Suze Orman's Financial Advice for Filipinos

American personal finance guru, Suze Orman, is in the country today. From the interview with Karen Davila on ANC this morning, here are some of her financial advice to us Filipinos about managing our personal funds.

Law of Money

1) Live below your means but within your needs. 

2) Before buying anything, you should ask yourself this: Is it a need or is it a want? If it's a want, walk away. If it's a need, you buy it. If you live below your means and purchasing only your needs and walking away from your wants, you will find money to save

3) The goal of money is for you to buy your needs to feed yourself, feed your children, buy a roof over your head that doesn't blow away. That's the goal, so you can sleep at night, not to buy five watches

Getting out of credit card debt

4) Debt is bondage. You will never have financial freedom if you have bondage

5) It is not about getting out of credit card debt. It is: Why did you get into debt to begin with
6) Before you save money, before you invest, your number one goal is to take whatever extra money you have and pay off that credit card debt because at 36% (interest), you are digging a hole deeper and deeper

7) When you spend money you don't have, what does that say about you? It says you care about these things that money can buy more than you care about having money in a savings account

8) If you look at your expenses you will find something in there that you WANTED to buy, not NEEDED to buy.
9) You cannot fix a financial problem with money. You have to figure out how you feel about yourself first.
Save, save, save

10) You want to make sure you have a savings account that has at least 8 months of what it would cost you to live for your everyday needs, one should also start investing money every month on a mutual fund. After you've done that, every month set aside a specific amount and invest in that fund. It's peso cost averaging, that way when the fund goes down, your pesos buy more shares. When the fund goes up, your pesos buy less shares but over time you've averaged the cost of the share with your pesos and you won't lose money

11) People don't realize just how much money they're spending for a cup of coffee every day - money they could be investing, instead. Look at it this way, even if you did that once a month, spent P100 a month on a cup of coffee and you did that for the next 40 years. If you had taken that money and invested it, you would have P1 million at just P100 a month

12) They think the goal of life is to buy this and buy that and that's how they define themselves. Things will never define who you are. You define the things around you

13) You have to do something to have money so you can invest

14) If you just have enough money, 2 things: 1) earn more money 2) look at your needs/wants. You have to generate money to invest

15) Get life insurance if you have dependents. Health insurance is extremely important

16) On pre-nup: You have to be financially intimate with the person you are going to marry
Invest in the Philippines
17) This is a country that is starting to grow. The economy is growing, the stock market is booming. So the whole country is doing great but its people are not doing great yet
18) I would be investing in this country. Forget the United States
19) On peso as a currency: Companies see what is happening. This is going to be the place to be, I would be taking advantage of this
20) At this point I would save in pesos. You have to believe in your country
Watch the complete interview of Suze Orman with Karen Davila on ANC.

 "You'll never be powerful in life unless you are powerful over your own money." - Suze Orman
source: ANC, ABS-CBN News

1 comment:

  1. Thanks for sharing the blog with us. Its really an informative blog according to the financial advice. Get the FRM Question Bank for the preparation in FRM exams.