Personal Finance

Where Is Suze Orman Now

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 5 minute read

Weekly, millions of Americans tune in to hear financial gurus Suze Orman and Dave Ramsey dish out their wisdom. There aren’t two more well-known people in the country than these two when it comes to personal finance. 

The callers want to know if Suze thinks they can afford a five-star cruise. Dave receives calls from people who want to make sure they are in good financial standing. Therefore, whose recommendation is more sound? Let’s have a look at the two experts in the financial sector.

Dave Ramsey

Weekly, millions of Americans tune in to hear financial gurus Suze Orman and Dave Ramsey dish out their wisdom. There aren’t two more well-known people in the country than these two when it comes to personal finance. 

The callers want to know if Suze thinks they can afford a five-star cruise. Dave receives calls from people who want to make sure they are in good financial standing. Therefore, whose recommendation is more sound? Let’s have a look at the two experts in the financial sector.

The Seven Infant Steps

1. Begin with $1,000 in an Emergency Fund.

The goal of the emergency fund is to reduce the likelihood that you’ll need to turn to credit to get through tough times. According to Dave, unexpected outcomes are not only possible but inevitable.

2. Utilize the Debt Snowball to pay off all debts.

Paying off the smaller bills first, as advocated by the debt snowball technique, can have significant psychological benefits.

The interest rate does not affect the order in which account balances are paid; the smallest amounts are paid first. The logic behind this is that making progress on minor debts can boost morale and motivate the debtor to tackle the larger bills next.

3. Put Three to Six Months’ Worth of Living Costs in Your Savings Account.

After you’ve paid off your debts, you should put away more money in case you lose your job or get sick and can’t work for a while.

4. Contribute 15% of Your Income to Pre-Tax Retirement Plans and Roth IRAs.

Here we are talking about the wealth creation portion of Dave’s strategy. Retirement is the sole intended purpose for the funds accumulated in these schemes.

5. Start Supporting Children’s College Education.

Save now for your kid’s future college education. Dave suggests using 529 plans and Education Savings Accounts to save money for higher education.

6. Pay Off the Home’s Mortgage.

You should put off paying this bill until last because it’s the biggest one you’ll ever have. Any money you come into above and beyond what is required to pay your mortgage principal every month should be applied directly to that goal.

7. Increase Your Riches and Donate to Good Causes.

If you want to leave a lasting impression on the world, it’s important to put money aside for your children and to give to causes you care about. There is no deviation from these seven steps in Ramsey’s teachings. Always reliable, Ramsey practices what he preaches.

Suze Orman

Six of Suze Orman’s books have become bestsellers, and she also broadcasts a CNBC show about money. Orman is also criticized for being too simplistic in her approach to personal finance because she uses a common sense approach. 

She teaches a very different worldview than Ramsey does since, unlike him, she defends the responsible use of credit cards and other forms of personal debt. “Suze Orman’s 2009 Action Plan” details The 9 Minimal Financial Actions That Will Have a Huge Long-Term Impact.

The 9 Simple Financial Moves That Will Have a Big Impact Down the Road

1. Put Some Money Away Each Day.

Suze advises putting aside a small amount of money regularly in order to create an emergency fund.

2. Practice a Little Self Control!

Take out the extraneous costs from your monthly budget. Check your monthly bank and credit card statements to identify wasteful purchases.

3. Automate your plan.

Automate your retirement, savings, and emergency fund contributions. Bills and savings can be more easily managed with recurring transfers.

4. Use the Entire Company Match.

Suze recommends making a 401(k) contribution large enough to qualify for the company’s full match. To do otherwise is to reject free money.

5. Contribute to a Roth IRA.

Suze suggests opening a Roth IRA to benefit from compounding tax-free earnings. Read my post “What is a Roth IRA,  Benefits and Restriction” for more details on Roth IRAs.

6. Take Your Age from 100 and Invest the Difference in Equities.

Your stock allocation should be a percentage equal to your age minus 100. Bonds are a good option for the remaining funds. Seventy percent of the stock allocation should be invested in U.S. stocks, while the rest should be invested in international funds.

7. Invest $50 Each Month for Mental Clarity.

An affordable term life insurance policy can be purchased for $50 per month, providing financial security for the policyholder and their loved ones.

8. Produce the Four Most Adoring Legal Docs Ever.

Each person has to have a living trust, will, financial power of attorney, and health care power of attorney.

9. Include One More Mortgage Payment.

Your mortgage term might be reduced by five years if you make an extra payment each year.

Evaluation of Suze Orman and Dave Ramsey

Personally, I find that Dave Ramsey’s approach to debt reduction is more effective than Suze Orman’s. Debt management is the focus of Suze’s strategy, while debt eradication is the goal of Dave’s approach. 

Dave Ramsey’s method of debt reduction is straightforward and effective. Following the Seven Simple Steps will have you debt-free in a few short years. I can see Dave’s point of view, even though it’s more financially prudent to focus on the loan with the greatest interest rate first, rather than the smallest balance. He hopes that this would keep individuals interested in paying off debt.

Everything from budgeting to saving for retirement is included in Suze Orman’s comprehensive financial plan. Suze tackles the mental and emotional hurdles that stand in the way of financial success. Those with the combined goals of debt reduction and savings will benefit the most from her proposal. 

Both are well-liked, but Orman stands out because of the special rapport she forms with her viewers. My one and only complaint about Suze and Dave are that their recommendations can be overly basic and overly generic. 

Some clothes can be made to fit all bodies, but financial counsel cannot. Because of these variations, one universal financial strategy is not appropriate for all people. Still, the strategies outlined by Dave and Suze are an excellent place to begin when learning about financial management.

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