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6 Frugal Habits Suze Orman Swears By
Financial guru Suze Orman has been a beacon of wisdom in the realm of personal finance for decades. Known for her straight-talking advice and practical strategies, Orman has helped countless individuals navigate their financial journeys with confidence.
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One of the pillars of her philosophy is frugality — not merely saving money, but making smart, value-driven decisions that lead to a secure and fulfilling financial life.
Here are some of Orman’s favorite frugal habits, offering insights that can benefit anyone looking to enhance their financial well-being.
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Understanding the Value of Money
Orman emphasizes the importance of understanding the value of money. She often speaks about how earning money is much harder than spending it. This understanding is crucial in developing a frugal mindset. Every dollar spent should be considered an investment in your life, whether it’s for immediate needs or long-term security.
Orman is a strong advocate for delayed gratification. She believes in waiting for the right time to make a purchase, especially for big-ticket items. This not only allows time to save and avoid debt but often leads to more satisfaction when the purchase is finally made.
More: 9 Frugal Secrets I Learned From Growing Up Poor
Tracking Your Expenses
Orman insists on the importance of budgeting and tracking expenses. Knowing where your money goes each month is the first step in taking control of your finances. This habit helps identify areas where you can cut back and save.
A significant part of budgeting, according to Orman, is allocating money towards an emergency fund. This fund is essential for financial security, ensuring that unexpected expenses don’t derail your financial goals or lead to debt.
Choosing Quality Over Quantity
Orman often talks about the wisdom of choosing quality over quantity. Buying cheaper, lower-quality items can sometimes cost more in the long run due to replacement or repair costs. Investing in high-quality products that last longer can save money over time.
Looking for Coupons and Discounts
Orman doesn’t shy away from using coupons and looking out for discounts. She encourages people to take advantage of sales, coupons, and discount codes, emphasizing that paying full price isn’t always necessary.
Avoiding Debt and Living Within Your Means
One of Orman’s key principles is avoiding high-interest debt, particularly from credit cards. She advises using credit cards wisely and paying off the balance in full each month to avoid interest charges.
Living within your means is a cornerstone of Orman’s philosophy. She believes in spending less than you earn and avoiding the trap of lifestyle inflation — where increased earnings lead to proportionally increased spending.
“You have to live below your means but within your needs,” she recently told the Wall Street Journal.
Avoiding Retail Therapy
Orman often discusses the emotional aspect of money. She encourages people to understand their emotional spending triggers and to find healthier ways to cope with emotions rather than turning to retail therapy.
Orman values experiences over material possessions. She suggests that spending money on experiences, like travel or learning new skills, often brings more lasting happiness and fulfillment than buying physical items.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.
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This article originally appeared on GOBankingRates.com: 6 Frugal Habits Suze Orman Swears By
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