Americans have been receiving the same “one-size-fits-all” money advice for years, but Suze Orman says it’s time to hit the brakes. Some of those so-called hot tips that are circulating on the web and even daytime TV aren’t just out-of-date, but misleading or downright devastating to your financial health.
Taking some of this advice may keep you broke, stressed, or stuck in a paycheck-to-paycheck lifestyle. No surprise, though, since a 2024 Fidelity study discovered that 71% of Americans continue to believe money myths disseminated by friends or social media influencers.
Not Suze, though. She’s tearing those tired clichés apart and bringing in down-to-earth wisdom backed by data, research, and experience. If you’re looking to build enduring wealth in 2025 and beyond, here’s a must-read list of 25 standard money suggestions Suze Orman says to disregard—along with what to do instead.
“Renting Is Throwing Money Away”
“Renting Is Throwing Money Away” is counsel Suze Orman flips on its head. She believes that renting can be a more intelligent choice than purchasing, depending on your financial situation. In high-cost states like New York and California, median home prices were above $850,000 in 2024, according to Zillow, and renting a comparable home tends to be far less costly.
Suze says tying up all of your liquidity in a mortgage is risky if you lack an emergency fund or even job security. A study from the Harvard Joint Center for Housing Studies finds that over 45% of homeowners under 40 are “house poor”—they devote more than 30% of their income to housing.
Instead of rushing into a 30-year commitment, Suze advises renters to invest their monthly savings in index funds and retirement accounts. “Renting gives you flexibility, and flexibility is power,” she says.
“Credit Cards Are Evil—Cut Them Up
This kind of dire advice pains more than it assists. Suze Orman advises keeping your credit cards—simply use them tactically. Shutting down cards lowers your credit utilization ratio, which comprises 30% of your FICO score.
An Experian report from 2023 shows that the average American credit score is 714; however, this number rapidly decreases if credit limits are reduced. Innovative credit card use can build your score and unlock rewards, travel perks, and fraud protection. Suze urges Americans to charge small amounts and pay them off in full each month.
“Your credit history is your financial résumé,” she warns. “Why would you tarnish it?
“Always Pay Off Your Mortgage Early”
It might sound virtuous, but Suze Orman doesn’t agree, especially during these inflationary times. With mortgage rates still around 6.9% as of Q2 2025, most homeowners are under pressure to get rid of this debt ASAP. Yet Suze contends that early retirement of a mortgage sacrifices valuable investment opportunities.
Vanguard puts average yearly returns on diversified stock portfolios at over 9% for 30 years. Suze contends that creating a solid retirement account or contributing the maximum to a Roth IRA is more important than paying off low-interest mortgage debt.
“If your mortgage is 3% and your investments earn 8%, that math doesn’t lie,” she says.
“You Must Have a 20% Down Payment”
Suze once endorsed this, but times have changed. First-time homebuyers now face record-high prices and rising interest rates. According to the National Association of Realtors, the average first-time buyer in 2025 puts down just 7%. Waiting to reach 20% could delay buying by years, especially since wages fail to keep pace with inflation.
Suze now recommends paying down what you can, as long as you avoid private mortgage insurance (PMI) through creative lender programs. “Time in the market beats timing the market—even with real estate,” she says.
“Buy Term and Invest the Difference”
This age-old guidance hasn’t stood the test of time. Suze Orman argues that permanent life insurance offers greater long-term protection for others. Term policies are low-cost but time-out. Whole and universal life policies accumulate cash value, and some offer guaranteed returns.
In 2024, LIMRA data found that over 60% of policyholders survived their term policies, meaning families had no protection. Suze recommends that Americans consider permanent life insurance if they have heirs or estate planning needs. It’s not the cheapest—it’s the smartest,” she says.
“Stick to a Tight Budget No Matter What”
Severe budgeting does not work for actual humans. Suze calls it “financial starvation” and prescribes dynamic planning instead. In 2023, a NerdWallet survey found that 67% of Americans abandon strict budgets within six months. Life is unpredictable, and budgets should be adaptable.
Suze’s advice? Focus on mindful spending and automated saving instead. Use tools like YNAB or Tiller that flow with your life. “Budgets should breathe—not suffocate you,” she says.
“Student Loans Are Good Debt”
This recommendation doesn’t hold water in the 2025 employment marketplace. With student loan interest rates topping 7.5% and salaries remaining stagnant, Suze calls this myth perilous. As of the Education Data Initiative, Americans hold student loan debt of $1.77 trillion.
Suze recommends that families prioritize scholarships, community colleges, and trade schools. “Debt is always debt—good intentions don’t erase it,” she warns.
“Buy a Car with Cash to Avoid Payments”
That’s a luxury that isn’t available to most people. Suze now recommends that a low-interest auto loan can preserve your cash flow. The price of new cars averaged $48,000 in 2024, according to Kelley Blue Book. Paying cash would deplete your emergency fund.
Suze recommends financing modestly, purchasing used items rather than new, and avoiding loans that last longer than five years. “It’s not the payment—it’s what you have left after it,” she emphasizes.
“Financial Advisors Are for the Wealthy”
False. Suze thinks regular Americans need advice more than ever. Thanks to platforms like Facet Wealth and Betterment, you can now get fiduciary financial advice without five-figure portfolios. A 2024 Northwestern Mutual study found that people who utilize advisors are 60% more confident in their financial future.
“A good advisor pays for themselves many times over,” Suze says.
“Marrying Your Finances Automatically Means Joint Accounts”
Suze insists that couples keep their money separate to a certain degree. A 2023 U.S. Bank survey found that 31% of financial arguments result from mismatched spending behaviors. She proposes keeping one joint account to cover shared expenses, while each person maintains personal accounts for their spending.
“Independence within a relationship creates trust, not tension,” she recommends.
“Get the Biggest Tax Refund Possible
Others see big refunds as a win, but Suze calls them interest-free loans to the government. IRS data reveals the average refund in 2024 was more than $3,000—money that could have been drawing interest in a high-yield savings account or investment portfolio.
Suze recommends that Americans adjust withholdings to increase take-home pay throughout the year. “Don’t wait until April to give yourself a raise,” she says.
“Save 10% of Your Income and You’ll Be Fine”
Suze Orman has long dismissed this outdated benchmark. While 10% might have worked decades ago, today’s longer lifespans and rising healthcare costs demand a much more aggressive savings strategy. A 2024 report from the Employee Benefit Research Institute (EBRI) revealed that Americans retiring at 67 need at least 18 times their final annual salary to retire comfortably.
Suze recommends saving at least 20% of your income, especially if you’re starting in your 30s or later. Automated savings into a Roth IRA, brokerage account, or 401(k) with a match is key. “Ten percent is a start, not a strategy,” she says. The compounding effect over decades makes the difference between surviving retirement and thriving in it.
“You Don’t Need Life Insurance if You’re Young and Healthy”
That’s a costly myth. Suze Orman reminds us that the younger and healthier you are, the less you’ll pay in premiums—and having a rate locked in sooner can save thousands down the line. A 2023 study by Policygenius found that millennials overpay by 22% when they wait until their 30s to buy life insurance.
Suze urges young adults to consider term life insurance if they have dependents, co-signed loans, or aging parents who rely on them. Additionally, some policies offer living benefits in the event of a chronic illness. “Life insurance is a love letter to those you’d leave behind,” she says. And in an age of increasing health issues and unpredictable events, it’s a wise protective move.
“You Need a 750+ Credit Score to Qualify for a Mortgage”
This myth excludes many prospective homeowners. Suze Orman cites Fannie Mae and Freddie Mac guidelines, which allow for home loans with credit scores as low as 620 if you otherwise qualify. According to the Consumer Financial Protection Bureau (CFPB), the average credit score for FHA borrowers who were approved in 2024 was just 674.
While a higher score means more favorable terms, Suze explains that approval is ultimately determined by the big picture, including the debt-to-income ratio, income, and savings. Her recommendation is to focus on paying down debt and increasing income before stressing about impeccable credit. “Don’t let a three-digit number stall your dreams,” she counsels. Consider shopping multiple lenders and getting pre-approved to understand your options.
“Retirement Starts at 65—Plan for It”
In 2025, retirement isn’t so much a number as a moving target, says Suze Orman. Increasingly, Americans are working longer, by choice or by necessity. Data from the U.S. Bureau of Labor Statistics show that the labor force participation rate for people aged 65 to 74 has increased to 27%, up from 18% in 2000.
Suze recommends planning as though you’ll live to 95, not 75. Inflation, healthcare costs, and unexpected life changes make early or rigid retirement timelines risky. She urges building flexibility into your financial plans with Roth IRAs, brokerage accounts, and Social Security delay strategies. “Don’t retire by a date—retire by a number,” she advises. Consider how much you’ll need, not when you’ll achieve it.
“Never Touch Your Retirement Accounts Early”
While it’s usually wise to keep retirement savings untouched, Suze Orman makes exceptions—especially during emergencies. The SECURE Act 2.0, effective in 2025, provides penalty-free withdrawals of up to $1,000 for emergency purposes. A CNBC survey found that over 47% of Americans have withdrawn from their retirement savings at least once.
Suze argues that in certain circumstances, short-term survival trumps long-term ideals, but only with a solid plan to replenish those funds. She recommends establishing a Roth IRA, which allows you to withdraw contributions (not earnings) tax-free. “Retirement savings are sacred—but life happens,” she says. Build a good emergency fund so that you’ll never have to borrow from your future again.
“Always Refinance to Lower Your Rate”
Not always, says Suze. Refinancing doesn’t cost zero—it has closing costs, fees, and even longer loan terms that wipe out the savings. Freddie Mac reports that the average cost of refinancing in 2024 was $5,000. Suze recommends refinancing only if you can drop your rate by at least 1% and stay in the house long enough to hit the break-even point.
She also warns against restarting the clock to a 30-year term if you’re midway through your mortgage. “Saving $100 a month sounds good until you’ve added 10 years to your debt,” she says. Use refinance calculators and talk to multiple lenders before leaping.
“An Emergency Fund Needs to Be $1,000”
No longer in the 2025 economy. Suze Orman recommends saving at least eight months of essential expenses, especially as job market uncertainty and healthcare costs rise. A 2024 LendingClub study found that 62% of Americans wouldn’t cover a $1,000 emergency without going into debt.
Suze suggests holding your emergency fund in a high-yield savings account, which in 2025 most are paying APYs over 4.5%. That way, your money can increase but remain liquid. “A thousand dollars won’t be there to save you when your roof collapses or you get fired,” she says. Insure your tomorrow by cushioning your today.
“Buy a Home as Soon as You Can”
This blanket advice ignores timing, market conditions, and personal readiness. Suze Orman reminds us that owning a home is not always the path to wealth. With housing costs artificially inflated in 2025 and mortgage interest rates nearing 7%, buying too soon can strain your finances.
In a 2024 Redfin report, 38% of first-time buyers regret their purchase due to hidden costs and upkeep. Suze urges prospective buyers to consider job stability, emergency savings, and long-term financial plans before making a decision. Renting in a desirable location while investing the difference could yield better economic results. “Owning a home is not a trophy—it’s a commitment,” she says.
“Max Out Your 401(k) Before Paying Off Debt”
This common advice might backfire if you’re drowning in high-interest debt. Suze Orman emphasizes paying off debt with interest rates higher than 6%, such as credit cards, which commonly have rates over 20%. The Federal Reserve puts the average APR on credit cards in 2025 at 22.6%, and compounding interest on that type of debt can annihilate long-term financial aspirations.
Though it’s wise to contribute enough to receive a 401(k) match, investing everything in retirement while holding poisonous debt is akin to attempting to fill a leaky bucket. Suze advises a compromise: pay off high-interest debt with aggression while investing a smaller amount in retirement. “You can’t invest your way out of a debt spiral,” she cautions. Paying off debt boosts your net worth just as much as investing, sometimes more.
“Always Lease a Car to Lower Monthly Payments”
Leasing may seem affordable upfront, but it often costs more in the long run. Suze Orman warns against leasing unless you’re a business owner, deducting the expense, or need a new car every few years. Kelley Blue Book reports the average monthly lease payment nationwide in 2025 is $548, while buyers who finance used vehicles pay an average of $452 per month.
Suze cites the lack of equity, mileage restrictions, and high fees for wear and tear in leases. Her recommendation is to purchase a reliable used vehicle with cash or finance it through a low-interest, short-term loan. “Drive a car that doesn’t drive you into debt,” she counsels. Owning a vehicle outright frees up your future budget and provides long-term value.
“A College Degree Is Always Worth the Cost”
That used to be true—until tuition exploded. In 2025, the average student will graduate with $39,500 in debt, according to the National Center for Education Statistics. Suze Orman stresses that the ROI on college depends on your major, school choice and career goals.
A computer science or nursing degree may pay off quickly, but a $100,000 liberal arts degree with no career direction may take decades to recover. Suze recommends community colleges, trade schools, or public universities instead of high-priced private institutions. “Education is powerful—but debt is disempowering,” she states.
Look into scholarships, part-time employment, and employer-offered tuition reimbursement programs to remain financially anchored.
“Your House Is Your Best Investment”
Not always, especially when liquidity matters, Suze Orman reminds us that a home is a home, not a piggy bank. Real estate can appreciate, but it can also stagnate or drop, especially in downturns. In 2025, the housing market is experiencing regional volatility, with some markets, such as Austin and Boise, experiencing price corrections of over 10%.
Suze advises against relying on home equity alone for retirement or emergencies. It takes time to sell a home, costs money, and may not be feasible during a crisis. “Your best investment is the one you can tap into and grow in the long term,” she says. Diversify with stocks, IRAs, and real estate—not your primary residence.
“You Need a Financial Advisor to Build Wealth”
Financial planners can be useful—but aren’t for everyone. Suze Orman wants Americans to empower themselves with knowledge first. Robo-advisors like Betterment and Wealthfront charge 0.25% or less annually, versus 1% or more for traditional advisors—savings that compound over decades.
Vanguard studies found that do-it-yourself investors who stick to low-cost index funds perform better than those who use high-fee managers. Suze says, “Don’t give your future to somebody who makes money off your lack of knowledge.” If you do hire an advisor, make sure they’re a fiduciary—legally obligated to act in your best interests. You have more control and free education at your fingertips than ever in history.
“Stick to a Budget and You’ll Be Rich”
Budgeting is essential, but it’s only half the formula. Suze Orman believes that too many Americans obsess over budgets without addressing income growth and long-term investing. In a 2025 GoBankRates survey, 62% of budgeters still lived paycheck to paycheck.
Suze wants people to focus on earning more money through side hustles, skill development, and career advancement. “You can’t shrink your way to wealth—you have to expand your opportunities,” she says. Pair budgeting with investing, debt elimination, and passive income techniques for actual outcomes.
Mint, YNAB, and Empower can be valuable tools; however, mindset and action ultimately deliver results. Budgeting is the starting point, not the destination.
Key Takeaways
Suze Orman debunks many common money myths that can hurt your finances. She explains that renting can sometimes be smarter than buying, especially in expensive markets, and that cutting up credit cards can damage your credit score. Paying off your mortgage early isn’t always the best option if you can earn higher returns by investing elsewhere.
The 20% down payment rule is outdated, and permanent life insurance often beats term policies. Budgeting should be flexible, and student loans aren’t “good debt.” Sometimes, low-interest loans make more sense than paying cash, like for a car. Building an emergency fund should take priority over maxing out retirement accounts, and financial advisors can help anyone, not just the wealthy.
Couples don’t need joint finances, but a mix of shared and separate accounts is ideal. A large tax refund means you’re giving the government an interest-free loan—adjust withholdings instead. Saving only 10% for retirement isn’t enough, and young people should consider life insurance while healthy.
You don’t need a perfect credit score to get a mortgage, and retirement should be planned based on needs, not age. Emergency funds should cover eight months, not just $1,000. Buying a home too soon can be risky, and paying off high-interest debt should come before maxing out retirement contributions.
Leasing cars typically costs more than buying used, and the value of college degrees varies; affordable options are crucial. A home isn’t always the best investment; diversifying and increasing income are key to financial success. Lastly, budgeting alone won’t build wealth—you must invest, increase income, and reduce debt. Suze’s advice focuses on innovative, flexible, and long-term planning.
Disclaimer: The Finance key does not provide and does not intend to provide financial, investment, tax, or legal advice. Information contained in this article is for informational and educational purposes only. This list is solely the author’s opinion based on research and publicly available information. The inclusion of links to third-party content is not an endorsement by The Finance Key of such content or services. Please do your due diligence and use your discretion.
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