Success can be defined in different ways
by different people. Most of us tend to associate success by having material
possessions and financial freedom.
The first thing which I have learned
from the video is modesty. Suze Orman never felt ashamed to tell her story. She
even mentioned about her job as waitress years ago. I could not imagine that
back then she already knew Steve Jobs.
How people manage the finances now a days
are too far from what people do back then. Before, a person may enjoy
traveling abroad upon reaching their retirement. However in this era, people even
at their 20’s can already travel having money on their own pockets. Most people
are now adopting vanity. Then credit cards exist. Most live in life beyond
their means. I guess it’s one of the reasons why financial adviser or analyst
became a trend as most of us don’t know exactly how to manage the finances
(even myself is guilty of this).
According to Suze, the following are the
laws of money which can avoid financial predicament.
Law #1: Truth creates money, lies
destroys it.
Law #2: You have got to look at what you
have, not at what you had
Law #3: You have got to do what’s right
for you before you do what’s right for your money
Law #4: You must first invest in known
before the unknown.
Law #5: You must always remember that
money has no power of its own
Planning your Future
To have a financial freedom is not just
about getting a high paid job, obtaining a good life means being able to handle
your financials.
Today and years from now inflation rate
will be gradual in which the money that has been saved in banks will no longer
have the same value from the time it has been deposited. Therefore, engaging in
a long term investment is important. According to Suze, people should look for
investment that is at least equal or more than to one’s expenditures. As a banker,
I was able to learn the types of investment and for me, Money Market is apt for
a conservative type of clients, just like me. Before getting a commitment with
the bank, it is important that a person should at least have the basic
understanding on how money goes through investment.
There is a quote which I read in the company where I am currently working and it goes like, "Learn to live within your means, having extra money does not mean that you have to spend it. Learn to invest for your future retirement." The message is so simple yet powerful and I believe this is one of the tools to be able to achieve financial freedom.
"Many people take no care of their money until they come nearly to the end of it, and others do just the same with their time." Johann Wolfgang Von Goethe