As I approached my mid-50s, I began to think seriously about retirement. I had always admired Suze Orman’s no-nonsense financial advice, and her guidance helped me transform my financial situation. Now, at 60 years old, I feel confident and ready for retirement, thanks to her principles. In this post, I’ll share five key strategies I learned from Suze Orman and how following them has set me up for a secure future.
1. “People first, then money, then things.”
This is one of Suze Orman’s core philosophies, and it helped me shift my focus early in my financial planning. When I was younger, I spent impulsively on material things—fancy gadgets, new clothes, and frequent vacations. But after hearing Suze’s quote, I began to prioritize my financial goals and focus on what really matters: taking care of myself and my loved ones.
By putting “people first,” I began contributing more to my retirement accounts, securing my financial future, and building an emergency fund. Now, as I near retirement, I’m not concerned with keeping up appearances. I know that the money I’ve saved will allow me to enjoy life with my family and spend on meaningful experiences.
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2. “Live below your means but within your needs.”
One of the most valuable lessons I took from Suze Orman was the importance of living below my means. I used to spend most of my paycheck and thought nothing of credit card debt, rationalizing that I would always pay it off later. Suze’s warning about debt and overspending woke me up. She often said, “Debt is bondage,” and I didn’t want to be shackled by it any longer.
I began budgeting more carefully and finding ways to cut unnecessary expenses. Instead of buying a new car every few years, I opted to drive my current car for as long as possible. I downsized my home, sold unused possessions, and shifted my focus to saving. Suze’s advice led me to adopt a simpler lifestyle, and as a result, I was able to max out my retirement contributions and create a healthy savings cushion.
3. “The goal of money is to make you feel secure.”
Suze Orman always emphasizes that money is not just about having things, but about security. Her quote, “The goal of money is to make you feel secure,” really resonated with me when I began to think about my long-term future. I realized that no amount of material goods would give me peace of mind if I wasn’t prepared for the unknown.
I began contributing to both a traditional IRA and a Roth IRA, following Suze’s recommendation to have tax diversification in retirement. Now, I have options—whether I need tax-free withdrawals or taxable income—and this flexibility makes me feel secure. I also invested in an adequate long-term care insurance policy, which Suze often advocates for. I feel at ease knowing I have a plan in place for potential healthcare needs as I age.
4. “Emergency savings must be a priority.”
Another piece of Suze’s advice that stuck with me was her emphasis on having a solid emergency fund. She often says, “At a minimum, you need an emergency fund that can cover eight months of living expenses.” For a long time, I ignored this advice, thinking I could always rely on credit cards or my job to cover me if something went wrong. But Suze’s warnings about unexpected life events like job loss, medical emergencies, or market downturns motivated me to start building my emergency fund.
I began setting aside money each month into a high-yield savings account until I had built up eight months of living expenses. This savings gave me peace of mind during uncertain economic times, including the market fluctuations over the past few years. It also meant that I never had to dip into my retirement accounts prematurely, ensuring that those funds would continue growing.
5. “It’s better to do nothing than to make a mistake.”
Suze Orman’s cautious approach to investing has helped me avoid impulsive financial decisions. While I’ve always been an investor, Suze’s advice to avoid emotional investing—“It’s better to do nothing than to make a mistake”—was a crucial reminder for me, especially during market downturns.
When the market dipped in 2008 and again during the COVID-19 crisis, I resisted the urge to sell off my investments in a panic. Instead, I stuck to Suze’s advice and stayed the course. I maintained a diversified portfolio, regularly rebalancing and keeping my costs low with index funds and ETFs, which Suze recommends for most investors. By following her guidance, I didn’t lock in losses and was able to benefit from the market recovery.
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