What Would Suze Orman Say?
People first, then money, then things. Bring her a purchase you're eyeing and your financial foundation, leave with an APPROVED or DENIED and the list of what to fix first.
Your emergency fund, before and after the purchase
Months of essential expenses your savings cover. Paying cash comes out of this fund; the ticks mark her 8-month minimum and 12-month ideal.
What she'd have you do next
The thing you want sits last, behind the debt and the emergency fund.
The rules this tool applies
Her non-negotiables
An 8–12 month emergency fund (yes, really, most advisors say 3–6; she watched 2008 happen). Zero high-interest debt. Life insurance if anyone depends on your income, term, not whole life. A will, living revocable trust and powers of attorney no matter your age. Retirement funded before treats.
How the Approved/Denied works
She approves a purchase only when there is no high-interest debt, at least 10% of your income goes to retirement, and you can pay cash without knocking the emergency fund below 8 months of essential expenses. Paying cash is taken out of your emergency savings, the only cash this page asks about. Life insurance and the will don't block a purchase here, but they count toward the score and go on her to-do list. A financed want, or any want with credit card debt in the background, gets the famous “DENIED, you cannot afford it!”
The score
16 points for each of the five foundations in place (no high-interest debt, a fund of 8 months or more, 10% or more to retirement, life insurance, a will and powers of attorney), plus 10 for a fund at her 12-month ideal, or 6 for a fund of 4 to 8 months. The gauge is red with two foundations or fewer, gold with three or four, and green only with all five.
The emergency fund bars
Months covered = emergency savings ÷ monthly essential expenses. The second bar takes the price out of savings when you pay cash, (savings − price) ÷ expenses; financed, the fund is untouched. A price bigger than the whole fund shows as the dollars you are short beside an empty bar, never as 0 months. The most you could pay in cash and keep her minimum is savings − 8 × expenses. Red is under 4 months, gold 4 to 8, green 8 or more: the same calls as the Emergency fund card. Both bars run from 0 to 16 months, and the figure beside a bar is always the full one.
The fine print
This is an educational parody applying Suze Orman's well-documented public philosophy to your numbers. All verdict lines are paraphrases in her style, not real quotes. Not affiliated with or endorsed by Suze Orman. For actual advice, talk to a licensed professional.
Common questions
Why does Suze Orman recommend an 8-12 month emergency fund?
Her standard is stricter than the typical 3-6 months because job losses cluster in recessions, when finding new work takes longest. She'd rather you be over-prepared than forced to sell investments at the bottom.
What estate documents does Suze Orman say everyone needs?
A will, a living revocable trust (in the US context), an advance directive, and durable powers of attorney for finances and health care. In Canada: a will plus provincial powers of attorney for property and personal care.
Term or whole life insurance?
Suze is emphatic: term life, 10-20x income while people depend on you, and invest the premium difference. Whole life mixes insurance with an expensive investment and she almost never approves it.