Suze Orman doesn’t sugarcoat financial advice, and when she tells you to stop doing something with your money, you should probably listen. The financial guru has spent decades helping people build wealth and avoid costly mistakes.
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Here are the money moves she wants you to quit immediately and why breaking these habits could transform your financial future.
Stop Claiming Social Security Early
What Orman Says: Don’t even think about claiming Social Security before reaching your full retirement age, which is around 67 for most people. She’s particularly passionate about this one because the financial impact is massive and permanent.
The Numbers Don’t Lie: Delaying Social Security from age 62 to 70 could increase your monthly benefit from around $2,831 to about $5,108. That’s nearly double the income for life. For each year you delay past full retirement age until 70, you get roughly an 8% increase in benefits.
Why People Mess This Up: Fear drives bad decisions here. People worry that Social Security will run out or that they won’t live long enough to benefit from waiting. Orman argues that acting based on fear rather than facts can sabotage your long-term financial security.
The Bottom Line: Unless you absolutely need the money to survive, claiming early is leaving serious cash on the table. That extra monthly income compounds over decades of retirement.
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Stop Ignoring Roth Accounts
What Orman Says: If you’re only contributing to traditional pre-tax retirement accounts, you’re setting yourself up for bigger tax bills later. Roth IRAs and Roth 401(k)s grow tax-free and never require minimum distributions, making them incredibly powerful tools.
The Tax Time Bomb: Traditional accounts force you to take required minimum distributions starting at age 73, which can push you into higher tax brackets right when you’re trying to live on a fixed income. Roth accounts let you control when and how much you withdraw.
Estate Planning Bonus: Roth accounts are also better for leaving money to heirs since they inherit the accounts tax-free. Your kids won’t get hit with a massive tax bill when they inherit your retirement savings.
How to Fix It: If your employer offers a Roth 401(k) option, consider splitting your contributions between traditional and Roth. You can also do Roth conversions during years when your income is lower.
Stop Emotional Spending
What Orman Says: Retail therapy is financial sabotage disguised as self-care. When you’re stressed, anxious, or upset, shopping might feel good temporarily, but it derails your long-term financial security and peace of mind.
The Real Cost: Emotional spending doesn’t just waste money; it delays progress toward your goals and often adds debt that creates more stress. You end up in a cycle where financial problems cause emotional stress, which leads to more spending, which creates bigger financial problems.
The Orman Solution: Before any purchase, pause and ask whether you’re buying something because you need it or because you’re feeling something. Protect your emergency fund and stick to true essentials during emotional moments.
Better Alternatives: Find free or cheap ways to manage stress, like walking, calling a friend, or doing something creative. The temporary boost from shopping isn’t worth the long-term damage to your financial goals.
Stop Underfunding Your Emergency Fund
What Orman Says: The traditional advice of 3-6 months of expenses isn’t enough anymore. Orman wants you to have 8-12 months of essential expenses saved in a highly liquid account, especially during uncertain economic times.
Why More Is Better: Rising inflation, potential tariffs and economic uncertainty mean you need a bigger safety net. This isn’t money for investments or CDs that might lock you out when you need cash most.
Where to Keep It: Orman recommends keeping this money in a high-yield savings account where you can access it immediately. Don’t chase higher returns with emergency money — liquidity and safety are more important than growth.
How to Break These Habits
Start With Awareness: Recognize when you’re making financial decisions based on emotions rather than facts. Are you claiming Social Security early because you need the money, or because you’re scared? Are you buying that expensive gadget because it’s useful, or because you had a bad day?
Create Systems: Set up automatic transfers to your emergency fund and retirement accounts so you’re not relying on willpower. Use separate accounts for different goals so you’re not tempted to raid your emergency fund for vacation money.
Get Professional Help: If you’re struggling with emotional spending or don’t know how to optimize your retirement strategy, consider working with a fee-only financial advisor who can provide objective guidance.
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This article originally appeared on GOBankingRates.com: 4 Things Suze Orman Wants You To Stop Doing With Your Money
