Suze Says: Do What's Right For YOU!

In the current economic conditions, do you buy or sell? This is the question that lots of people want to know. According to Suze, you need to do what is right for you in this time, in this place, with your situation, with your money. The markets (stocks, real estate, etc) should not dictate what you should do.

Should you buy or sell real estate right now? Especially when prices are so low? It depends on your situation. You should not do it if you really can't afford it. If you CAN afford it, then you should go right ahead!

Should you buy or sell stocks right now? Again, all these decisions are personal. They should not be dependent on ideas that "stocks are very cheap" or other ideas. If you have excess cash that you can afford to put into the markets, then perhaps that is a good idea. However, if your own personal current situation says you shouldn't (debt, etc) - then it's not a good idea.

It comes down to this: you need to figure out what you personally can and cannot afford. (Which you should always figure out before a large monetary expenditure, anyway!)

I am young, I live below my means, so I can afford to invest few hundred dollars into the stock market each month. However, I know that I cannot afford to buy a condo (downpayment, high property taxes, mortgage that is more than my current rent, etc) so therefore it's not the right decision for me right now.

Suze Says: Dollar-Cost Averaging

On Saturday's episode, Suze Orman discussed dollar-cost averaging. Most pf bloggers know that dollar-cost averaging is a great way to invest in the stock market. Suze reiterated how important it is to continue to dollar-cost average even through turbulent markets such as these.

Definition, from Investopedia.com: "The technique of buying a fixed dollar amount of a particular investment on a regular schedule, regardless of the share price. More shares are purchased when prices are low, and fewer shares are bought when prices are high."

Most people use dollar-cost averaging without even thinking about it: 401k elections are taken out with each paycheck, which is automatic dollar-cost averaging!

I dollar-cost average with my 401k and my Roth IRA with bi-weekly contributions of $75 and $100, respectively.

"People First"

People first, then money, then things. - Suze Orman

At the beginning of 2008, my Mom mentioned that I should watch "The Suze Orman Show" on CNBC. I had never heard of it, so I gave it a try on a Saturday night after one of my finance professors had also recommended it.

And I've been hooked ever since! Suze gives fantastic advice. She is straight to the point, offers lots of insight and covers a variety of topics--all of which are PF-related. Of course, the "Can I Afford It?" segment is my favorite.

I would love to be a guest on her show one day! :) I truly believe the above quote as well, which is her end-of-the-show tagline and I try to follow it in my own life.

Starting next week, I will begin a "Suze Says" post on Sundays or Mondays with a piece of financial advice from her weekend show.