Suze Orman's Laws of Money and Life Lessons

I watched the video presented by Suze Orman. It’s about the laws of money and the lessons of life. The law of money is to keep what you have and the lessons of life is to create what you deserve. To be financially successful in this life, I can use the five laws wherever I go.

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The following are the Law of Suze Orman’s secrets for financial:

Law #1 Truth create money, Lies Destroy It.

Truth is a path that lead you wherever you go. A lie is a path as well, a path to your financial destruction. What will you choose? Path of telling the truth or the path of telling the lie. Truth makes you feel powerful. When you are powerful, you can make the right decision. Like when buying something that you can’t afford. Ask yourself if you can buy it or not? If you can’t afford to buy it, don’t buy it. Be honest to yourself that you can’t afford to buy it. Live within or below your means rather than allowing yourself to get into bad debt. Always remember that people will like you for who you are and not for what you are. I learned that when buying something, I should not insist what I can’t afford to buy so that I won’t have bad debt. I can wait until I have money or just don’t buy it at all.

Law #2 Look at what you have, not at what you had.

You should be living in the present and using your past mistakes as a lesson. You should look forward and don’t look back. Be sure to focus on what you have now and work with that so that you can move forward and be successful. You have to keep moving forward and see the things you can do with your current finances to be successful. Avoid living regrets from the past. I learned that I should keep moving forward and accomplish something today; and make my past mistakes as my life lesson.

Law #3 Do what is right for you before you do what is right for your money.

Know what is right to you in particular situation. How those investment makes you feel? Ask yourself and use below financial fear factor scale.

1. No fear at all – keep everything

2. Not sure it just fine – sell 25%

3. Little bit confuse – sell 50%

4. Certainly afraid – sell 75%

5. It keeps you up every single night – sell everything

You should put yourself above all when making financial decisions. Don’t let money ever be in control of you. Money is supposed to give you more freedom, make you feel more secure, and help you take control over your life. Don’t let money ever be in control of you. Make sure that you are in control of your money. In my case, I will immediately sell some of my stocks and check out other opportunities for long term investment.

Law #4 Invest In the known before the unknown

Guidelines for 2 known events of your life.

1)    Your death

2)    Your retirement

Get out of debt and save for 8 months emergency fund that will tackle the unknown. Maintain your credit card just in case there will be an emergency. The key of investing is to know how much time to invest. Make sure you have got all your necessities covered. Save for emergencies and do not neglect your need to save for your future retirement. Make sure you are also saving an adequate amount for the known needs such as shelter, food and clothing. Once these known needs are covered, then, and only then, you should be willing to focus on extra things. This is my favorite law, invest for my retirement. Since we can't predict the future, I invest to avoid going into debt and I can pay for what I need.

Law #5 Always Remember, Money has no power of its own

It’s about realizing that money doesn’t do anything by itself. Money won’t define you. Be powerful on your life. Look within yourself. Money is very strange if isn’t use correctly, it can teach you hardship in life. Never let yourself believe that having more money will give you more power or that having less will leave you powerless. Remember your priorities in life, people first, money then things.

According to Suze, the life lesson learned, when we entered this world, we all entered with two wings. One wing is the wing of grace and the wing of self-effort.

I have learned that I should be truth to myself. Telling the truth about myself and my money is the only way to keep what I have and create what I deserve. I can help my money grow by investing it properly.