Financial guru, author, motivational speaker, financial advisor and self-made millionaire Suze Orman is a go-to expert in the personal finance space. Part of what helps her stand apart from her peers is the way she lays her thoughts and advice out. She’s 100% no-nonsense and tells it like it is, or, rather, how it is from her knowledgeable, experienced perspective.
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You might describe Orman’s communication style as blunt and assertive — and all the more power to her for that. Sharing financial wisdom shouldn’t be done in a walking-on-eggshells manner. It’s just too important. Let’s consider six of Orman’s tips that are particularly brutally honest. Follow them now to build wealth and secure financial freedom.
Many financial experts recommend having a three to six month emergency fund available at all times. Orman is more aggressive. She recommends having at least eight months of money at the ready to cover unexpected costs.
“Every family should have an emergency savings account that can cover at least eight months of living expenses,” Orman wrote in a post on Oprah.com. “And I also want every woman to have her own personal savings account that could support her for at least three months.”
You probably know by now that credit cards are dangerous tools. You shouldn’t avoid them 100% (they’re important to have for your credit score), but you should use them as seldom as possible and only if you’re sure you can cover the balance in full every month.
Like many financial experts who have seen the damage credit cards can do far too many times, Orman recommends opting for cash or debit cards over credit cards.
“There is no more expensive form of bondage than spending more than you have and paying interest of 15% or more on your credit card,” Orman wrote in a blog post.
Back to the issue of credit card debt. If you’re carrying any, you need to prioritize eliminating it. How you do this depends on how much debt you have and how possible — or impossible — it is to pay it off.
“I generally encourage people to make good on debts when they have enough money to repay them,” Orman told Oprah.com. “But once a delinquency has been reported to a collection agency, paying it off won’t help your FICO score. The damage has already been done, and the blemish will remain on your credit report for seven years. At this point, I’d recommend that you negotiate with the debt collector so you can repay a smaller amount and keep more of your savings.”
