Debt, Income, And Investments: Suze Orman Says We Should All Be Focused On These Because 'The Government Can't Save You'

In an era of economic uncertainty, financial guru Suze Orman’s 2025 advice has crystallized into a clear directive: personal responsibility is the cornerstone of financial stability. With government fiscal health under scrutiny and market volatility on the rise, Orman’s message is unambiguous: “The government cannot save you. They can’t even save themselves.” Her framework for navigating this landscape hinges on three pillars—debt management, income discipline, and strategic investing—backed by actionable steps to secure your financial future.

Debt Management: Separating Good from Bad

Orman categorizes debt into two camps: good and bad. Good debt includes mortgages, student loans, and car loans (if paid off within three years), which are investments in long-term stability or growth. Bad debt, however, is credit card debt incurred to fund immediate desires. For those with high FICO scores (680–720+), 0% balance transfer offers—such as 21-month introductory rates—can slash interest costs. Those with lower scores (<500) must prioritize paying off the highest-rate cards first using the snowball method, adding 20% of total minimum payments to the most expensive debt until it’s eliminated.

Income and Expenses: The Budget as a Tool of Control

Orman’s mantra—“People first, then money, then things”—frames budgeting as a reflection of self-worth. To avoid financial freefall, calculate your average monthly expenses over 12 months and compare them to your after-tax income (including retirement contributions). If expenses exceed income, the solution is simple: earn more, spend less, or both. A critical blind spot for many households is subscription overload. The average American spends $219/month on unused streaming, app, or service memberships—a drain easily redirected toward debt repayment or emergency funds.

Investments: Riding the Waves with Discipline

The SECURE 2.0 Act has reshaped retirement planning, allowing workers aged 60–63 to contribute an extra $11,250 annually to workplace plans. Orman urges dollar-cost averaging, emphasizing that consistent contributions to 401(k)s or IRAs—regardless of market swings—are key. For 2025, IRA contribution limits hit $7,000 for those under 50 and $8,000 for older savers.

Market volatility demands patience. Orman cites stocks like Apple (+13% in 2024) and Microsoft (+21%) as proof that panic selling is rarely profitable. Dividend-paying stocks, such as Pfizer (7% yield), also provide stability. Rebalancing portfolios is critical: the S&P 500’s 23.3% surge in 2024 may have skewed allocations, so realigning with risk tolerance ensures long-term resilience.

Social Security: Timing is Everything

Orman’s advice on Social Security is blunt: avoid claiming benefits before full retirement age (66–67). Taking benefits at 62 reduces payouts by 25–30% permanently—a decision that “benefits the government, not you.” Delaying to 70 maximizes payouts, especially for married couples. While Washington debates reforms, Orman insists: “Floating ideas are not policy.” Social Security’s bipartisan backing makes drastic cuts unlikely, but individuals should plan as if they must rely solely on their choices.

The Bigger Picture: Policy and Personal Strategy

The 2025 tax landscape adds urgency. The expiration of the 2017 Tax Cuts and Jobs Act at year-end could shift brackets and deductions, demanding proactive planning. Emergency funds remain critical: Orman recommends 8–12 months of expenses in high-yield accounts (e.g., 3.8% rates at SoFi).

Conclusion: Control Your Destiny

Orman’s philosophy boils down to this: financial security is a choice, not a handout. The data underscores her point: the average household’s $219/month in wasted subscriptions, the 23.3% market rally in 2024, and SECURE 2.0’s contribution boosts all highlight opportunities for self-directed success. By mastering debt, budgeting, and disciplined investing, individuals can insulate themselves from systemic risks. As Orman reminds us, “The best financial adviser is the one you see in the mirror”—and in 2025, that’s advice worth heeding.