Are you a budget-conscious RVer?
Maybe you’re considering switching to full-time RV life and wondering if it would be the “smart” thing to do financially.
Either way, you might be curious about what Dave Ramsey thinks about RV life. After all, he’s one of the top financial gurus in the country and is most popular for providing financial advice to callers on “The Dave Ramsey Show”.
Below we discuss who Dave Ramsey is, the recent advice he gave to a caller, and whether RV living makes financial sense.
Let’s begin.
Who Is Dave Ramsey?
Dave Ramsey is a popular author and radio host known for his personal finance advice. His syndicated radio show reaches over 13 million listeners every week and it remains one of the top five radio shows in the country.
He is currently worth over $200 million and owns a successful company called “Ramsey Solutions”, as well as a portfolio of rental properties.
Nevertheless, Ramsey didn’t earn his success overnight. At only 26 years old, he owned $4 million dollars in real estate. Not long after, he lost everything.
Due to bad financial decisions, he found himself over $1.2 million in debt and ended up filing for bankruptcy. Ramsey then used his personal experience to create a financial counseling business called “The Lampo Group” (now called Ramsey Solutions), which has grown exponentially since he first founded it.
Ramsey now preaches “biblically-based, commonsense education and empowerment that give hope to everyone in every walk of life” and he is probably most well-known for his “7 Baby Steps” which call for saving money, paying off debt, and investing wisely.
Does Dave Ramsey Approve Of Full Time RV Living?
So, what does Dave Ramsey have to say about full-time RVing? Surprisingly, it’s not all bad. A woman in her 40s recently called into The Dave Ramsey Show asking about the best ways to save and invest for the future.
She explained that she was currently residing in her RV full-time and does not wish to buy a house. Ramsey’s opinion?
He discusses the fact that there are many different ways to look at this situation.
Full-time RVing is a lifestyle decision; and he even says, “it sounds kind of cool, actually”. But is it a good way of investing for the future?
Emphatically – no.
Ramsey’s RV Criticisms
Dave Ramsey has several critiques when it comes to RVing, and they all revolve around this question: Is buying an RV a good long-term plan for the future?
Let’s take a look at why Dave Ramsey thinks RVs are a bad idea financially.
RVs Will Depreciate, Houses Won’t
If you know anything about RVs, you probably know that they depreciate over time. How fast they lose value will depend on what kind of RV you have and how new it is, but if you compare it to investing in a house, it’s a no-brainer. While the real estate market is cyclical, houses almost always increase in value over time.
This makes them a great investment for the future. Buying an RV on the other hand? Don’t expect to make any money when you decide to sell it.
PRO TIP: This RV mechanic shares what systems break first in an RV.
Living Space Is Too Small For Long-Term
Ramsey’s other criticism?
Families and individuals alike probably won’t be living in an RV 40 years from now. Although many people enjoy living in a small space, it’s just not practical as a long-term housing option.
RVs break down over time and children get bigger. Eventually, you’ll probably need more room.
Non-Monetary Reasons Are Better For RVs
While it’s clear where Ramsey stands when it comes to RVs and finance, he acknowledges that it’s a personal lifestyle decision.
Ultimately, no one can tell you what to do with your life except you! And RVing can provide countless benefits that don’t have to do with money.
Therefore, deciding to go full-time isn’t a bad decision in itself. There are many components to consider, and often, the advantages outweigh the disadvantages.
Keep in mind: This RV nightmare can happen to anyone.
Can You Save Money By Living In An RV Full-Time?
So, does living in an RV automatically drain your bank account? The answer completely depends on your personal lifestyle and the income you have coming in.
Are you living above your means, staying at expensive RV parks, and living as if you were on vacation? If so, you’re probably not going to save any money; and you may even run the risk of going into debt.
However, if you’re living in an RV that is either paid off or has a reasonable payment, staying at low-cost campgrounds or on public lands, and keeping within your budget, it’s totally possible to save money while RVing!
It’s all about how you choose to live.
How Much Does Full Time RV Living Actually Cost?
As you might have guessed, the cost of full-timing varies greatly from family to family. Some people choose to stay at RV parks (which can cost as much as an apartment!), go on lavish adventures, and buy expensive souvenirs everywhere they go. Really, you can spend as much as you want full-time RVing.
However, if you’re looking for a ballpark figure about how much this lifestyle costs when you’re a budget-conscious traveler, know that it’s completely possible for two people to spend as little as $2,000/month traveling around the country.
This involves both staying at low-cost campgrounds (less than $15/night) and boondocking on public land, keeping within a strict budget when grocery shopping (think $600/month maximum), and occasionally spending a modest amount on recreation and sight-seeing.
This number is obviously going to be affected by the type of rig you have, where you are in the country, what you need to live off of, and whether you are making payments on your RV, vehicle, or more.
But if you head out on the road determined to live within your means, we are confident you’ll be able to see the country and save money.
In Depth Look: Renting a house or RVing full time, which costs more?
How To Figure Out If RV Living Is Right For You
Are you wondering whether you should take the plunge into the RV lifestyle? Start by adding up all your expenses. Is there anything you can cut out to save money?
Ask yourself what you can live without and make a realistic budget for yourself on the road. Then, think about the ways in which you want to travel. Will you be happy staying for free public lands or do you think you’ll want full-hookups most of the time?
Do you have a gas-guzzling motorhome or will you be traveling in a fuel-efficient van?
Next, consider how much money you’ll be able to bring in.
You’ll want to make sure to have a cushion at the end of each month and an emergency fund in the event of a breakdown or another unexpected expense. If you end up bringing in more money than you’ll spend living happily on the road, we say – go for it!
Conclusion
Dave Ramsey is a well-trusted figure in personal finance and many people take his opinion into account when making decisions about money. It’s also very clear where he stands when it comes to investing in an RV instead of a house – it’s simply not a good financial decision.
Nevertheless, there are many elements to consider when deciding to go full-time. Is this the lifestyle you’ve always dreamed of?
Are you investing in other ways? Will you live within your means? Thus, living in an RV doesn’t automatically make you horrible with money. It’s just one of the pieces of your puzzle.
Now we want to hear from you! Are you considering RVing full-time? Let us know in the comments below!
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