Suze Orman Warns That You're Setting Yourself Up to Fail if You Don't Make This Money Move

Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.


  • Suze Orman warns that you need a plan to deal with inflation.
  • She said if you don't have a plan, that's the same thing as planning to fail.
  • Orman believes you need to consider inflation when deciding how to invest and more.

If you want to be financially successful, you should listen to Orman's advice.

Managing your money effectively can be difficult because there are so many factors to consider when you make financial decisions. But there's one particular issue that finance expert Suze Orman says is especially essential to think about right now.

In fact, Orman said that not having a plan to address this economic concern could mean you are setting yourself up for failure.

Here's what Orman says you must think about when making financial plans

In a mid-September podcast, Orman issued an important warning to all of her listeners: "If all of you don't have a plan, and start getting realistic about inflation and how it affects you, and what you are doing with your money, then you truthfully are planning to fail," Orman said.

Inflation refers to the rising cost of goods and services. There's always some inflation going on over time but it's been surging over the past year and is at a 40-year high. Orman believes things may actually end up getting worse before they get better.

In fact, Orman explained on her podcast that while many people thought inflation had peaked, she doesn't think that's actually the case. She explained that while gas prices recently declined temporarily -- which made many people feel like things were getting better -- the reality is that many other things still cost more, including groceries, hotels, airline tickets, healthcare, and prescription costs.

And Orman also pointed out that the Federal Reserve is raising interest rates in an effort to fight inflation. However, this could cause mortgage costs to rise for new loans and for adjustable-rate loans, and could cause other variable-rate loan costs to go up -- which would obviously put more strain on your budget.

How to take inflation into account

Orman went on to explain that the comprehensive plans you must make to deal with inflation should impact every aspect of your financial life. "That plan has to do with, how do you invest your money, how do you spend your money, what do you do with refinancing your home, what do you do for income," she advised.

To make sure you're investing wisely, Orman advised using a Roth IRA, dollar-cost averaging into stocks to build a diversified portfolio, and choosing to invest in companies that have good cash flow. She also has advised making sure you have a hefty emergency fund and choosing the right place to put your emergency savings.

Most importantly, though, the key is to make sure you are creating some type of comprehensive plan that's appropriate to your situation. This could mean reducing your spending by making a careful budget, prioritizing emergency savings, being smart and strategic about when or if you sell your house, and much more depending on your own financial circumstances.

As long as inflation is near record highs, you shouldn't make any decisions or plans that don't consider the impact of this economic phenomenon. Otherwise, as Orman explains, you're setting yourself up to fail in your goals because you may struggle to afford the higher prices that people across the country are facing right now.

Alert: our top-rated cash back card now has 0% intro APR until 2025

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes.

Our Research Expert

Related Articles

View All Articles Learn More Link Arrow