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Suze Orman has spent decades improving the financial outcomes of many Americans.
The financial advisor and host of The Suze Orman Show has written 10 consecutive bestselling books on personal finance and has given countless speeches on the subject. She also hosts a successful podcast, Women & Money.
Orman summarized decades of her best financial advice when speaking to a live audience in 2019: “If you live your life with [this] one rule, your life will start to change.”
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Orman’s game-changing rule
Orman suggests that anyone looking to build financial security should “buy what you need versus what you can afford when you can afford more than you need.” In other words, her advice was to live below your means.
As an example, Orman said she could technically have afforded an apartment that was much more expensive than the one she actually has. But by purchasing property below her budget, she created a monetary buffer that added to her sense of financial stability over the long run.
Orman isn’t the only successful entrepreneur who lives by this rule. Warren Buffett famously still lives in the home he purchased for just $31,000 in 1958.
IKEA’s late founder, the late Ingvar Kamprad, bought clothes at flea markets even after he became a billionaire. Maintaining that gap between needs and wants is a critical part of his wealth-building strategy.
Unfortunately, many Americans struggle to exercise similar restraint — especially when it comes to spending with their plastic.
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When you link your bank account, Acorns will round up your transactions to the nearest dollar as you make purchases on your credit or debit cards, investing the difference in a smart portfolio of ETFs. This way, even as you spend, you’re steadily building your portfolio. With rising expenses often outpacing income, putting your savings on auto-pilot could potentially help you get out of your own way.
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To ensure you’re following Orman’s golden rule, getting a handle on your income and expenses with a budget is essential. Your savings and investment strategies should fall into a greater budgeting plan, especially if you’re trying to expose overspending or take advantage of compound interest.
But making a budget you can stick to is not always easy in practice, sometimes you need to bring in a pro to help — that’s where WiserAdvisor can help.
WiserAdvisor is an online platform that connects you with vetted financial advisors. After sharing some information about yourself and your finances, WiserAdvisor matches you with two to three FINRA/SEC registered financial advisers best suited to help you consider your financial goals and develop a plan to build your wealth.
You can view the advisors’ profiles, read past client reviews, and schedule an initial consultation for free with no obligation to hire.
Read more: Rich, young Americans are ditching the stormy stock market — here are the alternative assets they’re banking on instead
America’s overconsumption issue
Many Americans have found themselves in debt as they struggle to bridge the gap between what they can afford and what they want to purchase (but don’t actually need).
Household debt hit a record $17.8 trillion in Q2 2024, with credit card and auto loans rising alongside mortgage debt. This financial pressure has left many American families in a tough spot, but Orman suggests her golden rule could help them regain control.
“How do you start to live by that rule?” she asked during the live presentation. “From this day forward, I would like you to make a vow to yourself that, for the next six months… only buy needs, not wants.”
Cut down spending where you can
Indeed, beyond consumer spending, a Lending Tree study reveals that more than 18 million American homeowners are considered “house poor” — spending more than 30% of their monthly income on housing costs.
Those costs can include everything from mortgage payments, utility bills, renovations, property taxes, or home insurance policies.
In the United States, approximately 22.8% of homeowners were considered cost-burdened in 2022, meaning they spent more than 30% of their income on mortgage payments and other housing costs.
Being overextended can happen to anyone, so lowering expenses where you can may offer much-needed relief. In this case, BestMoney could make shopping for home coverage fast, simple and affordable.
BestMoney’s easy-to-use platform helps you find the best home insurance rates in your area. All you need to do is answer a few quick questions about yourself and your home, and you’ll see a list of quotes for you to compare. In just a few clicks, you can find the best policy for your needs.
As if home expenses weren’t bad enough, another report by Market Watch found that 82% of Americans struggle to keep the monthly cost of car ownership below the recommended threshold of 10% of their monthly income, with the national average sitting at $179 per month.
So it can really pay off to ask yourself: When was the last time you shopped for a better rate on your car insurance?
When you use OfficialCarInsurance, they’ll ask you some quick questions that help determine your insurance. Things like your age, your home state, the type of vehicle you drive and your driving record.
Based on your answers, they’ll sort through leading insurance companies in your area, including top providers like Progressive, Allstate and GEICO, ensuring you find the lowest rate possible — and the platform is 100% free to use.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
