'Walking On Red Puts You In The Red'—Suze Orman's Verdict On $845 Designer Heels

Suze Orman is known for her no-nonsense approach to personal finance, and her latest YouTube series continues that tradition. In this series, Orman weighs in on callers' spending decisions, offering her signature mix of tough love and financial wisdom. 

In a recent episode, a caller named Princess asked Orman if she should spend $845 on a pair of Christian Louboutin heels. Orman's response was clear and direct: “Denied!”

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Princess's Dilemma: To Spend or Not to Spend?

Princess, a 33-year-old, called into Orman's show hoping for approval to treat herself for her birthday. She explained that her husband wasn't supportive of the purchase and wanted Orman's opinion on whether the splurge was financially sound.

“I would like to treat myself for my birthday and purchase a pair of Christian Louboutin shoes for $845," Princess said. "My husband doesn’t think I should spend that amount of money on shoes. But what do you think?"

Orman didn't hesitate. "Are you kidding me?" she responded. "You're not asking me what I think of $845 shoes. You gotta be asking me if you think you can afford it or not."

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Princess's Financial Picture

Before giving her final verdict, Orman asked for more details about Princess's financial situation. Princess shared that:

• Her take-home pay is $4,000 a month.
• Her monthly expenses are $3,000.
• She and her husband have a $123,000 mortgage, which her husband pays.
• She has $13,000 in student loans.
• She has $15,000 in liquid savings, $500 in investments, and $70,000 in retirement.

When asked how she planned to pay for the shoes, Princess said the money would come out of her take-home pay.

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Orman's Verdict: A Hard No

Orman's response was decisive. "Denied! So denied!" she said.

Orman explained that Princess's financial foundation wasn't strong enough to justify such an expensive purchase. According to Orman, Princess should have at least $24,000 in an emergency fund — enough to cover six months of expenses — but she's currently $9,000 short.

"You have student loan debt," Orman added. "That money would be far better off going to your student loan debt. That money would be far better off going to a Roth IRA or retirement or something else. Your husband could not be more right on this one if he tried!"

Orman's advice reflects her perspective on financial health: luxury purchases should come after financial stability is secured. While treating yourself isn't inherently wrong, Orman emphasizes that it's important to have a strong emergency fund, manageable debt, and a clear savings plan before making large discretionary purchases.

Orman's verdict emphasizes her view on the importance of prioritizing long-term financial security over short-term indulgence. While Christian Louboutin heels may be fashionable, Orman's advice suggests that walking on red soles shouldn't put you in the red financially. 

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