New Years Resolution #1-B

Suze Orman was on Oprah today...our goal this year is to get out of debt and be more in control of our expenses. I know how much money we have coming and going, I know how much we have in debt, I know how much we have in savings and I know how much we squander and that's where I need to be better....we squander money when we have that...dun dun dun....Debt! This year, it's going away (hopefully...or I'm at least getting in control) So, New Years Resolution #1-B Suze Orman's 5-Steps to Financial Freedom


Step 1: Pay off your credit card debt

• Line up your credit cards from the highest interest rate to the
  lowest
• Pay the minimum on every single card to stay curent
• When the card with the highest interest rate is paid off, put the amount
  you had been paying on it toward the next card in line. Keep repeating until
  this process until each credit card has been paid off
  

Step 2: Raise your FICO score

• If possible, pay more than the minimum every month on your credit
  cards
• Pay your bills on time
• Never go over your credit limit
  

Step 3: Create a spending action plan

• Sit down with your expenses and separate wants and needs
• Circle all expenses that are wants
• If you have debt or no savings, eliminate the wants
  

Step 4: Create a Savings Action Plan

• Save enough to cover eight months of expenses
• Decide how much you can save each month, then save an additional 20
  percent
• Search for the savings account with the highest interest rate
  

Step 5: Create a Retirement Action Plan

• Don't panic when the market goes down
• Keep investing monthly in your 401K or IRA
• If you need the money within 5 years, take it out of the stock market
  

Suze's Plan Pledge:

• For 1 Day spend no money
• For 1 Week don't use a credit card
• For 1 Month don't eat out

You can download Suze's new book Suze Ormans 2009 Money Action Plan....Link below, it's free for a week.

http://www.oprah.com/article/money/personalfinance/pkgyourmoney/20081119_tows_bookdownload