Suze Orman reacts to millennial who paid off $ 55,000 in debt
Personal finance expert Suze Orman has nothing but compliments for Roy Patterson.
31 year old man repaid over $ 55,000 in student loan debt in four years by forgoing restaurant dinners, vacations and new clothes while increasing his income year after year. Now that he’s out of debt, the former Philadelphia resident is focused on building his net worth. Overall, Orman is impressed. “Learn from this man,” she said.
It helps that Patterson sees Orman as a financial mentor. During his senior year of college, Patterson and his mother watched Orman’s CNBC show every week. Orman’s “hard love” approach resonated with him and inspired him to tackle his debt.
“I can’t fault someone who really spent most of their time looking at me,” jokes Orman.
Here are Orman’s great lessons on Patterson’s financial journey.
Orman applauds Patterson’s dedication to paying off student loans and getting out of debt.
“What Roy obviously heard me say … is that student debt is the most dangerous debt you can have, because in most cases it is not dischargeable in bankruptcy,” she says. “If there was one debt you really wanted to get rid of, it would be your student loan debt. “
Patterson enjoys eating out, but also makes a point of cooking many meals at home. He learned to cook Jamaican cuisine, which his father often prepared for him and his family growing up.
“You all waste so much money going out to eat,” Orman says. “I’m a very rich woman and I don’t like going out to eat because I don’t like wasting money. I appreciate every penny I have. So cook at home, save money, It’s as simple as that .”
Patterson has big plans to increase his equity, including one day buying a rental property. But Orman says to be careful. There is a big difference between buying a home and buying a home that you hope to make a profit in.
She suggests saving both a 20% down payment and at least a year of emergency expenses for the rental property before buying.
“Look at what happened during Covid,” she says. “If you’re funding this and you have a mortgage payment and your tenant can’t pay you for some reason, you need to be able to defer all payments for at least a year. “
That warning aside, Orman sees big things in Patterson’s financial future.
“I love this guy. I want him to be my son,” Orman said. “So proud of him.”
Watch Orman’s full reaction to Patterson’s spending and saving habits.