home sale. He said he and his wife bought the house for $315,000 and later sold it for $415,000.

He said the couple walked away with about $77,000 after fees, but tensions rose when $22,000 of the proceeds went toward a car for his wife while he still owed $37,500 on his truck — prompting a blunt response from personal finance expert Dave Ramsey.

"What are you smoking?" Ramsey asked, interrupting as Logan outlined how the money was spent.

Don't Miss:

Missed Nvidia and Tesla? RAD Intel Could Be the Next AI Powerhouse — Just $0.85 a Share
7 Million Gamers Already Trust Gameflip With Their Digital Assets — Now You Can Own a Stake in the Platform

A Quick Sale And Faster Spending

Logan said he and his wife married in April 2022 after paying off her student loan and starting with roughly $30,000 in savings. They rented for a year before buying a 4,200-square-foot home from a family friend at a discounted price, even though they knew it stretched their budget.

With no down payment and a 6.25% interest rate, Logan said they lived paycheck to paycheck in 2024. That November, they decided to sell.

The house went under contract in seven days. After fees, they walked away with about $77,000 but also carried roughly $10,000 in credit-card debt from updates made to prepare the home for sale.

Trending: Americans With a Financial Plan Can 4X Their Wealth — Get Your Personalized Plan from a CFP Pro

The Tax Bill Comes Into Focus

The conversation then turned to taxes. Logan said he did not know how much he owed from the sale. Ramsey replied that the profit would not qualify for capital gains treatment because the home was not held long enough.

"It's ordinary income," Ramsey said, adding that after sales expenses and allowable improvements, the tax bill would likely be close to $20,000.

He urged Logan to stop making major financial moves and meet with a tax professional to calculate the exact amount.

"You went and bought another car," Ramsey said. "And you haven't even settled with the IRS yet."

See Also: $100k+ in investable assets? Match with a fiduciary advisor for free to learn how you can maximize your retirement and save on taxes – no cost, no obligation.

‘Stupid Cars' And Starting Over

As Ramsey pressed Logan on selling vehicles, co-host John Delony joined the discussion. "You got a ticket, dude, and you blew your nose in it," he said, reacting to the use of the home-sale proceeds.

Story Continues

Ramsey told Logan to sell the truck, pay the tax bill, clear the credit-card balance, and return to the last point when their finances were stable. That meant relying on paid-off vehicles and lower expenses rather than income alone. "Y'all are broke people," Ramsey said. "You're broke because of behavior, not math."

Logan also shared that he and his wife learned on Christmas Day that they were expecting their first child. Ramsey said this was the moment to change direction and avoid repeating the same pattern.

Image: Shutterstock

Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market.

Get the latest stock analysis from Benzinga:

This article 'What Are You Smoking?' Dave Ramsey Blasts $130K-Income Couple After $315K Home Flip, $22K Car And 'Stupid Cars' Spiral' originally appeared on Benzinga.com

View Comments

Source