Many financial problems have nothing to do with a lack or abundance of income, but with your mental state.
"Sometimes your mind lets you do things with your money that make no sense," Suze Orman said.
On an episode of "The Suze Orman Show," a 49-year-old caller in Kentucky said that he "only makes $41,000 per year" and is not sure he can afford to live on his own.
"First of all, you need to change how you think about your situation," she advised. "You said you only make $41,000 a year, and that gives you a poverty mentality."
With the median income of all U.S. single-male households at roughly $37,000, Orman told the caller, "a lot of people out there wish they could make $41,000.
Despite a shaky economy, a survey by Accenture finds that 20 percent of shoppers plan to spend more on gifts this year versus 14 percent of consumers last year. If you are feeling pressure to join this gift-buying herd, take heed to Suze Orman's holiday action plan before you shop.
"In January we start saving money, getting out of credit card debt, funding our retirement accounts and we're doing wonderful," Orman said. "Then, every single year like clockwork, starting in November, all of you fall into this trap that says, 'I have to buy this gift ... I can't show up at this party and not have something for everybody.'"
Bankruptcy rates spiked during the 2008 recession and many were pretty judgmental toward the millions who couldn't afford to pay their bills. But Suze Orman says bankruptcy is the better option over burying your head in the sand. "When somebody really doesn't have money to pay their bills then they should claim bankruptcy and face it right on and start all over again," says Orman.
Many people heeded this advice over the past five years. In 2008, bankruptcy filings jumped 32 percent to 1.1 million and in 2012 the filings jumped to 1.3 million. However, in June 2013, the U.S. courts reported filings closer to the early recession era at around 1.1 million.
The car you're driving could be driving you into poverty, says Suze Orman. While lenders are relaxing terms and offering longer periods for borrowers to pay, Orman is sticking by her rules of the road.
"Lending standards have loosened up, so many of you who couldn't buy a car before … are going out there and buying cars that are so expensive it's not even funny," Orman said. She points out that this is made possible only because the loan is being drawn out "over six years, seven years, even eight years so [that] your payments are [small]."
(Read more: Beware of new tricks of the trade to get your money)
Student loans are one of the most dangerous types of debt to have, says Suze Orman, who focuses this week's episode of "The Suze Orman Show" on ways to tackle the burden.
Recent reports show that Americans owe $1 trillion in student loan debt, that's about $200 million more than they owe in credit card debt. The story worsens when you factor in interest rates and ramifications for not paying on school debt.
"It's a real travesty what is going on in our country with student loans and our children," stressed Orman. "Students are paying more in interest on student loans than what they pay for a car or a mortgage, and those loans (auto and mortgages) can be discharged in bankruptcy," said Orman.
Do you keep finding yourself with debt that just won't go away? Every time you pay off your credit card, do you feel compelled to run out and charge it back up again? If so, your problem may not be financial at all.
"Over the 30 years I have been working with people and their money, I have come to believe you can't fix financial problems with money," Suze Orman said.
On an upcoming episode of "The Suze Orman Show," viewers will hear Randee of Raleigh, N.C., tell Orman that, despite multiple attempts to stop, she keeps running up $20,000 in credit card debt. After Orman asks a few questions, it becomes obvious that the guest is grappling with more than debt.
The recent rise in housing prices and the decrease in supply in certain parts of the country have some people willing to spend every nickel they have to get into the market now.
But Suze Orman warns hopeful homebuyers not to be hasty and end up house poor.
On Saturday's episode of "The Suze Orman Show," Jean of California asked Orman if it would be wise to tap her savings and retirement to put down 50 percent on a townhouse to ensure that she gets approved despite her income situation. Jean, 43, is going through a divorce and working at a temporary job but insists on buying a home now.
"The reason I must buy now is I found this fabulous location. It's a new build in Southern California, and … right now in Southern California there's no inventory," she told Orman.
Now that we are seeing a rebound in the housing market, it is time for a new home buying strategy says Suze Orman. "Financial advice needs to change according to what is happening in the economy," she says.
In today's economy, with interest rates still low, relatively speaking, and home prices leveling out, Orman says potential homebuyers no longer need to make a down payment of 20 percent. "I'm fine if you can get a mortgage with 10 percent down," says Orman. In addition, she still maintains that:
It is becoming easier to get a loan these days and that's not necessarily a good thing.
"I'm telling you things have gone bizarre again, at the exact time they shouldn't be going bizarre. So, you need to stay very strict with yourself," warns Suze Orman.
According to the Mortgage Credit Availability Index (MCAI), credit has consistently become more readily available over the past few months. The MCAI increased for the fourth-straight month in July to 112, up from 100 in March.
This is still a far cry from the 800 it would have been in 2007 when loans were their easiest to obtain, but it clearly shows a move toward looser credit requirements.
Now that interest rates are rising, home buyers and potential home buyers question whether they've missed the boat when it comes to getting a deal on home loans. "Just settle down," says Suze Orman. "These are still some of the lowest interest rates when it comes to financing a home or refinancing a home that you are ever going to find, bar none," she said.