This article adheres to strict editorial standards. Some or all links may be monetized.
Suze Orman has spent decades improving the financial outcomes of many Americans.
The financial advisor and host of The Suze Orman Show has written 10 consecutive bestselling books on personal finance and has given countless speeches on the subject. She also hosts a successful podcast, Women & Money.
Orman summarized decades of her best financial advice when speaking to a live audience in 2019: “If you live your life with [this] one rule, your life will start to change.”
Must Read
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don’t have to deal with tenants or fix freezers. Here’s how
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and 3 simple steps to fix it ASAP
- Robert Kiyosaki says this 1 asset will surge 400% in a year — and he begs investors not to miss its ‘explosion’
Orman’s game-changing rule
Orman suggests that anyone looking to build financial security should “buy what you need versus what you can afford when you can afford more than you need.” In other words, her advice was to live below your means.
As an example, Orman said she could technically have afforded an apartment that was much more expensive than the one she actually has. But by purchasing property below her budget, she created a monetary buffer that added to her sense of financial stability over the long run.
Orman isn’t the only successful entrepreneur who lives by this rule. Warren Buffett famously still lives in the home he purchased for just $31,000 in 1958.
IKEA’s late founder, the late Ingvar Kamprad, bought clothes at flea markets even after he became a billionaire. Maintaining that gap between needs and wants is a critical part of his wealth-building strategy.
Unfortunately, many Americans struggle to exercise similar restraint — especially when it comes to spending with their plastic.
However, while living expenses and essential purchases are unavoidable, you can turn them into opportunities with the Acorns app.
When you link your bank account, Acorns will round up your transactions to the nearest dollar as you make purchases on your credit or debit cards, investing the difference in a smart portfolio of ETFs. This way, even as you spend, you’re steadily building your portfolio. With rising expenses often outpacing income, putting your savings on auto-pilot could potentially help you get out of your own way.
Sign up now and you can get a $20 bonus investment to kickstart your investing journey.
To ensure you’re following Orman’s golden rule, getting a handle on your income and expenses with a budget is essential. Your savings and investment strategies should fall into a greater budgeting plan, especially if you’re trying to expose overspending or take advantage of compound interest.
But making a budget you can stick to is not always easy in practice, sometimes you need to bring in a pro to help.
Advisor.com connects you with vetted fiduciary financial advisors near you. All you have to do is answer a few simple questions about your finances, and Adivsor.com matches you with a short list of certified experts to choose from.
You can then set up an introductory meeting with no obligation to hire.
Read more: Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now
America’s overconsumption issue
Many Americans have found themselves in debt as they struggle to bridge the gap between what they can afford and what they want to purchase (but don’t actually need).
Household debt hit a record $18.39 trillion in Q2 2025, with credit card and auto loans rising alongside mortgage debt. This financial pressure has left many American families in a tough spot, but Orman suggests her golden rule could help them regain control.
“How do you start to live by that rule?” she asked during the live presentation. “From this day forward, I would like you to make a vow to yourself that, for the next six months… only buy needs, not wants.”
Cut down spending where you can
Indeed, beyond consumer spending, a Lending Tree study reveals that more than 18 million American homeowners are considered “house poor” — spending more than 30% of their monthly income on housing costs.
Those costs can include everything from mortgage payments, utility bills, renovations, property taxes, or home insurance policies.
In the United States, approximately 22.8% of homeowners were considered cost-burdened in 2022, meaning they spent more than 30% of their income on mortgage payments and other housing costs.
Being overextended can happen to anyone, so lowering expenses where you can may offer much-needed relief. You can save about $482 per year on average by comparing home insurance rates from leading insurers near you, and selecting the lowest available rate through OfficialHomeInsurance.
Using OfficialHomeInsurance is 100% free. All you have to do is enter some information yourself and about the home you’d like to insure. Within two minutes, the platform will sort through its database of over 200 insurers and display the lowest rates offered.
From there, you can compare the coverage offered by providers near you and read reviews before making a decision.
As if home expenses weren’t bad enough, another report by Market Watch found that 82% of Americans struggle to keep the monthly cost of car ownership below the recommended threshold of 10% of their monthly income, with the national average sitting at $179 per month.
So it can really pay off to ask yourself: When was the last time you shopped for a better rate on your car insurance?
When you use OfficialCarInsurance, they’ll ask you some quick questions that help determine your insurance. Things like your age, your home state, the type of vehicle you drive and your driving record.
Based on your answers, they’ll sort through leading insurance companies in your area, including top providers like Progressive, Allstate and GEICO, ensuring you find the lowest rate possible — and the platform is 100% free to use.
What to read next
- Want to retire with an extra $1.3M? See how Dave Ramsey’s viral 7-step plan helps millions of Americans kill debt and build wealth — and how you can too
- I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
- There’s still a 35% chance of a recession hitting the American economy this year — protect your retirement savings with these 5 essential money moves ASAP
- This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchase. Here’s how to buy the coveted asset in bulk
Join 200,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.