I didn't find a whole lot of surprises from Suze Orman on Oprah's Live Your Best Life show today, but it was motivating and I did learn a thing or two.
Suze Orman Freebie: For one week starting today, you can download Suze's 2009 Action Plan at www.oprah.com/download. If you are having some confusion as to how best to handle your finances in 2009, the book is full of specific questions and answers that may help you to make a financial plan.
Here are some of the high points from today's Live Your Best Life show with Suze Orman.
#1 RULE – BE HONEST. If you are hiding credit card debt – come clean. The most interesting reason is that a big reason the credit card keeps climbing is that you are hiding debt. Sounds strange but Suze says that one of the reasons you make purchases is to relieve the guilt.
I think that it is also because you don't have the same accountability. If you are hiding a balance, it means that there obviously isn't full disclosure going on. That means there is some kind of free reign to spend as you wish in some capacity.
Once you come clean, of course, you will become accountable.
It sounds scary but it's really a good thing to help you out of debt.
Another thought – you will also feel responsible again and that you ware working together. It can only make you stronger. Hiding is not for the person that you are.
WHICH TO PAY FIRST?
Pay the minimum on all of your cards and pay extra on your highest interest card. Then pay what you were paying on that card to your second highest balance.
BORROWING FROM YOURSELF TO PAY OFF YOUR CREDIT CARD DEBT
Suze says Don't Do It. Borrowing from your 401K or home equity is too risky and comes with penalties.
BE AWARE
Many people don't know how much they need per month to run their home and spend accordingly.
Sit down and figure out exactly how much money it takes to pay your bills.
THAT'S NEEDS, NOT WANTS
Don't confuse them. If you have credit card debt, Suze says to do this exercise.
Make a list of your wants and your needs. If you have credit card debt, remove your wants from the equation until it's paid.
AND THEN SOME
Plan to save 8 months of living expenses as soon as you have your credit cards paid off. That's what Suze says is a reasonable cushion in case you do lose your income.
HOW MUCH CAN YOU SAVE
Once your credit card debt is paid, figure how much you can save. And then add 20%.
S-T-R-E-T-C-H
Put it in the highest interest savings account that you can find.
ON WAKING UP
Oprah has mentioned a few times, including today, the fact that we find ourselves in these positions because we are moving through life 'unconscious'.
This can count for finances, the state of your house, your relationships and your health.
One of the guests on the show who found that she had lost half of her savings said "I took my eye off the ball".
I have noticed this feeling of 'drowsing' myself and had resolved to make 2009 the year to 'Wake Up'.
How about you?
FREE SUZE ORMAN BOOK DOWNLOAD THIS WEEK
You can go to http://www.oprah.com/download and get Suze's book – 2009 Action Plan and have a look around the site for more information from Suze as well as Oprah's Live Your Best Life week shows.
A FEW MORE RESOURCES
Want to see how I do my budgeting?
A Really Simple Way to Save Lots of Money
