At the 30/50 Summit in Abu Dhabi, financial guru Suze Orman emphasized the enormous value of consistent, small investments over everyday pleasures. In a conversation with American talk show host Mika Brzezinski, Orman demonstrated this by comparing the cost of a daily Starbucks coffee to the potential growth of a Roth IRA. Orman explained that if a 25-year-old skipped Starbucks every day and invested $100 a month in a Roth IRA, he could accumulate $1 million in retirement.

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Recounting her appearance on Oprah’s show, Orman said Oprah asked what people were spending their money on and Orman told her Starbucks. “I said, Oprah, you know if you were 25 years old and you bought a Starbucks every day and instead of doing that, you put $100 a month into a Roth IRA, retirement account, and you did it every day until you’re — you’re 25, say, until you’re 65. You’ve averaged 12% on your money over the years. Did you know that at age 65 you would have $1 million? So you’re all paying $1 million down the drain?”

Orman’s advice highlights the importance of prioritizing long-term financial goals over short-term pleasures. “I’ve never bought a Starbucks in my life,” said Orman, emphasizing the significant financial impact of such small, steady investments.

During the interview, Brzezinski also asked Orman about common financial mistakes women make, especially after age 50. Orman did not hesitate to point out the primary issue. “They don’t really know where their money is,” she said, highlighting the lack of financial commitment many women exhibit in their 50s, 60s and beyond. “Especially the 50s, 60s, 70s,” he noted. “We thought we were in a perfect relationship, and now we’re not. We thought our perfect partner would live forever, and then they died. And here we are and we don’t know what to do with what I have.”

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Orman hosts the “Women & Money” podcast, where she often addresses these concerns. “In our 50s, we didn’t want to get involved with our money. We didn’t want to take a realistic approach to “Oh, of course, we’re going to get old, of course, there will come a day when we retire and we’ll always be able to work for money, so I don’t have to save it, I don’t have to think about it.”

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Brzezinski cited Orman’s strong stance on dining out and frequent splurges. “You recently told the Wall Street Journal that you think eating out is a waste of money,” Brzezinski remarked. Orman confirmed, “I’d drop dead before buying a cup of coffee,” much to Brzezinski’s amusement.

Brzezinski defended her love of Starbucks, admitting, “I love my Starbucks. It tastes different, Suze.” Orman replied, “Why can’t you make it at home and bring it?”

For women over 50, Orman’s advice is a critical reminder to reevaluate financial priorities and actively manage their money. “Women still give more to others than we give to ourselves,” Orman reiterated. “And that’s a really big mistake.”

The bottom line from Orman’s insights is clear: making informed financial decisions and prioritizing long-term investments over everyday pleasures can greatly enhance financial security. Counseling a economical advisor creating a customized plan is a critical step toward achieving a comfortable retirement without financial worries.

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this article Suze Orman tells Oprah instead of Starbucks every day, a 25-year-old who puts $100 a month into a Roth IRA would have $1 million by retirement originally appeared on Benzinga.com

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