All Advice Has to Be Taken With a Grain of Salt – Regardless of the Source
If you’ve set your television to any financial channel, you have probably heard Suze Orman’s voice.
She’s a well-known financial advisor who’s always encouraging people to spend less and save more.
Our society has been saturated with consumerism for so long that it seems crazy to say “duh,” but saving money and spending less is the easiest way to get rich.
But let’s not get carried away. Although Suze is a well-known financial advisor and author, she’s still just an English-speaking human being.
She’s going to make mistakes.
She’s going to give confusing advice.
Sometimes she’s going to be wrong.
Suze Orman Doesn’t Know You
And You Don’t Know Suze Orman.
Suze Orman is one of the most famous personal finance experts in today’s market.
She’s made a fortune advising her fans on how to make the most of their money, though she’s made her fair share of mistakes in the past. Shedding some light on those mistakes and what truly inspires her are a few of the reasons why she’s so beloved by her fans.
But her reputation has received a couple of blows over the years. It all started with a video on YouTube that reveals her 10 worst money advice rules that ruined family’s finances, which has since accumulated over five million views and started a very intriguing debate.
Most of Her Advice is Very General
Suze places a lot of emphasis on the importance of creating a budget. She encourages her listeners to track their spending and figure out a reasonable budget. She presents her own budget as a good example, but it’s important to know that her budget is not necessarily every person’s budget. Suze is very comfortable with her budget because she’s in a high-income bracket and isn’t creating a budget out of necessity.
Strangely, her book actually ignores the topic of budgets, and she only provides a brief explanation in her podcast. Her critics say that personal finance is a whole body of knowledge and any real discussion of a budget needs to provide more than just a broad statement on why everyone should have a budget.
Your Own Financial Situation is Unique
Suze Orman’s reasons for not following a lot of financial advice are mostly relevant to highly risk takers.
The name of the game for her is safety. Her stance on debt is very clear, which is why she thinks your debt should be paid off as quickly as possible. And because she subscribes to the idea that you should “never have credit card debt” and that you should “never buy anything with a credit card,” I consider her recipes to be extremely radical. I can’t think of anyone who has had a successful career or lifestyle, or even financial survival, by following some of Suze’s rules. And because she’s so revered and respected in the industry, it becomes confused that this is the standard way you should do it.
When You Get That Popular, There Are ALWAYS Commercial Biases
Suze Orman may be a huge celebrity, but that doesn’t mean you should follow her blindly. Just because Suze Orman’s advice keeps you from falling victim to predatory lending, are you ready to eat up everything she says? Suze Orman has made the single mistake of most overexposed celebrities and has started to look for the next move that can extend her fame. Consequently, many have already seen her actions as just another publicity-hunting grab at celebrity hype.
While it’s important to be aware of Suze Orman’s financial resources and the potential monetary benefits of her financial advice, it’s axiomatic to hide the knife, start digging, and identify another logical reasoning behind the celebrity agenda.
As in Suze Orman’s case, it can be more than making a buck. The ‘new’ Suze Orman’s motivational message and “new” Suze Orman’s financial coverage have a separate agenda. And that’s making sure you don’t uncover what’s really going on with celebrity agendas.
There’s a Bit Too Much Emphasis on The Little Things
Well, if there’s too much emphasis on the little things, that must mean Suze spends a lot of time going over those small details that might have some major repercussions depending on the way you look at it.
For example, Suze spends time explaining to her viewers the difference between a Roth IRA and a Traditional IRA, how to choose a bank to open an account in, how to determine if a credit card is right for you, and the difference between debit and credit on your bank statement.
While she’s correct in her advice to not lose sight of any of those details, it’s not the details that destroy your finances … it’s the overall picture that you create by putting the details all together.
It’s not the size of your finances that matter. It’s how you manage those finances that will show you if you’re financially secure or if you’re on an irreversible track to financial destruction.
No, Everyone Shouldn’t Invest in Stocks
Suze Orman is a financial expert who has a popular show on CNBC. Like most other money experts, she advocates investing in the stock market, buying low and selling high.
But listening to Suze Orman is a mistake, because her advice is often quite counter-intuitive. She often recommends some investment options which could end up costing you a lot of money instead of helping you build wealth.
I understand people who follow Suze Orman’s advice. The stock market has greatly benefitted many people and Suze Orman is a well-known figure. So it makes sense to follow her advice. But before you do that, you should know that there are a number of reasons why you should not listen to Suze Orman. Let’s take a look at the pitfalls of investing based on her advice.
No, Everyone Won’t Get Rich in the Stock Market
Orman claims that “the average millionaire household consists of a portfolio of about 75 percent stocks, 25 percent bonds and the rest in cash and real estate.” Sounds good, but the perception that everyone will get rich in the stock market doesn’t help people manage their finances. One essential lesson of personal finance is that you should spend less than you earn, and saving is one of the best ways to do it. If people spend more of their resources on things like fancy cars and handbags, there will be fewer savings for retirement and college funds. Even worse, people who believe they can outpace the stock market may wind up spending their savings on investments that may not pay off.
Suze Doesn’t Always Follow Her Own Advice
Sometimes She’s Not Just Wrong, But VERY Wrong
Risky behavior, major debt, and a lack of money awareness are all VERY common in today’s world. And there are a lot of people who make money telling us how to get out of all three of those problems.
Some of those people are snake oil salesmen who’ve convinced themselves and a few other people that they’re financial experts. The people who make up the rest of the financial advice industry are simply well-intentioned people who make pretty obvious mistakes with their own money that somehow end up as talking points on television.
There have been a number of very public financial failings by Suze Orman over the years, and yet time and time again she continues to share bad advice on the public airwaves. So in this article we’re going to talk about a few of those screw-ups and try to understand why Suze Orman seems to consistently offer such terrible advice to her audience.
Orman is a Millionaire – Her Advice May Not Fit Your Financial Situation
Her advice focuses on getting out of debt before you do anything else. Many people spend their life getting out of debt and then find it impossible to accumulate any money. You should do what makes the most sense for you and your life.
She’s an Entertainer, First and Foremost
Suze Orman does two things – she’s a financial advisor who also entertains. Her advice isn’t always the best, and you really have to know what you’re doing to make her advice work for you. When you listen to her, always separate the entertainment value and the advice value. They’re separate and they aren’t always the best advice.
Because Nobody’s Perfect – Not Even Suze Orman
Suze Orman is well-known as a financial guru, but not as one of the kitchen experts. With her straightforward way of talking, she presents financial advice in an efficient and easy-to-understand way. While she has some good points and important reminders, you should not depend on Suze Orman’s financial advice alone. There are some good reasons why you shouldn’t listen to Suze Orman.
Because You Need to Think For Yourself – Especially With YOUR Finances
If you’ve ever watched an episode of The Suze Orman show, then you know that I can be very outspoken when it comes to Suze Orman and her financial advice. Why? It’s because Suze Orman’s advice for most people isn’t financially sound for most people … in fact, 95% of her advice ends up being bad financial advice.
Suze Orman has a tendency to scare people into taking advice, but I’m not here to scare you. I’m here to tell you to think for yourself. Suze Orman is a skilled marketer, and that’s all what she is.
While Suze Orman is a successful marketer of financial products, she isn’t a reputable financial expert – and that’s why I know you need to think for yourself when it comes to your finances. Don’t make mistakes blindly following what Suze Orman says.