financial advice from suze orman on oprah

suze orman was on oprah yesterday giving advice on surviving this year of economic doom & gloom. i have to admit i was in shock about how bad some people have it right now---things like 23 credit cards, debts of $50-90,000 and serious risk of loosing their houses. our finances are really tight {like everyone} but we have been lucky partly because its only just slightly better over the pond in england & my partner is a savings god who knows how to make money spread as far as possible. still we're not going to get complacent and we're moving a few things round to try to survive as best we can.

i took loads of notes from the show and i'd love to share them with you:

  • commit to being honest with yourself, no more deceit and lies. if it means admitting you may have been wrong---take the leap.
  • make your home life a reflection of the inside. if your house/finances/etc are unorganized it may be likely that some other aspect in your emotional life is unorganized too.
  • finances are often a reflection of our 'spiritual consciousness' being reflected back to us.
action plan for credit cards

step 1: pay off credit card debt
step 2: get out of credit card debt before you have a savings account

action plan for spending

step 1: sit down with expenses and separate wants v needs
step 2: circle all expense that are wants
step 3: if you have debt or no savings, eliminate the 'wants'

* money for emergency fund does not belong in stock market

action plan for savings

step 1: save enough to cover 8 months of expenses
step 2: decide how much you can save each month and add 20%
step 3: search around for a savings account with a higher interest rate

action plan for retirement

step 1: don't panic when the market drops
step 2: keep investing monthly in retirement
step 3: if you need money within 5 years take it out of the stock market


change things around to create income, be aware that its unsure of when stocks can be guaranteed again.

commit to make 3 changes

1. don't spend money for one entire day
2. don't use your credit cards for one week
3. for one month don't eat out

you can get a free e-copy of suze orman's '2009 action plan' off of oprah until the 15th of jan. also oprah is doing a webinar next week again with suze orman---you can sign up here.


Anonymous said...

I've always liked the advice "Don't spend more than you make".

Seems like a no-brainer, but yet society is over it's heads in dept.

Anonymous said...

And don't you find separating "wants" from "needs" terribly hard? Do new clothes for exercising because the old ones are disgusting constitute a need? How about a few sharp outfits for job interviews? A couple of great books you just know you'll get a lot out of? The pants that go perfectly with that top you just got? The newest CD by your favorite musical artist, that you know you'll play and play? The jacket that you've wanted for a year that just went on clearance at the best price ever? I find I'm all tough and toe-the-line until I go in the stores or see the catalogues, and then I cave way too often. I give myself all these "reasons" why I "need" it, and there I am again. Got any wisdom for me?
Aunt Gail