Suze Orman's 2009 Action Plan

I started this book awhile back as it was available as a free e-book from Oprah's website, and I have to say that it has really made me think. I mean, really think. About things beyond money and investing for retirement. It has stirred up several emotions, and I think that's why it took me more than 2 weeks to finish the book.

I have to say that I love Suze Orman's straightforward talk. She might come across as harsh, but she's honest. It's hard not to hear her. Her opening analogy of today's economic crisis is that we are in the ICU right now, but in time we'll make a full recovery. I have to hope that she's right.

Suze made it clear that we need to focus on long-term financial plans. There is no making rash decisions right now regarding the short term, such as taking money out of a 401(k). She's absolutely correct in that we Americans need to take action this year. The economy is like a train wreck, and I'd rather be taking action that sitting back and watching it crash (that's my analogy.)
Much of what she says in response to one topic or situation can be applied to many other areas in life. For example, a hypothetical situation she discussed was not being able to sleep at night because someone is too scared about the future, worried about their retirement, etc. And her answer was that we must focus on what is in our control. We are all facing so much instability right now, but there's no way I could lose sleep everynight because I'd really be a walking disaster. So instead, I've tried my hardest to take out the emotions and to just focus on what it is that I can control. Seems like an easy and obvious concept, but it's certainly tested me.

How have I taken control? For one thing, I recently set up an account with ING Direct/Sharebuilder and am now investing a (small) amount of my income into stocks. And yes, I know what's happening on Wall Street lately, but I am young enough to bounce back. I'm looking at the long-term. I also just changed car insurance companies, and am now saving $30 a month on car insurance. I recently signed up for vision insurance at work because I knew I needed an eye exam (it's been over 11 years - no judging!) and saved over $200 on my new glasses. I am going to be utilizing our local farmer's market now instead of stocking up on grocery store produce. For one thing, it's much cheaper to buy at the farmer's market and it's supporting my local economy. I am positive that with a few other small changes, I will be sleeping even better at night.

The last couple paragraphs of Suze Orman's 2009 Action Plan really reasonated with me, so I'm sharing them with you:

I began this book with the recognition that it is absolutely understandable for you to feel fear, anger, and confusion as you struggle with the repercussions of the global financial crisis.

However, I believe that the very severity of the crisis means that we will choose to make lasting changes that will put us on a path to a healthier and more vibrant future. Crises force us to take a clear-eyed view of what went wrong and compel us to make necessary adjustments to avoid the same pain and suffering again.

The period of reflection we are in right now has forced us to focus on a difficult reworking of our relationship with money. The era of living beyond our means is giving way to an age of living a more meaningful life based on financial honesty.

As painful as this transition period is, please know that what awaits us is a very bright future. Our economy is suffering from a credit crisis, not a crisis of talent or drive. From the innovation that will continue to spill out of Silicon Valley to the reinvention now being discussed to transform our energy sources, I remain convinced that this is still a nation of unwavering discovery and achievement. Short term we have to survive the credit crisis and recession; long term we will prevail and we will thrive again.