Journal 5: Suze Orman's Laws of Money and Lessons of Life

As a trainer in the financial industry, I can definitely relate to Suze Orman's talks. Although I do not agree to some of it at least she's financially education people and telling them to invest wisely and not to keep their finances stagnant. The following are the main points / laws she discussed in her talk.

The first law is: Truth Creates Money, Lies Destroy It.

I agree to this, people should not be investing or buying things that other people just tell them to. They should also do their own research and take into consideration a lot of factors in to make a sound decision they would not regret later.

The second law is: You've got to look at what you have, not at what you had.

I also agree to this, former investments are not always as reliable as it has been in the past. Considering the rising inflation rate and the volatility of investments in the market, also has its timing. Also, stop holding unto investments you had in the past that are not working for you and has already fluctuated move on to the next and diversify your investments.

The third law is: You have to do what is right for you, before you do what is right for your money.

Suze Orman explains that we need to establish or set aside at least 8 months' worth of salary for our emergency fund. I like the logic behind this. If let's say we get sick or lose our job, this eight month emergency fund would support us until we get back on our feet or find a new job. After squandering our money on "investments", we need first to have some real, tangible money set aside for ourselves.

The fourth law is: You must first invest in known before the unknown.

Knowing the investment market or the company and its stakeholders background is also important before investing, unless you want to bask yourself to risks.

The fifth law and the last is: You have to remember that money has no power of its own.

This is absolutely true. Money is not going to spend itself. There's also no need to buy lavish things you can not afford to impress people you do not really like. In the end, we are the ones in control of our money. We are the ones who consent to placing our money on this, lending it or giving it away.

I think Suze Orman is a great and inspirational speaker. She talks, looks, and sounds like she really take a lot of things into consideration. I hope more people would be like her, who would stand upfront to educate and share her knowledge to those who needs it.