Suze Orman has spent decades as one of the most visible personal finance celebrities, achieving fame — and helping others pursue fortune — through her books, podcasts and television appearances. A constant theme throughout her career has been her vocal disdain of spending-based debt — and the winter holidays are the season of overspending.
Read More: 5 Frugal Habits Suze Orman Still Follows Even Though She Can Afford Almost Anything
For You: 6 Things You Must Do When Your Savings Reach $50,000
However, Orman developed a four-point playbook to keep spending in check and prevent unnecessary high-interest borrowing this holiday season, which she recently shared on YouTube with her 113,000 subscribers.
Here are her four rules for avoiding the annual ritual of racking up holiday debt.
Rule No. 1: Don’t Procrastinate
When you wait until the last minute, you buy the first thing you see — and often the last thing they need — at the worst possible price. Why? Because planning is the key to saving and procrastination is the enemy of planning — which is why retailers work so hard to encourage impulse spending.
“You’re buying things that are more expensive because you’re not thinking about it,” Orman said in her video.
Explore More: Suze Orman’s Top Tip for Building Wealth Is a ‘Very Easy One’
Rule No. 2: Identify Your Spending Limit and Stick to It
Staying within budget is the key to avoiding holiday debt, so set one before you shop and remember it while you shop.
“You need to set strict limits,” warned Orman. “How much can you spend this holiday season?”
It’s important to determine your number in totality — including gifts, clothing, parties, hosting and traveling — and stick with it regardless of what you’d like to buy. “Do not go over that limit,” she said.
Rule No. 3: Pay in Cash
Orman believes the best way to break Rule No. 2 is to shop with credit cards.
“If you go with your credit cards, even if you have set strict limits, you’re going to see something,” she said. “Instead of it being $50, maybe it’s $70, and you go, ‘It’s OK. I’ll just put it on my credit card.’ If you go to the store with a specific amount of cash, once the cash is gone, you can’t spend any more money because you didn’t bring your credit cards with you.”
Rule No. 4: Communicate — Your Friends and Family Are Probably Strapped, Too
Finally, Orman believes a simple talk with the people in your life can go a long way to alleviating both financial pressure and family stress. The reason? Because cultural custom obligates people to give gifts when they receive them, which can burden them as much as you.
“You’re giving them something you can’t afford, they’re giving you something they can’t afford,” said Orman. “Can you just talk to one another? Maybe you’ll all decide that this is the holiday season. You’re going to give up your heart. You’re going to be honest and you’re not going to spend money that you don’t have on each other simply because that’s what you do on the holidays. That is how you can make this holiday a good one.”
More From GOBankingRates
- 5 Reliable Cars That Will Have Massive Price Drops in Winter 2025
- The 5 Most Iconic (and Expensive) Celebrity Engagement Rings
- The Easiest Way to Pocket an Extra $250 -- Just for Doing Your Day-to-Day Shopping
- 6 Safe Accounts Proven to Grow Your Money Up to 13x Faster
This article originally appeared on GOBankingRates.com: Suze Orman’s 4 Must-Follow Rules To Avoid Holiday Debt
