Suze Orman: 6 brutally honest money tips that you now follow to follow

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Financial guru, author, motivational spokesman, financial advisor and self -made millionaire Suze Orman is an expert in the personal financial sector. Some of what helps her stand out from her colleagues is the way she distinguishes her thoughts and advice. She is 100% knowledgeable and says it as if it is or rather, as it is from her knowledgeable, experienced perspective.

You could describe Orman's style of communication as blunt and assertive – and all the more strength for it. Share of financial wisdom should not have to do in a way. It's just too important. Let's look at six of Orman's tips that are particularly brutally honest. Now follow them to build prosperity and secure financial freedom.

Have a huge emergency fund

Many financial experts recommend having an emergency fund of three to six months at all times. Ortan is more aggressive. She recommends having at least eight months of money to cover unexpected costs.

“Every family should have an emergency account that can cover at least eight months of living costs,” Uran wrote in an article on Oprah.com. “And I also want every woman to have her personal savings account that could support her for at least three months.”

Choose for debit cards via credit cards

You probably now know that credit cards are dangerous tools. You should not avoid 100% (you are important for your creditworthiness), but you should use you as rarely as possible and only if you are sure that you can cover the remaining amount completely every month.

As many financial experts who have seen that the damage credit cards can do far too often, Orman recommends choosing cash or debit cards against credit cards.

“There is no more expensive form of bondage to spend more than it and to pay interest of 15% or more for your credit card,” wrote Orman in a blog post.

Make the debts of the credit card your No. 1 priority

Back to issue the credit card debt. If you wear something, you have to prioritize the removal of the removal. How you do this depends on how much debt you have and as possible – or impossible – it is to pay you off.

“I encourage people in general to debt when they have enough money to repay them,” Orman told Oprah.com. “But as soon as a crime has been reported to a collective agency, it will not help your FICO score to pay them out. The damage has already been carried out and the flaw remains in your credit for seven years. At this point I would recommend negotiating with the debt collector so that you can pay a lower amount and maintain more of your savings. “

Set up automatic deposits in savings

Saving money is a must, and to do it regularly, Orman advises that you set up automatic insoles from your checking account to your savings account.

“It can be 10 US dollars per month, 200 US dollars or $ 1,000. This is up to you and each account can have a different contribution amount, ”wrote Orman in a blog post. “I only exist that they automatically do them. This is a proven way to get involved in a savings goal. It is also free to have money from your checking account to your savings account. The Set It It It and Forse IT approach is how to achieve your savings targets. “

Save for retirement when you live to be incredibly old

The average service life in the USA is 77 1/2 years – but of course some people live much older. Save and invest for retirement as if you are among those who are blessed with super durability.

“You know that I have long recommended that you live your pension to at least 90. It is even smarter to plan even more securely to be 95 years old, ”wrote Orman in a blog post. “Anyone who makes it up to the age of 65 basically has a 50:50 chance to be alive in the mid-1980s. And living in their 90s is not nearly as rare as they might think. ”

Be patient with your investments

If you are an investor (and hopefully you are), you've surely heard this before: be patient; The interest of the interest does not accumulate overnight. Investing is an long -distance game. Play it carefully and calmly.

“Everything you really have to do is to check your account once a year to see if you have to make changes to bring your general assignment back to your goal,” wrote Orman in a blog post. “For example, if your goal is to have 60% in stocks and 40% in bonds, but after a strong performance of the stock market or maybe guide all of your upcoming contributions in bonds to reconcile your mix. “