A March 2025 Empower study found that 55% of respondents felt further away from financial success than they did the previous year. While rising costs and uncertainties about the economy can make you feel out of control and unconfident about your money, you can focus on taking the right steps — and avoiding the wrong ones — to get where you want to be financially.
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An episode of “The Suze Orman Show” highlighted eight common mistakes that can wreck your financial future. Find out how these damaging moves affect your finances and avoid them.
According to the Federal Reserve, Americans owed almost $1.8 trillion in student loans in the first quarter of 2025. Not only are potentially large monthly payments an issue, but you usually can’t even use bankruptcy to get rid of this debt.
Orman discussed how these problematic loans can keep hurting you in the long term, including when you try to purchase a home or save for retirement. Choosing an affordable school and using funds from sources like scholarships, grants and work income will reduce your borrowing needs.
Be Aware: Suze Orman Says If You’re Doing This, You’re ‘Making the Biggest Mistake in Life’
“Don’t you dare, don’t you dare take a loan from a 401(k) or any retirement account,” Orman said.
Tapping into your retirement funds is tempting if you want to get rid of debt or make a big purchase. But the money removed won’t be earning returns, and you could end up paying penalties and taxes. This move may just leave you further away from your retirement savings goal.
While owning a home can be a smart decision that gives you security, avoid the mistake of buying a property that is beyond your budget, even if the lender will give you a larger amount. Having a big housing payment puts you at risk if you face any financial setbacks.
Orman encouraged opting for a small house. You can use a home affordability calculator to get a realistic idea of your target home price and mortgage payment amount based on your monthly income and expenses.
While it’s easy to get comfortable making minimum payments, Orman explained that doing so is in the best interest of your creditor rather than you. That’s because you’re keeping yourself in debt for longer and losing more money to interest.
Besides increasing your costs, keeping credit card debt around steals opportunities to invest or save. So find ways to cut expenses or increase your income so you can pay off your balances and not get stuck carrying them again.
