Suze Orman on AC360

Last night Suze Orman was talking to Anderson Cooper on CNN.  Everyone has a different opinion on her.  Some people like her and some don't.  I'm more in the middle, but that could be said about any financial personality out there.  

But last night she made some very good points that I believe a lot of people forget.  Before I get started on them I just want everyone to know they can find the transcript for the show here.  You have to scroll down some--about halfway down the page to find the section with her, then Ari Velshi talks for a little bit and back to her again.

Here are some points:

• "If you need the money in one year to retire, to generate income for you, and it's all in growth stocks, yes, you betcha. You come out of the stock market right now." and "But, if you don't need the money for 10, 15, 20 years, and you're in good, quality stocks, stocks that aren't going to go away, then of course you stay here."  

Let's face it most of us are in it for the long haul.  You're 401K is there for the future and over time they end up growing.  The media reports make it sound like it is so bad that you're going to lose everything!  The big thing is to keep on contributing, don't put everything into one basket, and if it really makes you nervous--don't look at your account too often right now.  It can get really depressing if you do.  Be patient!  In my case, I try not to look at it because I know it's going down, but I have another 27 years until I really need it!

• "Look at your own lives. Look at what you have got going on. There's only one thing, Anderson, you have control over in this life. And that is your own personal finance, as what you do with the money you have, what you do with the money that you don't have.  Look at your own lives. Look at what you have got going on. There's only one thing, Anderson, you have control over in this life. And that is your own personal finance, as what you do with the money you have, what you do with the money that you don't have. And that's where you have to focus right now" 

Again I have to agree here.  How can the average person control what is going on outside of their own finances?  The average person cannot!  So the only thing anyone can do is take care of your own finances to make sure you can survive in a time like this.  You cannot worry about others (examples: government spending, stock market, bank closures and bankruptcies, etc) when you don't have your own finances in order.  Make sure your money is safe in FDIC insured accounts, pay off or down high interest credit cards and loans, have an emergency fund, know where your money is going and/or figure out where it should be going.

So how are you dealing with the current financial situation?  Do you watch it constantly and panic/get depressed?  Or are you patiently waiting for it to be over because you know you're in it for the long haul?  

I admit it can get pretty depressing always hearing about decreasing home values, decreasing home sales, increasing foreclosures, increasing bankruptcies, businesses going under or being bought out, stock market crashes, increasing gas and grocery prices, etc.  But the media also isn't talking about people that are making it in these "hard times", who were smart enough to not get themselves into a bind by paying off debt, not panicking, not buying more house than they could afford, etc.  I know that some really fell into trouble because of others or emergency situations, but we also have to be responsible for our own personal finances at some point.