Suze Orman Breaks On The Overall Economy Vs An Individual Economy — Says 'On An Individual Level, I Don't Think People Are Doing OK'

At the recent 30/50 Summit in Abu Dhabi, Suze Orman sat down with Mika from MSNBC to discuss the current state of the U.S. economy and the financial worries that keep her up at night. Their conversation highlighted the stark contrast between the overall economy’s health and many individuals’ financial struggles.

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When Mika asked Orman about her concerns regarding the economy at the beginning of the year and now, Orman's response was candid. “I’m always concerned about those that don’t have money,” she said. Despite reports that inflation has calmed down, she emphasized that many people still struggle to afford basic necessities. "The rents people are paying, the prices they're paying for real estate, their homes, that concerns me."

Orman acknowledged that, on the surface, the economy appears to be doing well. “It seems like we're doing alright. It seems unemployment's alright, the markets are over the top great, and it's kind of settled in,” she noted. However, she stressed that this positive outlook on the overall economy doesn’t reflect the reality for many individuals.

Mika pointed out the seeming contradiction in economic indicators. "Leading indicators look good. But it is expensive at the grocery store and hard to get a home."

Orman agreed, highlighting the distinction between the overall economy and individual financial situations. "On an individual level, I think people are not doing okay. I do not. Over 50% of the people in the United States don't have $400 for an emergency savings account," she said.

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Orman elaborated on the challenges faced by individuals. Without sufficient savings, unexpected expenses, like a car repair, often lead to increased debt. "They have to go and put it on a credit card and pay the minimum payment, and then the cycle of debt begins," she explained.

While the overall economic indicators might look promising, Orman believes they fail to capture the average person’s financial struggles. "When you look at people's individual situation, in my opinion, they're still struggling."

When asked about the economic concerns that keep her up at night, Orman pointed to geopolitical issues rather than domestic financial instability. "What keeps me up at night are the wars. What's happening in Israel, Gaza, Ukraine and Russia? We are now a global economy," she said. Orman explained that global conflicts have far-reaching effects on the economy, as resources are diverted to combat and defense, impacting global trade and economic stability.

Mika inquired whether these global worries should influence individual financial planning. Orman stressed the importance of staying informed. "I think they should absolutely be knowledgeable about it. And I think if you're just not worried because you don't want to know about it, now you're also asking for trouble on a personal level."

Suze Orman's insights at the 30/50 Summit underscore a critical message: While the macroeconomic indicators might paint a rosy picture, many individuals continue to face significant financial challenges. Her advice is clear — stay informed, be prepared, and understand that the economy’s overall health does not necessarily reflect the economic well-being of the average person.

Given these complexities, consulting a financial advisor can be invaluable. A professional can provide personalized guidance, help you navigate economic uncertainties, and create a robust financial plan tailored to your needs. As we navigate these uncertain times, taking proactive steps with the help of an expert can make a significant difference in achieving financial stability and peace of mind.

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