Suze Orman’s Five Top Money Tips You May Want to Follow

At some point, we all want to retire comfortably.

But to do so, you need to plan ahead, as noted by finance expert Suze Orman. In fact, she notes there are key things you should pay close attention to if you’re nearing retirement.

Key Points About This Article

• According to Suze Orman, “Every family should have an emergency savings account that can cover at least eight months of living expenses,” she said on Oprah.com.
• Unless you can pay off your entire credit card bill every month, avoid using credit cards. Instead, rely on cash or debit cards.
• The average lifespan may be 77.5. But many more of us are living to be far older. In that case, you may want to set aside extra money for extra financial padding.
• 4 million Americans are set to retire this year. If you want to join them, click here now tosee if you’re behind, or ahead. It only takes a minute. (Sponsor)

Have an Emergency Fund 

According to Suze Orman, “Every family should have an emergency savings account that can cover at least eight months of living expenses,” she said on Oprah.com.

For many of us, saving eight months of expenses is easier said than done.

If you can’t swing that, start small with an emergency savings goal of at least $1,000. Sure, it’s small but it’s a safety net, and it’s a start. If you can put away about $85 a month, you’ll reach that goal and have some wiggle room. However, be sure to store this in a separate “don’t touch” account, automatically depositing money every time you’re paid. Plus, if you ever receive another source of income, such as a bonus or a gift, put it directly into that “don’t touch” account instead of spending it immediately.

Use Debit Cards Instead of Credit Cards

Unless you can pay off your entire credit card bill every month, avoid using credit cards. Instead, rely on cash or debit 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 said, as quoted by GoBankingRates.com.

Get Out of Credit Card Debt 

Many of us think it’s easier to just charge everything until they get the bill, plus interest.

According to LendingTree.com, Americans have about $1.166 trillion in debt, which is up from $1.142 trillion in the second quarter.

Also, according to Experian, “the average credit card balance in the United States in 2024 is $6,699, a 5.3% increase from June 2023. The average monthly payment for credit card debt in 2024 is $1,212, which is a 5.9% increase from June 2023.”

It’s better to get rid of credit cards if you can, and just use cash.

Set Up Automatic Deposits 

One of the best ways to set aside money for savings is by setting up automatic deposits.

“It can be $10 a month, $200, or $1,000. That’s up to you, and each account can have a different contribution amount,” Orman said, as also quoted by GoBankingRates.com. “All I insist is that you make this automatic. That is a proven way to stay committed to a savings goal. Having money zapped from your checking account into your savings account is free too. The set it and forget it approach is how you will reach your savings goals.”

Save for Retirement as Though You’ll Live to 100 

The average lifespan may be 77.5. But many more of us are living to be far older.

In that case, you may want to set aside extra money for extra financial padding.  “You know that I have long recommended that you base your retirement planning on living to at least 90; to be even safer planning to age 95 is even smarter,” Orman added. “Anyone who makes it to age 65 basically has a 50-50 chance of still being alive in his or her mid 80s. And living into your 90s is not nearly as rare as you may think.”

In fact, according to Census.gov, “The nation’s 90-and-older population nearly tripled over the past three decades, reaching 1.9 million in 2010, according to a report released today by the U.S. Census Bureau and supported by the National Institute on Aging. Over the next four decades, this population is projected to more than quadruple. Because of increases in life expectancy at older ages, people 90 and older now comprise 4.7 percent of the older population (age 65 and older), as compared with only 2.8 percent in 1980. By 2050, this share is likely to reach 10 percent.”

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