Suze Orman Says 'Get as Much Pleasure Out of Saving as You Do Spending', And She's Right

"The past few years have done a number on a lot of people's savings. Between high levels of unemployment spurred by the pandemic and several years of rampant inflation, many folks have whittled down their cash reserves to practically nothing. An estimated 63% of U.S. workers did not have enough savings on hand to cover a $500 emergency expense, according to Fintech company SecureSave. That's kind of scary, though, because as a general rule, it's important to have a large enough emergency fund to cover at least three months of expenses."

"Nobody is immune to unexpected bills or a period of unemployment. Without savings, you risk racking up scores of debt and other potentially damaging consequences. For example, if your financial situation worsens and you're unable to pay your mortgage for a period of time, you could risk losing your home. If you fall behind on your bills and your credit score tanks, you might struggle to buy a home when you want to. These are major things that could negatively impact not only your finances, but your entire life. So it's important to set yourself up with some protection in the form of savings."

"To that end, Orman says to "get as much pleasure out of saving as you do spending." And it's great advice. Spending money can be fun when it results in instant gratification. But if you're able to train your brain to get excited when you see your bank account balance grow, you'll be more likely to meet your savings goals and accumulate enough cash reserves to secure the protection you need."

High unemployment and multi-year inflation have depleted many household savings, leaving most people underprepared for emergencies. An estimated 63% of U.S. workers lack enough savings to cover a $500 emergency, while recommended emergency funds cover at least three months of expenses. Insufficient savings can lead to mounting debt, missed mortgage payments, home loss, damaged credit scores, and long-term financial setbacks. Adopting a saving-first mindset helps: find enjoyment in watching balances grow, prioritize building cash reserves over short-term luxuries, and consistently add to emergency savings to secure financial protection.

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