the market advisor’s nine steps to financial freedom approaches money from an emotional point of view
fear, shame, and anger are the main obstacles to wealth creation. sounds different right? that’s what Suze Orman intended to reflect in her financial advice.
the 70-year-old American author and investment advisor believes that the traditional approach to investing is flawed. through her book The 9 Steps to Financial Freedom, Orman indicates that investors must look back into the past, face their fears, be honest, and not constantly calculate their net worth.
“focus on your self-worth, because that’s equal to net worth. take control of your wealth and always keep a 12-month emergency fund at your disposal,” she says. this means that investors must set aside at least one year of liquid funds that can be converted into cash in case of unemployment.
Orman had a different career trajectory than other investors. she started as a waitress after finishing college, making $400 a month. as an investment novice, she decided to dabble with stocks but an advisor at Merrill Lynch traded all these funds in options leading her to lose the entire chunk in three months.
instead of getting shamed for losing money or being gripped by anger, Orman religiously started to consume financial news and applied for a stockbroker position at the same Merrill Lynch in 1981. she worked her way into the financial system at the organization and later moved to Prudential Bache Securities in 1983.
that’s when she realized that investment is something that comes naturally to her. Orman set up Suze Orman Financial Group in 1987 to offer simplified investment advice to customers. she is now worth more than $75 million.
rather than looking for external advice on saving, Orman says that one must take charge of their finances and cut down everything unnecessary. even spending money on a store-bought coffee is avoidable, according to her.
a firm believer in the diversification of portfolios, Orman has now turned her attention to cryptocurrencies as well. here, her advice is that crypto should be a part of your portfolio as long as you can afford to lose that money.
events that seem tragic today can turn into something positive if you let them. if you stick to this financial philosophy by Orman, planning future finances will never be a daunting task.