I finished reading an interview with Suze Orman, you know her, she is the famous lady giving out all of the common sense financial advice to people. She is like the Oprah of finance. Her advice pretty much sounds like everyone else’s. Limit spending, cut debt, save, and invest in the stock market.
It sounds simple to do but how do you actually do it? On her PBS shows and her books she uses examples but they are usually rather extreme. Of course, if I move from Silicon Valley to Doe Valley I will save a ton of money in living expenses and taxes. However, I already live in Doe Valley! How do I save money?
Here are some questions and answers from the article: (Note: I changed the wording to read between the lines.)
Interviewer: So Suze, how did you make all of your money?
Suze: Giving the same simple advice to the same stupid people. It doesn’t matter if it is through my over-priced lectures, annoying PBS fundraising shows, my books that all say the same thing, or my "repeat myself over and over again" TV shows. It is the same advice. People just don’t get it, so I do!
Interviewer: Do you still recommend people to invest in the stock market?
Suze: Absolutely, the stock market is the best place to keep your money for the long-term.
Interviewer: So you have all of your money in the stock market right?
Suze: No, 99% of my money is in zero-coupon municipal bonds! I want to maintain my lifestyle of flying on a private jet to my many houses around the world.
Interviewer: How much do you need to be considered wealthy?
Suze: $100 million. That will give you about $2.5 million a year after taxes at today’s yields.
What a gal! She brags about the millions and millions of dollars she has to her name. I just can’t understand why people follow her. I have read or at least skimmed through a couple of her books and her advice does make sense. I have watched her on PBS and have not always agreed with what she says to do.
Each person’s situation is a little different, but in general spending less, cutting debt, saving and investing makes sense! Of course, you can't forget where the money and other possessions came from in the first place!