Can I afford it? Suzie Orman
Suzie Orman runs a popular program in the US of A which is simply titled “Can I afford it?” wherein people call in to ask “Can I afford a second hand Mercedes which costs me $ 45,000?”. Then Suzie sizes up the situation checking up whether the person has some money in her/his savings account, retirement account, existing debt, etc. and says “Yes you can afford it” or “No. you cannot afford it”.
There is one important question that is missed.
Does this person NEED it? If I am going to travel 18 km a day for 5 days a week, do I need a Merc or a smaller car will do?
This is the essence of financial planning. The planner should be able to make the client do the following:
1. Set the goals
2. Make it into Needs, Wants and Luxuries
3. Priotrize the goals
4. Allocate the funds towards the goals.
Should I be buying something because I can afford it or should I be buying it because I need it. I think my usage of any asset should take into account my need and how abusive it is of the environment. If all of us think this way, maybe we will have lesser complicated lives. Both financially and physically.
People should be made to realize that money and time are fungible – if you need less, you will have more time to do what you want. If you spend 20 working years to pay for a house, 14 years to pay for a car….when will you pay yourself? Think about it.
The lesser that you want or need the earlier that you can retire. Of course people ‘prioritize’ – like a few friends who have decided to be childless – but that is another story is it not?
rahul
hi subra,
I regularly watch the ‘Suze Orman show’ and she does asks teh right questions.
regards,
Rahul
Sarang
Subra,
You have the perfect words to describe these things.
In my openion, there should be a show ‘Do I Need it?’ instead of ‘Can I afford it?’.
I have watched this program a few times when I could not go to sleep in time. Many a times things discussed are chieldish. You don’t need an expert to answer such simple questions.
Every body around me is buying a car. Why? Becaus they can afford it. Then they travel to office in it when there is very convenient bus service. Why? Because a car must be used.
Every body around wants to buy a house. Don’t they have it already? Most of them have. But then why another one? Because they think they can afford a bigger house.
These days, why don’t you go to the same small hotel in the square near your house? Does it not produce the fresh testy food it used to? No! Because I can afford to buy Pizza From Pizza Hut and Burger from Mc-D.
If you live in Pune, Why don’t you go to Sawai Gandharwa Sangeet Mahotsav? It just costs Rs 350/- for all 4 days of it. And you can be sure that only the best in the world would perform there. No! I can’t afford it! Why? Because I have spent all my budget in watching movies in multiplexes who charge somewhere around Rs 250 per show and sell you popcorn for Rs 25/- which is availble for less than Rs 5/- outside.
And the list goes on….
Rudy
nice one!!!
pravin
but there is no right answer : re sawai gandharv at 350 or 350 at multiplex. individual choices are by definition subjective. one cant be superior to the other ,in vacuo.
maybe some people do think that slaving their life for paying off an EMI is acceptable as long as they have a wonderful house/car etc.
really,there is no unique answer.as adults,all we ask people is to take responsibility for their choices
Atul
After seeing the show couple of times I stopped watching it.
I would prefer to watch Monika Halan show on NDTV Profit.
Regards
Atul
Neil Williams
Hello Blog Admin,
I am Neil Williams. I am a financial writer besides having some financial websites and blogs of my own. I write financial articles. Today, while searching for a suitable blog, I just come across yours. I have gone thru it and found it very resourceful. Great blog I must say.
I just wonder if you can allow me to make a guest post in your blog with a unique finance or money related article such as on personal finance, economy, money, savings, investment (or any article to your choice). Rest assured my article will be 100% original and will be in accordance with your blog’s core content.
In return, if you wish, you too can make guest posts in my blogs or sites or take suitable backlinks from the same.
Please consider this as this will benefit us mutually. You will get a fresh relevant article in addition to a very good backlink for your site or any blog. My article will bear only one related link. Rest assured of this.
Please reach me at my mail ids: neil.williams[at]consultant[dot]com or at neil.williams2009[at]gmail[dot]com
I will look forward to your positive reply shortly.
Thanking you,
Regards,
Neil Williams
Prasad
Monika Halan…you cannot be serious! All the personal financial planning programs on television or the print media can be classified as humor!
KalpK
‘Need’ is individuals viewpoint. Subraji you must be having a few suits to wear, do u ‘need’ them? I may think no, but you will buy. Who would ‘need’ a Bugati veyron? So no one should buy it? Need may not be justified that easily.
BTW that Suzie irritates me with her style and smile. She overdoes it.
M S PANJWANI
my fellow blog readers,
watch animal planet or astha tv….it will refresh ur mind….suzi kya aasmaan se aayi hai?…she too has her commercial compulsions as our udayan or tulsian has…and yes, subra will surely reply Neil Williams comment….we love foreigners….LOL