Suze Orman’s 6 tips to stop living paycheck to paycheck
Feb 18, 2026
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Even high-income households making $300K to $500K a year report living paycheck to paycheck.
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Save more by keeping living costs low. For instance, save on car insurance by diligently comparison shopping. You can find offers as low as $29/month with just a few clicks.
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Build out a realistic emergency fund. Start small by automatically saving your spare change with Acorns.
If you think struggling to make ends meet is a problem only for low-income earners, think again.
Among high-income households earning between $300,000 and $500,000, over 41% say they are living paycheck to paycheck, according to a report by Goldman Sachs.
For those caught in this cycle, each month can feel like a race to the next payday, leaving little room for emergencies, unexpected expenses or even the simple joys of life.
But personal finance expert Suze Orman says there's a way out.
“The most important thing, really, for everybody to understand about their money ... is that you have got to live a life below your means, but within your needs,” Orman said in a 2023 interview on CNBC.
Here are six practical steps she recommends to help you break free from living paycheck to paycheck.
Tip 1: Tackle high-interest debt fast
“Debt is bondage. You will never, ever, ever have financial freedom if you have debt,” warns Suze Orman.
The average American owes over $105,000, while total U.S. household debt has soared to a staggering $18.39 trillion, according to Federal Reserve data.
High-interest balances are dangerous to your financial health. Credit cards and payday loans are especially damaging, silently draining your income and trapping you in a vicious cycle.
Orman’s advice is simple but powerful: focus on the balance with the highest interest rate first, attack it aggressively, and make minimum payments on the rest. Even small extra payments can build momentum quickly, reduce stress, and free up cash so you can finally move beyond living paycheck to paycheck.
If you’re a homeowner, the equity you’ve built in your home may offer a way to pay off high-interest debt more efficiently. A home equity line of credit (HELOC) allows you to borrow against that equity as needed, often at a lower interest rate than credit cards, payday loans and car loans.
AmeriSave offers a flexible HELOC that lets homeowners borrow against their equity as needed during the draw period, making it useful for renovations, debt consolidation, or ongoing projects.
It’s well-suited for homeowners who want a mostly online, low-friction experience from a well-known mortgage lender. Used thoughtfully, this could help you stay ahead rather than feel squeezed.
If you owe a substantial amount and have no real estate asset you can tap into, you may also want to see if you qualify for a debt relief program to help clear a significant portion of your debt.
With Freedom Debt Relief, you can speak with a certified debt relief consultant for free, who can show you how much you can save by partnering with them.
They can also help negotiate settlements with your creditors until all enrolled debt is resolved.
Tip 2: Build a realistic emergency fund
It may surprise you that 1 in 3 Americans have no emergency savings at all, according to new research by Empower. This means on unexpected expense — such as a major car repair, a medical bill, or a job loss — can push many households into debt.
"You need as much money in the bank that makes you feel secure," Suze Orman said in an interview on CNBC.
She advises that anyone serious about getting rid of debt should find ways to scale back spending. Instead of looking for one big-ticket expense you can drastically cut or eliminate, look for at least a dozen monthly expenses that you can cut by at least 10%.
That extra money can be redirected toward building an emergency fund, which will help reduce financial stress and protect you from accumulating new debt.
One practical place to store those savings is a high-yield cash account, so your funds remain easily accessible while earning more interest than a traditional savings account.
For example, a Wealthfront Cash Account currently offers a base variable APY of 3.30%, and new clients can get an extra 0.75% during their first three months on up to $150,000 for a total variable APY of 4.05%¹.
That’s ten times the national deposit savings rate, according to the FDIC’s January report².
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, Wealthfront Cash Account balances of up to $8 million are insured by the FDIC through program banks.
Tip 3: Automate savings, even small amounts
For those living paycheck to paycheck, especially older adults trying to catch up on retirement, every small contribution matters.
“A portion of every paycheck should go directly into savings — automatically,” says Suze Orman.
The key is consistency, not the size of the deposit. Even $25 to $50 from each paycheck can grow significantly over time when set up to transfer automatically.
An easy way to start is by automatically saving your spare change with Acorns. When you make everyday purchases, Acorns rounds up the price to the nearest dollar and invests the difference for you in a smart investment portfolio.
For example, if you grab a $7.45 movie snack, Acorns automatically rounds it up to $8.00, saving you 55 cents. These small amounts can add up significantly – just $2.50 in daily round-ups could accumulate to $900 per year.
Plus, if you sign up now, you get a $20 bonus.
Tip 4: Know your starting point
Before you can make meaningful progress with your finances, it’s essential to understand exactly where you stand. Track your income, monthly expenses, debts, and credit score — writing it down or using a budgeting app can make this process much easier.
This is especially important for older adults with less time to save. Knowing your starting point helps you focus on high-impact actions, like paying down debt or boosting savings, and plan for long-term security.
As Suze Orman reminds us, “It’s impossible to map out a route to your destination if you don’t know where you’re starting from.”
A quick daily check-in of your accounts can show you exactly where your money is going.
An app like Rocket Money can easily flag recurring subscriptions, upcoming bills and unusual charges by pulling in transactions from all your linked accounts.
Rocket Money’s intuitive app offers a variety of free and premium tools. Free features include subscription tracking, bill reminders, and budgeting basics, while premium features — such as automated savings, net worth tracking, customizable dashboards, and more — make it easier to stay on top of your contributions and overall financial goals.
No spreadsheets, no guesswork, no stress.
Once you have a handle on your finances and build up a healthy emergency fund, you might consider consulting a financial advisor to help with goal-setting and retirement planning. An advisor can also help you adjust your plan as your income grows, your family situation changes, or your goals evolve.
The key is to find the right advisor for your specific needs. A trusted, pre-screened financial advisor, for instance, can help you develop a solid investment strategy, adjust your plan as life changes, and stay on track year after year.
Advisor.com also connects you with an experienced, qualified financial professional in your local area who can provide personalized guidance.
Tip 5: Make spending intentional
“Stop leasing cars, stop eating out, stop doing the things that make your life easier … because in the long run it’s going to make it harder,” warns Suze Orman.
You can start by tracking your spending for a month. This simple step reveals patterns and highlights areas where you may be overspending.
One area where many people can save significantly is home and car insurance. Regularly shopping around and comparing rates between insurance providers can make a big difference in your budget.
OfficialHomeInsurance.com can take the hassle out of shopping for home insurance. In just under two minutes, you can explore competitive rates from top insurance providers, all in one place — and potentially save an average of $482 per month.
With OfficialHomeInsurance.com, you can easily find the coverage you need at a price that can fit your budget.
But saving on home insurance is just the start. Car insurance is another major monthly expense — and rates have been climbing. Between 2020 and 2024, motor vehicle insurance costs rose by an astonishing 54%, according to data from the U.S. Bureau of Labor Statistics..
OfficialCarInsurance.com lets you compare quotes from trusted brands — including Progressive, Allstate and GEICO — to make sure you're getting the best deal. The free tool takes into account your location, vehicle details and driving history to find you the lowest rate possible.
The process is 100% free and won’t affect your credit score. In just a few clicks, you could pay as little as $29 a month.
To stretch your savings even more, you also might want to consider joining senior-focused organizations like AARP for discounts on almost everything — from prescriptions and dental plans to travel, entertainment and insurance.
As one of the most trusted organizations for older Americans, AARP not only offers money-saving perks, but they can also help you make informed financial and health decisions.
AARP members get access to guides that can help you make the most of Social Security, choose the right Medicare plan, and uncover other government benefits — potentially saving you thousands.
Sign up with AARP today and get 25% off your first year.
Tip 6: Protect yourself and your loved ones
Suze Orman emphasizes that true financial stability isn’t just about budgeting and saving — it’s also about protecting what you’ve already built. That’s why life and disability insurance are part of her “Financial Strength Test.”
Despite its importance, a report from Western & Southern Financial Group found that just 51% of U.S. adults had any kind of life insurance.
If you have dependents, life insurance can help cover essential expenses like housing, childcare, or education if something happens to you. Disability insurance is just as critical, especially since your ability to earn an income is often your biggest financial asset.
Even if you’re single, having coverage can protect you from draining your savings or going into debt after an accident or illness.
The key is to start where you can. You don’t need the most expensive or comprehensive policy right away—modest, affordable coverage can provide meaningful peace of mind. As you continue paying down debt and building savings, you can adjust your coverage over time.
Opting for term life insurance through a provider like Ethos ensures that as you age, your loved ones are protected from unexpected costs. With term life insurance, you can secure affordable coverage while managing your other financial responsibilities.
Ethos offers an easy online process that allows you to get up to $2 million in coverage with terms spanning from 10 to 30 years. To get a free quote, simply answer a few questions about yourself. Then, you can compare various policies and choose one that best suits your needs.
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¹ The Base Annual Percentage Yield (APY) is 3.30%, as of 01/30/26, and is subject to change. If you are eligible for the overall boosted rate of 4.05% offered in connection with this promo, your boosted rate is also subject to change if the base rate decreases during the three-month promotional period. The Cash Account is offered by Wealthfront Brokerage LLC, Member FINRA/SIPC. Wealthfront is not a bank. The Base APY is representative, subject to change, and requires no minimum. Wealthfront Brokerage sweeps cash balances to Program Banks, where it earns the variable base APY and is eligible for FDIC insurance. Instant withdrawals may be limited by your receiving firm and other factors. Investment advisory services provided by Wealthfront Advisers LLC, an SEC-registered investment adviser. Securities investments: not bank deposits, bank-guaranteed or FDIC-insured, and may lose value.
² Based on the national average interest rate for savings accounts as posted on FDIC.gov, as of January 22, 2026.
Phil is a writer at Moneywise, bringing a strong background in public relations, financial communications and copywriting. Educated in Cambridge, U.K., he has created content for several blue-chip companies, combining clarity with strategic insight.
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