Suze Orman TwitterSuze Orman FacebookSuze Orman YouTubeSuze Orman LinkedIn
View Blog & News List

Three Steps to Guaranteed Financial Independence

July 02, 2015 at 12:00 AM

As a nation we set aside one day a year to formally celebrate our independence. When it comes to your money my hope is that you will make every day, not just July 4th, a day where you make conscious decisions that will help you build financial independence: a life where you are in control of your money, and not vice-versa.

My three steps to creating lasting financial independence:

  • Live Within Your Needs But Below Your Means.  At a basic level you of course need to spend money to provide you and your family with food and shelter. But how much you choose to spend on your basic needs is a squishy number dependent on the choices you make. For example, a mortgage lender may tell you that you will qualify for a $250,000 mortgage. But if you can find a great home that meets your family’s needs and it costs $195,000 you will save a lot of money that can be used for other important goals. The $195,000 home fits your needs. 
  • Pay As You Go. I am a big believer in using debit cards, rather than credit cards as much as possible. Ideally, a debit card that is prepaid or that is tied to a checking account where you have declined overdraft coverage. There is no more expensive form of bondage than spending more than you have and paying interest of 15% or more on your credit card.
    • Suze Tip: While I want you to focus on Pay as You Go, I also want you to use one credit card a few times a month, for small purchases you can easily pay off in full when the monthly statement arrives. This is a key to building a strong FICO credit score.
  • Enjoy the Pleasure of Saving as Much as the Pleasure of Spending. There is a natural tendency to view saving as some sort of punishment, or a hard tradeoff, because it reduces the dollars you have today to spend. But that’s just because we have a tendency to live in the here and now. I want you to dig a bit deeper and give equal weight to the future. Saving today for retirement is how you build independence for your future. Setting aside money in an emergency account today is how you will be able to handle the unexpected costs that can derail the unprepared. 

Tag Cloud

term insurancecalculate dependents annual income needsidentity fraud8 month safety netsidelinedbill paying prioritiesVital Documentsconfidentcredit utilization ratesave responsible with money20% down payment avoid feesincrease retirement contribution rateTelepicturesgay marriage ban end Florida advice for college graduatesletter to suzeultimate compounding giftHSA tax savingsCredit Card Rate IncreaseYoung Adult healthy gumsLTCrequired disclosureretirment savingsRevocable Living Trustat worst still pay 75% benefitGiftcommitcharges on credit cardcostly legal focus on new truth pay more than minimumStaffords this year have a fixed 6.8% interest ratespeak new goalget over life insurance phobiapay 100% cash30 year mortgage Credit Card Interest RateSchool of Social Workcar leasingemergency fund savingsFinancial Awareness Video Festivalsuitablelife insurancequick closingshop online guaranteed level term policyautomate student loan paymentsoverspend on nights outreduce withholdingenjoy saving long-term care be kind to yourselfbad decisionswomen live longerwomen outlive menhome buying budgetbuying a carFinancial Gift Cliffstay positiveknow before you owepay high rate off firstFinancial CliffCommunication Skills earn more on savingspublic service loan forgiveness programlower rateCredit scorebe good exampleSelectQuote.combig results no fee transferdepreciating asset Newtownleave a legacyInfluentialscontribution 3 bucket approachface your financial fearSandy Hook Promisedon't spend adult childrenlow mileage discountGoodbyeovercome financial fearsprotect dependent do you need life insuranceprotect and provide for minor child HDHP's are not badForbes Top 10dental insurance don't defer interest paymentsInterestyours, mine & ourspresident Obamateenslowest cost fund optionincreased auto insurance premiumkeep a scheduleno sneaking in feesUniversity of Illinoiseight month living expense bad retirement planningavoid burn outcredit unionpaid in fulldebt freeteach importance of helping othersfederal student loan deferment affordabilityFinal Goodbye40% toward financial goalcollege studentbudgetbuy down no late fee referrals kids schedule paymentsworkaholicwomen long term carelower overall drug costunsubsidized Stafford loanhome budget after tax costAARPAARP Social security calculatornot enough life insurancelow down paymentdangerous retirement planHoliday Seasonvalue moneyfinancial argumentslower premiumstandard rateemployer offered life insuranceno splurge debit cardspecial saving accountsecure creditaffordable premiumMortgage Credit Availability Indexinitial tax break Suze Orman Scholarshipbuying car 2016only offered while employed become member protect loved ones pay credit debt ASAPLong Term Care shoppinghigher insurance deductibleMoney Marketverify retirement plan with HR or plan sponsor15-year refinance dealHDHP's are good for yousuccessno tax on withdrawlshealthy retirement blood pressureSelfishFinancial Advicedeath benefit needs for familytaxesMoneywives should be involved in retirementget the most out of social security Sandy Hook Elementary Schoolretirement accountssame sex marriage band end Floridacan you afford it2016 adjust withholdingclosing feesOne Wallet At A Timerepay student loansSuze changed my lifeInfluential Celebrityretirementprovider of financial support4 Must Have Documents How To Build Credithigher monthly paymentretain separate credit cardsbalance transfer overspend on giftsCiti Simplicity Card don't blow tax refundCOLAcar loanpowerfulwaive home inspection bid19 years cash flow problemMinor Children University of Floridapush yourself to save more for retirementverify wellness screening and programsfocus on needsmortgage disclosurepositive20 year level term doctor no longer in networkSpendingbest interest ratesback door Roth IRAraise your deductiblefull retirement ageis it kind?Financial System15 year mortgagemarriage financial responsibilityPrime Rate Increasegift not loanstandard deduction consider roth 401(k)Beautyuniversal college accessFundsmoney-aware childsummer job match income professional advisorstore credit cardsSuze Orman's Money Warsreduce interest rateEasy Life Insurance accelerate dental workdon't derail retirement savingsnew carwrite new goalhigh FICO scorehome related tax break bonus Phyllis Shelton expert long-term caretitle insuranceget credit cardstudent loan repayment plancredit managementsocial securitydangerous money seasonbest loan deal television hosthealthy retirement weightNew York Lifereplace permanent life insurance with termpay interest while in schoolmeet monthly The Suze Orman Showsocial security not going brokePBS Specialincrease emergency savingsorigination feesfinancing car Must Have DocumentsLong Term Care premiumsmax benefit coveredUrbana-Champaignno retirement funds for down paymentresponsibleCivil Rightscredit reporthealthy youburn outIRA contribution gifted moneyFederal Stafford loandon't use allowance as bribeunexpected expenseRichGay Couplesemotional stakesbest interest of investorMost Influential Celebrities Listlower interest rateRetirement Incomesavings pleasuremonthly dental insurance premiumescrowdear suzeshorter payback periodmortgage brokerphysical healthloan necessitypermanent life insurancepay off debthighest possible benefithigh deductible health care plando not pay allowance for good behaviorcollege graduateincrease retirement savingshigh premiumsDeath BenefitChanging LivesFixed Rate Mortgagereduce monthly paymentHeartLong Term Care Insurance 20 to 25 times annual incomesecured cardstudent loan repaymenteliminate credit card debtfinancial fearspercentage men widowed 75-84no waiting perioditemized deductionForeclosureUS Tax CodepremiumFederal Funds RateFiscal Responsibilityhome loan credit score below 740 Amy Lacyetopen enrollment review Post-Divorceholiday spendingfour steps to retirement savings 2016 adjust estimated taxTeach10% donate to charitypoint cost offset by savingssocial security never insolventFederal PLUS loanis it true? overspend on dining outNew american Dream be true to yourselfjuggle multiple financial goalsstretch out haircut appointmentsalternative FICO scoreapproved medical 100% tax-freepercentage of women widowed 75-84earn allowancechildren's bookrequire chore in exchange for allowanceco-sign healthy aging switch to spouse coverageBankSuze Ormanbreakdown projected monthly housing cost20% equitycommunity bank2017 TaxesHigh Credit Scoreno private loan2015 record year car salesSatisfyingCombo Insurance ProductsSuze Orman spouse Kathy Travisdon't buy wantspaid vacationfinancial aid3% debt transferred anticipated salaryARM Cautionsmall changes Revocable Trustlow credit scoremanage student loansderailed plandon't extend mortgage housing marketmultiple lendersignore 6 month grace period Suze is my biggest mentoradjust allocations BankruptcyCommencementengaged in financesdon't ignore open enrollmentfiduciaryDurable Power of Attorney for Health Carecontribute household expenses FHA loan feesstudent loan debtEric Dodge fraudulent returnAuto Savings tax refund fraudHoliday Shoppingunder 18 financial giftCory BookerFinancial Power of Attorneybetter loan ratesdeath benefit 20 to 25 times annual incomesavingsFinancial AwarenessFICO Scoredon't charge a pennyworst financial mistakeStock InvestmentsForbesiffy incomePersonal Financeinterest on student loansalways use all paid time off2015 financial roadmapraise deductiblesraising mortgage rates children under 18FICO at least 720home buying mistakessame-sex marriage20% down paymentcut monthly cellular billnot gender specific ARMmortgage interest tax deduction8 month emergency fundLegal Guardiancar buying mistakesback-to-school budgetautomatic paymenthome insuranceBill and PennyPrime Rate Rise 2015closing costs 2% of loanlive below your meansrefinanceincentives for health care wellness screeninglong term carecostly insurance mistakeWillMothermoney vows740 credit scoredental savings planHDHP/HSAExhibitionFinancialschedule vacationhome ownershipLTCi ASAPAshley Springerfile asaprefundtraditional vs roth 401(k)would you decline a bonusAdequate Auto and Home Insurancemarriage inequalitySave Us Moneycomparison shoppingAlarm Clockpreexisting condition not coveredmonthly benefit CNBCpay down car loaninsurance mistakecost of capitalization calculatorpublic service career student loan repayment high credit score discountMoney-Savingannual cost of living adjustmentlong-term care premiumsmax employer matched 401(k) contributionhigh down paymentconfident of solutionLifestyle50 over 50valentines dayheartacheemergency fund Americans don't use all paid vacation timegift grandchild IRA contributionpay down student loan debtlong term goalpeace of mindgrandchild summer job IRA contribution6 month waiting periodonly refinance if it payslousy investmentcouple financesgraduation3 step financial road mapgift up to 14,000short term goal Conventional loan PMImobile appGracestaycationschool lower mortgage interestloan no longer than 36monthsmax employee matchprotect your familyRetirement Savingssocial workswitch to roth 401(k)teach your child good money habits401Kno negativitynear historic lowsHDHP'sage appropriate chorebuy home you can affordtax ID theftcommunity collegeraise insurance deductibleEmergency Savingsno apologytoo expensive schoolpurely financial standpointMass Mutualdebtno life insurance financially irresponsibleage appropriate goalsnegotiate points with bank or sellerJose RodriguezFinancial Solutions For Youbuy homehome buying seasoncredit cardteens and moneyloan is giftidentity theftmake saving a pleasurefinancial concernrising home pricesmaintain standard of livingreal estate mistakesStudent Debt Crisisget health insurance3 savings buckets paying for collegeInvest for savings growthwomen longer life spanis it necessaryEmployer Matched Contributiondream schoolborrowing plan ritual schedulespring summer Swap Older Annuities or Life Insurance don't do five year car loaninterest capitalizationdon't cover cosmetic dentistryHDHP loan big picture rolloverCD'sraising interest ratesbetter loan dealslearn good financial choicesMarlo Thomasproperty taxmental healthexercise reguarlyETF'sone credit cardborrow each year, capitalization is going to pile up mortgageStudent LoanGay RightsHigh FICO Score = Better Ratehealthy teethroth iraAccuQuote.comStudent Debtinsurance yearly reviewretirement plan8 Rulesnon conventional routeis it necessary?Inflation BenefitCPI-Wjanuary billsloved ones dependent on incomeadd teeninsuranceRoth 401(k)rent vs buylife insurance name trust as beneficiarySuze approvedbetter termsBaby Boomers401(k) Contributionsreal estate marketstudentWarner Bros Television GroupLovestrained relationshipcommissionscompare monthly expensesWall StreetCollege of Veterinary MedicineLTC shoppinglow-cost index mutual fundFederal Reservethree year car loan!00% tuition paidcompare provider pricingFICO credit score credit card mortgageno interestkid borrow firstemployer funding HSAWashingtondental discount planFree Debt Eliminatorstudent loan repayment estimatorcut monthly cable billOverspendingallowance taskFRAcnbc alarm clockfamily save at least $100 monthlyone annual feeHolidaysave moneyautomatic withdraw to savings no private loanssetup automatic savings withdrawallowanceVeterinary Schoolgrandparent IRA contribution Giftsprescription tierPay Off Debt Before Retirementfinancial independencetake actionclosing disclosurecreate new truthfinancial goal phraseFinancial Educator10 year repayment plan file taxes quicklyterm life insurancelet them have 50% controlzero rate transfer dealsdoctors in networkplan

View Blog & News List
People First. Then Money. Then Things.
Connect with me on Facebook Connect with me on YouTube Connect with me on Twitter
© 2017 Suze Orman Media Inc. All rights reserved.
 |  Search  |  Sitemap  |  Privacy  |  Terms
Sign Up For E-mail Offers
Open Panel
Close Panel