Suze Orman’s Money Advice for Millennials: What Works, What Doesn’t, and What’s Outdated

Real Talk on Retirement, Debt, and How to Build Wealth

by Bob Savar, Millennial Financial Times

What Suze Orman Gets Right (and Wrong) About Money for Millennials

So, I recently stumbled upon Suze Orman’s financial advice for millennials, and as someone who’s very much in the “millennial” camp, I have thoughts. Suze has been around the financial block for a while, and I respect her experience, but some of her advice feels a bit dated. Don’t get me wrong, there’s some gold in there, but let’s break down what makes sense for us and what might need some updates.

1. Start Saving for Retirement Early (But Don’t Panic If You’re Late)

Suze says to start saving for retirement now. Like yesterday. And yeah, she’s right that compounding interest is magic. If you start putting away money in your 20s, your future self will thank you when you’re sipping cocktails on the beach at 60. But let’s be real — many of us are drowning in student debt or dealing with sky-high rent in cities where the jobs actually are. Saving for retirement might sound like a joke if you’re struggling to make ends meet.

My Take:
Save what you can, when you can. Even $50 a month is better than nothing. But if you’re in your 30s or even 40s and just starting to think about retirement, don’t panic. It’s never too late. You might need to get more aggressive with your savings rate or investment strategy. And please, don’t feel like a failure for not maxing out your 401(k) at age 25.

2. Build an Emergency Fund (Yes, Please, But Let’s Keep It Real)

Orman suggests an emergency fund that covers 6 to 12 months of living expenses. That’s smart! No one wants to be stuck in a financial jam with zero backup. But let’s be real here: saving that much can feel like climbing Everest in flip-flops. The idea of setting aside thousands of dollars when you’re already stretched thin can feel impossible.

My Take:
Start with a mini-emergency fund. Aim for one month of expenses first. Then two. Then three. Celebrate each milestone. It’s not an all-or-nothing thing. And remember, it’s okay if this takes time. You’re already winning if you’re slowly building it up with a little bit from each paycheck.

3. Avoid Credit Card Debt (Absolutely, But Don’t Feel Guilty If You Slip Up)

Suze is adamant about avoiding credit card debt, and I agree with her here. High-interest debt is like a financial vampire, sucking away your wealth in tiny, painful bites. But here’s the thing: life happens. Sometimes, you have to put that emergency vet bill or car repair on a credit card because you just don’t have the cash.

My Take:
Yes, avoid credit card debt when you can. But if you need to use credit in a pinch, don’t beat yourself up. Make a plan to pay it off as quickly as possible and focus on moving forward. We’re all human; sometimes, you must do what you must do.

4. Be Smart About Student Loans (Orman, Can We Get a Little Empathy Here?)

Suze advises us to pay off high-interest student loans ASAP. Sure, it’s good advice, but it kind of glosses over just how huge student loans are for our generation. For many of us, our student debt isn’t just a few thousand dollars — it’s the size of a mortgage. And we’re paying it off while trying to live our lives, build careers, and maybe even buy a house someday.

My Take:
Pay off your loans, but balance it with living your life. Refinance if you can get a lower rate, and don’t feel pressured to sacrifice every little joy just to pay it down faster. If you’re paying the minimum while building an emergency fund or investing, that’s okay too. Financial wellness is about balance.

5. Live Below Your Means (Good Advice, But Know Your Limits)

This is classic Suze Orman advice: live below your means. It’s solid, but it also feels like it comes from a time when avocado toast wasn’t a thing, and housing was, you know, affordable. For many of us, “living below our means” already involves saying no to a lot — like vacations, new clothes, or even just ordering takeout on a Friday night.

My Take:
Don’t deprive yourself of every pleasure just to save a few bucks. Find a balance that works for you. Maybe that means cutting back on some expenses (like making coffee at home) but still enjoying the occasional treat. Life is too short to live in financial deprivation mode all the time.

6. Invest in Yourself (Suze, We’re Way Ahead of You Here)

Orman tells us to invest in ourselves, whether that means going back to school, taking courses, or learning new skills. And honestly? Millennials are already masters of the side hustle, the gig economy, and endless online courses. We know the value of investing in ourselves because, thanks to a volatile job market, we’ve had to reinvent our careers more than once.

My Take:
Yes, continue to invest in yourself, but also don’t get stuck in the perpetual learning loop. At some point, you have to start applying those skills, whether it’s going for a promotion, starting that side business, or switching careers. Don’t wait for “perfect” — take action!

7. Think Long-Term with Investments (Amen, Suze, But Give Us Some Credit!)

Orman’s advice to think long-term with investments is great. Millennials are already pretty good at this — many of us are in it for the long haul. We know that investing in low-cost index funds or ETFs and letting them grow is smart. But hey, Suze, we’re also the generation of crypto, meme stocks, and Robinhood. We’re not afraid to take calculated risks and think outside the box.

My Take:
Diversify. Invest in tried-and-true methods like index funds, but it’s okay to have a little “fun money” to play with in riskier investments — just don’t go all in. We’re here for both steady growth and innovative opportunities.

8. Get Insurance, But Don’t Overdo It

Suze recommends having various types of insurance — health, renters, and life (if you have dependents). I agree with her that you need to protect yourself from financial disasters. But there’s also a point where insurance can feel like another monthly bill that’s eating up your budget.

My Take:
Get the insurance that makes sense for your life. If you’re single with no kids, maybe life insurance isn’t a priority right now. Focus on health insurance and renters insurance if you’re renting. Tailor your coverage to your actual needs.

9. Set Financial Goals, But Keep Them Flexible

Orman says to get clear about your financial goals, and she’s spot on. But here’s the thing: life doesn’t always stick to the plan. We’ve had a pandemic, recessions, and who knows what else coming our way.

My Take:
Set goals, but be willing to pivot. If your goal was to buy a house by 30, and it hasn’t happened yet, that’s okay. Adjust the timeline. Financial goals are there to guide you, not stress you out.

10. Understand Compound Interest, But Don’t Forget About Inflation

Suze loves to talk about compound interest, and she’s right — it’s amazing. But let’s not forget inflation. What’s $1 million going to be worth in 30 years? Probably not what it’s worth today.

My Take:
Keep investing, let compound interest work its magic, and stay aware of inflation. Diversify your portfolio to include assets that typically hedge against inflation, like real estate or certain types of bonds.

Final Thoughts

Suze Orman has a lot of great advice for us millennials, but it’s important to take what resonates and leave what doesn’t. Financial advice isn’t one-size-fits-all, and what worked for previous generations might need some tweaking for ours. So take Suze’s wisdom, mix it with your own common sense, and create a money plan that works for you. Because at the end of the day, it’s your life, your goals, and your journey to financial freedom.