Must DO! Debt management tips by Suze Orman

Watched OPRAH on TV2. (Back to free tv fter getting rid of ASTRO! - Congratulations to me.. hehe)

Old episode regarding debt management but very relevant and current to me.

Tips on credit card
1. Pay more than the minimum
2. Pay the credit which has the higher interest rate.
3. Do not cancel the credit card until you finish paying off all the debt in other cards too. - avoid decreasing your credit limit in the FICO (BNM) records.

Expenditure
1. Separate  NEEDS and WANTS. Cut off WANTS cos you are okay without them.
2. Have a  8 MONTH EMERGENCY SAVINGS in case of rainy days. Especially unexpected rainy days.
3. Increase you savings - derived from money saved by cutting on WANTS. Try to add 20% fro what you currently save now.  It gives you peace at heart when you have more in the savings.
4. Have an Education Fun. Money you need in the next 5 years for your children. Don't use it till the time come.


Retirement action plan
Don't panic when the market goes down - if your oney in in the stocks.
Spend on buying new stocks - keep investing in your retirement fund cos its a good time to invest until the market goes up again
but if you are already 50, its not a good time to start investing.

Self Pledge - challenge yourself.
For just 1 day, don't spend money at all
For one week, go without credit card
For one month, not to eat out at the restaurant