Suze Orman often speaks about the subtle pitfalls that lead to financial instability. She highlights several everyday habits that, according to her, are money wasters and can contribute to financial jeopardy.
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Unnecessary Subscriptions
Orman points out that many people subscribe to multiple streaming services, magazines, or gyms they rarely use. These monthly fees add up quickly and can form a significant chunk of your budget. She recommends assessing the utility of each subscription and canceling the ones that are not essential.
Buying Coffee
Many people just can’t get through the day without a cup of coffee. While Orman has nothing against coffee, she does have a problem with buying it from a coffee shop. Instead, she recommends making coffee at home.
“I wouldn’t buy a cup of coffee anywhere, ever–and I can afford it–because I would not insult myself by wasting money that way,” Orman told CNBC Make It. “Every single penny counts.”
Eating Out Frequently
Orman identifies the habit of dining out regularly as one of the primary ways people waste money. The convenience of restaurant meals and takeout comes at a high cost compared to home-cooked meals. By preparing meals at home and reducing restaurant visits, you can save a substantial amount of money.
Leasing a Car
Orman generally advises against leasing cars, as it usually isn’t the most financially savvy option. She says when you lease, you’re essentially renting a vehicle for a long-term period and have nothing to show for your payments once the lease term ends.
Orman recommends buying a reliable used car or keeping a new car for a long period after paying off the loan. “I personally think you should never, ever, ever, ever lease a car,” she told CNBC.
Buying Brand-Name Products
Orman says opting for brand-name products, especially for groceries and household items, can significantly increase your expenses. In many cases, generic or store brands offer the same quality at a fraction of the price, leading to considerable savings over time.
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Impulse Purchases
One of the common financial traps Orman discusses is impulse buying. It’s easy to be swayed by discounts and sales, but these unplanned purchases can quickly derail a budget. She suggests creating a shopping list and sticking to it, as well as avoiding online stores when bored or emotional.
Carrying Credit Card Balances
According to Orman, carrying a balance on credit cards and making only the minimum payment each month can be financially crippling due to high-interest rates. She advises paying off the entire balance monthly to avoid unnecessary interest and fees.
Ignoring Retirement Savings
Orman frequently stresses the importance of saving for retirement. Neglecting to contribute to retirement funds regularly is, in her view, tantamount to throwing money away, given the tax benefits. You’re also leaving money on the table if you don’t take advantage of an employer match.
Not Having an Emergency Fund
Without an emergency fund, you can find yourself in financial distress when unexpected expenses arise. Orman recommends building a solid emergency fund to cover at least three to six months of living expenses to avoid relying on high-interest debt in times of need.
Wasting Energy
Orman says being careless with energy consumption is a silent money waster. Simple habits like turning off lights when leaving a room, unplugging unused devices, and optimizing home insulation can lead to significant savings on utility bills.
The Bottom Line
By addressing these everyday habits, you can optimize your spending, avoid financial pitfalls, and work toward building a secure future. Paying attention to these small details will likely relieve a lot of financial stress and help you achieve your goals.
Editor’s note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates’ editorial team.
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