Handling Financial Predicament, Talk to Suze Orman

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