You might know Suze Orman from CNBC’s “The Suze Orman Show,” telling people what to spend on and seeing people denied left and right of their desired purchases. Whether it’s a new car, a pair of earrings, or in some cases, a magic lesson retreat in Europe, Suze will just like say one thing — deny, deny, deny.
Yet, what does this woman know about finances and why does she care about what your next purchase might be? You may have an idea or two, you might have seen her impersonated by drag queen Katya Zamolodchikova (which is perhaps the highest form of flattery), but It still doesn’t answer the question — what’s up with Suze?
Well, here’s what we know.
Life Begins at 30
Suze was in her mid-twenties in the 1970s when she made her way to financial freedom. She was a waitress for years, earning the somewhat decent income of $400 ($1,935.97 in today’s money) with half of it going to rent. It wasn’t until she was nearing her 30s when she realized a change has to happen or else she’ll face a life of just living from paycheck to paycheck. It held true for Suze at the end of the disco era, and so it will also hold true to anyone reading this blog to this day.
She loaned money from friends to build her own restaurant, and dove headfirst into a world of money market accounts. Suffice to say, Suze did not serve food from this point forward.
Do What is Right vs. Do What Is Easy
The 1980s was a decade of excess, a la Wolf of Wall Street, but without the consequences and the dire need to set aside for a rainy day.
Suze felt otherwise, being recently inducted into the formidable Merrill Lynch at the start of the decade and also being seen as a woman of the time — a future housewife and nothing more. Orman proved them otherwise, not just by giving her investors their money market funds with interest turned over, but also by shaking the system when she sued the very company that she worked for. She later built her financial group, sharing what she learned by doing the research needed to earmark for the future.
Financial Freedom = Time
Suze Orman is teaching us a short and valuable lesson — that time is your friend when it comes to investments. If you are 25 and you started to save at least $100 every month until age 65, you would’ve had at least $1 million within favorable market conditions. On the other hand, invest the same amount starting at the age of 35 and you would’ve only gained $300,000. There’s no going around the fact that saving early does have its rewards, and Suze Orman is a testament to what potential everyone has in gaining financial freedom, with simple, realistic steps that account for the realities of life.
As for me, I think Suze Orman has the right to have a stand on how people spend their money, because she has learned a lot of things the hard way. We need more leaders and role models like her — people who walk the talk and have the records to prove it. Let’s just hope that we can be just like them, and share the knowledge through experience that will make as many people in our lives content, fairly comfortable and taking the pleasure out of their retirement years.