Suze Orman, a well-known personal finance expert and best-selling author, frequently discusses the importance of building wealth in uncertain times. Currently, many people are struggling to cover their basic expenses. The Federal Reserve’s report, the Economic Well-Being of U.S. Households for 2024, showed that minor emergencies, such as car repairs or medical bills, make life challenging for many families and many would not be able to afford them.
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Because of this, Orman frequently teaches her followers many ways to ensure that they can build financial security even during challenging years, emergencies, disasters and any other unexpected life event.
Here are some of her top tips for building wealth even in uncertain times. Some of these tips people can implement immediately, while others will take time to implement.
Pay Off High-Interest Debt
On her website, Orman discussed the dangers of high-interest debt, such as credit card debt. She explained that during a turbulent market or a challenging economy with a high inflation rate, having high-interest debt makes it very difficult to get ahead.
Money that people could use towards saving for an emergency fund has to go towards debt with high interest rates. She encouraged her listeners to work hard to pay down debt, not only for the peace of mind but because it reduces risk.
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Build an Emergency Fund
Orman said one of the best protections people can create for themselves — especially during uncertain times — is to build a solid emergency fund of three to six months, per Money Talks News. The purpose of an emergency fund is to provide financial stability during challenging moments, such as being laid off from one’s job. Having money set aside for expenses can help prevent someone from relying on credit cards or other high-interest debt to pay their bills.
Freeze Credit
For people who want to protect their identity, it only takes a few minutes to freeze credit. This prevents scammers from using someone’s credit to open new accounts. It’s free to implement and free to cancel, should someone need to apply for a loan in the future.
In a YouTube video Orman also suggested contacting the local county office to see if they have a system that alerts homeowners to any changes to their property deeds. By doing this, in addition to staying vigilant when paying bills and monitoring expenses, people can protect their assets and their identity, which can help reduce stress and financial hardship.
Get Life Insurance
According to Market Talk News, Orman recommended obtaining both term life insurance and long-term care insurance. Having insurance can protect personal finances in a worst-case scenario. It’s not a pleasant topic, but it’s an incredibly important one. If something unexpected happens, ensuring that dependents and extended family members are cared for and can pay their bills during a difficult time is extremely important.
Invest Simply
Orman cautioned against complicated investments. She said that investing simply is the best route. When a caller on her podcast asked Orman if she should invest in an indexed annuity that a friend sells, Orman advised against it, citing high fees and other drawbacks. Orman said it’s far better to purchase index funds rather than overly complicate retirement investing.
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This article originally appeared on GOBankingRates.com: Suze Orman’s 5 Rules for Building Wealth in Uncertain Times
