i watched suzi orman last night...

[irmanator]

I am a little perplexed, on the Can I afford this segment, she denied a guy who had (can't remember but it was a big number) in alot of his accounts permission to spend 765 dollars on season tickets to the mets. Not what I would have spent the money on but omg only 765 seemed like a drop in the bucket to me compared to the rest of the accts. Shouldn't you be able to enjoy life a little?? I am begining to think she is kinda harsh...

[Jazzmint98]

I actually forgot to watch it last night. I think sometimes she isn't consistent either in the "Can I Afford It" segment.

[disneysteve]

I didn't see the show - I catch the podcast which I'll download right now and I'll comment later after I hear that segment.

ETA: I just checked the podcast of last night's episode. There was not a Can I Afford It? call about Mets tickets. You may have been watching a rerun, not the new episode. If I come across it, I'll come back and comment.

[graceful]

I saw that episode. Can't remember the details though... sorry.

But could it be that he had credit card debt? She usually denies people out-right over that. Also, season tickets cost more than the price of the tickets themselves - there's parking and food and tolls, etc. every time you use them to go to a game...

[disneysteve]

I found it. It was the 3/13 episode.

This is an easy one to explain. Suze sticks pretty firmly to a couple of rules. You must have no credit card debt and you must have a fully-funded EF before making luxury purchases.

This guy was 51 years old. Household income is $9,833/month. Expenses of $8,763/month. That would make an 8-month EF about $70,000. He had $27,000 liquid and $10,000 in investments so nowhere even close to an 8-month EF, just over half actually.

He also has 12 years left on his mortgage and was kind of light on the retirement savings for his age and income level.

I think Suze was right on this one. And graceful makes a good point that the real expense would be considerably more than just the ticket price.

[Snodog]

Don't forget that she has the whole financial picture on the people like how old their cars are and if they get a pension and how much SS they get. So if she appears not to be consistant this could be a reason why.

[disneysteve]

Don't forget that she has the whole financial picture on the people like how old their cars are and if they get a pension and how much SS they get. So if she appears not to be consistant this could be a reason why.

Good point. She mentions that periodically but I think viewers forget. She is not basing her decision solely on the info we see on the screen. She has a whole package of financial data that the caller has sent in. Sometimes during, or after, a call she will explain why she denied somebody when the numbers looked good on the surface and it is often due to other info.

In this case, I think the info we all heard was all you needed to make a decision. Inadequate EF. Inadequate retirement savings.

[Radiance]

8-month EF, is that the final destination before luxury expenses?
I am building my 3mo EF, to then build 6mo 9mo and then 12.
So my final EF will be a 12mo EF.
Where doe sthe 8mo comes from?

[disneysteve]

Where doe the 8mo comes from?

That is what Suze Orman recommends.

[Radiance]

Thanks Steve,
I think I;ll go with my more conservative approach and build a whole year of EF.

[disneysteve]

Thanks Steve,
I think I;ll go with my more conservative approach and build a whole year of EF.

8 months is her standard advice. She does sometimes recommend more depending on individual circumstances. I've heard her advise a year numerous times.

[kv968]

Besides...it was the METS!!! She probably saved him a bunch of heartbreak too

[Snodog]

Good point. She mentions that periodically but I think viewers forget. She is not basing her decision solely on the info we see on the screen. She has a whole package of financial data that the caller has sent in. Sometimes during, or after, a call she will explain why she denied somebody when the numbers looked good on the surface and it is often due to other info.

Yes, thank you DS, that is what I was trying to say but you said it so much better.

In this case, I think the info we all heard was all you needed to make a decision. Inadequate EF. Inadequate retirement savings

Agreed.

[irmanator]

well considering I was watching at 4 am due to my shift at work I probably remembered it wrong.

I still think 765 is not gonna break the bank once in a great while.

[disneysteve]

I still think 765 is not gonna break the bank once in a great while.

The reality is that this guy is in better shape than the majority of Americans. He lives below his means. He has about a 4-month EF in place. His mortgage should be repaid before retirement if he stays where he is. He is contributing to retirement and had about 300K or so in there (don't remember the exact figure).

Would spending $765 wreck his finances? No. Could he still reach his ultimate goals? Probably so. But this is more about mindset and discipline and priorities. If he keeps finding places to spend $765 or $300 or $900, how much longer will it take to get that EF is fully funded? How much less will go into the retirement savings over the years?