Suze Orman, bestselling author and personal finance expert, is known for her straightforward and no-nonsense financial advice. While many financial experts discuss ways to increase wealth dramatically, one of Orman’s key focuses is teaching people how to manage the money they already have.
According to the Federal Reserve’s Economic Well-Being of U.S. Households in 2024 report, 37% of adults are unable to cover a $400 emergency payment and only slightly more than half of adults have three months of expenses set aside in a rainy day fund.
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Orman helps consumers who feel like they’re behind or who want to save more by teaching them the “Rule of Enough.” Orman’s philosophy is that instead of chasing more, like a bigger house or more expensive things, people should learn to appreciate what they have and buy less than they need.
Building Financial Security
Orman encourages people to focus on building financial security. She explained in an article for Oprah.com that she’s not immune to money mistakes herself. She described a time when she was younger, when she withdrew money from her 401(k) account to purchase an extremely expensive watch.
Now, with a lot more wisdom, she helps people understand that living within their means and understanding how to manage their finances brings far greater peace and security than having the latest and most expensive items.
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Living Below Your Means
Often, people purchase houses that are beyond their budget or take trips that are more expensive than necessary. Orman explained that it’s always a good idea to create a buffer. For example, she explained on 24/7 Wall St. that she could have afforded a much more expensive apartment than she purchased, but she chose one that was below her means because it mattered more to her to always have financial space.
Redefine Success
Of course, Orman is a very successful financial personality. She is a proponent of building long-term wealth, saving for retirement and living a good life. However, with her Rule of Enough, she’s also interested in helping people learn how to make intentional money choices, respect the money they do have and work on redefining success in terms of security rather than external factors.
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This article originally appeared on GOBankingRates.com: Suze Orman’s ‘Rule of Enough’: Why You Should Stop Chasing More Money
