There’s no shortage of money advice out there, but the key to financial success really comes down to just three things, Suze Orman, money expert and co-founder of emergency savings startup SecureSave, told GOBankingRates.
“If you could do these three things, I promise you, your life will change,” she said.
Here’s a look at what Orman says are the financial rules everyone should follow.
Live Below Your Means
Spending less than you make is one financial rule of thumb everyone needs to follow, Orman said.
“I don’t care how much money you make or have,” she said. “Every single person should live below their means but within their needs. [For example], just because you can afford a new car doesn’t mean that you should get a new car.”
Eliminate Spending on ‘Wants’ Until You Are Financially Secure
While it may not be “fun” to only spend money on things you actually need, Orman said this is essential in order to build savings and financial security.
“Only buy needs versus wants,” she said. “Now, obviously, if you’re seriously wealthy [you can spend on wants], but those people who don’t have money, who need to save [money] need to change their behavior.”
Find the Joy in Saving
It’s natural to enjoy spending money, but Orman said you need to equally enjoy saving money.
“Get as much pleasure out of saving as you do spending,” she said.
You should find joy in watching your savings grow over time, knowing that you’re making moves that will help you in both the long and short term.
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