This Is Suze Orman’s Financial Goal for You in 2024 — Here’s How to Make It Happen
Written by
Dawn Allcot
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Finance expert Suze Orman addressed her network on LinkedIn with New Year’s wishes, telling readers that she hopes 2024 will be “a year of building more financial security.” Acknowledging that every household has unique financial challenges, she said that there are, nonetheless, some universal financial goals that everyone should put first in the new year.
If these items aren’t on the top of your financial priority list for 2024, you may want to re-consider your budget or create one if you don’t have one. With a budget as your blueprint, you may find your financial goals falling into place this year.
Emergency Savings
Orman has often spoken about the importance of building emergency savings, even going so far as to say you should prioritize building an emergency savings account over paying off debt (as long as you make the minimum payments on your loans and credit cards).
Even if you can only save $100 a month, it will help you build a sense of financial security. And at today’s high interest rates, that money can compound quickly in a high-yield savings account.
Retirement Savings
Alongside building emergency savings, you should be setting aside money for retirement. Fortunately, you can do this with a 401(k) or other retirement account using pre-tax dollars.
“A dollar saved today is going to be worth a lot more than a dollar saved 10, or 20 years from now. Be kind to older you and take advantage of compound growth,” Orman wrote.
Pay Down Credit Card Debt
Credit card debt can quickly erode any sense of financial security. If you have high interest debt, Orman said you should make it a priority to pay it down. But even if you can’t pay your balance in full every month, you should make sure to pay the minimum, on time.
She suggested setting up an automated payment for a set amount, which should be equal to or higher than your minimum amount due. “That’s how you avoid paying late fees. And it will help with your credit score,” she wrote.
If you can make an additional payment each month, without sacrificing your retirement or emergency savings deposits, you should do so.
Small Changes That Add Up
If these three simple steps seem overwhelming, it’s okay to start small.
Financial expert Rita Soledad Fernández Paulino of Wealth Para Todos told NPR you can start by evaluating and updating your budget.
“You’re going to sit down, look at your bank and credit card statements and decide whether that’s how you want to continue spending your money,” she said.
Look for ways you can pay less for fixed expenses, such as negotiating a lower rate for car insurance or switching mobile phone providers. As an extreme, you might consider moving in with a roommate to cut housing costs.
Then, reduce costs on your variable, but necessary expenses such as food and gas. Can you clip coupons or use cash back apps to save money on groceries, or download Gas Buddy to find lower prices on fuel?
These small changes can free up money that you can put toward saving or paying down debt.
Discretionary expenses, or things you want, may be the easiest area to cut, but it will take some discipline.
Lastly, Fernández Paulino recommended boosting your income with a side gig.
“Look at the skills you have that you can monetize so you have the extra cash flow,” she told NPR.
It may not be easy to cut expenses and ramp up your savings, but it will be worth it, experts agree. Taking these steps can put you on a path toward financial security in 2024.
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