Suze Orman Praises Millennial Making $80,000 Until She Mentions $720 Car Payment: 'I Thought You Were So Smart. I Take Everything I Said Back'

Financial expert Suze Orman voiced her opinions on CNBC’s "Millennial Money," offering advice and reactions to a young professional’s financial choices, particularly about car ownership and investment strategies. Orman, known for her straightforward approach, dissected the financial decisions of Wendy, a millennial from Pasadena, California, who earns $80,000 a year and owns a BMW.

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Given her income, Orman expressed surprise and concern over Wendy’s choice of car. "Really? That’s an expensive car to drive at eighty thousand dollars a year in California. Just saying," Orman remarked, emphasizing the financial strain such a luxury vehicle can impose on a moderate income.

Wendy’s lifestyle choices, including where she eats and avoiding student loans, were also points of interest. Orman praised Wendy for not having student loan debt and for her efforts to save and invest. "She’s saving money. She’s working. She’s doing everything. And she’s making coffee at home," Orman commented, highlighting the positives in Wendy’s financial behavior.

However, the financial guru criticized Wendy’s high monthly car payments and her initial pride in her vehicle, which seemed to shift as she acknowledged the financial burden it represented. "I’m currently paying seven hundred and twenty dollars. Wendy, I thought you were so smart. I take everything I said back," Orman said, illustrating a moment of financial realization and regret from Wendy.

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Splurging on a fancy ride like a BMW might seem tempting, but it can dent your wallet — not just when you first buy it. Think about the ongoing costs: pricier insurance, expensive maintenance, and possibly steeper interest rates on your car loan. Sure, that new car smell is great, but studies show that driving a luxury car doesn’t make you much happier than cruising in a more budget-friendly option.

Orman also touched on the broader implications of financial independence and the dangers of a joint checking account in a relationship, cautioning Wendy about potential financial recklessness from her partner. "You don’t want to come home one day and all of a sudden see all the money in our joint checking account was spent on something because Chris just wants to do whatever he wants to," she advised, stressing the importance of financial autonomy and vigilance.

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Lastly, Orman discussed Wendy’s investment experiences, questioning the sustainability of her gains and reminding her of the volatile nature of the stock market. "Trust me, everything went straight up. Then everything started to come down, and you’re probably back to fourteen thousand dollars now," Orman noted, suggesting that Wendy’s initial investment success might have been more due to luck than strategy.

In her closing remarks, Orman reinforced the need for wise financial decisions, not just earning more money. "It’s not about making more money. It’s making more out of money that you already make by owing less on your expenses," she concluded, encapsulating her financial philosophy of prudent spending and saving.

With her no-nonsense advice and straight-talking style, Orman is helping people from all walks of life get smarter about their money. Whether saving for the future or avoiding costly mistakes, Orman’s practical tips push folks to think twice about their spending and plan better for tomorrow.

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