Suze Orman, a well-known personal finance expert, has a simple but powerful message: Small spending habits can snowball into big financial setbacks. Over time, the decisions we make about seemingly insignificant purchases end up costing us hundreds or even thousands of dollars. According to Orman, learning to say “no” to our loved ones as well as to ourselves is one of the most difficult things.
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Orman often discusses the hidden costs of our everyday spending habits. Grabbing a name-brand item or a small impulse buy at the grocery store may not seem like much in the moment, but a few extra dollars each trip quickly adds up to hundreds or even thousands annually.
The problem isn’t limited to groceries. Orman also points out how easy it is to let spending on other non-necessities slip by – buying individually wrapped snacks instead of in bulk, for example.
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You might think, “I work hard; I deserve to splurge a little.” While there’s truth to wanting to reward yourself, Orman urges people to think about what’s really at stake. The more you spend on things you don’t truly need, the less you have for what’s important – emergencies, retirement or peace of mind.
In one of her examples, Orman recalls buying a modest apartment when she could have afforded a million-dollar penthouse. For her, the key was buying what she needed, not just what she could afford. It’s a lesson she wishes more people would consider: focus on your needs, not your wants. Otherwise, the unexpected can leave you struggling financially.
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Saying “no” is hard, especially when it comes to family. But Orman believes it’s crucial if you’re serious about meeting your financial goals. You need the discipline to recognize when you’re spending just because you can and know when that money could be better used elsewhere.
Orman isn’t the only one with opinions on spending habits. The same is true for one of the wealthiest people on the planet, Warren Buffett, who is known for driving secondhand cars and living in a modest home. His prudence reminds us that living below our means can pave the way for long-term financial success.
