Suze Orman Says This Holiday Choice Could Make Or Break Your Budget – Here's Why You Must Decide Now

Suze Orman’s blog post outlines her advice for staying financially healthy this holiday season. It's worth listening to, especially with inflation still pinching wallets. Her message is simple: don't let holiday spending throw your finances off track, no matter how tempting it is to splurge on loved ones. 

Don't Miss:

• Many are using this retirement income calculator to check if they’re on pace — here’s a breakdown on how on what’s behind this formula.
• Can you guess how many Americans successfully retire with $1,000,000 saved? The percentage may shock you.
• CD Popularity Soars: Over 50 Million Americans Embrace Safe Savings with 5–10% Annual Growth

She says, “True generosity is when a gift is as kind to the giver as it is to the recipient.” In other words, if gift-giving means adding to your debt, it's time to rethink your approach.

One of her biggest warnings is about credit card debt, which is a massive issue right now. According to WalletHub, the average interest rate on credit cards is about 22%. Carrying a balance at that rate can quickly spiral into financial trouble. 

Orman advises skipping gifts altogether if you can't pay off your card balance in full. The same goes for those Buy Now, Pay Later (BNPL) services, which might look like a good deal but can lead to trouble if you miss payments. NerdWallet recently reported that about 37% of BNPL users pay late fees, which can snowball into even bigger expenses.

See Also: Invest in $20+ trillion home equity market today across cities like Austin, Miami, and Los Angeles through a unique 5-year term fund targeting a 14-20% IRR with minimums as low as $2,500

If you have high-interest debt, Orman suggests paying it down instead of spending on gifts. She encourages creative, low-cost gifting ideas for those on steadier financial ground. 

Think of offering your time or talents – babysitting, helping with home projects or making something handmade. Orman and her wife KT only exchange homemade gifts, which she says are the most meaningful.

If pressured to meet social expectations, Orman suggests honest conversations with family and friends. "People who truly care for you will understand and support your decision to stand in financial truth," she says. A thoughtful conversation can relieve pressure and help others shift their priorities.

Trending: The average American couple has saved this much money for retirement — How do you compare?

Orman offers a simple financial checkup to help you gauge your holiday spending readiness. Can you pay off your credit card bills in full each month? Do you have an emergency fund that covers at least eight months of expenses? Are you consistently saving for retirement? 

If you answered "no" to any of these, Orman advises holding back on discretionary spending. Instead, focus on small, manageable steps to improve your financial foundation – automating savings, tackling debt and sticking to a budget can make a difference.

The timing of Orman's advice couldn't be more relevant. Inflation remains stubborn and experts are still discussing the possibility of a recession. 

According to a report by AP News, The National Retail Federation (NRF) forecasts that U.S. holiday sales in 2024 will increase by 2.5% to 3.5%, amounting to $979.5 billion to $989 billion. This growth rate is slower than the 3.9% increase in 2023 as many households tighten budgets. 

Read Next:

• I’m 62 Years Old And Have $1.2 Million Saved. Is This Enough to Retire Stress-Free?
• Studies show 50% of consumers think Financial Advisors cost much more than they do — to debunk this, this company provides matching for free and a complimentary first call with the matched advisor.