Podcast Summary: Suze Orman's Women & Money (And Everyone Smart Enough To Listen) Episode: Suze School: Savings vs. Consumption
Release Date: May 18, 2025
Host: Suze Orman Media

Introduction to Suze School: Savings vs. Consumption

In this episode of the Women & Money podcast, Suze Orman delves into the fundamental principles of personal finance, focusing on the critical balance between savings and consumption. Titled "Suze School: Savings vs. Consumption," the episode aims to educate listeners on building sustainable wealth through disciplined saving and wise investment strategies.

Suze’s Personal Journey with Savings and Compounding

Suze begins by sharing a personal anecdote that underscores the power of consistent saving and compounding. Reflecting on her early financial struggles, she recounts how she overcame credit card debt and committed to a disciplined savings plan:

Suze Orman [02:15]: "I wasn't always good with money. When I finally started to make money, I committed to putting $700 a month into an annuity with a guaranteed 5% interest for 40 years."

This consistent investment of $700 monthly led to $1 million in the annuity, demonstrating how small, regular contributions can grow exponentially over time thanks to the magic of compounding:

Suze Orman [05:20]: "Compounding my money is making interest, and that interest is making interest. Over 40 years, I have $1 million in that annuity."

Defining Investor Types: Aiming for Big Wins vs. Building Wealth Consistently

Suze poses a pivotal question to her audience:

Suze Orman [07:45]: "Are you someone that just wants to hit it big, or do you want to be consistently building wealth for yourself?"

She emphasizes the importance of consistent wealth-building over seeking overnight success. For those aiming to grow their wealth steadily, the focus should be on savings rather than consumer spending.

The Importance of Savings Over Consumption

Suze asserts that money should primarily serve as a tool for security and future stability:

Suze Orman [10:30]: "Money is for savings—for the day you can no longer work and to support what it takes for you to live."

She warns against the common misconception that money's primary purpose is for luxuries and immediate gratification, highlighting the unpredictable nature of life and the necessity of having a robust financial safety net.

Stock Market Outlook: Navigating the Secular Bull Market

Transitioning to the stock market, Suze offers her insights on current trends and future projections:

Suze Orman [14:00]: "We've been in a secular bull market since 2009, which means the overall trend is up, despite cyclical bear markets."

She explains the difference between secular bull markets (long-term upward trends) and cyclical bear markets (short-term declines), advising investors to maintain a long-term perspective.

Sector Performance: Growth vs. Value Stocks

Suze discusses the performance of various stock sectors, predicting large growth stocks will continue to outperform in the near term, while value stocks may gain traction later:

Suze Orman [17:10]: "Large growth stocks are set to increase in price over the next few months, though value stocks may pick up later in the cycle."

Investing Strategies: Individual Stocks vs. ETFs

Addressing investment strategies, Suze contrasts the merits of individual stock picking with exchange-traded funds (ETFs):

Suze Orman [19:05]: "Owning at least 25 to 50 individual stocks ensures true diversification, but for most, index ETFs like SPY or VOO offer a balanced blend of growth and value stocks."

She cautions against the pitfalls of attempting to "hit it big" with a few stocks, advocating for diversified portfolios to mitigate risk.

Bonds, Gold, Oil, and Bitcoin: Market Insights

Suze provides a comprehensive overview of other investment vehicles:

• Bonds: Currently in a state of limbo, with the potential for the 10-year bond yield to reach 5%, though unlikely to surge much higher.

  Suze Orman [20:30]: "Bonds are uncertain right now, but they remain a staple in a diversified portfolio."

• Gold: A safe haven asset that's on a slight decline but remains a stable investment option.

  Suze Orman [21:15]: "Gold is a safe haven. If it dips below 3,000, it might be a good opportunity to accumulate more."

• Oil: Despite recent declines, Suze anticipates a rebound as global demand continues to rise, projecting prices could reach $150 a barrel by 2026.

  Suze Orman [22:10]: "Energy stocks will rebound as emerging economies increase their oil demand."

• Bitcoin: Acknowledging its volatility, Suze believes Bitcoin is here to stay and suggests investing through ETFs like ibit or stocks like MicroStrategy (MSTR).

  Suze Orman [23:00]: "Bitcoin will follow the NASDAQ 100. It’s a legitimate investment, but don't expect it to move inversely to the markets."

The Role of Politics in Market Fluctuations

Suze highlights the significant impact of politics on market dynamics, citing historical examples where political decisions influenced stock market movements:

Suze Orman [19:45]: "Politics has absolutely had an effect on these markets. Look at what happened in April with the tariffs—markets went down, then up when tariffs were reduced."

She advises investors to monitor political developments as they can be harbingers of market volatility.

Core Theme: Savings vs. Consumption

Reiterating the episode’s central theme, Suze emphasizes that true wealth is built through savings and disciplined investment rather than consumer spending:

Suze Orman [22:45]: "True wealth comes when you feel secure, knowing you have savings to get you by if things go wrong."

She advocates for a financial philosophy that prioritizes people first, then money, then things, ensuring long-term financial stability and security.

Conclusion and Key Takeaways

Suze wraps up the episode by reinforcing the importance of consistently saving and investing for long-term wealth creation. She encourages listeners to:

• Adopt a long-term investment mindset, focusing on diversification and compounding.
• Prioritize savings over immediate consumption to build a secure financial foundation.
• Stay informed about market trends and political developments that could impact investments.
• Remain disciplined, especially during market fluctuations, to avoid emotional investment decisions.

Suze Orman [23:25]: "When it comes to your money, remember: People first, then money, then things."

Notable Quotes

• On the Power of Compounding:

  Suze Orman [05:20]: "Compounding my money is making interest, and that interest is making interest."

• On Investment Strategies:

  Suze Orman [19:05]: "Owning at least 25 to 50 individual stocks ensures true diversification, but for most, index ETFs like SPY or VOO offer a balanced blend of growth and value stocks."

• On Building True Wealth:

  Suze Orman [22:45]: "True wealth comes when you feel secure, knowing you have savings to get you by if things go wrong."

Final Thoughts

This episode of Women & Money serves as a comprehensive guide for listeners aiming to achieve financial security through disciplined saving and informed investing. Suze Orman's blend of personal experience, market analysis, and practical advice provides valuable insights for anyone looking to build and sustain wealth over the long term.