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.
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Having Too Much in Student Loans
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’
Borrowing From Retirement Accounts
“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.
Buying a Home That’s Too Expensive
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.
Paying the Minimum on Credit Cards
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.
Cosigning Loans for People
“One of the biggest mistakes that will absolutely derail your future is cosigning a loan for somebody else — under no circumstances,” Orman said.
The Federal Trade Commission noted the risks you take helping someone this way, including having to make the payments if that person can’t, possibly having issues getting your own loans and risking your credit score. Even if you trust the person, saying “no” is safer for your finances.
Skipping Long-Term Care Insurance
The 2024 Genworth Cost of Care Survey reported median annual costs of $111,325 to $127,750 for nursing homes and $70,800 for assisted living communities. Even if you have substantial retirement savings, these high costs can drain you financially and leave you with few options.
Since many people will need this care at some point, Orman encouraged purchasing a long-term care insurance policy in your 50s or 60s so you can protect your hard-earned money. The right timing is important for both premium affordability and your eligibility.
Having No Living Revocable Trust
If you were to become incapacitated or pass away, you would save your loved ones from some financial and legal headaches if you had a living revocable trust. This is important regardless of your wealth, so consider speaking with an attorney about the benefits.
“It will pass your assets down to your children or your beneficiaries free of probate,” Orman explained.
Saying ‘Yes’ When You’d Rather Say ‘No’
You can make damaging financial decisions simply because you agree to do something you really don’t want to do, often out of pressure or fear of disappointment. Maybe you lend money to a loved one you feel sorry for or make a regretful purchase that your partner pushed.
Instead of sacrificing your financial security, take Orman’s advice: “Say ‘no’ out of love for yourself versus ‘yes’ out of fear that somebody else isn’t going to like you.”
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This article originally appeared on GOBankingRates.com: Suze Orman: These 8 Financial Mistakes Wreck Your Future
