Ever since 1992, Dave Ramsey has hosted The Ramsey Show on talk radio. People call in for financial advice from a man who’s worth around $200 million, mostly thanks to real estate investments. He’s written books that have been on The New York Times bestsellers lists. While he’s garnered attention for some negative things he’s said in the past, it’s hard to discount his advice, due to his impressive net worth. During one of his rants, he talks about the dangers of buying dumb things. One of the most powerful things he said during his rant was, “If you borrowed the money to do it, you couldn’t afford to do it.” Taking out loans is one-way companies can make even more money off of you and your purchase. This isn’t exclusive to buying cars and homes. You can take out loans anywhere these days, even at Walmart (NYSE: WMT) according to Dave Ramsey. 

Dave’s Warning About Shopping at Walmart

Financing things is one of the worst financial decisions you can make in Dave’s eyes. If you finance something, you’re taking out a loan to purchase it through a third party. There are options to finance at Walmart, though. When we think of Walmart, we think of groceries, a nice clothing section, and other household items. Typically, you don’t need to ever finance anything from Walmart. There are times when you purchase an item from Walmart that might be more expensive than usual, like a television. In Dave’s eyes, if you can’t afford to pay it out of pocket, it’s not worth buying. Financing options usually have long payback periods. While you might be in a good financial spot to be able to afford to buy that new television now, you might not in one year. Taking out a loan puts you automatically into debt. 

What Are Some of the Most Expensive Things at Walmart?

Walmart does have expensive things, believe it or not. For example, the most expensive item Walmart sells is a Suzy Levian Diamond Tennis Bracelet. This bracelet will set you back $79,875. This is an extreme item that most people wouldn’t dare want to buy. If you did want to buy it, odds are you can already afford it without taking out a loan. Something you might consider buying is the new Samsung 85-inch Class 8K Ultra HD Smart TV. While it doesn’t cost the nearly $80,000 as the bracelet, it does cost $7,480. This television curves, allowing you a great viewing angle no matter where you’re sitting. This is one of the classic options Walmart would want to get you to finance. Unless you can pay out of pocket for it right away and still be comfortable, don’t do it.

Another item you might think about adding to your home patio is the TK Classics Barbados Wicker 11-Piece Patio Conversation Set for $4,688. This patio decor appears to be a great way to gather your friends and family outside to hang out. However, the same theory stays true, as you need to consider what your actual needs are. It’s important to think about how often you’ll use this piece of furniture. It’s also important to consider what part of the country you live in. Odds are, you don’t live in a place where you can be outside year-round and not have to deal with the natural elements. These elements can also cause damage to the furniture itself. Always think about what you do and don’t need a loan for. 

When Is It Okay to Take a Loan Out?

While it feels like you shouldn’t ever buy something you can’t outright afford, you do still need to take loans out occasionally. If you’re young and in need of a car, try to find a cheap option to get around town. More than likely, you won’t have enough saved up at the moment you’re going to buy the car. But still buy it, as long as it’s cheap and you have a good deal. Another time it’s important to take a loan out is if you’re buying a house. A lot of people consider their house to be an investment, and odds are again you don’t have enough money to pay for it in cash.

The times it’s smart to take a loan out is when it’s responsible and can help you make money. Most people aren’t born millionaires, so we have to start somewhere. But when you’re looking into car and home loans at first, don’t go for the flashy things. Those will only set you back. Go for the ones that are responsible and within your budget. Even though it will be annoying at first, you’ll be grateful you stuck to your budget in the long term.

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