Suze Orman’s Playbook for Catching up on Retirement Savings

Saving for retirement is a crucial aspect of financial planning, and it’s never too late to start. Suze Orman, a renowned personal finance expert, has been guiding people towards financial freedom for decades. Her advice offers a solid foundation for those looking to build their savings and secure their future. Here is a four-step guide inspired by Suze Orman to help you save enough to reach your money goals without feeling overwhelmed.

1. Do an inventory: The first step towards improving your finances is to assess your current financial situation. Take a close look at your income and expenses to understand where your money is going each month. This will help you determine how much you can save towards your retirement and other financial goals. Identifying areas where you can cut costs will also be beneficial in the long run.
2. Check on your emergency fund: Suze Orman emphasizes the importance of having an emergency fund that can cover unexpected expenses. Financial advisors typically recommend saving three to six months’ worth of living expenses in a liquid account. However, Orman suggests saving even more – at least eight months’ worth of expenses. For retirees, having one to two years’ worth of expenses saved up is advisable.
3. Sort your money into needs and wants: To effectively save money, it’s essential to differentiate between your essential expenses (needs) and discretionary spending (wants). Review your spending habits to identify areas where you can cut back on non-essential purchases. By prioritizing your needs over wants, you can allocate more towards savings and financial security.
4. Create an action plan for saving: Setting specific savings goals and creating a plan to achieve them is crucial for financial success. Whether you’re nearing retirement or just starting to save, establishing a five-year plan can help you stay on track. Consider increasing your retirement contributions, paying off debts, or setting aside funds for major expenses. By setting realistic targets and monitoring your progress, you can work towards achieving your long-term financial goals.

   By following these steps inspired by Suze Orman, you can take control of your finances and work towards building a secure financial future. Remember, it’s never too late to start saving for retirement and taking steps towards financial freedom.