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
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

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