Suze Orman says “the road to financial security starts with this one rule”

24/7 Wall St. Insights:

• The temptation to live beyond our means is substantial, particularly with social media insistently urging users to engage in conspicuous consumption.
• By always spending on stuff we want over the things we need, we impoverish ourselves and undermine our ability to save for a secure financial future.
• Financial guru Suze Orman says the one rule to live by that can have immediate payback is to be laser-focused on buying only what is needed, not what you can afford. 

While needs—such as food, sleep, shelter, security, and meaningful social connection—are essential to survival and wellbeing, wants encompass the extra experiences and possessions that enrich life, like travel, specialty coffee, or a new hobby. Evidence shows that when we shift from a scarcity mindset (“there isn’t enough”) to an abundance mindset (“I have enough and can choose wisely”), our overall wellbeing improves. Psychological research reveals that a scarcity mindset is linked with heightened stress, anxiety, and impaired decision-making, whereas an abundance mindset correlates with higher happiness, greater relational trust, improved problem-solving, and better life satisfaction. By focusing on acknowledging true needs first, and then thoughtfully pursuing wants for growth and joy, individuals can lead more fulfilled, intentional lives rather than being pulled into excessive consumption or constant comparison.

In a YouTube Short video, Orman explained it all comes down to one simple rule: you must focus on buying what you need versus what you want. 

She said she could afford a more expensive apartment, but she did not need it. And if people apply just that one thing to their own life, their situation will begin to dramatically change. Orman challenged viewers to buy only needs for the next six months, not wants, and see the transformation that occurs.

This post was updated on November 15, 2025 to clarify the psychological research behind scarcity and abundance mindsets, and how the latter enhances wellbeing.

The difference between needs and wants

Needs are something you cannot live without: food, water, shelter, clothing, and perhaps special medicine or medical care. These are essential to survival. 

Wants are those things you desire, but don’t need to live. But very often, the two categories often can overlap or collide with one another.

You need food to survive, but you don’t need a porterhouse steak every night for dinner. You need shelter, but as Orman said, she didn’t need the bigger apartment even though she could afford it. She was fine with what she had.

The challenge comes from recognizing the line between the two as it can mean the difference between being able to achieve your financial goals or not.

It sounds simple enough, but many people fail because it is too easy to convince ourselves that what we are buying is actually a need. In reality, we just want it. We rationalize the expense because the item is of higher quality and therefore more durable and a better value.

While there will be instances where that is the case, when all of your choices fall into that category, then you are just rationalizing a continuation of the cycle. You will find it harder to save, to prepare for the future and for retirement, because you’re always spending more.

Prioritize yourself financially

One of the best ways to achieve your goal may be to set a budget and shop with a list. At the top of your list should be you. Paying yourself first is essential to meeting your goals.

When you put yourself at the bottom, there will always be things you will find to spend your money on before it comes to putting any aside for savings. By going right to the top of the list and paying yourself first, you force yourself to prioritize what comes next. That very act can help you see the value in buying only needs and not wants.

And by using a prioritized list, even for groceries, you avoid the temptation to make impulse purchases and overspend.

Accept that you’re not going to be perfect and will still splurge on occasion. But so long as you remain committed to Orman’s No. 1 rule of buying only needs and not wants, it might not even take six months for a significant reversal in your financial fortunes to occur.