Suze Ormen says we all should focus on these because “the Government cannot save you”

When it comes to personal finance, Suze ormen Of course, you are the best person to take care of your financial future. In a recent episode of her ”Women and money“Podcast, reminded the listeners that” the government cannot save you “, and encouraged everyone to take responsibility for three key areas: debt, income and expenses and investments.

It is then shown as Ormen breaks it down and what actions suggests doing now.

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It orme separates the debt into two categories: good and bad. A good debt can include a mortgage or car loan, especially if you need the car to work. Bad debt, on the other hand, is usually shaped like high -interest credit card balances used for non -essential expenditure.

If this is Credit card debtOrmen suggests organizing your cards by interest rate, from lower to low. Note the minimum payment due to each and then total these lows and add 20% to the total. You will make the minimum payments on all cards, but you will apply an additional 20% to the card with the highest interest rate. Once paid, roll up the whole amount you pay to the following highest card, etc., until the debt has not disappeared.

It also encourages you to keep your credit limit, warning that closing cards can reduce your FICO score.

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The next area Ormen He says that evaluating is your cash flow: what comes from what comes out.

Orman suggests a simple exercise: Look at what you spent last year and divide this number by 12 to get your average monthly expenses. Then compare this number with your subsequent income to the tax, after retirement. If your income do not cover your expenses, or barely, you have a job to do.

“Either you have to earn more, or you have to spend less,” he says. “Or you can do both.”

Orman emphasizes that your relationship with money is not just about reaching a specific amount of the dollar. It’s how you rate the money and, by extension, yourself. Being proactive about your income and expenses now can help you avoid painful surprises.