Suze Orman, a renowned personal finance expert, has a simple yet powerful message: small spending habits can turn into big financial setbacks. Over time, the decisions we make about seemingly insignificant purchases end up costing us hundreds or even thousands of dollars. According to Orman, learning to say “no” to both our loved ones and ourselves is one of the hardest things.
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Orman often discusses the hidden costs of our daily spending habits. Grabbing a brand-name item or a small impulse purchase at the grocery store may not seem like much in the moment, but a few extra dollars per trip quickly adds up to hundreds or even thousands of dollars per year.
The problem is not limited to groceries. Orman also points out how easy it is to pass up spending on other unnecessary expenses, such as buying individually packaged snacks instead of in bulk.
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You might think, “I work hard; I deserve to spend a little.” While it’s true that you want to reward yourself, Orman urges people to think about what’s really at stake. The more you spend on things you don’t really need, the less you have for what matters: emergencies, retirement, or peace of mind.
In one of her examples, Orman recalls buying a modest apartment when she could have afforded a million-dollar penthouse. For her, the key was buying what she needed, not just what she could afford. It’s a lesson she thinks more people should consider: Focus on your needs, not your wants. Otherwise, the unexpected could leave you in financial trouble.
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Saying “no” is hard, especially when it comes to family. But Orman believes this is critical if you’re serious about achieving your financial goals. You need the discipline to recognize when you’re spending money just because you can, and to know when that money could be better used elsewhere.
Orman is not the only one with opinions about spending habits. The same goes for one of the richest people in the world, Warren Buffett, who is known for driving used cars and living in a modest home. His prudence reminds us that living below our means can pave the way for long-term financial success.
