>>> IF MONEY WORRIES ARE KEEPING
YOU UP AT NIGHT YOU ARE NOT
ALONE.
JOB LOSSES AND UNEMPLOYMENT AT
HISTORIC HIGHS SO SMART
FINANCIAL ADD VVICE FROM SUZE ON
IS IN HIGH DEMANDS
>> WE ARE SO LUCKY TO HAVE HER
HERE FROM HER HOME IN THE
BAHAMAS.
IT IS SO GOOD TO SEE YOU
>> SUZE.
>> GIRLFRIENDS
HI, EVERYBODY.
GOOD TO SEE YOU, TOO.
>> GREAT TO SEE YOU.
THERE ARE SO MANY PEOPLE GOING
THROUGH PROBABLY THE WORST TIME
IN THEIR LIVES
WE HAVE 40 MILLION PLUS PEOPLE
OUT OF WORK.
IF YOU WERE GIVING THEM INITIAL
ADVICE IN THIS MOMENT, SUZE,
WHAT WOULD YOU SAY TO PEOPLE WHO
FEEL JUST DESPERATION IN THIS
MOMENT
>> YEAH.
YOU KNOW, THE TRUTH OF THE
MATTER IS, YOU GUYS, WHEN I WAS
DOING YOUR SHOW BACK IN FEBRUARY
WE GAVE THEM REALLY GOOD ADVICE
WHICH IS ESPECIALLY IF YOU'RE
INVESTED IN THE MARKETS, FOR
INSTANCE, WITH THE 401(k)s JUST
HOLD TIGHT
THAT'S ONE GROUP OF PEOPLE
THEN THERE'S ANOTHER GROUP OF
PEOPLE, HODA, WHERE REALLY
THEY'RE DEPENDENT ON THE
STIMULUS CHECK, DEPENDENT ON
UNEMPLOYMENT
THEY DON'T THINK THEY'LL GET
THEIR JOB BACK
HERE'S THE THING, EVERYBODY.
YOU JUST HAVE TO SAVE EVERY
SINGLE PENNY YOU POSSIBLY CAN
RIGHT NOW.
YOU NEED TO STAY STRONG, NEED TO
KEEPCALLING YOUR CREDITORS AND
SAY I KNOW YOU GAVE ME THREE
MONTHS I DIDN'T HAVE TO PAY.
I NEED ANOTHER THREE MONTHS AND
YOU JUST HAVE TO BE THIS
FEROCIOUS WARRIOR NOW WHERE YOU
DON'T TURN YOUR BACK ON THIS
BATTLEFIELD OF THE UNKNOWN
BUT THE MAIN ADVICE IS I HOPE WE
HAVE ALL LEARNED THAT AN
EIGHT-MONTH EMERGENCY FUND IS
THE MOST IMPORTANT PART OF ANY
FINANCIAL FOUNDATION
THIS IS THE TIME TO SAVE, SAVE,
SAVE
PUT EVERYTHING ELSE ON HOLD.
WHEN EVERYTHING ELSE COMES BACK
BECAUSE IT COMES BACK SOONER
THAN LATER HERE AND MAKE SURE
YOU HAVE A FOUNDATION OF THAT
FUND.
>> SO, SUZE, WE SAW PEOPLE WHO
WERE MAKING A DECENT INCOME,
PEOPLE THAT HAD STEADY JOBS LOSE
THEIR JOBS AND THEN THEY WERE
ONE OF THE CARS THAT WERE TRYING
JUST TO FEED THEIR KIDS LINING
UP AT FOOD BANKS
AND THAT TOO I THINK THE HARDEST
PART FOR PEOPLE.
WHAT'S THE LESSON HERE
OBVIOUSLY SAVING BUT WHAT ELSE
>> HERE'S THE THING, JENNA
WHEN PEOPLE WHO MAKE A GOOD
LIVING ARE THEN STANDING IN A
FOOD LINE, WHAT DOES THAT TELL
YOU?
IT TELLS YOU MONEY CAME IN AND
MONEY WENT OUT
JUST BECAUSE THEY HAD A PAYCHECK
AT ONE POINT THEY FELT LIKE, OH,
I CAN GET A NEW CAR, A BIGGER
HOUSE, I CAN BUY THOSE NEW
ELECTRONIC GADGETS
I CAN TAKE A VACATION.
IF YOU CAN TURN BACK THE HANDS
OF TIME DO YOU WISH YOU HADN'T
TAKEN THAT VACATION THAT YOU HAD
TO PUT ON THE CREDIT CARDS
JUST BECAUSE YOU CAN AFFORD
SOMETHING BECAUSE YOU HAVE MONEY
COMING IN DOESN'TMEAN THAT
MONEY SHOULD GO OUT.
UNTIL -- I REITERATE, THE LESSON
LEARNED HERE IS THAT THE
EIGHT-MONTH EMERGENCY FUND IS SO
INCREDIBLE BECAUSE ALL THE
PEOPLE NOW WRITING ME ON THE
WOMEN AND MONEY PODCAST SAYING,
THANK GOD, SUZE, I LISTENED TO
YOU.
THANK GOD I HAVE AN EIGHT-MONTH
EMERGENCY FUND
FOR 20 YEARS I HAVE BEEN ON THE
"TODAY" SHOW SAYING AGEIGHT MONS
AND I THINK THE GREATEST LESSON
LEARNED IS THAT IS SECURITY.
JUST HAVE TO SAY ONE OTHER
THING.
WHAT IS THE GOAL OF MONEY,
EVERYBODY?
THE GOAL OF MONEY ISN'T TO BUY A
FANCY CAR OR A FANCY THIS AND
THAT
IT IS SO YOU CAN BE SECURE
SO WHAT WOULD MAKE YOU LOOK AND
FEEL AND BE BEAUTIFUL?
SECURITY
WHEN YOU FEEL SECURE YOU LOOK
POWERFUL.
>> YOU'RE RIGHT.
WE'LL TAKE VIEWER QUESTIONS IN A
SECOND BUT SOME JOBS MAY NOT BE
COMING BACK.
DO PEOPLE NEED TO START LEARNING
OTHER JOB SKILLS
>> YEAH.
YOU BET YOU THEY DO.
I'M SORRY TO SAY THAT THIS IS
ALSO BROUGHT ON THAT MANY OF THE
MAJOR CORPORATIONS HAVE REALIZED
THEY CAN LET EVERYBODY WORK AT
HOME, THEY CAN CUT THE STAFF, DO
ALL THESE THINGS RIGHT NOW SO I
WOULD LIKE PEOPLE TO LOOK AT
THIS AS AN OPPORTUNITY TO
RESHAPE YOUR LIFE.
WHAT IS IT AT THIS POINT IN TIME
SINCE THIS IS THE GREAT RESET IN
YOUR LIFE RIGHT NOW, WHAT IS IT
THAT YOU REALLY WANT TO LEARN?
WHAT DO YOU WANT TO DO
HOW CAN YOU MAKE SOMETHING
HAPPEN FROM WHAT YOU FEEL IS
NOTHING?
YOU HAVE TO HAVE FAITH,
EVERYBODY, THAT EVERYTHING
HAPPENS FOR THE BEST
YOU HAVE TO BECAUSE IF YOU DON'T
HAVE THAT FAITH THEN WHAT DO YOU
HAVE
SO AGAIN, MY COMMENT, BE A
WARRIOR HERE
YOU HAVE TO BE STRONG.
>> SUZE, WE HAVE VIEWER
QUESTIONS TO TAKE.
THEY'LL BE RIGHT AFTER THE
>>> WE'RE BACK WITH WOMEN AND
MONEY PODCAST HOST SUZE ORMAN, A
FAVORITE
AND OUR VIRTUAL AUDIENCE SO
LET'S GET RIGHT TO THE
QUESTIONS.
THE FIRST QUESTION IS FROM
CARRIE ABOUT PAYING OFF HER
MORTGAGE
HEY, CARRIE!
>> GOOD MORNING!
HI
>> HI.
WHAT'S YOUR QUESTION
>> SUZE, I'M SINGLE, 50 YEARS
OLD.
I WOULD HAVE AN EIGHT-MONTH
EMERGENCY FUND AFTER I PAY OFF
MY MORTGAGE BUT I'M CONCERNED IN
THIS TIME OF COVID-19, THE
UNCERTAINTY IN THE MARKET, THEN
CERTAINTY IN THE JOB MARKET.
IS THAT STILL THE BEST THING FOR
ME TO DO TO PAY OFF THE MORTGAGE
AND HAVE THAT SECURITY FUND?
>> FIRST THING TO DO IS WHILE
YOU STILL HAVE A JOB BECAUSE YOU
NEVER KNOW, TAKE OUT A HOME
EQUITY LINE OF CREDIT JUST SO
YOU HAVE IT IN CASE OF AN
EMERGENCY.
THEN I WANT YOU TO PAY OFF YOUR
MORTGAGE AND THEN THE MONEY
PAYING TOWARD THE MORTGAGE EVERY
MONTH PUT THAT EXACT SAME AMOUNT
OF MONEY BACK IN TO OUR SAVINGS.
IF SOMETHING HAPPENS, YOU CAN
ACCESS THE HOME EQUITY LINE OF
CREDIT AND SAME THING AS IF YOU
HAD A MORTGAGE REALLY.
SO THAT IS YOUR PLAN OF ACTION.
>> YEAH.
LET'S GO TO QUINN, A "TODAY"
SHOW INTERN.
>> HI, I WAS JUST WONDERING WHAT
YOUR ADVICE IS FOR COLLEGE
STUDENTS WORRIED ABOUT LOANS
ESPECIALLY WHEN GOING BACK TO
SCHOOL RIGHT NOW IS SO
UNCERTAIN.
>> GOOD NEWS IS THAT STARTING
VERY SHORTLY HERE, ANYBODY
TAKING OUT A LOAN AFTER JULY
1st, ALL RIGHT, YOUR INTEREST
RATE ON THAT LOAN OF FEDERAL
DIRECT LOAN OR STAFFORD LOAN IS
2.75% NUMBER ONE
NUMBER TWO, YOU NEED AN
EDUCATION.
SO YOU'RE GOING TO SCHOOL AND
YOU HAVE TO ALWAYS MAKE SURE
THAT YOU PAY THAT STUDENT LOAN
WHILE YOU'RE IN SCHOOL, HOWEVER,
QUINN, DON'T WORRY ABOUT IT.
YOU DON'T HAVE TO MAKE THE
PAYMENTS AND MANY OTHER PEOPLE
OUT THERE, QUINN, THAT CURRENTLY
ARE OUT OF SCHOOL.
THEY HAVE STUDENT LOANS AND
THEY'RE TAKING ADVANTAGE OF THE
DEFERMENT THAT PEOPLE ARE
ALLOWED TO SEPTEMBER 30th WHERE
THEY DON'T HAVE TO MAKE A LOAN
OR MAKE A PAYMENT ON THAT LOAN
IF ANY OF YOU ARE IN THAT
SITUATION, AND YOU CAN AFFORD TO
PAY YOUR STUDENT LOAN, DON'T
TAKE THE DEFERMENT
IT IS NOT CHARGING YOU ANY
INTEREST ON IT AND TAKE THE
MONEY YOU SHOULD HAVE BEEN
PAYING TOWARDS THE STUDENT LOAN
UP TO SEPTEMBER 30th AND PUTT IT
IN THE EMERGENCY FUND SO THAT
YOU CAN START THAT EIGHT-MONTH,
THAT FAMOUS EIGHT-MONTH
EMERGENCY FUND SUZE ORMAN WANTS
EVERYBODY TO HAVE.
I HOPE THAT HELPS YOU.
>> QUINN, GOOD TO SEE YOU.
HERE'S A QUESTION WE HAVE FOR
YOU FROM ONE OF THE PRODUCERS
SARAH.
IT IS ABOUT INVESTING.
>> HI, LADIES.
HI, SUZE
I RECENTLY SAVED SOME MONEY
SEPARATE FROM THE 401(k) AND
LIKE TO INVEST IT AND NOT SURE
TO GET INTO THE MARKET RIGHT
NOW.
WOULD IT BE A GOOD TO FIND A
FINANCIAL ADVISER?
HELP.
>> THE MAIN QUESTION IS THAT I
WANT TO ANSWER IS IT A GOOD TIME
TO GET IN THE MARKET
YOU BET CYOU IT IS.
EVERYBODY'S LIKE, WHAT
LIKE I TOLD THE "TODAY" SHOW
AUDIENCE IN FEBRUARY DO NOT
SELL, DO NOT SELL.
I'M STILL TELLING YOU THAT RIGHT
NOW.
AND SO, WHAT'S REALLY IMPORTANT
TO UNDERSTAND IS THAT THE WAY
YOU INVEST IN A MARKET LIKE THIS
IS THROUGH A TECHNIQUE CALLED
DOLLAR COST AVERAGING WHERE YOU
TAKE A SPECIFIC SUM OF MONEY
EVERY SINGLE MONTH AND YOU
INVEST IT IN TO A DIVERSIFIED
EXCHANGE TRADED FUND OR NO LOAN
MUTUAL FUND.
KEEP DOING THAT EVERY SINGLE
MONTH AND USE A DISCOUNT
BROKERAGE FIRM WHERE THE
COMMISSIONS ARE ABSOLUTELY ZERO
AND DOESN'T COST ANYTHING
ANYMORE TO INVEST ESPECIALLY IF
YOU DO IT ONLINE AND IN TERMS OF
FINDING A FINANCIAL ADVISER,
LISTEN, YOU HAVE TO KNOW THERE
ARE SOME BRILLIANT FINANCIAL
ADVISERS AND IF YOU FIND ONE
THEY'RE WORTH THEIR WEIGHT IN
GOLD AND MANY IN MY OPINION
REALLY NEED AS MUCH MONEY AS
EVERYBODY ELSE
SO I PERSONALLY THINK YOU NEVER
POWERFUL IN LIFE UNTIL YOU'RE
POWERFUL OVER YOUR OWN MONEY,
HOW YOU THINK AND FEEL ABOUT IT
AND HOW YOU INVEST IT.
NOTHING WILL MAKE YOU FEEL MORE
POWERFUL THAN TO LEARN TO INVEST
AND THEN IF YOU USE A FINANCIAL
ADVISER THEN YOU KNOW IF HE OR
SHE IS DOING THE RIGHT THING FOR
YOU BUT I THINK ONCE YOU DO IT
ON YOUR OWN YOU FIND IT IS NOT
AS HARD AS EVERYBODY THINKS IT
IS.
>> THANK YOU, SUZE.
>> LET'S GET TO SARAH WITH A
QUESTION ABOUT PAYING DOWN DEBT.
HEY, SARAH.
>> HI, HODA.
HI, JENNA.
HI, SUZE
I WORK IN THE FIELD OF HIGHER
EDUCATION AND THE SALARY DEPENDS
ON STATE AND CITY BUDGET
I HAVE A MORTGAGE AND CREDIT
CARD DEBT TO PAY AND NOT SURE
WHAT TO DO, DO I PAY DOWN THE
CREDIT CARD DEBT
OR DO I BUILD MY EIGHT MONTHS
EMERGENCY SAVINGS SINCE THERE'S
UNCERTAINTY AROUND MY SALARY
>> EIGHT-MONTH EMERGENCY FUND
BECAUSE FOR INSTANCE, REALLY,
THINK ABOUT IT
YOU COULD BE PAYING DOWN THE
MORTGAGE, ALL RIGHT, AND NOW YOU
NO LONGER HAVE A JOB AND NOW YOU
ARE ONE OF THE ONES WHO ARE
APPLYING FOR UNEMPLOYMENT AND
TAKES THREE MONTHS TO GET IT IF
YOU EVEN GET IT AND THEN WHAT
ARE YOU GOING TO DO?
PAYING DOWN THE MORTGAGE DIDN'T
HELP YOU AT ALL BECAUSE WHEN YOU
PAY DOWN THE MORTGAGE AS YOU'RE
PAYING IT DOWN IT DOESN'T REDUCE
THE MORTGAGE PAYMENT
SO PLEASE, THAT'S THE LAST THING
I WANT YOU TO DO
I WANT YOU TO HAVE A AGN
EIGHT-MONTH EMERGENCY FUND AND
THEN GET OUT OF CREDIT CARD DEBT
AND IF YOU STAY IN THAT HOME FOR
A LONG TIME TO START TO PAY DOWN
THAT MORTGAGE BUT IT'S IN THAT
ORDER, MY DEAR ONE.
>> ALL RIGHT, SUZE
THAT'S GOOD ADVICE
WE THANK YOU
WE LOVE WHETHER YOU'RE ON.
>> THANK YOU, SUZE.
>> A BIG THANK YOU TO TH