Thursday, June 24, 2010

Suze Orman - for the Young, Fabulous and Broke

Suze Orman - Young Fabulous and Broke

I have read about and seen Suze Orman on TV giving financial education a couple of times. Whenever I am in the library, I have seen her books, audio CDs and DVDs as well. After such a long time, I finally decided to borrow her Young Fabulouse & Broke DVD. I believe the DVD and the book is different.

The DVD shows her at a talk she was giving at a University. She is of the opinion that times and circumstances have changed, many graduates if they are not careful end up Young, Fabulous and Broke with lack of financial education.

Although some of her talk was specific to US, I will highlight some pointers she gave to the Undergraduates that I think we can all learn from:

  • Now is not the time to work for money. Now is the time to do what you love without financial and family obligations. (for fresh graduates)
  • Don't be dependent on the cheques coming in, make the people paying cheques to you dependent on you - Make yourself indispensable
  • Bankrupt - Don't look at them as a bad person. Oftentimes they are people who managed money poorly due to lack of financial education.
I think one point to note was there was this person who became bankrupt after joining a Multi-Level Marketing (MLM) or Network Marketing organization. Sold by the potential success and payoffs, she used her credit cards to buy products and it just did not work out. It is not about MLM networks, I think it is true for any business in general. To use a credit card to start a business, you really have to take into consideration the high interest rate. Jump in with your eyes wide open!

Repeatedly, the issue of pre-approved credit cards and individuals owning tens of credit cards also came up. Which is quite shocking for these are students! Which is also why I am concerned like I blogged previously, if we are note careful, Singapore may go down the slippery road of Banks Irresponsibly Promoting Credit.

I think the book should be much better but the DVD was concise and easy to understand as well. Perfect for beginners and Visual people.

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