Suze Orman
I've got Suze Orman on the brain. I think she gives sound financial advice that is meaningful for my "now" and my future.
I was on her site yesterday and she was emphasizing AGAIN to save, save, save! We all need a financial cushion (she recommends 8 months of expenses in the bank, but whatever you can do is better than nothing) and the days of thinking that using your credit cards for an emergency are gone. Credit card limits are getting slashed and interest rates are rising - even for folks who have credit scores of 800 or more and who always pay on time.
Her recommendation is, if your not on stable financial ground (which I think is everyone right now), to pay the minimum on your card balances and put the rest into savings. She said it may affect your FICO score, but these days, you need to be prepared for a layoff or other financial emergency without burying yourself deeper into debt.
Here's where I have trouble following. She also says to curb frivolous spending. We need to be thrifty to have more to put into savings. I have a hard time with this! I want too much. I have to try and I'm pledging to you, my invisible audience, to curb my frivolous spending.
I had been in a funk for weeks and I couldn't figure out why. It's because I haven't curbed my spending since my stupid pay cut. I don't want to have to use my savings to get me out from under my credit card debt, so I have to be more disciplined. I have a weight lifted from my shoulders, but the hard part is ahead - not adding to my credit card debt. I'm just going to leave all my credit cards at home and start working the cash game and buy what I can afford, not what I want.
I was on her site yesterday and she was emphasizing AGAIN to save, save, save! We all need a financial cushion (she recommends 8 months of expenses in the bank, but whatever you can do is better than nothing) and the days of thinking that using your credit cards for an emergency are gone. Credit card limits are getting slashed and interest rates are rising - even for folks who have credit scores of 800 or more and who always pay on time.
Her recommendation is, if your not on stable financial ground (which I think is everyone right now), to pay the minimum on your card balances and put the rest into savings. She said it may affect your FICO score, but these days, you need to be prepared for a layoff or other financial emergency without burying yourself deeper into debt.
Here's where I have trouble following. She also says to curb frivolous spending. We need to be thrifty to have more to put into savings. I have a hard time with this! I want too much. I have to try and I'm pledging to you, my invisible audience, to curb my frivolous spending.
I had been in a funk for weeks and I couldn't figure out why. It's because I haven't curbed my spending since my stupid pay cut. I don't want to have to use my savings to get me out from under my credit card debt, so I have to be more disciplined. I have a weight lifted from my shoulders, but the hard part is ahead - not adding to my credit card debt. I'm just going to leave all my credit cards at home and start working the cash game and buy what I can afford, not what I want.
posted by Cee in SF at 10:21 AM
4 Comments:
I hear what Suze Orman is saying, but honestly for many people this advice is just not practical. I had a baby 6 months ago. Naturally my expenses are going to increase. It's just a fact of life! Whatever "extra" money I have is going toward her. And you, of course, are planning a wedding. Extra expenses. What I'm trying to say is don't be too hard on yourself. You can only stretch a dollar so far!
You're right. I'm all kinds of anxious these days. I do what I can and that's all I can do.
I've still never had a credit card. I always meant to get one, it just never happened. I think it's hurt my credit score. Did I tell you that a while back I got denied for a savings account? It's a freakin' savings account. I'm giving the bank my money and there's absolutely no risk to them at all. I didn't think it was possible to get denied. I was actually a little proud of that.
Credit is necessary and evil at the same time. If you have money and don't need credit, that the best time to get one. If you need money, credit will crush you.
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