Ramit SethiRamit Sethi: The No-BS Guide to Living a Rich Life

A Lot of You Can’t Afford the Trucks You’re Driving

13 Nov 2025 · 1 min

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1:26

In this excerpt from a personal‑finance video, Ramit Sethi calls out the common mistake of buying expensive trucks and SUVs that exceed a person’s income. He illustrates the problem with the example of Brad and Becca, a couple earning $115,000 who own a $50,000 truck they only need to tow an RV they also purchased. Sethi explains that basing the purchase on monthly‑payment affordability is a financial trap, not a strategy. He then outlines a correct approach: first determine the true need for a vehicle, consider renting when the need is occasional, and ensure that any vehicle’s total monthly cost fits comfortably within one’s fixed expenses. He emphasizes that it’s okay to own a truck if it truly fits within a realistic budget, but urges viewers to be honest about what they can afford.

Chapters

A lot of you cannot afford the trucks you're driving. Why is this controversial to say? I get a whole bunch of people talking to me making $65,000 or $70,000 a year buying a $90,000 truck. You cannot afford a $90,000 truck when you make $65,000 a year. That is plain math. We're so rugged. We got to haul things. My vehicle. A huge percentage of people in financial trouble own trucks or SUVs they don't actually need. Like Brad and Becca. They make $115,000 and they own a $50,000 truck. And when I asked Brad if he needed it for work, he said, "No, but we use it to tow our RV." Okay, hold on a second. You're telling me you bought a recreational RV and now you need to spend another $50,000 to have something to tow it. And how did they decide how much truck they could afford? Brad says monthly payments. This is not a financial strategy. This is a trap. So here's how to do it right. First off, get clear on your needs before you make a big purchase. If you don't need it, could you rent it when you need it? Do you really want to be spending over $1,200 a month in total payments plus all these other phantom expenses? Probably not. If there is a day where a truck fits into your fixed costs, you can easily afford it. Fantastic. I'm not against it, but I want you to know if you can afford it.