3 Tips From Suze Orman To Help You Save Thousands
Written by
Caitlyn Moorhead
Edited by
Gary Dudak
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Suze Orman is one of the most-recognized money experts in the country. Her followers turn to her for frank, practical financial advice on everything from daily budgeting to estate planning.
Orman’s tips and tricks are often targeted at women, encouraging them to “save themselves” by saving more money and taking control of their financial lives. However, her sound wisdom applies to all people, and here are three pieces of advice to help you save tens of thousands in just a few years.
Saving Money During Post-Grad Life Is Important, Sweeties
With Orman’s help, you can learn the fundamentals of personal finance: how to budget, save money and plan for retirement. Right away, your money management skills will include budgeting and starting to make automatic monthly transfers into a savings account.
Check Out: 7 Frugal Habits of the ‘Shark Tank’ Stars
For example, “The Money Book for the Young, Fabulous & Broke,” written by Orman, is a practical financial guide for young adults facing debt and economic challenges. As a captain of money expertise, Orman never met a student loan or credit card debt she couldn’t walk you out of through bucking conventional wisdom to more quickly achieve your financial goals. Here are just a few actionable takeaways from Orman to get you started:
- Know your FICO score: Pay bills on time, keep credit utilization low (under 30%), and don’t close old accounts to maintain credit history.
- Attack high-interest debt: Prioritize paying off high-interest credit cards before building a large emergency fund, but consider interest rates on student loans when deciding whether to pay them off quickly or slowly.
- Smart credit card use: Use credit cards to supplement a low income if needed, but pay balances off, and don’t cancel them after paying them down (cut them up instead).
- Automate your savings: Treat savings like a bill by setting up automatic transfers to an emergency fund and retirement accounts.
- Build an emergency fund: Build one to prevent future debt, but pay high-interest debt first, notes a YouTube video.
- Retire early with a Roth IRA: Use a Roth IRA as both an emergency fund and a retirement vehicle.
Stick to Your Budget, Girlfriend
First, put together a homemade spreadsheet or get a budgeting app and start tracking all the money that is going in and out of your accounts. This kind of system helps you control how much you are spending day to day.
As Orman says, “Every time you go to spend money, you ask yourself the question, ‘Is this a want or is this a need?’ If it’s a want, do not buy it.” Keep in mind you also have to be accountable for what you are spending and pay your bills on time as part of this process.
In fact, a majority of her budgeting philosophy centers on living below your means, plus a ruthless wants vs. needs distinction, automating savings into a big emergency fund, paying down high-interest debt, prioritizing needs and saving for retirement. Orman stresses that true financial security comes from disciplined habits and clarity about your financial “enough.”
Achieve Those Major Milestones, Sweetheart
Set long-term goals such as homeownership and creating financial security in retirement, then work every day to turn those dreams into reality.
By age 50, Orman suggests you should have many milestones under your belt. “When was the last time you carefully reviewed how much you have invested in stocks? Five years? Ten years? That puts you that much closer to retirement,” Orman said.
If you’ve already prioritized saving for retirement over indulging in bad spending habits, you’re on the right track. “Don’t automatically tell yourself no. Increasing your Roth IRA savings by $2,000 a year works out to less than $40 a week, or $5.50 a day. Saving $5,000 more a year works out to $100 a week, or less than $14 a day,” she said.
The bottom line is that you need to set a goal, track your spending and make saving a priority. Better habits also include automating your savings and using credit cards wisely. Just a few adjustments now can make a huge difference in your financial future.
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