If you're only slightly underwater on your house, keep plugging away to pay off your mortgage faster. Wouldn't it be great, she asked, if we got as much pleasure out of putting $300 in a Roth IRA as buying a new dress at the mall?ģ. The pleasure of saving equals the pleasure of spending. Why waste money? Just because you can afford it doesn't mean you should buy it.'Ģ.

'If you were to live below your means, meaning you can afford a 3,000 square foot home,' she said, 'you buy a 2,000 square foot home. Live below your means, but within your needs. Orman also offered these tips, among other resources and helpful tools on her website, to help Americans navigate their personal finances:ġ. Now, she said, they 'should invest in exchange traded funds or dividend-paying stocks that give you a high-dividend yield, because you have to get income for this money. Her rule used to be that as investors age, they should switch from investing in stocks to bonds. In light of this financial revolution, Orman reversed some of her previous advice, particularly when it came to seniors investing their money. They will be working longer - to age 67 or 70 - rather than dipping into Social Security at 62. They will take out 15- or 30-year fixed rate mortgages, not variable-rate or exotic loans. Orman predicts that up to 60 percent of Americans will be renters of their homes, not buyers, as the new American dream grows.īuyers will put down 20 percent to purchase a home, she said, but only after they have accumulated that money as well as an eight-month emergency fund. You are living a life where you can sleep at night and you are actually happy.' Redefining the American Dream You are not spending every penny, you are not impressing people. 'It's a dream where you live below your means but within your needs. 'It's a dream where you actually get more pleasure out of saving than you do spending,' Orman said.

Suze orman the money book