While financial gurus Dave Ramsey and Suze Orman often disagree, there are several key financial principles they both strongly advocate.
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Here are the major areas where Dave Ramsey and Suze Orman find common ground.
Avoid New Car Purchases
Both experts strongly warn against buying new vehicles. As Ramsey noted, “Most millionaires don’t drive flashy cars. When people don’t waste money to look wealthy, they have money to actually become wealthy.” Orman agrees, stating, “Your goal should be to buy the least expensive car. Period. That should steer you to a used car rather than a new car.”
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Emergency Fund is Essential
Both experts emphasize the importance of having an emergency fund, though they differ on the exact amount. They agree this money should be strictly for emergencies and not used for planned purchases or down payments.
So, once you put that money in there, do not touch it unless it’s a real emergency. And then, you must replenish it afterward.
Invest in Low-Cost Mutual Funds
According to a Morningstar article, both experts advocate for “investing in low-cost mutual funds” as part of their core advice, which most experts, in general, agree is a wise idea. They’re relatively safe and a smart choice for any investor.
Avoid Consumer Debt
Both have become successful by advising people with high amounts of consumer debt and advocating strongly for debt avoidance. The two have also built their careers helping people get out of debt situations.
While these financial advisors may differ on specific strategies, their foundational principles of saving, avoiding unnecessary debt, and planning for the future align more often than not. The key is finding which of their shared principles works best for your specific situation.
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This article originally appeared on GOBankingRates.com: 4 Money Tips Dave Ramsey and Suze Orman Agree On
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