Suze Orman Says These 4 Key Steps Can Make You Financially Secure in 2024
Written by
Jordan Rosenfeld
Edited by
Ashleigh Ray
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Finance maven Suze Orman is a bastion of financial wisdom. While she often aims her advice at women, it’s practical for everyone.
She especially cautions that right now, as we head into the last hoorah of holiday planning, it’s very easy to overspend on gifts and travel out of a sense of obligation and pressure. That can take a serious toll on your finances.
Instead of spending from a place of pressure, she urged you to consider the following four steps that will set you up for a financially secure 2024.
Step 1: Don’t Spend Yourself into Debt
Orman feels very strongly about not spending money on credit cards for things that you really don’t need. That even includes buying gifts and paying for travel to visit loved ones at the holidays.
She goes so far as to say she has “zero patience” for anyone who is putting things on a credit card that is charging 20%+ interest. “If you can’t afford to pay off a credit card in full, then that is money that shouldn’t be spent,” she said in a recent blog post.
If you absolutely feel you must buy the thing, or spend the money on travel, she urged you to consider finding a way to get gig work to make up the extra income. “Or search for spending cuts you can make right now that will free up enough money to cover the cost.”
She’s been known to speak strongly about debt in general, having told CNBC, “You will never, ever, ever have financial freedom if you have debt.”
Step 2: ‘No’ Is a Loving Thing To Say
If you are overspending because you are buying things for others, particularly gifts at this time of year, you may be letting fear drive you. Orman said that it’s easy to get caught up in emotions that make you feel as if you are denying loved ones if you don’t purchase something they want or think they need.
“You say yes to overspending from a fear of not letting down the people you love most. But do you really think they will be disappointed and judge you in a negative way if you don’t spend money on gifts?”
“No,” in Orman’s world, is a loving thing to say, especially when it is saying yes to yourself in a financially responsible way.
Step 3: Get Creative Without Spending Money
There are many low-cost or even free ways to make things instead of buying them, Orman said, and you’ll do well to be creative both now at the holidays and in 2024.
She recommended ways to enjoy time with friends, such as a walk or hangout. “Or get your craft on. There are so many small projects you can dive into now to create a thoughtful gift that is budget-friendly. Got young kids? Involve them.”
Step 4: Generosity Includes Yourself
Orman understands that spending money can seem like a way to feel and appear generous, especially at the holidays.
But Orman said, “I want you to keep this in mind when you are tempted to spend money you can’t really afford to spend. When you are pondering a purchase, stop for a moment and ask yourself, ‘Is this generous to me? Or will it hurt me financially?'”
Spending money you don’t have may look generous to others, but it isn’t necessarily to yourself. And you won’t get ahead if you don’t treat your own financial picture first.
Take Orman’s advice and be honest about your financial situation with friends and family. Even if they don’t understand, you’ll be doing the right thing for yourself.
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