Monday, October 31, 2016

Dont go over your budget while buying Gifts for others

People you love would be ashamed to know you overextended yourself to give them a gift that isn't affordable. And for all the other people in your life you don't deeply care about, a gift is not necessary. A heartfelt note is all that is necessary.


Suze Orman is a award winning certified financial planner and author of several books including 'The Road to Wealth'. She went from being a waitress at age 30, making $400 a month, to now having her own TV show and a net worth of $30 million dollars.

Monday, September 19, 2016

Having a fresh financial start


The foundation of a financial fresh start actually has nothing to do with money or specific financial dos and don’ts. The first, and most difficult, step is to absolve yourself and your spouse or partner of any guilt.


Suze Orman is a award winning certified financial planner and author of several books including 'The Road to Wealth'. She went from being a waitress at age 30, making $400 a month, to now having her own TV show and a net worth of $30 million dollars.

Tuesday, August 16, 2016

Five rules for buying a home

Rule #1: If you're buying a house, never let a mortgage lender tell you what you can afford.

A lender makes more money when you borrow more money. And most lenders don't really know everything about your finances; they just look at your income and do a quick calculation to tell you what they think you can afford. They don't know anything about how much you're saving for retirement or whether you want to help your kids financially with college.

You need to decide what you can afford to buy for yourself, based on your long-term goals. Always remember: The smaller your mortgage, the more money you'll have for other financial goals.

Rule #2: If you're buying a home, don't be a pushover.

In response to sharply rising home prices the past few years, lenders have been peddling all sorts of crazy types of mortgages. The worst, in my opinion, is a "negative amortization" loan, where the initial monthly payments are so low that they don't even cover your true interest charges; the result is that your balance just keeps growing. Choosing the right mortgage is the key to having real home security.

Rule #3: If you own a home, protect your equity.

I know many of you have seen the value of your home rise a bunch over the past few years, giving you more equity in your home. And many of you have tapped into that equity by taking out a home equity line of credit (HELOC). This is not wise because it converts equity into debt (the HELOC that you must repay). I don't recommend borrowing against the equity in your home unless it's for an absolutely necessary expenditure like repairing the roof.

Rule #4: Pay in full.

If you are at least 45 and have no desire to ever move, start paying off your mortgage. The best security move is to get your mortgage paid off before you retire. Just tune out the people who say it doesn't make sense to give up the valuable tax break that comes with a mortgage-interest deduction.

Most of the interest deductions happen in the early years anyway. Let's say you have a $200,000, 30-year fixed-rate mortgage at 6 percent. Your monthly payment will be $1,199 a month—or about $14,400 a year—for 30 years. In the early years of the mortgage, you'll pay mostly interest—at least $11,000 a year—so $11,000 of your $14,400 mortgage payment will be tax deductible. Now let's jump forward 20 years: Your yearly mortgage payment is still $14,400, but your interest payment will not account for more than about $6,000. The bottom line is that your interest tax deductions decline the longer you pay your mortgage. But we're not talking just about a tax write-off here: Nothing feels better than owning your home outright.

Besides, your mortgage is probably your largest monthly expense—so, if you get it paid off before you retire, you will have reduced the amount of money on which you'll need to live during retirement.

Rule #5: Be realistic.

We all know that real estate was on a tear until very recently; in some parts of the country, home values jumped more than 20 percent a year. That is not normal, and it is not sustainable. I want everybody to read this very carefully: Over the long term, you should expect your home's value to rise at a rate that slightly exceeds inflation. It's a solid investment, but not one on which you should expect to retire. Don't think that just because your home's value has had a great run you don't need to invest in your 401(k) and Roth IRA plans. Be better prepared than that.

Monday, August 1, 2016

People should come before money




Suze Orman is a award winning certified financial planner and author of several books including 'The Road to Wealth'. She went from being a waitress at age 30, making $400 a month, to now having her own TV show and a net worth of $30 million dollars.

Monday, July 25, 2016

Why I quit the Suze Orman show

For 13 years I loved my job hosting the Suze Orman Show on CNBC. I mean, seriously loved it. Every time I sat behind my desk and settled into my chair, I knew that was exactly what I wanted to be doing. I felt alive, vital and excited. I waited with anticipation (like a little kid about to get a present) to hear what question the caller was going to ask me.

It didn’t matter to me that as the years went by, many of the questions — OK, nearly all of the questions — I had heard before. I could feel that each question was vitally important to the person asking it, so I listened and responded as if it was the first time I had ever answered that question. My intention was to always make the caller feel important and respected. Sometimes people asked me if my on-set enthusiasm was an act. Anything but! The show was an incredible platform to share my passion and love for the one topic most people hate to talk about — money!

About a year ago, something started to change. I woke up one morning, and I knew that it was time to end the Suze Orman Show. There was no external trigger; just a feeling that I had shifted, not the workplace.

Could I have ignored that feeling and just keep on keeping on? Sure. But that would have been so disrespectful. To myself, and most of all to the viewers. I never wanted to give less than 100 percent. And let’s face it, if you stay on for the wrong reasons, your eventual exit will likely not be on your own terms. I wasn’t going to fall into that trap.

On February 20th, 2014, KT (my spouse, Kathy Travis) and I walked into the office of CNBC President Mark Hoffman and we told him it was time to wind down my show. Was it hard to do? You bet it was. Over the last year my mind kept saying, "Suze, just keep doing what you have always done. Don’t change now; stay with what you know." But my heart knew it was time for me to go. By taking the initiative to recognize I needed to move on, I have had the great experience of leaving without regret or acrimony.

I can think of no more important career advice than to listen to your gut and to own the power to control your future. If you hate your job, that’s on you. Yes, your boss may be a jerk, and the atmosphere toxic. And you can’t give notice next week because there are bills to pay. I get it. But that is not an excuse to stay there forever. You must move on. Maybe it may take months or a year to figure out your next stage, and your next job. What matters is that you are not resigning yourself to a less than ideal situation. Can you do it? Well, the truth is if you want to be happy, really happy, you must do it.

For me, now I am going to take a year or two off from TV and work on educational tools, classes, and apps that will make it easier for you to make the best decisions when it comes to your money. I am also going to take time this time to become as strong and healthy with my body as I am with my money. I am so excited to see what the future brings — I almost cannot wait to go to sleep at night just so I can wake up the next morning to see what gifts lie ahead.

As I write this, I have already taped my final show, and it was great. Here is what I know for sure: I will forever love my run at CNBC. But I also love knowing that I knew when to leave. On my own terms. That for me is priceless!

Monday, April 25, 2016

Term life insurance vs Whole life vs Universal Life









Suze Orman is a award winning certified financial planner and author of several books including 'The Road to Wealth'. She went from being a waitress at age 30, making $400 a month, to now having her own TV show and a net worth of $30 million dollars.

Monday, April 18, 2016

Put money in annuity if contributions are matched

My 27-year-old kid just got a "real" job as a Union carpenter. With that job comes an annuity. How much should he be putting into that annuity weekly ?

Suze Orman: I would only be putting money into the annuity if they match his contribution. Otherwise, he is far better off doing his own individual Roth IRA where he can max out at $5,500 a year. If they do match his contribution, he should only contribute up to the point of the match, and then take any extra money and put that toward any student loan debt he may have, credit card debt he may have OR an emergency fund! 



Suze Orman is a award winning certified financial planner and author of several books including 'The Road to Wealth'. She went from being a waitress at age 30, making $400 a month, to now having her own TV show and a net worth of $30 million dollars.