Last Monday morning, Oprah started many Tweeters day with the following message – “Anybody need more money?”…a cleaver way for the teacher to remind her 9 million followers that America’s Money Class would be holding it’s first class and you needed to make sure you attended. Suze Orman’s America’s Money Class debuted on Oprah Winfrey Net with only the power and pinache that Suze can bring to 60 minutes of talking finances. Riviting and captivating, Suze had us on the edge of our seats from the beginning with the promise of a chance to win $50,000 for those who scored higher than 80% on their final exam at the end of the six-week series! So, while the money would breath life into The Daily OWN, I am staying true to this site and our intention and sharing my notes for every single class with everyone. We are in this journey together. May your lives be changed and inspired by Suze and may that reflect in the quality of your life every single day.
Here are my notes:
How do I get out of debt?
- Class confessional: How much debt do you have? Stand in your truth. From Oprah.com – “Face it to erase it! Stand in your truth and take the first step in eliminating your debt forever.”
- “You have to face it to erase it. Stand in your truth. It’s not about money. It’s about who you want to be in the world. Who do you want to be in God’s eyes?”
- “Lies detroy money.Truth creates it.” When you can just speak the truth…you can laugh. Change your life. What does your financial life look like?
- ACTION Plan for Couple on the show: Prepare a 1 year action plan. Suze advises them, “It will help you to change your spending. Give the check to Dee every month. Pay the bills together so you both know where the money goes. For the next 6 months, you buy no clothes whatsoever. You may want them, but you don’t need them. Share this “financial revelation” with your kids. If they come and ask for money, you are going to say no. Both of you are going to say no.” Suze goes on to give them a monthly budget and a pledge. Go online to Oprah.com to find the Action Plan and the Pledge for your own life.
- Suze’s motto, “Live below my means and within my needs.” Take greater pleasure in savings than spending. Define yourself by who your are, not what you have.
How to decide how to pay off debt.
- FYI – Student Loan Debt – “This the the most dangerous debt to have,” according to Suze. “It is not declarable in bankruptcy. It’s the most important debt to pay. The next is your mortgage debt, then your car debt. The least important debt is your credit card debt. Credit card debt is unsecured. They can’t take your house.”
- The correct order of paying off debt: Student Loans, House & Car, Credit Cards
Do what’s right vs. doing what’s easy.
- To free your life from finances and to live your best life, you have to want it for yourself. Who do you really want to be. Stay in your truth.
- Remeber: Live below your means but within your needs.
What about the old FICO?
- What about doing a Loan Modification? Here’s the “be aware” advice from Suze – Normally when you do a loan modicfication, your FICO score goes down. Every month, they are saying that you have a late payment for the amount that you “modify” off your payment.
- FICO scores – To protect your FICO score, you should pay the bill that is not late or less late. The ones that are already late have already impacted your FICO score. Your FICO score determines your interest rates, your ‘rentability’, your car insurance premium, and sometimes, even if an employer will hire you.
- FICO 101: You want a FICO score – 750 or above. If you can have a high FICO score, your whole world is working for you.
More Audience Questions…
- Funding my Business…What’s my best option? – Suze tells the class memeber, “Don’t mortgage your home to fund your business. Don’t take money for a 401k or retirement account. Use a credit card – it’s unsecured debt.”
- Check out your Credit Untions. Get a credit card at a credit union. They can only charge 18% interest by law….much better than the rates you are charged by other credit card companies.
Take the time and visit America’s Money Class pages on Oprah.com. Don’t get overwhelmed by all of the amazing information. Just take it piece by piece…one bite at a time. It’s really the kind of information and help that you can only get in a classroom…both a financial and a psychological one. Change your life…one bite at a time. See you in class!