Suze Orman: Why Graduates Should Follow Financial Advice ‘Live Below Your Means’
Written by
Adam Palasciano
Edited by
Nicholas Morine
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Graduation means that school is over and it’s time to start your career. Transitioning from student to adult life can be tricky, especially when it comes to how you spend your money.
In life, there are “wants” and there are “needs.” Wants are things like a vacation, dinner at a restaurant, or fashionable new clothes. Needs are things like your rent or mortgage payments, utilities, and groceries just to name a few. It’s easy to spend money, but if you’re spending too much on your wants, you might not have enough left for your needs.
Financial guru Suze Orman described described a key principle that’s crucial for all graduates to follow: “Live below your means, but within your needs.”
What the Expression Means
“Live below your means” means that you maintain a lifestyle below what your means can actually afford. Simply, you’re “choosing not to spend every penny.”
You might be able to buy a nicer car, live in a fancier apartment, or dine at an expensive restaurant. However, if it means that your entire paycheck is gone every month (or worse, you accumulate credit card debt to afford an elevated lifestyle), then it means you’re living above your means.
“I will never tell anyone that money is the key to happiness. But you better believe that overspending, too much debt, and a lack of emergency savings get in the way of it,” remarked Orman.
Choosing to live within your needs will ensure that you have enough money to cover the absolutely necessary expenses — and maybe even leave you with some extra cash for your wants. Following this important advice can help you stay out of financial trouble and prepare you for life’s unexpected curveballs for years to come.
“This is not advice for the rest of 2024, or for the next year, or decade. It is advice that if followed can bring peace, strength, and gratitude for an entire life,” explained Orman.
More From GOBankingRates
