Unlock Financial Serenity: Suze Orman's Proven Strategies to Conquer Money Stress

Financial anxiety is a common struggle, but it doesn't have to be a permanent state of being. Fidelity's recent Women's History Month 2024 Survey revealed that women, regardless of their household income, are consistently experiencing high levels of financial stress. However, the survey also found a glimmer of hope – women who took financial action in the past six months reported lower stress levels than those who didn't.

Conquer Financial Anxiety with Suze Orman's Proven Tactics

Building a Robust Emergency Fund: The Key to Financial Resilience

Suze Orman, one of GOBankingRate's Money's Most Influential Women, has a clear message for those struggling with financial anxiety: build up your emergency savings. Orman emphasizes that having at least three months' worth of living expenses saved can significantly reduce stress levels. She explains that women who have managed to save this amount were far less likely to be carrying around high levels of financial stress.While Orman's ideal recommendation is to have a year's worth of living expenses saved, she acknowledges that this may not be feasible for everyone. She suggests that a three-month emergency fund is a fantastic starting point for those who have no savings to fall back on.

Calculating Your Three-Month Savings Goal

The first step in building your three-month emergency savings is to determine your monthly essential costs. Orman advises adding up the expenses for rent or mortgage, food, utilities, and essential insurance premiums like health, home, and car insurance. Once you have this total for one month, multiply it by three to get your savings goal.Next, divide the total savings needed by 12 months to determine how much you need to save each month to reach your goal within a year. For example, if your three-month living expenses total $8,500, you would need to save $708.34 per month to build up your savings in a year.If the monthly savings amount seems unattainable, you can extend the timeline. Divide the total savings needed by 24 to see what you would need to save monthly to build up your emergency fund over a two-year period.

Automating Your Savings: The Effortless Path to Financial Security

Orman emphasizes the importance of automating your savings to ensure consistent progress. "Once you decide how much you are going to save, I want you to commit to an automatic deposit into a federally insured bank or credit union savings account," she explains. Look for a monthly, biweekly, or weekly transfer option that is automated and doesn't incur any fees.Regularly reviewing your savings account balance is also crucial, according to Orman. "Log into your savings account once a month to review the balance. And then give yourself credit for what you have already achieved: every month your account grows, it builds financial security," she says. This consistent monitoring and self-acknowledgment can further alleviate financial stress and provide a sense of progress.

Passive Income: The Empowering Path to Financial Resilience

In addition to building an emergency fund, Orman suggests exploring opportunities to generate passive income. Earning passive income can provide an additional layer of financial security and help reduce the burden of day-to-day expenses.Orman emphasizes that creating passive income streams doesn't have to be a complex or time-consuming endeavor. "Earning passive income doesn't need to be difficult. You can start this week," she assures.By implementing Suze Orman's proven strategies, women can take control of their financial well-being and experience a profound sense of relief from the weight of financial anxiety. Whether it's building an emergency fund or exploring passive income opportunities, these steps can pave the way to a more secure and stress-free financial future.