Suze Orman's 4 Financial Mistakes That Can Cost You — Here's How to Stay Strong With Your Money

Suze Orman's Timeless Advice for Managing Money in Tough Times

Best-selling personal finance author and TV personality Suze Orman has been guiding Americans on making smarter financial decisions for years. With inflation still a major concern, she recently emphasized the importance of being more cautious with spending. The Federal Reserve has also highlighted that "inflation remains uncomfortably above our target."

Orman’s advice continues to be relevant today, especially as people look for ways to manage their finances during challenging economic times. Here are four of her no-nonsense tips for navigating hard times.

Don’t Skimp on Insurance

As part of her focus on financial health for October 2024, Orman reminded readers to review their insurance policies. Having solid coverage is essential, but many drivers simply add their car insurance to their home policy without shopping around.

According to data from Bankrate, the national average cost for car insurance in 2024 is over $2,300 per year. However, by spending just a few minutes comparing rates online, you could potentially save hundreds of dollars annually. Platforms like OfficialCarInsurance.com can help you compare rates for free. By answering a few quick questions, the platform will sort through leading insurance companies in your area, ensuring you find the lowest rate possible.

Don’t Waste Money on Coffee

Orman once famously told CNBC, "You are peeing $1 million down the drain as you are drinking that coffee." She stressed that every penny counts when saving for the future. Instead of spending on daily coffee, consider investing those small amounts using an app like Acorns.

Once linked to your bank account, Acorns automatically rounds up every purchase to the nearest dollar and invests the extra cents in a diversified portfolio tailored to your financial goals. Sign up now and receive a $20 bonus investment.

Don’t Take a Tax Refund

"If you’re getting a tax refund, something is radically wrong," Orman told Yahoo! Finance in 2021. A tax refund essentially means you've given the government an interest-free loan. However, it is possible to use your return wisely as part of your wealth-building plan.

Orman suggested using a tax refund to build an emergency fund. "There is no smarter move than working on your emergency savings account if you’ve yet to accumulate up to a year’s worth of living expenses," she wrote on her blog in March 2023.

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Don’t Take on Debt for Things You Don’t Need

In an October 2024 blog post, Orman urged readers to be mindful of their spending. "Carefully stop yourself every time you are about to spend money and ask yourself: Is it for a need or a want?" she wrote.

She challenged her readers to commit to the lifestyle of needs vs. wants for three months and review the impact on their finances at the end of that time. If eliminating all "want" purchases isn't feasible, the least you can do is spend more wisely—optimize your savings and avoid debt.

Climbing out of debt can be easier when you consolidate under one lower rate. With Credible, you can streamline your debt repayment at an affordable rate. Their online marketplace of vetted lenders provides personalized debt consolidation loan offers based on your needs, allowing you to pay off your debt more efficiently at a fixed rate without juggling multiple bills.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.