5 Suze Orman Money Tips For a Financial Fresh Start
Written by
Nicole Spector
Edited by
Zuri Anderson
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Financial guru Suze Orman has long been dedicated to helping the average American reach financial freedom. In an article posted on Oprah.com, Orman delved into 10 of her top tips on how to get a fresh financial start, which can help you get your finances on track.
GOBankingRates highlighted five of Orman’s standout, practical and realistic tips.
Break the Cycle of Self-Blame So You Can Move Forward
When we’re struggling to stay above financial waters, it’s all too easy to get sucked into a spiral of self blame. And look, you may be partly to blame for being in a bad place with your finances.
Maybe you went a little too wild with spending on the holidays and took on credit card debt. Maybe you took on a mortgage you can’t afford. Maybe you retired without having saved enough money to do so comfortably.
But you’ve got to stop beating yourself up about it. All of it. You simply can’t move forward while gripping the past.
“We are free to move forward only when we remove the emotional shackles of regret,” Orman wrote. “Deep breath, everyone. Exhale. Now you are ready to put your financial house in order.”
Get a Crystal-Clear Picture of Your Financial Situation
So, you may know the broad situation of your finances. For example you know you have debt, or you know you don’t have enough to retire early if things stay the way they’re going. But you need a finely-honed, crystal-clear picture of absolutely everything pertaining to your finances.
“I want you to open every single financial statement — bank, credit card, mortgage, 401(k), brokerage account — and take a look,” Orman said.
When doing this, look for opportunities to make things easier. For example, automate your recurring bills, as well as a savings portion from each paycheck.
Challenge Yourself To Save, Even Just a Little Bit More Money
Naturally, the best way to deal with a lack of savings is to save more. But “saving more” is such a vague sentiment. And it can also feel condescending.
How can we save more when we’re already spread so thin and barely getting by? Orman suggested the answer to this is to look at saving more as a challenge and to focus on key areas where trimming down costs won’t feel like much of a sacrifice.
This can be really simple and even satisfying. Start with your utility bills.
“I challenge you to reduce every one of your monthly utility bills by 10 percent,” Orman said. “I bet you can seriously trim your utilities by spending one afternoon increasing your home’s energy efficiency.”
Get Into the Nitty-Gritty of Your Retirement Plan
You may be 25 or you may be 55. Though your retirement plan could look different depending on your age, you must, have one in place and it must be active.
Orman provided a guide here:
“In your 20s and 30s, aim to keep 80% in stocks and just 20% in bonds; you have time to ride out stock swings,” she said. “As you age, slowly ramp up the percentage in bonds; in your 50s and 60s, consider keeping 40% or more in bonds to help buoy your portfolio when stocks are slumping.
“The biggest mistake you can make is to stop investing in your retirement accounts or to shift money from stocks into ‘safe’ money market accounts.”
Diversify Your Investments, Even If You’re New To the Game
Pretty much every financial expert and seasoned investor knows the importance of diversification. This means having your investments spread among a number of different categories.
In 2025, ensure your investments aren’t stuck in just one place. Keep your eggs in a number of different baskets.
“Try to reduce any company stock you own in your 401(k) to less than 10% of your total retirement assets. Just ask employees of Enron, Bear Stearns, Merrill Lynch and Washington Mutual how smart it was to make big bets on their own stock,” Orman said. “Mutual funds and exchange-traded funds (ETFs) are ideal for retirement savings because they own dozens of stocks in their portfolios.”
Just as you don’t need a lot of money to start investing, you don’t need a lot of money to diversify your investments. So, get to it in this so very young year.
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