Suze Orman: 3 keys to your financial happiness

Financial adviser Suze Orman.
CBS News

(CBS News) So how DO we make sure we always have enough cash on hand to pay the bills? Three tips on that from Suze Orman:

All right. I want you all to listen right now, 'cause I'm about to give you THREE keys to your financial happiness. Are you ready?

The first key, very simple. You are to ask yourself this question every time before you buy something: Is it a need, or is it a want?

Obviously if it is a need, I don't care if you have credit card debt, I don't care if you don't have any money, you have to buy it.

If it is a want, however, and you DO have credit card debt, and you don't have an eight-month emergency fund, you are to just simply walk away.

From this day on, if you simply buy NEEDS versus WANTS, you will end up really financially happy.

Number two: you are to live below your means, but within your needs. Now, what am I talking about here?

So, you can afford a 3,000-square-foot home. I get that. But do you really NEED it? If you simply were to buy a 2,000-square-foot home, even if you can afford to buy a car, the monthly payments, don't do it. Just continue to drive your car longer. If you were to live below your means, even if you can afford it, if you just didn't do it, but within your needs, you, then, would have extra money to do -- what?

To save, fund your retirement, possibly even send your kids to college, everybody!

And last but not least, this third key is really important.

Can you just get as much pleasure out of saving as you do spending? I know you go out, you're so happy, you spend this money, and then you come home, and you put it in your closet, and there it sits in the box with the price tag on it.

Really, everybody?

If you could have just taken that money and could have saved it, it could have given you such pleasure. It would create your future! And when you have money for your future, guess what you have: The key to happiness.

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