I read an article about Suze Orman’s personal finacial journey and I have to admit that I had no idea that she worked three jobs to put herself through college, and more shocking is that she lost $50,000.00 when she turned it over to a financial advisor who lost her money in bad investments. Most people would give up after losing $50,000.00 these days.
Not Orman. Losing her money only gave her the drive she needed to become such a successful advisor herself. See, the money that her advisor lost, was given to her by restaurant customers who wanted her to succeed. I believe that she has definitely fulfilled their wants by succeeding at being much more than a restaurant owner. She’s now one of the leading financial advisors out there.
What does Suze Orman say to do in these tough economic times? She says save…and then save some more. For most people, especially college students like me, saving is easier said than done. She reiterates what my grandmother has told me for as long as I can remember: “do I need it? Or do I want it?”. This is a struggle for most young people. It’s sometimes hard to pick between needing and wanting something, especially when you want to have a good time.
I find it hard to answer the question “Do I need a vacation? Or do I want a vacation?” I mean, we all “need” a vacation, right? That’s not necessarily the case. It’s perfectly fine to need a break, and to take a break, without going to the beach. Orman points out that the times are really, really…really bad and may not get better for five or six more years. She also points out that even though you may not be affected right now, it’s very possible that you will be affected later.
The probability of you losing your job is higher today than it was yesterday. The probability of you getting further into credit card debt is also greater today than it was yesterday. Pay off your debt as soon as you can, if you don’t, Orman advises that the credit card companies will surely come after you with higher interest rates. Suze advises to “hope for the best, plan for the worst.”
The tough economic times are not all bad though. Orman is happy to see real estate prices today. She’s glad to see that in a lot of cities, rent is not always cheaper than mortgage and she states that soon, people will be able to buy homes, and afford them. Even people who never thought that they would be able to buy a home, will probably be able to buy a home in the near future.
For me, it’s important to remember that the economy is not all negative. Orman advises that even people who struggle to get by daily should still try to save…whatever they can. When I hear that by me saving today, it may help me buy a house tomorrow, it makes it a lot easier to try to save.
So remember this while shopping: the economy is bad, and you need to make a decision on whether you need or want an item. Also, remember that saving $20 today may put you in a better financial situation tomorrow. The most important thing to keep in mind is that in all the negativity, there is a glimmer of hope in the future!