Suze Orman Says Stop 'Wasting' Your Money On Things Designed To Make Your Life Easier — Warns Conveniences 'Make It Harder' In The Long Run

In today’s fast-paced world, the lure of convenience is undeniable. From ordering dinner delivered to your doorstep to catching a ride via an app, modern conveniences cater to every aspect of our daily lives, promising to save us time and effort, but this ease often comes at a significant financial cost.

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Financial expert Suze Orman, speaking on CNBC's "Power Lunch," emphasizes the hidden financial toll of seemingly small indulgences like daily Starbucks lattes or the habit of dining out. "It adds up big time," Orman warns. Her advice was clear: "Stop leasing cars, stop eating out, stop doing the things that's wasting your money and making your life easier, because in the long run it’s going to make it harder." According to Orman, cutting back on such expenses isn’t just about saving money short-term — it’s about securing financial stability long-term.

Orman’s comments extended to all types of conveniences, including grocery and food delivery services. In her CNBC appearance, she referenced a survey that showed that consumers are willing to pay an additional 11 percent for each layer of convenience they add, such as online grocery shopping and home-delivered meals.

According to a 2022 survey conducted by Circuit, the average American places nearly 55 food delivery orders annually, amounting to almost $1,850 per person. These costs are not just for the food itself; delivery fees, service fees, and tips constitute about 36% of the total expense, averaging $654 each year for each customer.

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The survey also reveals that Postmates users encounter the highest proportion of "hidden" fees, with 46% of their spending going toward these additional charges. Moreover, 62% of Americans who opt for food delivery services subscribe to a premium service, encouraging more frequent orders. Subscribers of these premium services tend to order nearly twice as often as nonsubscribers, illustrating how easy access can lead to increased spending. 

According to Orman, the money spent on these "conveniences" could instead be used to bolster an emergency fund or contribute to significant financial goals like buying a house or paying off debt.

Speaking at the eMerge Americas conference, Orman also highlighted the dangers of lifestyle creep — the phenomenon of increasing expenses as income rises, which can lead to unsustainable financial habits. She advises against spending money to impress others, which she experienced firsthand. To impress a wealthy acquaintance, Orman once leased a luxury car that came with hefty monthly payments — a decision she now regrets.

It's easy to justify a splurge here and there but Orman encourages a more cautious approach to managing finances. Evaluating daily spending and differentiating between genuine needs and mere wants can be crucial. The key is to prioritize long-term financial health over short-term convenience, ensuring that today’s choices do not hinder tomorrow’s possibilities.

While Suze Orman’s advice on saving money certainly holds merit, it’s also crucial to recognize that convenience isn’t merely about indulgence. For many, particularly those with young children who might dread the thought of bringing kids into a store, or individuals who find themselves impulse buying when shopping in person, services like food delivery or ride-sharing are more than just conveniences; they’re practical necessities. These services provide essential flexibility and accessibility, helping people manage their hectic schedules more effectively. The time these conveniences save can be precious, often reallocated to valuable pursuits like quality family time or personal development. 

If you’re unsure about how your spending on conveniences aligns with your financial goals, it might be time to consult a financial advisor. An advisor can help you review your current budget, identify areas where you can cut back, and develop a strategy to ensure you’re on track for long-term financial stability. 

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