Suze Orman, the writer of the bestselling book “The Nine Steps to Financial Freedom” provides wisdom to ordinary people based on both rationality and emotional perspective. While most of the personal finances related books bring the Dos and Don’ts to the readers, Orman guides her readers to take charge of their own finances. In her book of nine steps, she refrains to pinpoint the specific strategies that can lead the readers’ way to financial freedom. In fact, Orman highlights the importance of mental strength on the way to financial freedom.
The nine steps that Orman highlights in her book are:
1.Seeing How Your Past Holds the Key to the Your Financial Future
2. Facing Your Fears and Creating New Truths
3. Being Honest With Yourself
4. Being Responsible to Those You Love
5. Being Respectful of Yourself and Your Money
6. Trusting Yourself More Than You Trust Others
7. Being Open to Receive All That You Are Meant to Have
8. Understanding the Ebb and Flow of the Money Cycle
9. Recognizing True Wealth
Seeing how your past holds the key to your financial future: In this chapter, Orman explains how our past experiences might force us to act a certain way when it comes to making our financial plans. For instance, a big loss in business or investment might refrain someone from doing the same even in the present or future. Thus, it is important how readers overcome these fear of past failed experiences and lead to a better financial future. This part of the book is further explained by one of her lines:
"...in my experience, most peoples' biggest problems in life - even those that appear on the surface not to be money related - are directly connected with their early, formative experiences with money."
Facing your fears and creating new truths: As per Orman, few fears that we have built over time by our own presuppositions or on the basis of what people around us think about ourselves hold us back from reaching that financial independence. In order to overcome this, the author suggests to keep reminding yourself of what you are worth. In fact, she suggests dotting down your worth on a sheet of paper every single day. For instance, "I am young, powerful, and successful, producing at least $10,000 a month."
Being honest with yourself: Orman suggests one of the very crucial parts about reaching the financial goal. She states how we lie to ourselves about our spending habits. It is necessary that we visualize the accurate picture of our financial condition. For instance, we should be confident that our monthly income won’t cut the budget of a certain amount. He further advises readers to determine the amount they are spending, add all sorts of income they earn and finally find the difference. Post this, readers need to ask themselves if this difference is enough to reach their financial goal. If not, they have two alternatives: Cut their spending further or find new sources of income.
Being responsible to those you love: This chapter from Orman’s book is quite relevant to our culture where we are obliged for someone we love. A lot of times the preferences of our loved ones come in between while planning our financial goals. Orman has provided several advices such as setting up a good will, health care, insurance, etc to the readers.
Being respectful to yourself and your money: Orman comes up with a problem of very ordinary income earner “The more you earn, the more you spend.” She then provides the solution “the less you earn, the less you spend”. The author reflects that if a person can direct his/her money to an investment or saving account, employee provident fund, retirement fund or even mutual fund scheme without spending then the person will have less to spend. This strategically grows your wealth over time. One needs to understand the power of money in order to have enough money.
Trusting yourself more than you trust others: A lot of times we follow someone else’s financial plan in order to accumulate wealth. However, Orman suggests to be comfortable on your own decisions rather than following someone else’s footsteps. She further suggests, if you aren’t comfortable, don’t invest in stock market. Just because someone else is buying, don’t place a buy order. She further suggests instead of running around financial advisors and paying commission, be your own financial advisor because nobody will ever know your financial goal better than you.
Being open to receive all that you are meant to: Suze also brings one of the most conventional plans that most of the wealthy people acclaim to have worked in their lives. Orman talks about giving to others. She writes in her book “charity is the purest form of gift”. She also noticed that those clients that gave money regularly to the needy ones or loved ones had more money than those who did not. In fact, she even introduced this idea to her new clients who were finding it difficult to maintain their financial wealth.
Understanding the ebb and flow of money: By the end of the book, she also explains her father’s financial condition that came with a lot of hurdles but proved to be the reasons for his success in the latter phase of life. She calms her readers stating no matter how well we plan, financial setbacks will come in one form or the other. But the key lies in not giving up on your financial journey.
Recognizing true wealth: Finally, Orman stresses on the fact that when you will grow old and look back to your life, your net worth might not be the only thing that will be the most important of value to you. She advises readers not to measure their self-worth by their net worth. This is quite a rare advice that readers will get from a financial help book yet a advise that is true in so many aspects.
Orman’s book can be a self-guide to a lot of people who have low confidence to manage their personal finance. She does not use a lot of financial jargons to help readers understand. The book would give a feeling of sharing advices by a friend to a friend. It can help you boost your confidence that you can manage your finances well. Dear readers do read the book at your convenience and let us know your feedbacks on the book.