A recent comment by one “Susie Orman” reminded me that I wanted to mention the real Suze Orman’s “living within our means” advice she’s been giving on TV these days. (The comment was deleted after I realized it was just an advertising scam for some Susie Orman “be debt free” website.) Of course, the real Suze’s always given such advice; it’s just that since the financial crisis and credit crunch, there’s been an especially “I told you so” tone to her advice.
From a CNN/Oprah.com interview with Suze on “how to recession-proof your family”:
“A lot of you have built your personal financial foundation on deceit and lies. You bought a home that you couldn’t afford … You spent money like it was going out of style and it wasn’t your money to spend, because why? They were borrowing it,” Suze says. “When you borrow money, you leverage yourself. The United States of America leveraged itself so high that when it started to come down, the whole thing now has fallen down.”…
In terms of investments, Suze says people close to retirement may need to reconsider. “Many people now have seen their 401(k) either cut in half [or] down 40 percent,” Suze says. “[People] may have to work a lot longer than they planned, may not have enough money to generate income to send their kids to school.”…
With all of these economic puzzle pieces in play, Suze says she wouldn’t be surprised if we switched to a cash economy — which means buying only what you can afford now.
“Banks aren’t going to want to give you money where they’re afraid that you might not pay them back,” Suze says. “I personally think that’s a great thing.”
So what can you do to protect yourself? “People, stop living the financial lies that you have been living,” Suze says. “If you don’t have the money to pay for something, can you just not buy it? Can you wait? Can we start looking at keeping our cars for 10 years rather than getting a new one every three?”
And even better than listening to the real Suze’s advice is watching Saturday Night Live’s (SNL’s) fake version (done impeccably by Kristin Wiig earlier this month), which I can’t seem to find a clip of on either SNL’s site or YouTube… I mean the one from last week’s (October 18th) show. Did any of you see it? Do any of you know where online we can find the video clip?