Jul 15, 2024
Financial guru Suze Orman believes self-sabotage is why most Americans don’t have the financial resources they think they need.
“I’m here to tell each and every one of you, if you don’t have the money that you want in your life, you are the reason why,” she said on stage at one of her personal finance conferences.
Advertisement
“You are either thinking you don’t deserve it, you’re saying you’re never going to get out of debt, or you are taking action and giving all your money or anything that you do to somebody else because you don’t think you are worthy.”
It can be argued that this is too simplistic a take. However, building on Suze’s message, here are three simple things you can do to break these mental barriers and move closer to your financial goals.
Change your mindset
There seems to be a sense of financial hopelessness that supports Orman’s thesis. In fact, 18% of Bankrate’s 2024 Financial Success Survey respondents said they would never make their desired income. And 61% of renters surveyed by The Harris Poll Thought Leadership Practice said they might never be able to purchase a home.
Almost 30% of Americans with credit card debt believe it will take up to five years to pay off, while 11% believe it could take up to a decade, according to a Clever Real Estate survey.
This mindset could be preventing many from seeking help or taking action to improve their financial situation. A sense of hopelessness could become a self-fulfilling prophecy. Orman believes a shift in mindset could be the first step to better outcomes. “Anything and everything is possible in your life if you simply walk towards who you are meant to be versus away from it,” she said.
Simply put, a shift in perspective should help you to achieve better financial outcomes.
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Robert Kiyosaki begs investors not to miss this ‘explosion’ — says this 1 asset will surge 400% in a year
- Vanguard reveals what could be coming for U.S. stocks, and it’s raising alarm bells for retirees. Here’s why and how to protect yourself
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Live below your means
Orman’s top advice to her followers is to “buy what you need versus what you can afford when you can afford more than what you need.” In other words, she recommends living below your means to accumulate savings and build wealth.
Advertisement
In the current economic climate, this is easier said than done. The prices of essentials such as housing, groceries and fuel have risen quickly in recent years, leaving little room for savings. In fact, according to the Bureau of Economic Analysis, the U.S. personal savings rate is just 3.9%, down from 7.2% before the pandemic in January 2020.
Nevertheless, boosting income through side hustles or moving to a cheaper part of the country could help you create that buffer you need to start saving cash. The next step, according to Orman, is to automate your savings.
Automate your savings
During an interview at CNBC’s Women & Wealth event, Suze Orman discussed the benefits of automating your savings.
“I would automate,” she said. “Meaning that I would choose that you do $50 a month, $100 a month, whatever it may be, and automate it and you will find that you do not miss it.”
Many banking and investment apps allow users to set up recurring transfer amounts from a checking or savings account, which can keep you more disciplined.
After studying data from the National Bureau of Economic Research and the U.S. Department of Defense’s auto-enrollment of recruits in the federal Thrift Savings Plan, researchers at the Center for Retirement Research at Boston College concluded that auto-enrollments are “a terrific way to push reluctant savers to prepare for a future in old age.”
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
- This 20-year-old lotto winner refused $1M in cash and chose $1,000/week for life. Now she’s getting slammed for it. Which option would you pick?
- Warren Buffett used these 8 repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
- 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)
Vishesh Raisinghani is a financial journalist covering personal finance, investing and the global economy. He's also the founder of Sharpe Ascension Inc., a content marketing agency focused on investment firms. His work has appeared in Moneywise, Yahoo Finance!, Motley Fool, Seeking Alpha, Mergers & Acquisitions Magazine and Piggybank.
