Everyone should listen to this Suze Orman advice.
- Suze Orman is a finance expert who has offered advice on a wide variety of subjects, ranging from buying a home to investing in bonds.
- One piece of her advice is especially beneficial for people to listen to.
- This advice focuses on the most effective way to cut spending.
Suze Orman has a well-established reputation as a financial expert and she’s provided a wealth of advice to readers and listeners.
Although she’s given many good tips on everything from deciding whether to rent or buy to making decisions about what to invest in, one particular piece of advice stands out from the rest.
In my opinion, this specific advice that Orman has given is especially important because it can make the biggest difference in people’s lives over the long run.
Here’s Suze Orman’s best advice
In a blog post about increasing retirement account contributions, Orman gave some really great advice. Specifically, she commented that “much of our spending is out of habit,” and as a result, she believes it’s especially important to review large monthly expenses rather than just continuing to pay them indefinitely.
“It’s a valuable exercise to review all your habitual spending and ask yourself if you still need to be using your money this way,” Orman’s blog says.
Orman provided an example of a situation where you simply accept that you’ll have a car payment, but don’t stop to think about whether you actually need two cars if you’re now working remotely. She also gave the example of a storage unit that you pay for despite not using what’s inside of it.
She suggests considering whether all of these regular large ongoing expenses are actually worth it. This is extremely valuable advice because it’s something far too many people forget to do.
Why is this advice so important?
Orman’s advice about reconsidering big expenses to free up cash for financial goals is very important for everyone to follow. It’s my favorite piece of advice she has ever given because so many people overlook this obvious approach when looking to make budget cuts.
Many people accept certain large expenses as givens when they make a budget, such as their car payment or housing payment. These are the expenses that take a huge chunk out of most people’s budgets. Instead of focusing on whether they’re really necessary or adding value, people instead chip away at the little stuff such as looking to eliminate a daily latte or cutting out other small indulgences.
The reality, however, is that it can be really difficult to sustain a budget that accomplishes financial goals making dozens of small cuts and by eliminating little things that make life enjoyable. It’s much easier to cut large unnecessary expenses that are no longer adding value — both because these expenses are bigger so cutting them can free up more money and because making this kind of change only has to be done once to free up money over the long run.
If you want to find more money to invest seriously in your future or to pay off credit card debt, you should consider following Orman’s advice and looking at the big expenses you consider to be fixed or set in stone. If you can cut those by making a lifestyle change one time rather than having to continually deprive yourself over the long haul, you’ll go a long way toward setting yourself up for financial success.
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