John Angelillo/UPI/Shutterstock / John Angelillo/UPI/Shutterstock
Commitment to our readers
The GOBankingRates editorial team is committed to providing you with unbiased reviews and information. We use data-driven methods to evaluate financial products and services – our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our review methodology for products and services.
20 years
Helping you become richer
trusted by
millions of readers
Many Americans feel some degree of anxiety about their finances, citing inflation, everyday expenses, the state of the economy, and unsatisfactory income as primary contributors. If this describes your current money mindset, Suze Orman encourages you to dig deeper into the root causes of your money woes.
That was the main money tip he provided in an interview on GOBankingRates’ “Live Richer” podcast, hosted by Jaime Catmull. He acknowledged that this financial advice is “very, very different from what you’ll hear anywhere else” – but that doesn’t make it any less important. Let’s dig in.
Money is an expression of who you are
“You have to understand that money is just a physical expression of who you are,” Orman said. “You have it manifest, and if something is going wrong with your money, that means something is going wrong with you because you and your money are one.”
Orman encouraged listeners to “look within yourself to see why you’re doing this, and that’s where you’ll find the answer, because you can never fix any financial problem with money.”
This explains why so many consumers fail to make progress toward retirement planning or their other financial goals – or worse, fall into debt – even as they increase their income. Called “lifestyle inflation” or “lifestyle creep”, this phenomenon refers to the impact that individual decisions and behaviors have on finances.
learn more: I’m a Financial Planner: Cut These 7 Hidden Expenses to Save You Hundreds Per Month
So before you ruin your credit score, remember that you are in charge. “Money can’t do anything without you,” Orman said during the interview. but money can do anything For You.
He added, “Money can teach you more about yourself than anything else. And when you feel like something is going wrong, it probably is, and it will be reflected in your money, too. In what way? Debt. In what way? No emergency fund, all kinds of ways.”
You control your financial future
As difficult as it may be to face the truth about the root of your financial struggles, it can also be empowering to realize that you — not the inflation rate or the economy or even your income — control your financial future.
Tanya Nichols, certified financial planner (CFP), founder and president of Minnesota-based wealth management firm Align Financial, offers advice on aligning your money with your life in a blog post on her company’s website.
He suggests asking yourself what happiness and financial success look like for you. Nicholas described the answers as “substantial” and recommended eliminating any spending that doesn’t help you achieve it. Plus, small accomplishments make a difference, so be sure to celebrate your small wins and acknowledge the steps you’ve taken to reduce your financial worries.
Last step to go: What else does Orman recommend?
Orman has several recommendations that can help you get out of a difficult financial situation. Here are some top tips:
- Spend on necessities like groceries, but don’t spend on necessities like restaurant meals.
- Open an emergency savings account if you don’t already have one.
- Open a Roth IRA and deposit at least a little money into it every month.
Those small steps will free up some cash so you can pay off debt, accelerate savings, protect your finances against unexpected emergencies and get on track for a secure retirement.
Frugality can be a challenge, but Orman is careful about how she spends her money.
“Do I need to be frugal? No, not really,” Orman said. “But I love it because when you respect money, when you respect money, no matter how much money you have, then your money changes and respects you.”
Caitlin Moorehead contributed reporting to this article.