Last month the ladies of the investment club that I belong to chose to read Suze Orman's new book. I also suggested that the readers of my monthly journal (free newsletter) read it along with us. Well, I did indeed read it and here is what I think about out it.
Her usual message comes through loud and clear, "you must commit to taking action". There is just no room for taking the back seat when it comes to understanding your financial situation and knowing what you need to do with your money.
Suze first spells out very briefly the current global credit crisis. I love her parable, "Our economy is like a patient who was rushed to the hospital in critical condition. After months of aggressive intervention ... the patient is still in the Intensive Care Unit, but the prognosis is that eventually there will be a full recovery. In the meantime, the patient will move into a rehabilitation facility and start to get back on his or her feet. Before too long, the patient will be stable enough to go home, though it might be years before he of she is back to full health".
So what do you do with your money while you ride this "rehabilitation" time out?
The chapters in Suze's book are organized in nine (9) areas of money: Credit, Retirement, Savings, Spending, Real Estate, Paying for College and Family which includes insurance and job loss. Suze lists multiple scenarios for each of these area. So you must read through (a very easy read) to see which scenario might best fit your situation. Then she tells you what to do with an "action plan" for each scenario.
Please be diligent and research any advice no matter how "expert" someone maybe. For example, if you do not understand or know what a treasury money market fund is or an EFT is, then educate yourself and learn. It is important to understand why her action plans are good at this time during a general economic downturn. The economy changes and goes through its cycles; money grows well in one investment during a down turn but then may performs poorly when the economy is booming. Thus, through learning you will also see that money can grow through investments no matter how the economy is doing. I always say, "create your own economy"!
So Suze's book is a great place to start, but there is more work to be done. So get your 2009 action plan started if you have not done so already already.
Her usual message comes through loud and clear, "you must commit to taking action". There is just no room for taking the back seat when it comes to understanding your financial situation and knowing what you need to do with your money.
Suze first spells out very briefly the current global credit crisis. I love her parable, "Our economy is like a patient who was rushed to the hospital in critical condition. After months of aggressive intervention ... the patient is still in the Intensive Care Unit, but the prognosis is that eventually there will be a full recovery. In the meantime, the patient will move into a rehabilitation facility and start to get back on his or her feet. Before too long, the patient will be stable enough to go home, though it might be years before he of she is back to full health".
So what do you do with your money while you ride this "rehabilitation" time out?
The chapters in Suze's book are organized in nine (9) areas of money: Credit, Retirement, Savings, Spending, Real Estate, Paying for College and Family which includes insurance and job loss. Suze lists multiple scenarios for each of these area. So you must read through (a very easy read) to see which scenario might best fit your situation. Then she tells you what to do with an "action plan" for each scenario.
Please be diligent and research any advice no matter how "expert" someone maybe. For example, if you do not understand or know what a treasury money market fund is or an EFT is, then educate yourself and learn. It is important to understand why her action plans are good at this time during a general economic downturn. The economy changes and goes through its cycles; money grows well in one investment during a down turn but then may performs poorly when the economy is booming. Thus, through learning you will also see that money can grow through investments no matter how the economy is doing. I always say, "create your own economy"!
So Suze's book is a great place to start, but there is more work to be done. So get your 2009 action plan started if you have not done so already already.
When fear and doubt are in control you may make decisions that feel "right", but the biggest risk is giving in to your emotions. Do nothing rash". ~Suze Orman
Suze's Ormans 2009 Action Plan
Suze's Ormans 2009 Action Plan
