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Old 12-08-2013, 11:39 PM
 
1,464 posts, read 1,502,704 times
Reputation: 1091
Quote:
Originally Posted by Alinka View Post
Suze's topic last night was holiday "Can I Afford It".

One of her main points was to shop with cash only. The devil seems to be in 0% credit cards. None of my credit cards are at zero %. But I shop with them only. I do it for the points or cash back. Never carry a balance and can't understand why this is not okay with her. I'm not a huge spender but would feel far less comfortable walking around with a stuffed wallet.

She also denied a young man who wanted to vacation in London. Now I admit to not watching the screen closely at that time but it seemed to me he had more that 600K in retirement and a significant amount in other savings. The trip was denied; he was requesting somewhere around $1800.

Finally she railed against gift cards. "Money is not dirty". At a social event or family event I give someone a card with a gift card enclosed. I'd rather see them open that than have money fall out.

(Enjoyed though, the young woman with the disappearing mother-in-law.)
i also use credit cards for the rewards, and in the last 2 years have gotten about 15 new credit cards that give b/w 300-500 dollars for spending 1-2k within 3 months. it's absolutely free money.and of course i pay the balance in full at the end of the month. for someone who does things like this cc are great. but the cc companies can only do things like this bc they know most people who sign up won't be smart and disiplined about it and will instead pay thousands of dollars in interest over the years. for those people ccs are a terrible idea.

as for the gift card thing- people tend to give gift cards bc it seems more thoughtful than giving straight cash.you're buying a card for a store you know the person would like. i know i have bought them for other people as well. but i really would much rather get cash than a gift card as it is a more valuable and more useful.

it's also quite hypocritical for her to be preaching about cash and not using cards when she has some kind of debit or prepaid credit card that is an absolute ripoff.
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Old 12-09-2013, 04:56 PM
 
Location: NW Philly Burbs
2,124 posts, read 1,461,495 times
Reputation: 2664
Quote:
Originally Posted by Alinka View Post
Suze's topic last night was holiday "Can I Afford It".

One of her main points was to shop with cash only. The devil seems to be in 0% credit cards. None of my credit cards are at zero %. But I shop with them only. I do it for the points or cash back. Never carry a balance and can't understand why this is not okay with her. I'm not a huge spender but would feel far less comfortable walking around with a stuffed wallet.
I caught most of it. I'm not sure WHO's walking around with wads of cash these days, certainly not me! Did she say it had to do with budgeting? I can see how if you only have X amount to spend on gifts, it's easy to go over if you use CC, but if you only have your allotted cash in an envelope with you, it keeps you on track.

Quote:
Originally Posted by Alinka View Post
Finally she railed against gift cards. "Money is not dirty". At a social event or family event I give someone a card with a gift card enclosed. I'd rather see them open that than have money fall out.
Many gift cards go unused, for whatever reason. Or only partially used (say at Starbucks). But cash would ALWAYS get completely used up! (Didn't Seinfeld give Elaine a wad of cash for her birthday one year, and she said, "What are you, my Uncle?".)
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Old 12-10-2013, 05:56 AM
 
Location: Greenville, SC
1,775 posts, read 1,197,182 times
Reputation: 1584
[quote=Blinx;32551149 I can see how if you only have X amount to spend on gifts, it's easy to go over if you use CC, but if you only have your allotted cash in an envelope with you, it keeps you on track.
)[/QUOTE]

Only if someone can't keep track of what they spent. These days it's so easy to keep track of what you spend though. Your balances, debits, credits, etc. are all just a click away and there are multiple free budgeting tools out there too.
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Old 12-15-2013, 09:42 PM
 
954 posts, read 511,354 times
Reputation: 945
Her advice is right on. I would up retirement savings to 20%. And a lifestyle based on cash only with very little debt. All total debts eliminated by age 60.
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Old 12-16-2013, 06:22 AM
 
938 posts, read 330,924 times
Reputation: 563
Quote:
Originally Posted by mortpes View Post
Her advice is right on. I would up retirement savings to 20%. And a lifestyle based on cash only with very little debt. All total debts eliminated by age 60.
I don't think 20% is reasonable or realistic for everyone. For instance, I am a grad student and only earn ~$23,000 a year. If I were saving 20% for retirement, I would have almost no liquid assets at all. Then when I have to look for jobs, I would be forced to take whatever would hire me quickly, even at a huge loss compared to what my qualifications will be at that time. Furthermore, I would have to reject any job in a city without good public transit, due to insufficient liquid funds to acquire a vehicle. And I would also be unable to take any job that would not pay for relocation...

I am putting money into tax-advantaged retirement accounts, however, 20% would be a very bad decision because it would likely mean giving up better earnings in the near future.

Last edited by ncole1; 12-16-2013 at 06:35 AM..
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Old 12-16-2013, 08:38 AM
 
5,844 posts, read 3,803,675 times
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Quote:
Originally Posted by ncole1 View Post
I don't think 20% is reasonable or realistic for everyone. For instance, I am a grad student and only earn ~$23,000 a year. If I were saving 20% for retirement, I would have almost no liquid assets at all. Then when I have to look for jobs, I would be forced to take whatever would hire me quickly, even at a huge loss compared to what my qualifications will be at that time. Furthermore, I would have to reject any job in a city without good public transit, due to insufficient liquid funds to acquire a vehicle. And I would also be unable to take any job that would not pay for relocation...

I am putting money into tax-advantaged retirement accounts, however, 20% would be a very bad decision because it would likely mean giving up better earnings in the near future.
I don't think Suze tries to make all advice fit everyone. Even on the "Can I Afford it?" segment, her advice differs for different ages. For instance, if a 53 year old with $10,000 in savings wants to spend $3000 on a trip to Europe, she'll decline him, but if a 22 year old with the same savings calls she'll approve them, because they have many more years ahead of them to save.
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Old 12-17-2013, 06:48 AM
 
Location: American Expat
2,073 posts, read 1,980,113 times
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Quote:
Originally Posted by nep321 View Post
I've been following Suze Orman for about 7 months now and am beginning to start thinking that her advice isn't really suitable for everyone. Not that it's bad advice per se, but I am really starting to see that her advice is very one-size-fits-all. I really like her as a TV personality and her show is good entertainment, but I have the following gripes. Maybe some of you out there can either confirm or reject my opinions on Suze's advice. I'm a 29 year old single guy who earns a decent income and rents an apartment, so I'm not sure if her advice really applies to me. Anyway, here are my observations...

1. She seems more like a financial therapist than a financial advisor. Much of her "clients" seem to be facing serious, extraordinary problems that don't really apply to most Americans. Massive debt issues, family issues, relationship issues, etc. None of this really applies to me that much. She spends a bit too much time on her show with such "clients."

2. Her advice is generally one-size-fits-all. Although she does take some time to learn more about her clients and their specific situations, her solutions or plans of action to most problems are almost always identical.

Of course it is. You kidding me? Nobody can personalize financial advise for so many watchers.


3. Her advice really isn't free as she claims it to be. You can't watch her show if you don't pay the $30+ a month for cable television, which many people no longer have in this day and age, including myself. She makes a lot of money off selling books as well. She wrote NINE books in a 10-year period. And she sells various tools and kits on her website. She also comes off as a "pretty" celebrity with makeup, nice clothing and hair.

Well, her advice is free. She's just a TV host. Not a TV executive. It's not her decision what the cable companies charge.
Of course she sells stuff. That's how she got rich. She's smart enough. Not that I'm likely to buy any of her products, but she'd be stupid if she didn't sell anything. Why blame her for that ? At least it's supposed to help people... could be worse.

4. She insists on having an 8-month emergency fund. To me, this seems a bit extreme....very extreme, actually. First of all, it takes YEARS for the average person to save up for 8 months of essential living expenses. I know for me it would take about 3 years to do so. Second, if you were to lose your job, chances are you will be entitled to unemployment insurance, which would cover 75% of my living expenses anyway, and lasts far longer than 8 months. Look, I agree that we all should have an emergency fund of some sort, but maybe more like 3 months of expenses? Or just a flat $5,000 or $10,000 or something, in the event you need to spend a lot of money on some major necessity. But I also have a $3,000 credit card line that could be used for an emergency situation. And having your money sit in an emergency fund doesn't put the money to work, either.

I think it is a lot of money, too, but if you think about it... you do not know when you will get another job. What if something like 2008 happens again? Whatever she says is supposed to be somewhat bulletproof. So that you're ok in the worse case scenario. And who pays if you are out of work for a long time for other reasons such as hospital stay etc. ?
LOL @ " I have a credit card line". Sure you do. And how high are the interests on that? 20% ? You would rack up a huge debt. The emergency fund is for unemployment. Not some major expenses you might have such as a new car etc.
"Dosen't put the money to work" - investments would do that. It's an emergency fund. You are supposed to have it readily available.


5. She recommends saving 15% of your salary toward retirement. Again, this seems a bit much, to me. I could understand maybe 10%, but 15% is a lot. That's anywhere from $400-800 a month for most people, which seems excessive.

I think that's a great advice, if you have the money. You can never save enough for retirement. Again, her intention is't just to tell you to save money so you can barely scrap by. It's supposed to be on solid footing - financial security.

6. She says to only buy a home if you can put 20% down (except for special circumstances). For many people, especially those who live in high cost areas such as myself, where an entry level home is around $400,000+ this is simply ridiculous. But what if you could easily afford monthly living expenses from even putting just 10% down? I know there's PMI, but still.

I think 20% is too low. I wouldn't take on a house if I could only pay 20% down. You know how much you'll pay in interests over the years? Humongous amounts of interest rates. The less debt the better.... again, I don't see why you dislike that. That would have possibly prevented the housing crisis if people had put down more money.

7. Everybody needs a revocable trust. This is where she really lost me. A few weeks ago she announced that she now thinks that EVERYONE needs a revocable living trust. Really???? Even someone like myself who is young, single and has a low net worth? I mean, I designate beneficiaries for all of my financial assets whenever possible, but a trust seems to go to far.

I'd be with you on this. I'd rather spend it myself. But I guess you could use this as life insurance. That would be beneficial to your family in the case you die. But, then I would just get a life insurance.. If I die due to old age, I wouldn't want to leave much money anyway.



The list goes on. Not that her advice is BAD, but it just seems to be a bit too conservative and difficult for the average American.

Your thoughts?
Above.


Quote:
Originally Posted by Alinka View Post
Suze's topic last night was holiday "Can I Afford It".

One of her main points was to shop with cash only. The devil seems to be in 0% credit cards. None of my credit cards are at zero %. But I shop with them only. I do it for the points or cash back. Never carry a balance and can't understand why this is not okay with her. I'm not a huge spender but would feel far less comfortable walking around with a stuffed wallet.
If you use cash, you can only spend what you have. With credit cards, you can rack up debt. Isn't that kind of obvious? Maybe you don't carry a balance for now, but many people do. And, I think it's easier to control spending if you need to spend less. If you get less money per month, it's easier to realize how much you have/should spend if you pay by cash.
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Old 12-17-2013, 04:23 PM
 
1,156 posts, read 498,887 times
Reputation: 1227
Quote:
She also denied a young man who wanted to vacation in London. Now I admit to not watching the screen closely at that time but it seemed to me he had more that 600K in retirement and a significant amount in other savings. The trip was denied; he was requesting somewhere around $1800.
Which is why I don't watch her too often anymore.
Granted some people ask for some things they clearly can't afford, she denies other people some things they can well afford. And God forbid they ask for a pet.
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Old 12-17-2013, 06:27 PM
 
5,844 posts, read 3,803,675 times
Reputation: 7393
Quote:
Originally Posted by rdflk View Post
Which is why I don't watch her too often anymore.
Granted some people ask for some things they clearly can't afford, she denies other people some things they can well afford. And God forbid they ask for a pet.
There are thousands of pets turned into shelters everyday by people who didn't count on how much vet bills, food, etc actually cost and discover they can't actually afford them. People make impulse buys on many things, but for the poor animal, it often means its' life.
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Old 12-17-2013, 06:54 PM
 
Location: Southlake. Don't judge me.
1,581 posts, read 1,006,813 times
Reputation: 1777
Wait, let me get this straight...

REAL, ACTUAL people call into Suze Orman's show to get HER clearance/denial on WHETHER THEY SHOULD PURCHASE SOME ITEM/SERVICE? Really? There are people going "gee, I dunno about this, I should get Suze Orman's approval?!?!"

I kindasortasomewhat get the concept of being unsure about something and so bouncing it off another party to get feedback or additional viewpoints, but really, this blows my mind.
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