Mar 26, 2024
Suze Orman loves to advise Americans on what they shouldn’t do with their money — but is the Bahamas-based multimillionaire out of touch?
“I refuse to eat out,” the finance personality told The Wall Street Journal in an interview. “I think that eating out on any level is one of the biggest wastes of money out there.”
Advertisement
Now, eating out is a pretty popular habit, with the average consumer in the U.S. dining out about three times a month and ordering delivery four to five times a month, according to a 2023 survey by food service distributor US. Foods.
But while Orman disparages your takeout and dine-out habits, she doesn’t pinch pennies when it comes to her priorities, including private air travel — which she calls a “serious splurge.”
Here’s why the self-proclaimed personal finance expert doesn’t compromise when it comes to costly business flights and how this might be a helpful takeaway for you.
Why Orman won’t fly commercial
Just because Orman avoids eating out — and even buying herself a cup of coffee — she’s not necessarily against spending on the things that are important to her.
In a previous interview with Business Jet Traveler back in 2009, Orman explained her love for private air travel all comes down to efficiency, health and pleasure (in that order).
She said she doesn’t have the luxury to deal with a late or postponed flight since “time is money” and she runs her own business, which requires her to travel often. For Orman, a multimillionaire with a media empire, coughing up the extra funds for a chartered jet is worth it.
“Also, the chances are very great [on an airliner] that some kid's gonna sneeze on me and then I get sick,” she adds. “I cannot afford to be down one day. If I am, it's millions of dollars on some level somewhere.”
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — are you doing the same?
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
- Robert Kiyosaki says this 1 asset will surge 400% in a year and begs investors not to miss this ‘explosion’
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Orman believes in living below your means — but dislikes budgets
When it comes to finding the right balance between spending and saving, Orman emphasizes that it’s crucial for people to live below their means but within their needs.
Advertisement
However, making a strict budget isn’t always the solution. Orman compares them to diets, explaining, “If you restrict, you limit, you cut back, you don’t buy this, you don’t buy that, and then all of a sudden you explode and you go out and you buy everything at once.”
Instead of making a big financial resolution for 2024, Orman recommends that folks start with asking themselves whether they feel powerful and secure.
“If you don’t, just do one thing that might make you feel more secure,” she said. “Is that saving $10? Is that not going out to eat?”
The money maven isn’t necessarily suggesting people forgo the things that bring them joy, but she does believe in spending consciously to save where you can. So, perhaps it’s time to cancel that Amazon Prime subscription or gym membership you never use, or shop for a better insurance rate on your car.
It’s a similar take to the “soft saving” phenomenon that Gen Z espouses. You don’t have to set hard and fast rules or save aggressively for the future, but you can be more gentle with yourself and intentional about your purchases.
Orman’s not the only finance personality who believes in mindful spending — author and podcast host Ramit Sethi also advocates for people being able to enjoy their money in moderation. His spending plan includes putting your paycheck toward your fixed costs, investments and savings — as well as a guilt-free spending category that you can focus on once you’ve hit your other financial goals.
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- Inside a $1B real estate fund offering access to thousands of income-producing rental properties — with flexible minimums starting at $10
- Vanguard’s outlook on U.S. stocks is raising alarm bells for retirees. Here’s why and how to protect yourself
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
Serah Louis is a reporter with Moneywise.com. She enjoys tackling topical personal finance issues for young people and women and covering the latest in financial news.
