5 Suze Orman Rules You Should Actually Follow
Look, let’s be real.
Financial advice can be overwhelming.
There are thousands of gurus, each screaming something different from a podcast.
But for years, Suze Orman has been the loud voice in the room.
And honestly? Most of the time, she makes sense.
She isn’t for everyone.
Some people find her intense personality a bit much. And this is where things get interesting.
But if you strip away the drama, her core philosophy is actually pretty solid.
It’s about discipline and protecting what you have.
I’ve been following her advice for a while now, and I’ll admit, it’s not always easy.
But it works.
So, we aren’t just going to talk about her new shows or her retirement plans.
We are going to break down the specific rules that can change your life right now.
If you want to get your finances in order, these are the things you need to pay attention to.
Now think about that for a second.
1.
The 9/55 Rule for Investing
Okay, this one sounds weird at first.
The 9/55 rule basically says that if you have $55,000 saved up in your retirement account (like a 401k), you can withdraw the 9% you’ve contributed from your own paycheck tax-free.
It’s a bit of a loophole, but it’s a real one.
The idea is to force yourself to invest.
Most people just let their money sit there doing nothing.
Suze says you need to treat your future self like a person who matters.
If you can access that money, you are less likely to keep adding to it and more likely to invest it aggressively.
It’s a psychological trick, but it works on paper.
And that’s usually what we need.
2. And this is where things get interesting.
Pay Off Your Credit Cards Every Month
This feels like common sense, but most people get this wrong. But there’s a catch.
The golden rule is simple: never carry a balance.
The interest rates are just predatory.
It’s a trap.
Suze is always talking about how credit card debt is an emotional problem, not a mathematical one.
And she is right.
If you buy something on a credit card that you can’t afford, you aren’t getting anything.
You are just renting it for a few dollars more.
It is infuriating to look at your statement and see how much you paid in interest over the years. Now think about that for a second.
I’ve been there.
It hurts.
Avoid it at all costs.
And this is where things get interesting.
3.
Get a Cash-Only Checking Account
Why would anyone do this? Well, if you struggle with overspending, this is a lifesaver.
You take out your monthly allowance in cash on payday.
Once the cash is gone, you are done until next month.
I tried this a few years ago.
It was surprisingly hard.
Going to the ATM felt like I was losing money.
But I stopped eating out as much. Here’s the interesting part.
It forces you to feel the pain of spending.
Unlike swiping a card, seeing a stack of bills in your wallet makes you realize how fast that money vanishes.
It’s a simple tool to help you respect your income.
Now think about that for a second.
4.
The Debt Snowball (Even If Math Suggests Avalanche)
And this is where things get interesting.
Usually, the math says you should pay off your highest interest debt first (the Avalanche method).
It makes the most sense on paper.
But Suze argues for the Debt Snowball.
You pay off your smallest balances first.
Why? Because you need wins.
You need to feel like you are actually making progress.
Getting rid of that small student loan or that ding on your credit card gives you a dopamine hit.
It keeps you motivated to keep going.
From what I’ve seen, people quit the Avalanche method way more often than the Snowball method. Oddly enough,
It’s about staying in the game.
So, pick the one that keeps you moving forward.
5.
Only Invest in What You Can Understand
Suze famously hates crypto and complex derivatives.
And honestly? I agree with her here.
A lot of the stuff Wall Street pushes is just gambling.
You don’t need to be a genius to invest.
You need to understand what you are buying.
If a fund is too complicated to explain to your mom, don’t buy it.
Stick to index funds or trusted ETFs.
Her advice on using platforms like Wealthfront or Vanguard is solid.
They offer diversification without the headache.
Let someone else manage the boring stuff while you focus on your career.
Final Thoughts
Now think about that for a second.
Suze Orman isn’t going to tell you how to get rich quick.
She isn’t going to sell you a get-rich scheme.
She is going to tell you to work hard, save your money, and protect your credit.
And honestly? That’s probably the best advice you can get in 2024.
Money is just a tool. And this is where things get interesting.
But you have to use it right. Here’s the interesting part.
If you can wrap your head around these five rules, you are already ahead of 90% of the population.
So, go open that savings account.
The best time to start was yesterday.
Image source: pexels.com
Image source credit: pexels.com
