Yesterday, Suze Orman went on Oprah to talk about her latest book, Suze Orman’s 2009 Action Plan, which is available for free download during the next six days. Just click this link. And then get yourself a pair of thick reading glasses because you will need them after scrolling through two-hundred pages of financial advice on your computer screen.
Bossy took notes during yesterday’s show, and you may be pleased to learn that many of the things discussed on Oprah have been tackled here at the Poverty Party. Except when Bossy talks about the importance of your FICO score, she doesn’t jab at the air with her index finger while. pausing. between. each. word.
Here are a few of Bossy’s notes from the show:
- Pay off your credit card debt before anything else. This includes before paying yourself.
- Line up all of your credit cards according to interest rate, and pay off your highest interest rate card first. According to Bossy’s notes, “Pay min on everythng tha extra on highes then everthin goes to nexs card plus THAT niminum,” and hi, have you met Bossy’s bad handwriting?
The point is to pay the minimum on all your cards, but find extra money to put toward your highest rate card, and when that is paid off, take that exact amount of money and apply it to the next highest interest rate card, plus that card’s minimum amount, and, phew, Bossy is beginning to understand why. Suze. speaks. in. staccato.
- Find that extra money which can be applied to your credit card debt or savings by making a list of all your expenditures, and separating the things on that list by Want and Need. The Wants go.
- Once your credit cards are paid off, it’s time to save. Figure out all of your monthly expenses and multiply that number by eight to give you your Eight Month Emergency Fund goal, which should be placed in a high interest FDIC-insured savings account.
And finally, Suze Orman asked the audience to sign a pact agreeing not to spend any money for just one day, and not to charge anything on a credit card for just one week, and not to go to any restaurants for just one month. Which sounds an awful lot like Bossy’s 2008.
Are we having fun yet?
dgm says
January 9, 2009 at 9:47 amNot go to a restaurant for one month? That’s crazy talk. Once a week, mama needs a break from cooking at home.
MariaV says
January 9, 2009 at 9:47 amI can’t remember the last time I ate in a restaurant. Sigh!
kidsmom says
January 9, 2009 at 10:10 amDoes drive through count?
Lizzy says
January 9, 2009 at 10:13 amYa mean I can’t have Aloo Gobi for a month? What kind of sicko commie is this Suze Orman? And I don’t like her anyway because she should pronounce her name Sooz or just spell it the right way, fer crissake.
Bitter much? Me?
Rikki says
January 9, 2009 at 10:22 amI can do the first two, but no restaurants for a month…maybe I will try that in Feb when there are less days! 🙂
dexter says
January 9, 2009 at 10:52 amAnd how much money does it cost a month to get your teeth that white miss Orman?
Margaret says
January 9, 2009 at 10:55 amI have no problem with any of her recommendations and I didn’t feel like she said anything momentous. Pay off your debt, spend less, save more. That was about it, right?
Zipporah Sandler says
January 9, 2009 at 10:56 amOK, NOT a Suze Orman fan here…especially since she has a problem practicing what she preaches…well, sort of. Hmmm, tell people NOT to buy a new car & then do an advertisement for an automobile company, her wardrobe – well, let’s just say that she’s spent an EXCESS on it (not my idea of impressing those who can’t afford to dress like her) and NO RESTAURANTS for a month? She hasn’t learned that you can be creative and that dinner OUT can cost less then cooking. She obviously hasn’t come to Champagne Living (my blog). I could teach Ms. Orman a thing or 2 (as we probably all can) about how to live well and spend less. Wouldn’t you like to know what her monthly Amex bill it?
Lisa says
January 9, 2009 at 11:17 amIm so sick of all of this…
dont spend
dont eat
dont heat
Suzie AND her giant lapels can suck it.
Marsha says
January 9, 2009 at 11:32 amCan someone please tell me where in the hell one finds a high interest savings account? I don’t think there is any such thing.
Kelly at The Glass Dragonfly says
January 9, 2009 at 11:46 amMy 19 year old watched was entranced by this show yesterday. She is now ready to face the world and become a responsible adult! Okay, well…at least she is better prepared than I was.
It was funny when we had a jinks moment: both remarking on Suze’s white teeth at the same time.
Jamie says
January 9, 2009 at 11:48 amI know Suze Orman is some kind of financial whiz, but MY EVERLOVING JESUS GOD is she ANNOYING.
Jen says
January 9, 2009 at 11:54 amBoss, I tore up my kitchen…staining 80’s oak cabinets, ya know. And, and- I hate to even say this- we have been getting take out almost every night, and my kids are eating nasty school food lately. I’m in the middle of “dear lord what have I started??” and feel like a frugal failure this week. Oh, and I go back to college Monday…full time.
Hold me.
~annie says
January 9, 2009 at 12:09 pmWell that’s just dandy! 8 Month Emergency Fund? I thought it was 3… And where the frick am I going to find a “high interest FDIC-insured savings account” ?!
Olivia says
January 9, 2009 at 12:14 pmSo, Suze’s (I cannot read her name without thinking it’s Sooz not Susie) advice yesterday is the same advice she’s been spouting about for years. Now that is good plan: 1)find something to boss other people about that never changes, 2) write a book about it every year and make television appearances, and 3) get rich.
janet says
January 9, 2009 at 12:40 pmI haven’t eaten out in a month since I was laid off, (Pity me) but the other night I drove thru McD’s. I only allowed myself to get something off the dollar menu, and BOY DID THAT EVER TASTE GOOD! Can’t beleve I’m saying that!
Jennifer says
January 9, 2009 at 12:43 pmI used to fear Suze. Now I love her -LOVE HER.
I just completed her five month save yourself plan (in her newish book Women and Money) except for the save 8 months of living expenses thing. That will take me years – who can do that? I am happy with three months. Three is good.
Climbing out of debt feels really good – she is a miracle worker.
Trop says
January 9, 2009 at 12:46 pmThis post could have doubled for a “featured gay.”
I am paying off $58K in divorce-related debt with the help of Chapter 13, a second job, and Dave Ramsey’s cash envelope method. Just a few more months to go. I can’t wait to start paying myself.
dexter says
January 9, 2009 at 12:50 pmShe’s a fraud!! Dont let her teeth draw you into her trance. “if you dont have, dont spend it” brilliant simply brilliant. Why didnt I think of that. I wonder how many times a week she eats out? SHE’S A FRAUD!!! Getting rich on common sense crap
David says
January 9, 2009 at 1:18 pmWow. I had a few snarky things to say but people are a wee bit cranky here at the moment, so I’ll just remark that all of you look quite slim in your outfits this lovely morning and, say, did you have your hair styled, because it looks really cute today!
Kath says
January 9, 2009 at 1:45 pmI can’t believe that Suze is back in Oprah’s good graces after she went on her show earlier this year and blamed the mortgage crisis on “minorities”.
Kristine says
January 9, 2009 at 2:34 pmI actually prefer David Bach when it comes to financial advice (Smart Women Finish Rich, Smart Couples Finish Rich) And while I don’t think it makes sense to save while trying to pay off debt, it does make sense to still contribute to your 401K or IRA. Also 8 month emergency fund? I thoguht it was 3-6 month…
Ms. Cranky Pants says
January 9, 2009 at 2:59 pmI’m SO over Suze. She’s simply figured out how to make money off of other people’s money fears. And Oprah follows like a puppy who drank the cool aid.
bitterkat says
January 9, 2009 at 4:17 pmI normally avoid Suze Orman like the plague but I’m giving her a chance just this once. I read her book last night to get motivated. I will say this, she’s easier to read than to listen to.
My latest poverty party entry is here (I whine about my credit card debt):
http://www.bitterkat.com/bk/2009/01/a-long-sad-story-and-some-goal.php
MidLifeMama says
January 9, 2009 at 4:20 pmI get hives and have to go hide in bed under the covers whenever I even see her face much less hear her speak. GAH. Thanks, now I am itchy and sleepy.
karen says
January 9, 2009 at 5:14 pmblah blah BLAH blah … bleh. BLAH BLAH BLAH. Bossy, it’s Friday afternoon. Round of martinis, please. Now, we’re all obviously in need of some serious CASH-O-LAH. Let’s focus on that. Focus. Focus. We’re gonna regroup here on Monday, put all of our money in a big PILE. and cry. Somehow, we must bring the cash to us. Ssshhhh. meditate … caassshhh…ohmm.
Sven says
January 10, 2009 at 5:03 amI saw this and the thing that annoyed me more than Suze’s delivery style was the abitrary numbers she picked. 8 months? Why not ten? Why not a year? Actually, scratch that: the most annoying thing of all is the ‘best life’ crap. I hate Oprah. Love you though! Keep up the good work!
heart shaped hedges says
January 10, 2009 at 2:04 pmSuze has a good message, I totally agree…and dont even have a credit card!
However, as I try to climb out of medical debt…..I find one little problem with her plan….it’s that part about the “extra money” and paying things off with that “extra money”…what extra money is she talking about? Am I supposed to pay medical bills off with the pennies found beneath the cushions?
Maybe I can go on Oprah…and jibber jab with the billionaire, and say, “DONT SPEND”…and make that “extra money”
aPeetsMom says
January 10, 2009 at 2:44 pmWell I’ll consider not going to restaurants for one month if Suze Orman agrees to change her hairstyle,
And I think we all know the answer to that.
zenmomma says
January 10, 2009 at 10:15 pmOh Suze, Suze, Suze. What about us poor saps who OWN a teeny, tiny restaurant and are hanging on by a thread? Please don’t tell my customers to stay away. You already screwed the coffee shop part of our cafe with that kind of advice. “You don’t need to buy that latte blah, blah, blah…” And then what happens? We’re the next ones on the long list of small businesses that have gone under.
psychophant says
January 10, 2009 at 11:59 pmI just started to read this part of the blog so I apologize if this is something someone else has suggested. It stopped the “Where did all my money go” syndrome. I used to do this to save money for vacations (remember those?). It’s a variation of put your change in a jar. Everytime I buy something with cash I put the $1 bills in the jar. Not only does this add up to possible “extra cash” to put on my credit cards, it also tends to keep me from buying things I don’t really need just to keep from breaking a bigger bill. You have to stay honest with yourself and not use a credit or debit card just to avoid getting change. By the end of the year I usually had between $500 to $800 for vacation money. It will be less now that I’m cutting back but it might pay the water bill every month.
Also for those of you looking for a savings account with a better interest rate try ING, ingdirect.com. The rate now is 2.5%. When I opened my account last year it was 5%, but the rate my bank was offering at that time was 0.025%.
the cheap chick says
January 11, 2009 at 10:09 amSuze just SUCKS the fun out of being frugal. And yes, it CAN be fun to be frugal – honest and I mean it!
Heidi says
January 11, 2009 at 12:58 pmI have a serious question about the “Pay off the higher interest cards first.” I have a high balance on one card, but a very low interest rate, and a lower balance on a different card with a higher rate. So do I pay more money toward the card with the highest PERCENTAGE rate or the card with the actual highest dollar amount of interest? Or is that just a little idiom of common sense with which I haven’t been blesssed?
operagal says
January 12, 2009 at 8:50 amwell, the restaurant thing sucks when the M-I-L runs a small family restaurant that gets emptier by the week.
yikes.
OG
Carla says
January 12, 2009 at 3:56 pmSHOW ME THE EXTRA MONEY!!!
Seriously. I can manage the spend no money for a day, even several days, if I’m feeling particularly lazy that week. I can manage to not use my credit cards for a week, a month even. But, not eating out the entire month? How about no more than once a week? I can manage that. Actually, it’s the 12th now, so I guess I can manage it for almost 2 weeks, but my birthday is coming up. Have mercy.
Carla says
January 12, 2009 at 3:59 pmAnd Heidi, Suze means pay off the one with the highest percentage rate. Personally, I prefer Dave Ramsey’s snowball plan instead. You pay off the card with the lowest balance, then move your money to the higher balance card. It gives you a little satisfaction sooner.
Although, sounds like your lowest balance is your highest APR so you’re good.
operagal says
January 12, 2009 at 7:36 pm@Marsha and anyone who wants a high-interest (well, it USED to be higher) FDIC-insured savings account.
Snail mail me and I’ll send you lots of info.
OG