Yesterday I watched in Oprah about a family in a brink of bankruptcy because the wife is a shopaholic. The husband didn’t know that they were in so much debt because she hid the transactions from her husband. All the credit cards were maxed out, the total debt was around USD 640,000.
Suze Orman advised the family to move from California to Seattle, Washington to start a new life. She told the wife to work at Starbucks because after three months, she’d get a health insurance for her whole family and she could drink latte too (she usually spends USD300-400 per month for latte). The husband could also get higher take-home pay because there was no income tax in Seattle, Washington.
Suze Orman said “We spend money that we don’t have, to impress people that we do not know or people that we do not like”
It is so true how nowadays we try so hard to look rich, to impress people with what we have. We define ourselves from what others see instead of how we truly see ourselves. By giving other people the power to define who we are, we have lost the power to be who we are destined to be.
Suze Orman also gave an advice about three questions that we have to ask before spending any money:
- Is it kind?
- Is it necessary?
- Is it true?
We only spend money if the answers to these three questions are all YES. Otherwise we do not spend the money.
We really need to learn and increase our financial IQ so that we can make better decision when it comes to money.
Learn and Grow!
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