Saving Money the Suze Orman way....

I watched Oprah yesterday afternoon, because I knew Suze Orman was going to be a guest on the show.  She is a wealth of knowledge and has five tips for saving money.  Yes, I took notes for myself and so I could share with you.

Here is Suze's Five Step Action Plan for living in the Recession

1.  Live on half of what you are making and bank the other half!  If you are a dual income family, bank the salary of your partner.  If you are single, she suggests we do the same thing.  Her main goal here is for us to get an emergency fund built up.  She suggests eight months of living expenses.  This will require everyone to really look at their budgets and make all the necessary cuts:  manicures, pedicures, haircuts, clothing, electricity, you have the general idea.

2.  Stash your cash.  If you come into money, do not pay off your credit cards.  Suze suggests paying the minimum balance only.  Put the rest of that money into your emergency fund.  Her theory is this:  If you lose your job today, what are you going to live on tomorrow?  If you pay the debt off on the credit card, it is more than likely they will close your account. 

3.  Make the stimulus package work for you.  If you are a first time home buyer you can get an $8,000 credit from the federal government.  Take advantage of this oppurtunity if you have the money to buy a house during this diffiucult time.

4.  Make your home affordable.  Are you unable to make your monthly payments?  Check out this websit:  www.makinghomeaffordable.gov  If you have your loan through either Freddie Mac or Fannie Mae, you will definitely want to check this one out.

5.Look at what you have and be grateful for what you do have.  Approach this economic recession with a positive frame of mind.  Maybe this all happened for a reason and we will truly discover what is really important in our lives...it's not the ipods, the big screen tv's or whatever the neighbor has...its our family and friends that truly make life worth living.  Make sure you enjoy the time that you have with them while you can.    Your attitude is up to you and how you approach the situation.

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