Suze Orman is widely known as a financial expert and host at CNBC. She sees newly-successful people waste away their wealth all the time, and it’s starting to grind her gears!
“The biggest problem is when you do make it big, and you don’t know what to do with your money… some financial advisor is going to come by and give you an elevator speech and a pitch, and you’re going to take it,” Orman told the audience at a recent eMerge Americas conference. “And you’re going to lose everything that you have worked for.”
Take An Active Role In Managing Your Wealth
Orman is adamant that you need to take a hands-on approach to investing your money. You’ve gotten to where you are through hard work and determination. Now’s not the time to put your funds on autopilot, because now you’ve got something to lose.
The biggest mistake Orman sees people make is not investing enough time in investing wisely. Rather than diving into side projects or cranking up sales, spend time getting the most out of the earnings you already have. Tune-up your investment machine before crushing your next project.
Get Out Of Debt And Stay There
A huge part of fine-tuning your finances is getting out of debt. According to Orman, there’s three simple steps to getting out of debt:
- Identify your debt.
- Trim expenses.
- Borrow the least amount for the least amount of time.
It just comes down to executing them, which is easier said than done.
aving debt is like racing a boat with a dropped anchor. You can still move forward with a powerful engine, but only at a turtle’s pace. You want to save money while you make it the fastest, and that happens while you’re still young.
Learn How To Grow Your Money Now!
Orman adds that saving and investing is a critical skill to learn early on. According to Orman, most young people “are in serious need of some navigational help when it comes to their 401(k)s.” Her big tip? Go for a Roth 401(k) over a traditional 401(k). The Roth allows you to pay taxes now rather than when you withdraw during retirement. You’d rather pay taxes now while you’re in a lower income bracket.