Suze Orman's Action Plan (30 page)

I also want you to set a move-out date. Not because you don’t love him, but for exactly the reason that you love him so much. Let’s face it, your place is cushy compared to the rental that will be in his price range. That reduces his motivation to move out. So you need to apply a firm but loving nudge.

ACTION:
Denied. Why does your child need a
new
car? There are plenty of used cars, including certified pre-owned cars with just a year or two of wear and tear that have great warranties and cost a lot less. And you need to ask yourself why she needs you to cosign. Is it for more than she can honestly handle on her salary? Is it because her FICO credit score is so bad the lender insists on you coming in as a safety net? And let’s review the basics of cosigning: You become legally responsible for the loan in the event your daughter falls behind. Don’t think you can let her just learn a lesson if the car is repossessed. It’s
your
FICO score that is going to take a hit, not just hers.

ACTION:
If you can afford to help, then of course help. But that’s a serious issue you need to carefully ponder. If helping them out today in any way puts your own retirement security at risk, then you simply cannot afford to help. That’s not being selfish, it’s actually looking out for your kids. You need to think through how this could play out. You help the kids out now, but that means your retirement account runs dry in 15 years instead of lasting the 25 or 30 years you were counting on. And let’s say you have the good fortune of living a very long life. Only problem is, you need to turn to your kids for help because you no longer have any money left.

You have the valuable assets in this situation. You probably own your own home outright and you have a nice retirement fund. Do not put those at risk. If your kids are in a house they can’t afford, it may be best for them to let go. If they live nearby, you can offer to have them move in while they regroup. Or if they are determined to stay in the house, how about you offer to take a more active role helping with the grandkids on the weekends so they can take on part-time work—or extra projects at their job—to bring in the income they need.

Y
ou hold in your hands all the financial rules, principles, and strategies you need to put you on a path to building lasting financial security. You have your Action Plan for the road ahead.

I realize there is a lot to digest here. For many of you there will be much to change. Please give yourself the time and patience to make the necessary renovations. And understand that this isn’t a weekend project. It is a lifelong commitment to taking care of yourself and your loved ones. That doesn’t mean you must spend every free moment strategizing about money issues. That is just the opposite of why I devised this Action Plan. My goal is that once you take control of your financial life—by taking action—you won’t spend so much of your life feeling stressed about money. I am asking
you to pay attention to your money now in order to free up your life so you can… well,
live
your life. That’s what financial freedom has always meant to me—and what every book I’ve written aims to do: to give you time to enjoy your life without financial fear defining who you are and what you can achieve.

That’s been quite a challenge since the financial crisis struck in 2008. The shock and severity of the meltdown has been crushing. Pondering your family’s financial security is nerve-racking enough, but there’s also the not-so-small issue of our nation’s economic health to keep you on edge too.

I can guarantee you one thing: Worry won’t get you where you want to go. Action is the only way out from under the stress. What I have laid out for you in this book are your steppingstones; each action moves you toward the ultimate goal: peace of mind and security. The financial crisis and its aftershocks are holding you hostage right now; the Action Plan is your path to freedom.

My focus is on you, but I also know that as each of us repairs what is not working in our personal lives it will help us move forward collectively. The crisis has taught us that our actions not only affect our individual lives, they have an impact on the collective whole, on systems, and on the very fate and health of our nation. The calls for integrity and responsibility should be heard by every one of us, no matter who you are, no matter what your
station. This is a time of renewal, of recommitment. Obviously it would have been preferable if we made these seismic changes from a position of strength and not in reaction to crisis. But in a way, the enormity of the turmoil will ultimately pay dividends for all of us; it was so bad, it was—
is—
so destabilizing, that we can’t shrug it off. It is a life changer. For my money, those changes will all be for good.

Adjusting to the New Rules for New Times means that it’s not likely you will ever feel this scared and insecure again. Don’t misunderstand; bad times will recur. They are as inevitable as the good times. But the opportunity before you right now is to rebuild your financial life so that, should the storm winds pick up again, you will not be blown away.

For all the specific rules and regulations, principles and practices I am asking you to learn and follow, I want you to realize they all emanate from a single simple law:

When you find yourself with a choice to make—vacation versus Roth IRA contribution; school trip versus funding the 529 account; retiring early versus staying on the job a few more years—consciously ask yourself this: Which is the one that will help me and my family build long-term
security? Ask yourself if you have the determination and the courage to make the right choice.

And when you feel overwhelmed or frustrated, stop what you are doing and tell yourself, literally tell yourself:
I am doing what is right, not what is easy
. Find strength in that singular commitment. It takes courage and resolve to remake what is not right. Give yourself credit every day. And know that every step along the way, every right action you take, moves you closer to a life you are free to live to the fullest. You deserve that now more than ever.