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?