Suze Orman: Bio and gay prejudice

Orman first found mainstream success in 1997, just when Ellen DeGeneres came out to the world on the cover of Time magazine. Her first book, Nine Steps to Financial Freedom, was released just two weeks before that issue hit newsstands, and the year was a watershed moment in the cultural acceptance of lesbians.

But like many other gay people, Orman has experienced painful prejudice. It was her sexuality, she says, that nearly destroyed her relationship with her mother, who died last year at the age of 97. “The truth of the matter,” she says, “is she never accepted that I was gay. She loved KT dearly, but she wouldn’t tell me that she loved me. She wouldn’t go there with me. And after her death, my aunt sat me down and said, ‘Suze, I just want you to know: It wasn’t that your mother didn’t love you. She never could accept that you were gay. And she felt like it was her fault.’ How sad is that? The greatest thing that ever happened to me in my whole life—being gay, and knowing I was gay from day one—and she was sad about it, and that’s what prevented her from loving me. Amazing, huh?” (Orman’s father killed himself decades ago, before Orman achieved any fame. She calls it her biggest regret that he didn’t see her succeed.)

The story, like so much of Suze Orman’s story, answers a question while raising a contradiction. The gay pioneer scarred by her own mother’s intolerance. The savvy businesswoman hamming it up as a stark raving mad TV host. And most glaringly, the fabulously wealthy woman professing to shoulder the burdens of the poor.

Credit scores are an issue for people

Suze Orman, a prominent financial advisor, has been calling into question the validity of using credit score and how it is being used by insurance companies.

According to Orman, credit scores can be a very problematic issue for many people in the U.S. Most people do not have a comprehensive understanding of how their credit score can affect their lives, while others do not know how to improve their score once it has been damaged. Insurance companies could potentially capitalize on this confusion and benefit by charging people more for coverage based solely on their credit rating. For those that fall victim to credit fraud, this practice could lead to further financial disaster. Many fraud victims are slow to receive the help they need simply because the process seems overwhelming to them or they have trouble finding the appropriate resources needed to combat potential identity theft.

Orman suggests that the younger generation is being encouraged to adopt a complacent mindset when it comes to credit score and the dangers that debt represents. At this year’s Money20/20 event, the financial adviser talked about how many young people are placing themselves in compromising financial situations through the flagrant use of credit cards. These consumers often seek out payday loans and similar financial services to offset their increasing credit card debt. While such financial services do help young adults manage their debt to some degree, their inability to handle the massive interest associated with payday loans could have a crippling impact on their credit scores, thereby spiking their insurance rates.

Orman notes that education is key to helping people understand credit score and its impact on their lives. Education can also help people understand whether or not their credit score will affect the cost of their insurance coverage. Insurers often suggest that credit score is a valuable way to identify the risk that consumers represent, but using this information has been banned in some parts of the U.S. because of the fact that many people do not understand the various aspects of credit information.

From serving muffins to making millions: How Suze Orman rose from a penniless ... - Daily Mail

‘Sometimes poverty is the greatest gift you can ever be given. Sometimes loss is the key that leads you to gain.’

Broke: Finance guru Suze Orman says she learned her life lessons after losing everything she had while working as a waitress. She's seen here with girlfriend Kathy Travis in 2011

While working as a waitress at the Buttercup Bakery in Berkley, California, and living with a girlfriend in the back of a van, Suze was given a break aged 30 in 1980 when a group of regular customers pooled together and gave her $50,000 to open her own restaurant.

But fate took a cruel hand, and after investing the money with a broker she describes as a ‘crook’ at Merrill Lynch – it was all gone within three months. Having studied for a degree in social work – and having secretly accrued a huge $250,000 credit card debt - Suze had had no idea what she was doing and her money was lost in a string of failed investments.Too scared to let her customers know, Suze, who hosts the long-running CNBC series, The Suze Orman Show, admits in a new interview on the Sundance Channel: ‘I didn't know what to do. So I thought “I know. I could be a broker.”  'I lost everything and I was lying through my teeth and I didn't let anybody know about it. It wasn't until I stood in my truth and told everybody that I had $250,000 in credit card debt that everything turned around for me'

Having waitressed for seven years, Suze now found herself employed by the same firm where the broker who had scammed her worked, and said: ‘Really I had to do something to pay all these people back, so I went and applied for a job at Merrill Lynch, and they had no women working for them at the time. ‘It was the time of affirmative action when they needed to hire women, so they hired me. but I was told that women belonged barefoot and pregnant and I would be fired in six months. I would be outta there.’

Suze simultaneously and successfully sued Merrill Lynch for a prior investment loss of $50,000. After completing her training with Merrill Lynch, she remained at the firm until 1983 when she left to become vice-president of investments at Prudential Bache Securities. Speaking on the Words for Wisdom web series, part of the Dream School show, Suze told journalist Paula Froelich: ‘I lost everything…and I was lying through my teeth and I didn’t let anybody know about it. 

‘It wasn’t until I stood in my truth and told everybody that I had $250,000 in credit card debt. At that point everything turned around for me.  I had to reveal the truth about what I didn’t have, more than pretend about what I did.  That was interesting.’

‘Now, did I lose anything by waiting those years? No, I gained more knowledge by of myself, I gained more knowledge of the real world...and I was I able to inspire myself to have the courage to go in and apply for a job at Merrill Lynch.

She adds: 'I do not think I am successful just because I have money. I’m successful because I love who I am and I have no regrets and I’m successful because I have a great heart and I have compassion and I care and I would be happy with or without money. Now with that said, lack of money sure can make you miserable, but I don't think I’m successful because I have money. I think I’m successful because I know who I am.'

Couple with money problems

We've all thought, "Gee, if only I had X number of dollars, my problems would be solved!" Yet Ben, 28, and Lynne, 27, prove otherwise. The couple -- who've been together six years and plan to marry -- will soon have more riches than they'll ever need, yet their finances have become a wedge in their relationship. I understand if you're rolling your eyes right now -- who wouldn't want to worry about having a lot of money? But far from being spoiled rich kids, Ben and Lynne strike me as lovely people so focused on making the right choices that they're scared to think about their money at all. Their story illustrates a universal theme: It's our attitude toward money -- not how much we have -- that causes problems.

Be Honest with Yourself

When I first spoke to Ben and Lynne, I had no idea about the real state of their finances. Their take-home pay is just shy of $7,000 a month. Ben, who works for a market research firm, asked for my help because he and Lynne had a $220 monthly shortfall. I found a few ways to close the pair's spending gap, but something didn't add up. Though Ben earned less than Lynne, he paid more of their shared expenses. He also said that he had $32,000 in savings, while Lynne had just $600.

Ten minutes into our talk came the big reveal: Ben will be a multimillionaire by age 40. He recently received $200,000 from a family trust, $100,000 of which he's tucked away and doesn't even look at. "I don't want to live off that money," he said. "I want to make it on my own." Just as I insist that people who have $10,000 of credit card debt embrace their reality, my initial advice to Ben was to accept his wealth. ("Stop pretending you don't have money," I told him.) It's a gift to treasure.

Play as a Team

Lynne pays $635 a month toward $60,000 in student loans. She also has a $445 car payment (her balance is $15,000). The $3,840 she earns working nights as a nurse and at a part-time job covers her debt and her share of the rent (yes, she and Ben rent). But with so little savings, she told me she's "terrified."

Talk about a disconnect: Lynne holds down two jobs while her boyfriend is sitting on $132,000 in cash. Ben should use some of his savings to pay off Lynne's debt. Why would I say that when she can clearly take care of herself? Regardless of their marital status, they're in a long-term committed relationship and sharing expenses. Remember what I always say: people first, then money, then things. Whether you can give your partner $50 a month to reduce a credit card balance or $80,000 to wipe it away entirely, there's no better use of wealth than to ensure that everyone in your household feels financially secure.

After a little prodding, Lynne agreed to accept Ben's help. To make her more comfortable with the idea, I asked her to take the $1,080 a month she would have spent on debt repayment and deposit it in a joint savings account (she'll still come out ahead by not having to pay interest on her debts). The couple could then use the funds to pay shared expenses. (Partners should always maintain individual accounts, too.)

Take It Slow
Other than splurging on a car, Ben hasn't touched his trust fund. "I'm in the dark about what to do with it," he told me. I encouraged him, along with Lynne, to talk to his mom and dad (who came into money late in life) to find out how they handle their wealth. Then I told the pair to work with his parents' financial adviser, with one caveat: It's fine to seek professional help, but I urge everyone -- no matter how big their portfolio -- to truly understand every suggestion they're given before acting.

Common money spending traps

"In January we start saving money, getting out of credit card debt, funding our retirement accounts and we're doing wonderful," Orman said. "Then, every single year like clockwork, starting in November, all of you fall into this trap that says, 'I have to buy this gift ... I can't show up at this party and not have something for everybody.'"

To give without regret for the financial goals you have worked so hard toward all year, follow these steps.

Holiday Action Plan:

1. Decide how much money you can afford to give in total.

2. Then make a list of the number of people for whom you plan to buy a gift.

3. Divide your total budget amount by the number of people on your list.

4. Accept this as the maximum amount you can spend on each person.

5. Ask the people on your list to write down five items in your price range.

As Orman points out, people don't want most of the gifts that they receive. By following this action plan, "they will have things they really want," Orman said. "You are giving them an item they want and you are spending an amount you can afford to spend."

Suze Orman on bankruptcy

Bankruptcy rates spiked during the 2008 recession and many were pretty judgmental toward the millions who couldn't afford to pay their bills. But Suze Orman says bankruptcy is the better option over burying your head in the sand. "When somebody really doesn't have money to pay their bills then they should claim bankruptcy and face it right on and start all over again," says Orman.

Many people heeded this advice over the past five years. In 2008, bankruptcy filings jumped 32 percent to 1.1 million and in 2012 the filings jumped to 1.3 million. However, in June 2013, the U.S. courts reported filings closer to the early recession era at around 1.1 million.

Record-breaking filings have some at odds with Orman's advice. "Many gripe when I tell someone to claim bankruptcy," says Orman. "But what if you've got all this credit card debt, mortgage debt and car loans, and you just stop paying all these things because you just don't have the money?" asks Orman of her naysayers.

She points out that there's really not much difference and the alternative to filing may be far worse. "If creditors sue and win they have the legal authority to garnish wages or put liens on your home," says Orman.

She says it's better to take "the legal route that is claiming bankruptcy, to let your creditors know that you really can't afford to pay it."

Change your mindset and think carefully

Many financial problems have nothing to do with a lack or abundance of income, but with your mental state. "Sometimes your mind lets you do things with your money that make no sense," Suze Orman said.

On an episode of "The Suze Orman Show," a 49-year-old caller in Kentucky said that he "only makes $41,000 per year" and is not sure he can afford to live on his own. "First of all, you need to change how you think about your situation," she advised. "You said you only make $41,000 a year, and that gives you a poverty mentality."

With the median income of all U.S. single-male households at roughly $37,000, Orman told the caller, "a lot of people out there wish they could make $41,000. "It's not what you make, but how you feel about what you make and what you spend"

On the other side of the spectrum, Orman warned viewers not to get overconfident—like a friend who recently bought her "dream house" before selling her current home.  "What are you thinking, girlfriend?" was her response to the news, Orman recalled.  "You are not to be like this friend of mine," said Orman, who counsels everyone to prepare for emergencies and not overextend themselves financially.  "I'm asking you to think with your mind, two, three, four times before you do something."

Orman on credit rating system

We got in this to change how credit scores work and to give people a cost-effective alternative to the financial rape that many of them are experiencing.

Suze Orman: we fall into traps

In January we start saving money, getting out of credit card debt, funding our retirement accounts and we're doing wonderful.

Then, every single year like clockwork, starting in November, all of you fall into this trap that says, 'I have to buy this gift ... I can't show up at this party and not have something for everybody.

Via - cnbc

Who is Suze Orman ?

Suze Orman is a Certified Financial Planner Professional. She served the Suze Orman Financial Group from 1987-1997. In 1983 to 1987 she served as Vice President of Investments for Prudential Bache Securities. And from 1980 - 1983, she was an Account Executive at Merrill Lynch. 

Prior to her career in Finance, she worked as a waitress at the Buttercup Bakery in Berkeley, California, from 1973 - 1980. She currently resides in Southern Florida.