Suze Orman: 3 Best Tips That Can Help You Build Wealth
Written by
J. Arky
Edited by
Zuri Anderson
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There are many hats worn by Suze Orman, a financial guru and money expert, but being willfully ignorant is not one of them.
Orman has amassed not only a following, but an empire of knowledge and resources for ways that the everyday person can expand their wealth. She didn’t do it, though, by pretending it was all going to work out one day without any heavy lifting on her part.
In a YouTube video for MoneyWise, Orman highlighted a key advantage that the average person can utilize to grow their wealth if they utilize it correctly: time.
For Gen X and Baby Boomers, this might be harder to do. For millennials and Gen Zers, time is actually on their side, according to Orman, to make an “astronomical” amount of money.
Here are the three best tips that can help you build wealth, straight from Orman herself.
3. Take Advantage of Compounding Interest
Orman noted that the key strategy to utilize with time and money is the concept of compounding interest. Starting early gives more of a runway for younger generations to start not only investing their money, but growing it over the years to come.
There is a realistic side that Orman takes into account, as well. In one example, she posited that if a 25-year-old starts saving a certain amount of money a month in a Roth IRA, over forty years they could grow their initial investment into $1 million.
However, Orman knows that young people have other priorities with their money, which usually negates the long term.
2. Small Moves, Big Growth
The key to generating long term financial growth and success is starting with small amounts, according to Orman. The earlier someone starts to invest in their financial success, the earlier and bigger the payouts will be over time.
Orman encouraged those in their 20’s to start dedicating a portion of their income to financial moves that will take advantage of compounding interest, even if it is just $100 a month.
By contributing that small amount of money into an account with compounding interest, young people can secure their financial future, but only if they start now.
Waiting is not an option, in Orman’s professional opinion, because it can take away from years of growth opportunities.
1. Keep It Simple
Orman is well aware that distractions come up, unexpected expenses come into the mix, and it can be hard for younger generations to keep the end goal insight. Her solution: keep it simple.
Finding an opportunity to grow your money is as easy as asking your employer to match contributions to retirement or setting up a Secure Save account, which Orman noted can bring in 12 to 25% return on investment.
“Don’t think ‘I’ll just grow up and make more money,'” advocated Orman. “No. You start right now in making your money grow, and you will have more money than you ever dreamt possible.”
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