Suze Orman’s 5 Basic Money Rules To Get You on the Right Track

Core Insights - The article emphasizes the importance of basic personal money management strategies to build wealth, including improving credit scores, developing saving habits, and enhancing financial literacy [1] Group 1: Credit Management - Suze Orman advises individuals to tackle credit card debt by requesting lower interest rates from issuers, noting that the average credit card interest rate is around 22% [3] - She suggests exploring balance transfer deals that may offer zero-interest rates for 12 to 18 months, allowing individuals to pay off their balances without accruing interest [4] Group 2: Emergency Fund - Orman recommends establishing an emergency fund that can cover up to 12 months of living costs to help withstand financial hardships [5] Group 3: Financial Planning - Creating a financial action plan is crucial, which includes paying off credit card debt and improving FICO scores before developing spending, saving, and retirement strategies [6] - The spending action plan involves categorizing expenses into wants and needs, eliminating unnecessary wants if savings are insufficient or debt is high [7] Group 4: Savings Automation - Automating savings is recommended as a proven method to stay committed to savings goals [9]