Suze Orman says these are the worst money moves

Suze Orman says these are the worst money movesSuze Orman says these are the worst money moves
Suze Orman says these are the worst money moves
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Through her best-selling books, TV appearances and tours, Suze Orman inspires Americans to make better money moves and avoid serious financial mistakes.” data-reactid=”22″>Through her best-selling books, TV appearances and tours, Suze Orman inspires Americans to make better money moves and avoid serious financial mistakes.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The personal finance guru will be the first to tell you that what you don’t do with your money may be even more important than what you do with it.” data-reactid=”23″>The personal finance guru will be the first to tell you that what you don’t do with your money may be even more important than what you do with it.

Here are 34 major money don’ts — straight from the expert.

1. Don’t be too quick to buy a home

Shocked Suze OrmanShocked Suze Orman

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Homeownership is part of the American dream — but buying one before you’re able can lead to financial disaster.” data-reactid=”37″>Homeownership is part of the American dream — but buying one before you’re able can lead to financial disaster.

“Sometimes it makes sense to own a home,” Orman tells CNBC.com. “And sometimes, depending on where you live, it makes sense to simply rent.”

That’s particularly true if you’re in an expensive city. Instead of pouring a lot of money into property, Orman says why not invest in the stock market? That way, you can grow your savings — maybe into a down payment on that home of your dreams.

A good way to get into investing is through an automated investment service, or robo-advisor, which will automatically adjust your portfolio to protect you from market turbulence.

2. Don’t let debt linger

Don't let debt lingerDon't let debt linger
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Don’t let debt linger
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Maree Stachel-Williamson / Shutterstock
Don’t let debt linger

“Debt is bondage,” Orman tells CNBC. “You will never, ever, ever have financial freedom if you have debt.”

Still, she points out that not all debt is the same.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="When you take out a mortgage or student loans, those can be considered "good debt," because home loans usually have fairly low interest rates and your degree is an investment that should generate a higher income over time.” data-reactid=”55″>When you take out a mortgage or student loans, those can be considered “good debt,” because home loans usually have fairly low interest rates and your degree is an investment that should generate a higher income over time.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="However, credit cards have much higher interest rates. The longer you put off paying down your credit balances, the more money you lose. The loan comparison website Fiona can help you find a low-interest debt consolidation loan to pay off what you owe faster.” data-reactid=”56″>However, credit cards have much higher interest rates. The longer you put off paying down your credit balances, the more money you lose. The loan comparison website Fiona can help you find a low-interest debt consolidation loan to pay off what you owe faster.

3. Don’t co-sign a loan

Shocked Suze OrmanShocked Suze Orman

When a friend or family member in need asks you to co-sign a loan, Orman says the only correct response is to turn them down.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="As she puts it: "Don’t be afraid to say ‘no to others and say ‘yes’ to yourself."” data-reactid=”74″>As she puts it: “Don’t be afraid to say ‘no to others and say ‘yes’ to yourself.”

When you co-sign a loan, you become legally responsible for paying back the money. Life is unpredictable, and if anything happens to prevent the borrower from repaying the loan, you’ll be on the hook to make the payments.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Plus, if the borrower is so much as late on a few payments, your credit score can take a hit. Check your credit score for free so you know where you stand.” data-reactid=”76″>Plus, if the borrower is so much as late on a few payments, your credit score can take a hit. Check your credit score for free so you know where you stand.

4. Don’t sell stocks when markets are bad

Shocked Suze OrmanShocked Suze Orman

When stocks are hurtling lower, investors tend to drop investments fast. This is a bad idea, says Orman.

Instead of dumping stock, she advises that you just keep investing the same amount of money each month, regardless of what the market is doing. Using this strategy, a bad month for the market becomes a good month to invest.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content=""I wish for 2008 again," she tells Yahoo Finance, referring to the year of the big market meltdown. "That’s when the fortune was made. That’s when you could buy stocks for pennies on the dollar."” data-reactid=”91″>”I wish for 2008 again,” she tells Yahoo Finance, referring to the year of the big market meltdown. “That’s when the fortune was made. That’s when you could buy stocks for pennies on the dollar.”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="If you train yourself to hold on tight through market dips, you’ll continue to build a solid portfolio with long-term earning potential. An automated investment service such as Betterment will automatically adjust your portfolio to protect you from market turbulence.” data-reactid=”92″>If you train yourself to hold on tight through market dips, you’ll continue to build a solid portfolio with long-term earning potential. An automated investment service such as Betterment will automatically adjust your portfolio to protect you from market turbulence.

5. Don’t lease a car

Financing a car or buying a used car is better than leasingFinancing a car or buying a used car is better than leasing
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Don’t lease a car
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Rawpixel.com / Shutterstock
Don’t lease a car

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="In Suze Orman's words, you should "you should never, ever ever ever, lease a car."” data-reactid=”105″>In Suze Orman’s words, you should “you should never, ever ever ever, lease a car.”

If you lease, you’ll sink your money into several years’ worth of car payments and be empty-handed when the lease term is done.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Financing is a better option, but Orman says if it will take longer than three years to pay off the car, then it’s out of your price range. (You certainly don't want to consider one of today's seven-year car loans.)” data-reactid=”107″>Financing is a better option, but Orman says if it will take longer than three years to pay off the car, then it’s out of your price range. (You certainly don’t want to consider one of today’s seven-year car loans.)

Buying a used car is another way to go. Models that are just a few years old will have great safety specifications and the same audio-visual tech as a new car, at a fraction of the price.

6. Don’t take Social Security too soon

Don't retire earlyDon't retire early
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Don’t retire early
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pikselstock / Shutterstock
Don’t retire early

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Our favorite financial guru advises Americans to avoid early retirement for a very good reason: It's worth it to delay taking Social Security until age 70.” data-reactid=”121″>Our favorite financial guru advises Americans to avoid early retirement for a very good reason: It’s worth it to delay taking Social Security until age 70.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content=""Every year you wait between your normal retirement age and 70, Social Security will add a guaranteed 8% to your eventual monthly payout," she writes, in AARP The Magazine.” data-reactid=”122″>”Every year you wait between your normal retirement age and 70, Social Security will add a guaranteed 8% to your eventual monthly payout,” she writes, in AARP The Magazine.

She says delaying Social Security until you reach 70 will give you a monthly benefit more than 75% percent higher than what you’ll get if you start at 62.

“Living well into your 80s and beyond is no longer some rare event,” Orman says — and you want to make sure your resources will last as long as you do.

7. Don’t put blind faith in a financial adviser

Don't put blind trust in your financial adviserDon't put blind trust in your financial adviser
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Don’t put blind trust in your financial adviser
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YAKOBCHUK VIACHESLAV / Shutterstock
Don’t put blind trust in your financial adviser

It’s important to have a financial adviser you can trust.

“Don’t think that they’re always going to have your best interest at heart, because probably they have their own best interest at heart,” Orman says.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="When selecting a financial professional, make sure he or she is a "fiduciary," which means your adviser has a legal duty to act in your best interest.” data-reactid=”139″>When selecting a financial professional, make sure he or she is a “fiduciary,” which means your adviser has a legal duty to act in your best interest.

During your vetting process, ask prospective advisers about how they’ll be compensated for working with you, and about other services they can offer. This will give you a good idea of their motivations when they invest your money.

8. Don’t borrow from your 401(k)

Don't borrow from your 401(k)Don't borrow from your 401(k)
<figcaption class="C($c-fuji-grey-h) Fz(13px) Py(5px) Lh(1.5)" title="Andrey_Popov / Shutterstock
Don’t borrow from your 401(k)
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Andrey_Popov / Shutterstock
Don’t borrow from your 401(k)

Suze Orman calls borrowing money from your 401(k) “the biggest mistake you will ever make” with your retirement money, especially if you use the money to pay off other debt.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="A 401(k) loan is better than withdrawing money from your account, which will bring you a tax bill and a 10% penalty if you’re younger than age 59 1/2. Plus, the loans typically come with a lower interest rate than a traditional loan.” data-reactid=”154″>A 401(k) loan is better than withdrawing money from your account, which will bring you a tax bill and a 10% penalty if you’re younger than age 59 1/2. Plus, the loans typically come with a lower interest rate than a traditional loan.

But you might be barred from putting more money into your 401(k) for six months, meaning you’ll miss opportunities to make pre-tax contributions that lower your taxable income.

Even worse, by taking part of your retirement savings out of commission even temporarily, you’ll lose out on significant earnings if markets rise.

9. Don’t spend to impress others

Shocked Suze OrmanShocked Suze Orman

It’s human nature to want to impress others. But Orman knows from experience how foolish that is.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="She once leased a fancy BMW and bought a Cartier watch with money borrowed from her 401(k) — just to impress a woman she was dating. She says it was "the most stupid thing I’ve ever done with money."” data-reactid=”170″>She once leased a fancy BMW and bought a Cartier watch with money borrowed from her 401(k) — just to impress a woman she was dating. She says it was “the most stupid thing I’ve ever done with money.”

In the end, spending money you don’t have to impress others will leave you with shallow relationships and stressful bills.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Work hard, invest wisely, and reap your fortune when you’ve made it. There’s nothing more impressive than true financial success.” data-reactid=”172″>Work hard, invest wisely, and reap your fortune when you’ve made it. There’s nothing more impressive than true financial success.

10. Don’t stay at a job you hate

Stressed businessmanStressed businessman
<figcaption class="C($c-fuji-grey-h) Fz(13px) Py(5px) Lh(1.5)" title="Timurpix / Shutterstock
Not loving your job? Do something about it!
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Timurpix / Shutterstock
Not loving your job? Do something about it!

Suze Orman says polls show that two-thirds of workers aren’t really into their jobs. And if you’re in that group, you’re selling yourself short.

“Staying in a job you don’t like is disrespectful to yourself, and your loved ones,” Orman says, on her website. “There is no way you can tell me that doesn’t negatively impact your relationships.”

But quitting may not be the answer. Before you start looking around for a new opportunity, see if the job you have can be modified to address whatever it is that makes you unhappy.

Just don’t ever frame it that way when you meet with the boss or HR. Instead, tell the management you’d like to talk about how your job might be “tweaked” so you can be more productive.

11. Don’t spend on things you don’t really need

Suze Orman in sunglassesSuze Orman in sunglasses
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Amanda Schwab/​Starpix/​Shutterstock

There’s no better way to kick-start your savings than by playing the need vs. want game.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The next time you're ready to buy something, ask yourself whether you really need it. Is it a necessity, such as medication, food from the grocery store or a solid pair of shoes for work?” data-reactid=”202″>The next time you’re ready to buy something, ask yourself whether you really need it. Is it a necessity, such as medication, food from the grocery store or a solid pair of shoes for work?

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Or simply something you want — like another drink at the bar, fast food for dinner again or a second pair of knee-high boots?” data-reactid=”203″>Or simply something you want — like another drink at the bar, fast food for dinner again or a second pair of knee-high boots?

“If it’s a want, just walk away. If it’s a need, then buy it,” Orman writes. “Try this for six months and you’ll be shocked at how easy it is and how much money you’ll save.”

12. Don’t retire too early

Handsome man resting in the hammock at the beachHandsome man resting in the hammock at the beach
<figcaption class="C($c-fuji-grey-h) Fz(13px) Py(5px) Lh(1.5)" title="wavebreakmedia / Shutterstock
If you want to retire young, you’ll need at least $5 million, Orman says.
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wavebreakmedia / Shutterstock
If you want to retire young, you’ll need at least $5 million, Orman says.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="On a recent edition of the podcast Afford Anything, Orman was asked what she thought of the FIRE movement. That’s FIRE as in "financial independence, retire early."” data-reactid=”217″>On a recent edition of the podcast Afford Anything, Orman was asked what she thought of the FIRE movement. That’s FIRE as in “financial independence, retire early.”

Her blunt response — “I hate it. I hate it. I hate it. I hate it” — set off a firestorm among the FIRE faithful.

But she explained that it would take a lot of money to make retirement work at, say, age 35.

“You need at least $5 million, or $6 million,” she said. “Really, you might need $10 million.” In her opinion, anything less wouldn’t offer you enough protection from a potential financial catastrophe, like an expensive illness.

“You will get burned if you play with FIRE,” Orman told her interviewer.

13. Don’t take out a reverse mortgage in your 60s

Worried senior woman with hand on forehead at homeWorried senior woman with hand on forehead at home
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Tempted to take out a reverse mortgage? It’s better to wait.
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wavebreakmedia / Shutterstock
Tempted to take out a reverse mortgage? It’s better to wait.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="A reverse mortgage is a type of home equity loan for seniors that allows you to receive the money as a lump sum or in monthly installments. The loan is repaid, with interest, when you die or sell the house.” data-reactid=”234″>A reverse mortgage is a type of home equity loan for seniors that allows you to receive the money as a lump sum or in monthly installments. The loan is repaid, with interest, when you die or sell the house.

You can take out a reverse mortgage starting at age 62, but Orman says that’s risky. In her view, it’s best to treat a reverse mortgage as a last resort for emergency money, and to wait as long as you possibly can before going that route.

“If you tap all your home equity through a reverse at 62 and then at 72 you realize you can’t really afford the home, you will have to sell the home,” she says.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="A certified financial planner (CFP) professional — such as those available online through Facet Wealth — can help you find the best way to stretch your retirement savings.” data-reactid=”237″>A certified financial planner (CFP) professional — such as those available online through Facet Wealth — can help you find the best way to stretch your retirement savings.

14. Don’t go without a will

Senior couple signing will documents. Elderly caucasian man and woman sitting at home and signing some paperwork, focus on hands.Senior couple signing will documents. Elderly caucasian man and woman sitting at home and signing some paperwork, focus on hands.
<figcaption class="C($c-fuji-grey-h) Fz(13px) Py(5px) Lh(1.5)" title="Jacob Lund / Shutterstock
Everybody needs a will, but most Americans don’t have one.
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Jacob Lund / Shutterstock
Everybody needs a will, but most Americans don’t have one.

“Do you have your estate planning in place? If not, you might want to think again,” Orman writes, on Oprah.com.

While everybody needs a will, most Americans don’t have one and lack other important end-of-life documents, including a revocable living trust.

That’s a legal arrangement that holds your property while you’re alive and transfers it to your heirs after your death, without the complicated process known as probate.

Orman says set up a revocable living trust for passing down your house and other major assets, and draw up a will for your other special possessions, like great-grandma’s wedding ring or your first-edition book collection.

15. Don’t miss out on matching money

Closeup portrait super happy excited successful young business woman holding money dollar bills in handCloseup portrait super happy excited successful young business woman holding money dollar bills in hand
<figcaption class="C($c-fuji-grey-h) Fz(13px) Py(5px) Lh(1.5)" title="pathdoc / Shutterstock
Always contribute enough to your retirement account so you get maximum matching money from the boss.
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pathdoc / Shutterstock
Always contribute enough to your retirement account so you get maximum matching money from the boss.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="If you have a 401(k) or other retirement plan through work, don’t leave free money on the table. Make sure you’re putting enough in so that you’ll receive the full matching contribution from your employer.” data-reactid=”266″>If you have a 401(k) or other retirement plan through work, don’t leave free money on the table. Make sure you’re putting enough in so that you’ll receive the full matching contribution from your employer.

Orman says your company might kick in 50 cents for every dollar you contribute, up to 6% of your salary.

“Under those terms, if the employee contributed $3,000, the employer would kick in another $1,500,” she says, on Oprah.com. “Hello! That’s a guaranteed 50% return on your investment.”

So, raise your paycheck contributions and start maxing out the match today.

16. Don’t ever buy a new car

Young man is choosing a new vehicle in car dealership.Young man is choosing a new vehicle in car dealership.
<figcaption class="C($c-fuji-grey-h) Fz(13px) Py(5px) Lh(1.5)" title="4 PM production / Shutterstock
If you’re infatuated with new cars, you’ll have to break out of that.
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4 PM production / Shutterstock
If you’re infatuated with new cars, you’ll have to break out of that.

If you love being the first person to drive a brand-new car and you can never get enough of that new-car smell — well, you’ll have to get over all of that, Orman says.

“The second you drive that car off the lot, it depreciates, 10%, 20%,” she tells CNBC. “Let somebody else get that depreciation.”

Your home may appreciate in value, but that rarely happens with a car. So don’t waste your money on new, but always buy used.

Then, keep your vehicle as long as you can: at least 10 years, and maybe even 15 or 20. Orman says that’s how wealthy people do it — including herself.

17. Don’t go without life insurance

African American boy drawing at home with his mother.African American boy drawing at home with his mother.
<figcaption class="C($c-fuji-grey-h) Fz(13px) Py(5px) Lh(1.5)" title="Liderina / Shutterstock
You need life insurance to protect your children in case something happens to you.
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Liderina / Shutterstock
You need life insurance to protect your children in case something happens to you.

About 4 in 10 adults have no life insurance, according to the industry research group LIMRA.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Orman says for parents in particular, life insurance is a product you can't afford to go without. It provides peace of mind, because it will protect your family if something happens to you and you’re suddenly out of the picture.” data-reactid=”299″>Orman says for parents in particular, life insurance is a product you can’t afford to go without. It provides peace of mind, because it will protect your family if something happens to you and you’re suddenly out of the picture.

And it’s cheap: A healthy 40-year-old woman might pay less than $35 a month for a policy with a $500,000 death benefit. Orman recommends “level term” life insurance, meaning the premiums never change.

“C’mon Moms. (And Dads),” says the personal finance guru, on her site. “You can’t tell me that less than one dollar a day is too much to ensure your family is safe no matter what.”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Quotacy can help you find the right policy, and it’s even easier than booking a hotel room online.” data-reactid=”302″>Quotacy can help you find the right policy, and it’s even easier than booking a hotel room online.

18. Don’t ever miss a student loan payment

Frustrated man calculating bills and tax expensesFrustrated man calculating bills and tax expenses
<figcaption class="C($c-fuji-grey-h) Fz(13px) Py(5px) Lh(1.5)" title="tommaso79 / Shutterstock
Don’t even think of skipping out on your student loans, no matter how high the debt is.
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tommaso79 / Shutterstock
Don’t even think of skipping out on your student loans, no matter how high the debt is.

Struggling with student loan debt? Whatever you do, don’t just throw up your hands and stop paying.

“Make paying back your student loan the very first bill you pay,” Orman says on her Facebook page. “It is more important that you make your student loan payments on time each month than any other bill.”

She has called student loan debt “the most dangerous debt you can ever have” because you can’t erase it through bankruptcy.

If you try to walk away from your loans, the debt will catch up with you eventually. The government can garnish your wages for federal student loan debt — in other words, take what you owe directly from your pay.

19. Don’t invest for the wrong reasons

hand throwing dart to dartboardhand throwing dart to dartboard
<figcaption class="C($c-fuji-grey-h) Fz(13px) Py(5px) Lh(1.5)" title="ronstik / Shutterstock
Picking stocks can be like throwing darts. You’re not always going to hit it.
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ronstik / Shutterstock
Picking stocks can be like throwing darts. You’re not always going to hit it.

Orman says too many people — especially young people — make investment choices purely because a stock seems cool or trendy.

“They decide, ‘This company is great, I’m going to invest in that,'” she tells CNBC.com. If that’s your strategy, “maybe you’ll hit it right, maybe you’ll hit it wrong.”

It’s less risky to diversify your investing, by putting your money into index funds and exchange-traded funds, or ETFs.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Open an investing account and put in regular amounts, through what’s called "dollar cost averaging." Stay steady through the market’s ups and downs and you’ll always come out ahead, Suze Orman says.” data-reactid=”334″>Open an investing account and put in regular amounts, through what’s called “dollar cost averaging.” Stay steady through the market’s ups and downs and you’ll always come out ahead, Suze Orman says.

20. Don’t say it’s impossible to save

hand drops money into a glass jar for a savingshand drops money into a glass jar for a savings
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You might easily find ways to save up to $100 a month.
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Sayan Puangkham / Shutterstock
You might easily find ways to save up to $100 a month.

Orman says too often she tells people they ought to consider saving more — only to have them respond that it’s impossible because there’s never any extra money left over at the end of the month.

“I beg to differ,” she says, on SuzeOrman.com. “There’s no money left because you haven’t evaluated your spending habits. You need to dig deep and be willing to change those habits.”

Practically anyone can squeeze out up to $100 in “hidden money” for saving and investing each month, Orman says.

For example, you might boost your home’s energy efficiency and cut your utility bills by as much as 10% by caulking drafty windows, putting weather stripping around exterior doors, and switching to energy-saving lightbulbs.

21. Don’t take a tax refund

Tax RefundTax Refund
<figcaption class="C($c-fuji-grey-h) Fz(13px) Py(5px) Lh(1.5)" title="Derek Hatfield / Shutterstock
When you take a tax refund, you’ve essentially given the government a free loan.
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Derek Hatfield / Shutterstock
When you take a tax refund, you’ve essentially given the government a free loan.

“If you’re getting a tax refund, you are making one of the biggest mistakes out there,” Suze Orman says.

Why? Because you’ve essentially had too much of your pay withheld for taxes — and have effectively given the government an interest-free loan. When you’re owed a $2,400 refund, you’ve allowed yourself to be shortchanged $200 per month throughout the year.

But surveys have shown that Americans love their tax refunds and eagerly plan out how they’ll use the money each year.

Orman is isn’t backing down. On CNBC.com, she calls a tax refund “the biggest waste of money that you will ever get.”

22. Don’t waste money on coffee

Woman holding takeout coffee at table and opening cupWoman holding takeout coffee at table and opening cup
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AndreyCherkasov / Shutterstock

Your daily stop to pick up a cup of dark roast or a cappuccino is a habit you need to break, the money maven says. It’s a “want,” not a “need,” and it’s costing you a ton of money.

“You are peeing $1 million down the drain as you are drinking that coffee,” Orman recently told CNBC (causing coffee drinkers across America to do a spit take).

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Here's the math on that: If you're spending $100 a month, that's money that could grow instead in a Roth IRA — to roughly $1 million after 40 years, assuming a 12% rate of return.” data-reactid=”381″>Here’s the math on that: If you’re spending $100 a month, that’s money that could grow instead in a Roth IRA — to roughly $1 million after 40 years, assuming a 12% rate of return.

But you love those fancy store-bought coffees? Get over that. “Every single penny counts” when you’re saving for your future, Suze Orman says.

23. Don’t retire owing money on your home

Concerned elderly husband and wife use calculator machine calculate household expendituresConcerned elderly husband and wife use calculator machine calculate household expenditures
<figcaption class="C($c-fuji-grey-h) Fz(13px) Py(5px) Lh(1.5)" title="fizkes / Shutterstock
Don’t let a mortgage wreck your retirement.
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fizkes / Shutterstock
Don’t let a mortgage wreck your retirement.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="A survey from mortgage banker American Financing found that 44% of Americans in their 60s and 70s are still paying off a mortgage. “This is so not OK,” Orman has blogged.” data-reactid=”395″>A survey from mortgage banker American Financing found that 44% of Americans in their 60s and 70s are still paying off a mortgage. “This is so not OK,” Orman has blogged.

She urges people to go into retirement mortgage-free, for two reasons: to stretch their retirement savings, and to rid themselves of debt — an albatross that affects even mental health.

“If you’re going to stay living in that house for the rest of your life, pay off that mortgage as soon as you possibly can,” Orman tells CNBC.

Without a mortgage, you’ll have more financial security in retirement, she says. So work until you’re 70, use excess emergency savings and do whatever else it takes to get that house debt paid off.

24. Don’t let your wallet get sloppy

Photo of an Overstuffed WalletPhoto of an Overstuffed Wallet
<figcaption class="C($c-fuji-grey-h) Fz(13px) Py(5px) Lh(1.5)" title="Scott Rothstein / Shutterstock
Don’t allow your wallet to get overgrown.
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Scott Rothstein / Shutterstock
Don’t allow your wallet to get overgrown.

There’s nothing too profound about this piece of advice. Orman is literally talking about keeping your wallet organized and knowing exactly what’s in it.

Your wallet, she says, is “a picture of your life.” It especially reflects how you think about money and manage your finances. Crumpled bills stuffed in any old way show disrespect and a lack of accountability.

What’s in Orman’s slim wallet? Her driver’s license, health insurance cards, exactly $170 in cash neatly arranged by denomination, and three credit cards with perks that suit her lifestyle.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The amount of cash is no accident; the digits 1, 7 and 0 add up to eight. “In Asia, eight is the number of wealth," Orman explains.” data-reactid=”414″>The amount of cash is no accident; the digits 1, 7 and 0 add up to eight. “In Asia, eight is the number of wealth,” Orman explains.

25. Don’t buy a home you can’t afford

Young Woman Checking Kitchen Cabinet During Meeting With Real Estate AgentYoung Woman Checking Kitchen Cabinet During Meeting With Real Estate Agent
<figcaption class="C($c-fuji-grey-h) Fz(13px) Py(5px) Lh(1.5)" title="Andrey_Popov / Shutterstock
Are you sure you can afford that house?
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Andrey_Popov / Shutterstock
Are you sure you can afford that house?

Being able to afford a certain rent payment doesn’t necessarily mean you can afford a house with a similar mortgage payment.

“The big mistake that many people make,” says Orman, “is that they’re paying $1,500 a month for rent and they go out and look for a home and they can get a home for a $1,500-a-month mortgage.”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="But the costs of moving in and keeping up a home over the long term far exceed those of renting a place. And you'll need to get the best mortgage rate you can.” data-reactid=”429″>But the costs of moving in and keeping up a home over the long term far exceed those of renting a place. And you’ll need to get the best mortgage rate you can.

Orman reminds potential homebuyers to factor in not only the monthly mortgage payments but also the down payment, closing costs, initial repairs, moving expenses and ongoing maintenance costs.

26. Don’t risk your retirement to pay for your kids’ college

a teenager unhappy about his mother putting pressure on him to studya teenager unhappy about his mother putting pressure on him to study
<figcaption class="C($c-fuji-grey-h) Fz(13px) Py(5px) Lh(1.5)" title="senai aksoy / Shutterstock
Don’t make your retirement a lower priority than sending your kid to college.
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senai aksoy / Shutterstock
Don’t make your retirement a lower priority than sending your kid to college.

Orman is incredulous over reports that saving for retirement is taking a back seat to saving for college.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Asset management company T. Rowe Price found in 2018 that 74% of parents put the higher priority on socking money away for their kids’ higher education. An earlier survey identified millennials as the worst offenders.” data-reactid=”444″>Asset management company T. Rowe Price found in 2018 that 74% of parents put the higher priority on socking money away for their kids’ higher education. An earlier survey identified millennials as the worst offenders.

“Are you nuts?” Orman blogged. “Your 20s and 30s are when saving in retirement gives you a huge advantage: decades when your money can grow.”

When parents whine that they’d do anything for their kids, Orman comes back with, “Top of the list should be to make sure you will never be a financial burden for them.”

27. Don’t skimp on car insurance

Injured woman feeling bad after having a car crashInjured woman feeling bad after having a car crash
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Make sure you have adequate car insurance coverage.
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tommaso79 / Shutterstock
Make sure you have adequate car insurance coverage.

Car insurance policies include three key areas of coverage: for bodily injury liability per person, for total bodily injury liability, and for property damage you cause. Minimum coverage amounts in many states are, respectively, $25,000, $50,000 and $25,000.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Orman doesn’t think that’s nearly enough. "It will be a financial disaster paying out of pocket for serious injuries, loss of wages, rehab and such for the other driver (and their passengers) if you cause an accident," she blogs.” data-reactid=”460″>Orman doesn’t think that’s nearly enough. “It will be a financial disaster paying out of pocket for serious injuries, loss of wages, rehab and such for the other driver (and their passengers) if you cause an accident,” she blogs.

There’s no denying that auto insurance premiums are high, but she advises working with an independent agent who will comparison-shop the rates for you and find you the best deal.

Raising your deductibles also can result in significant savings.

28. Don’t let holiday spending get out of control

Cheerful woman in santa costume holding shopping bag and credit card against digitally generated sparkling backgroundCheerful woman in santa costume holding shopping bag and credit card against digitally generated sparkling background
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Don’t go crazy over Christmas shopping.
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vectorfusionart / Shutterstock
Don’t go crazy over Christmas shopping.

Even people who normally spend responsibly take complete leave of their senses when the holidays roll around. Orman blames a lack of planning.

She recommends dividing your total gift-giving budget by the number of people on your list and sticking to the maximum per person.

“Challenge yourself not to buy any gift with a credit card … you’re much more likely to purchase only what you can afford,” Orman says. She says holiday credit card debt can linger much longer than the recipient will remember your gift.

Plus, friends and relatives would feel ashamed if they found out their gifts were beyond your means. “Time and love are the most valuable possessions you can share,” Orman writes.

29. Don’t keep kids in the dark about credit

Family shopping online, two twins girls wit father and mother enjoying in shoppingFamily shopping online, two twins girls wit father and mother enjoying in shopping
<figcaption class="C($c-fuji-grey-h) Fz(13px) Py(5px) Lh(1.5)" title="Lucky Business / Shutterstock
Teach kids how to use credit responsibly.
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Lucky Business / Shutterstock
Teach kids how to use credit responsibly.

Suze Orman shakes her head at reports that millennials are avoiding credit cards.

“I am wholeheartedly on board with preferring a debit card,” she says. “But everyone needs to also have a credit card and use it responsibly.”

She thinks parents who don’t teach kids how to use credit do them a disservice. After all, the credit bureaus factor spending and payment history into credit scores, which determine who gets a car, house or small-business loan, and the kind of interest rates they pay.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Orman recommends teaching good credit use in one of three ways: adding your teen to one of your existing accounts; co-signing for a no-fee, low-limit card; or having your kid apply for a secured card that requires a deposit.” data-reactid=”494″>Orman recommends teaching good credit use in one of three ways: adding your teen to one of your existing accounts; co-signing for a no-fee, low-limit card; or having your kid apply for a secured card that requires a deposit.

30. Don’t let fear stop you from getting rich

Anxious stressed young man looking awayAnxious stressed young man looking away
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Stop thinking that you can’t be successful.
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pathdoc / Shutterstock
Stop thinking that you can’t be successful.

Orman doesn’t mince words. “Stop feeling sorry for yourselves and go out there and create the financial life that is waiting for you,” she tells CNBC.

Fear, she believes, is often the only thing standing between you and a pay raise, a better job, shrewd investments and other financial goals. “You most likely are your own financial obstacle,” she continues, “and you have to remove your fears from wanting to create more.”

So, stop saying you can’t do this thing or that thing, or that you’re not smart enough, or that you were never good with numbers, or whatever.

Orman’s best advice is to change your mindset about money, pay off debt and start getting rich.

31. Don’t ever take out a payday loan

Payday Loan Application Form Salary Debt ConceptPayday Loan Application Form Salary Debt Concept
<figcaption class="C($c-fuji-grey-h) Fz(13px) Py(5px) Lh(1.5)" title="Rawpixel.com / Shutterstock
Suze Orman says getting a payday loan is one of the biggest financial mistakes you can make.
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Rawpixel.com / Shutterstock
Suze Orman says getting a payday loan is one of the biggest financial mistakes you can make.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="If you want to get a rise out of Suze Orman, just ask how she feels about payday loans.” data-reactid=”523″>If you want to get a rise out of Suze Orman, just ask how she feels about payday loans.

“I am begging all of you, do not take a payday loan out,” she said on one episode of her podcast, going so far as to add that it’s the biggest mistake listeners could ever make.

Payday loans are tempting because they’re relatively easy to get when you’re strapped for cash. However, they’re offensively expensive. The typical annual percentage rate is 400%. By comparison, the average APR on credit cards is around 17%.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Several states have capped the APR on payday loans at 36% percent or have even banned the loans altogether. And borrowers have plenty of alternatives.” data-reactid=”526″>Several states have capped the APR on payday loans at 36% percent or have even banned the loans altogether. And borrowers have plenty of alternatives.

32. Don’t become a landlord

Inexperienced plumber trying to repair an electric water heaterInexperienced plumber trying to repair an electric water heater
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Landlords are responsible for repairs in the properties they own.
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Ramon Espelt Photography / Shutterstock
Landlords are responsible for repairs in the properties they own.

The return of the house-flipping craze makes Orman nervous.

Even blazing hot markets inevitably cool down. If you can’t sell a flip house at a profit, you may have to rent it out. And being a landlord isn’t as glamorous as it looks on HGTV. Landlords must replace toilets, keep critters at bay, and let in tenants who lock themselves out.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="“Do you think … you can attract responsible tenants who would pay enough to cover your property tax and maintenance charges? Even if you could, do you really want to be a landlord?” Orman asked one fan.” data-reactid=”541″>“Do you think … you can attract responsible tenants who would pay enough to cover your property tax and maintenance charges? Even if you could, do you really want to be a landlord?” Orman asked one fan.

She says don’t do it unless your emergency fund can cover at least eight months’ worth of mortgage payments.

33. Just don’t sell stocks — period

Buy, hold, sellBuy, hold, sell
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Suze Orman says with stocks, buy and hold — and hold and hold.
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3D_creation / Shutterstock
Suze Orman says with stocks, buy and hold — and hold and hold.

Orman speaks from personal experience. In 1997, she invested around $5,000 in Amazon. She sold the stock a few years later and quadrupled her money.

However, the shares would be worth millions today. “It makes me sick to even tabulate it,” she told CNBC.

Investing in individual stocks isn’t her favorite game plan, but she says people who play the market should at least do extensive research on the companies they’re interested in. She says Google, Facebook and others are expected to retain their competitive edge for years to come.

“If you do buy, though, make sure to hold,” Orman advises. “You keep a great stock forever.”

34. Don’t let vacation time go unused

Young businesswoman with too much work to do,OverworkedYoung businesswoman with too much work to do,Overworked
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Everybody needs a break. Even you.
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InesBazdar / Shutterstock
Everybody needs a break. Even you.

Suze Orman is all for taking vacations. She’s the first to say everybody needs a recharge now and then — especially people who intend to work until they’re 70.

Saying no to a trip you can’t afford is a good thing, but there’s no excuse for not using your vacation time. And you don’t have to spend a ton of money to enjoy it.

“Unplug from your work. And do something that gives you pleasure. Day trips. A home project you never get around to,” Orman blogged. “There are so many ways to step out of your demanding work routine without spending money.”

If nothing else, you’ll be more productive and engaged on the job.

Visit the Source: https://finance.yahoo.com/news/suze-orman-says-worst-money-144126938.html

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