One, Two, Three

Suze Orman, personal financial guru, offers a simple plan for managing finances. It’s as simple as one, two, three.

First, you must ask yourself before every purchase, "Is this a need or a want?" That means every time on every thing.

Secondly, you must live below your means but within your needs. Just because you can afford a fancy sports car and a 5000 square foot house, doesn’t mean you need them.

Third and very important is "save or spend?" Back in the day we used to say, "Don’t let that money burn a hole in your pocket." In other words, just because you have it doesn’t mean you have to spend it. Find pleasure in saving.

If you follow this simple advice, you might be amazed how much fun it is to save and how little you really want.

It’s really not how much you make, it’s how much you save. Look at people like Warren Buffett. Sure he makes a lot of money, but how much does he save? I know and have known several millionaires and the one common thread is how much they save and how they live within their needs.

Try it at your house. It will work if you get serious about it. It won’t work at my house. My financial controller thinks money has an expiration date.

If you don’t spend it, it might spoil.

PMO
©2013