Who is Suze Orman?
Suze Orman is a New York Times bestselling author, magazine and online columnist, writer/producer, and motivational speaker. Orman is also a recognized expert on personal finance. She was an editor at “O, the Oprah Magazine” for 16 years, at Costco Connection Magazine for 18 years, and for 13 years hosted the award-winning Suze Orman Show, then airing every Saturday night on CNBC. Orman has also received a total of eight Gracie Awards, more than any other in the history of the award. This award recognizes the best radio, television and cable programming for, by and about women. In 2013, Forbes magazine also ranked Orman among the top 10 most influential celebrities of the year.
Sommer could become financially dangerous
In a June 16 blog post, Orman discusses how to save money while on vacation. First, she explains that in a recent survey, more than 80 percent of people said they plan to travel this summer. For Orman, this is not surprising given the past few years, which have been largely characterized by the restrictions imposed by the pandemic. However, she explains that this summer could also be financially dangerous for many. Accordingly, it is important this summer to build up financial defense mechanisms in the event of a recession. “The worst thing you can do right now is overspend on vacations and fun this summer, leaving you vulnerable in a recession,” Orman said.
This is how you can save money on vacation
So Orman has four tips for enjoying your summer vacation without breaking the bank. Her first advice is to always pay for his flights in full. Many airlines now offer the option of paying for tickets over several months using the “Buy Now, Pay Later” model. Orman strongly advises against this. “I don’t like BNPL. It’s a sign that you’re not tight on your funds. And airline BNPL offers can be particularly costly as they tend to charge interest upfront.”
Orman goes on to explain that you should set a vacation budget. “I know you feel like you deserve a vacation. You do too! But with the prospect of the economy slowing down in the fall and winter, I want you to have no regrets in six months that you spent too much money,” Orman said. One should be careful to choose the cheaper flight with a connecting flight, the cheaper motel or hotel and so on.
In general, compromises should be made when it comes to the budget. “If you want to stay in a more expensive hotel, you can shorten your stay by a night or two. Like to eat out? Okay, then maybe stay in a hotel with a kitchenette so you can make a simple breakfast and a packed lunch and spend a little more money at dinner,” Orman explains. In her opinion, it’s never wise to spend more money on vacation than you can afford “to pay off in full.” But that’s particularly true this year, since the average interest rate on credit cards is currently over 16 percent, according to Orman, and the trend is rising.
Orman also notes that parents who want to provide their children with some fun and games while on holiday don’t have to break the bank. “Backyard camping, a Neighborhood Olympics, baking together, treasure hunts, etc. all offer lots of fun and all at little or no cost,” says Orman. Orman says that if budget-yet-fun activities are at the heart of summertime activities, other things, like going to the movies or a day at the water park, can cost more but fit into the overall summer schedule.
E. Schmal / Editor finanzen.net
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