Suze Orman Says Everyone Should Follow These 3 Financial Rules of Thumb
Written by
Gabrielle Olya
Edited by
Ashleigh Ray
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There’s no shortage of money advice out there, but according to money expert Suze Orman, the key to financial success really boils down to just three things. She knows her way around a financial tip or two and was generous enough to share them with GOBankingRates.
Known for her straightforward guidance on saving money, managing debt, building wealth and planning for retirement, Orman said mastering just three financial rules of thumb can dramatically improve your financial future. “If you could do these three things, I promise you, your life will change,” she said.
Here’s a look at what Orman said are the financial rules everyone should follow.
1. 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.”
2. Eliminate Spending on ‘Wants’ Until Financially Secure
While it may not be “fun” to only spend money on things you actually need, Orman said this is essential 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.”
3. 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 you’re making moves that will help you in both the long and short term.
Caitlyn Moorhead contributed to the reporting for this article.
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