Suze Orman in the Philippines
I am a Money Magnet! We are Money Magnets!
Suze Orman is a best-selling author and two time Emmy Award winning television host, who has been called "a force in the world of personal finance" and a "one-woman financial advice powerhouse" by USA Today. She is a contributing editor to "O" The Oprah Magazine, the Costco Connection Magazine and for the last ten years host of the award winning Suze Orman Show which airs on CNBC.
She was just here in the Philippines!
Here are some practical tips from her.
It was certainly a great opportunity for BPI clients and employees to have Suze Orman in the Philippines in the past few days and to listen to her personal financial advice. Many of the philosophies that she shared are actually very simple, but very practical and true. As she puts it, “The easiest thing to do is to forget, the hardest thing is to remember.” Here are some tips we may have heard before, but thanks to Suze Orman, we again remember:
1. Do not put off saving or investing.
According to Suze Orman, the most important ingredient in financial planning is time. It is best to start investing as soon as possible because of the very valuable concept called compounding. Compounding essentially allows us to get excellent future returns by simply saving small amounts regularly as early as possible. How does this work?For example, if a twenty-year-old invests P100 every month for forty years, she will have more than P1,000,000 at the age of sixty. But if she delays saving and starts at age thirty, at sixty years old she will only have a little over P300,000. Effectively, those ten years she put off saving had cost her P700,000!
The same concept works with the Regular Subscription Plan (RSP) available from BPI Asset Management. For an initial investment of P10,000 and minimal subsequent monthly investments of P1,000, you can start investing for your future. You can choose from a variety of funds suited to your risk profile. If this twenty-year old could have so much in the future for only P100 per month, imagine the possibilities with P1,000 every month with RSP.
2. Invest in what you feel comfortable in.
The range of investment outlets available have broadened, which may leave a novice investor overwhelmed as to which one to choose. Suze Orman advises that we invest in what we understand and feel comfortable with. But the question is, how do we know how comfortable we are and what we are comfortable in?This is why performing a Client Suitability Assessment (CSA) is crucial in starting an investment portfolio. Not only will you be able to gauge your appetite for investment risk, but you will also be able to narrow down your choices. The CSA will help you determine your "comfort zone" in the investment sense.
Moreover, investing in those that we are comfortable with is not to say that we settle for only what we know. Rather, we have a responsibility to get ourselves informed whether it be through researching ourselves, or seeking help from financial advisers. With this, we allow ourselves to take advantage of what is out there for us.
Hearing or reading about Suze Orman's advice is only half the step. What needs to be done now is to put our knowledge to work by managing our finances and making sure we save as much as we can, borrow only if necessary, and invest as soon as we can. As Suze Orman has said in her famous book The 9 Steps to Financial Freedom, “Financial freedom requires not just insights but also actions, and to carry out these actions you must learn about money and how it needs to be treated. True financial freedom is not only having money, but having power over that money as well.”
source: www.bpiassetmanagement.com
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4 comments:
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I agree with most of Suze Orman's advice, but not all of it. I feel there has to be a little bit person's own finance strategy present for it to be considered personal finance. Wonderful job on the blog.
Sincerely,
Investelot
of
http://investelot.blogspot.com
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I have found this blog very interesting. I have bookmarked for further updated posts.
Thanks
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