Whether you are tired of watching your hard-earned cash disappear every month or want to make sound financial choices, Suze Orman’s advice can be a game changer. As a financial guru with a no-nonsense approach, Suke Orman has guided countless individuals toward economic stability and long-term success. This article will explain Suze’s essential tips for becoming a savvy spender.
Fight the Urge to Splurge
Suze Orman tackles impulse purchases with her clever “Wait 24 Hours” rule. Think before you hit “buy” or reach for your wallet. By imposing a mandatory wait on non-essentials, you break the cycle of instant gratification. This pause lets the initial excitement fade, helping you decide whether it’s a genuine need or a fleeting desire.
Live Within Your Needs
Suze Orman’s mantra – “Live within your needs but below your means” – can revolutionize your finances. Even necessities like housing and food can be areas for savvy spending. Orman emphasizes that the ideal spending amount for these needs should reflect your specific situation, not just a generic standard.
Small Conveniences Can Be Budget Drains
Small conveniences can become big budget drains. While the cost difference between food delivery and cooking or opting for Uber over public transportation may seem small, these expenses accumulate over time.
Orman’s straightforward approach encourages us to break free from wasteful spending habits. By eliminating unnecessary conveniences, you can pave the way for long-term financial stability.
Opt For Used Cars
Instead of constantly chasing the latest models, Suze Orman recommends purchasing reliable used cars and keeping them for at least eight years. New cars lose value rapidly as soon as you drive them off the lot, making them a poor investment. By opting for well-maintained used vehicles, you can save significantly. Research models for longevity and have a mechanic inspect any used car before purchasing.
Save 8 Months Of Living Expenses As Emergency Fund
Don’t let life’s surprises derail your finances. Suze Orman has always stressed the importance of a robust emergency fund. An emergency fund of eight months’ worth of expenses provides peace of mind, ensuring you’re financially secure in case of job loss or medical emergencies. It might seem like a big goal, but financial security for you and your family is worth it.
Choose Debit Card Over Credit Card
Suze Orman believes high-interest debt is financial bondage. To avoid it, she advises using a debit card linked to a checking account without overdraft protection. This way, you can only spend what you actually have and avoid those sky-high credit card interest rates.
Don’t Be Afraid To Negotiate
Orman’s wisdom on negotiation is invaluable. She firmly believes that everything is negotiable, whether it is interest rates or cable bills. Confidently requesting a discount or improved terms can yield positive results. Loyalty as a customer can also provide negotiation leverage.
Try Strategic Couponing
While coupons can significantly reduce your grocery bill, Orman emphasizes avoiding impulse purchases driven solely by sales. When it comes to bulk buying, focus on non-perishable items that you consistently use.
Remember: only buy what you genuinely need and will use, even if it’s a tempting deal. Matching coupons with existing sales and planning meals around your stocked items can further maximize your savings.
Calculate The True Cost Of Your Purchase
Suze Orman’s “True Cost” trick helps curb impulse purchases. When faced with an impulse purchase, consider the hours you must work to afford it. For example, if an item costs $180, and you earn $30/hour, that’s six hours of your life wasted. Shifting your perspective to the actual time invested in earning the money makes spending decisions feel more real and motivates you to be more deliberate with your purchases.
Be Healthy
When you invest in your health, you invest in your wallet. Suze Orman sees a healthy lifestyle as a win-win. Not only does it boost your well-being, but it can also save you a significant chunk of change down the road. Studies show that healthy habits can significantly reduce future medical expenses. Orman describes it as saving nearly $150,000 over your lifetime.
Don’t Waste Money On Daily Lattes
Suze Orman isn’t a fan of daily coffee shop runs. She views those $3 drinks as wasted money that could fuel your retirement. Instead, she suggests redirecting that $100 a month towards savings. Over time, that daily latte could become a cool million (with a high growth rate assumption). Small daily drains can add up significantly.
Preventative Home Maintenance
Don’t let minor problems snowball into costly repairs. Suze Orman is a big believer in preventative home maintenance. Fixing a leaky faucet now beats a major plumbing overhaul later. Regularly changing furnace filters and addressing minor issues promptly saves you money in the long run. Think of preventative maintenance as an investment in your home. The internet offers many resources and tutorials to equip you with the knowledge and skills to tackle many home repairs yourself.
Ditch The Subscription Drain
Suze Orman’s advice on subscriptions and memberships is straightforward: regularly assess whether you’re getting value for your money. If that online yoga class or unused gym membership isn’t serving you, it’s wasted cash. Consider free trials, share memberships with friends, or explore cost-free alternatives. Your wallet will thank you.
Save More With Hand-Me-Downs
Embrace the magic of hand-me-downs. Suze Orman loves them, especially for families. Gently used clothes, toys, and baby gear from friends or family can save you tons of money. Kids outgrow stuff so fast, so why pay full price when you can recycle and save? Online groups can also help you buy these money-saving treasures.