“I regret buying the BMW” – Personal finance expert Suze Orman gives her best advice to this young woman

In a recent “Millennial Money” video, Wendy, a driven young professional living in Pasadena, California, opens up about her financial habits and challenges. I love that this video shows that very few people are perfect with their money. Most people make both good and bad decisions. 

Luckily, that allows us to learn from just about everyone. Let’s look at what we can learn from Wendy.

Key Points from This Article:

• Wendy is very intelligent and has a lot of ambition. However, her story shows that having financial priorities is important to avoid spending money on things that really don’t matter. 
• While many of Wendy’s aspirations are commendable, this video highlights just how important paying down debt is, especially before splurging on big expenses like travel.
• Also: Take this quiz to see if you’re on track to retire ^(Sponsored)

Wendy’s Dedication

Wendy starts her day at 3:30 AM, teaches a class at 4:00 AM, and sacrifices sleep to build her savings and investment portfolio. While this shows dedication, I’d encourage Wendy to take care of herself, which means getting enough sleep. You are your greatest asset, after all!

That said, this commitment has paid off. She’s already grown her investment account to nearly $20,000. She’s also savvy about certain habits, like brewing coffee at home and opting for affordable dining when eating out. These small steps can add up to a lot of extra cash down the road. 

Costly Lessons

That said, Wendy hasn’t always made good financial decisions. One of Wendy’s biggest financial regrets is her decision to purchase a BMW with a hefty $720 monthly payment. While the car is luxurious and enjoyable, Wendy admits she doesn’t need such an expensive vehicle. She still has $33,000 left on the car, so it’s likely that she’ll be paying it down for some time. 

This is a great time to learn, though. Long-term financial independence often trumps short-term indulgences.  

Relationship Dynamics and Financial Independence 

Wendy and her partner have differing financial philosophies and goals, which could lead them into trouble later on. While she’s conservative with money, he adopts a YOLO (you only live once) approach. Suze Orman stresses the importance of both partners being on the same page when it comes to finances.

If that isn’t possible, it may be best to maintain separate accounts to ensure that Wendy’s financial goals are protected! Sometimes, this works better for some couples, as it allows each to maintain a degree of financial independence from the other. However, having separate accounts can also be a point of contention (like it was for a different couple we covered).

Investing and the Market’s Lessons

Wendy began investing during a market upswing and saw impressive initial gains, turning $14,000 into nearly $20,000. However, shortly after that video was filmed, the market turned around and went back down. Therefore, it’s likely that Wendy has lost some of her position. 

It’s important to realize that a great deal of luck is involved in the stock market, and these gains are likely not due to Wendy’s skilled trading. The market will fluctuate, and it’s important to have realistic expectations when it comes to investing. 

Future Goals: Travel and Income

Wendy dreams of traveling to Europe next year and aims to earn $95,000 annually to save for a future home. These are great ambitions. However, Suze Orman highly recommends that she focus on paying down debt before splurging on luxury travel. Having those priorities straight is important.