Suze Orman

An update on my Needs post. I did skim the Suze Orman book at B&N and was underwhelmed. Nothing new that I haven't heard a dozen plus times before on the news, in magazines, etc. I'm not suggesting that this advice is useless but using it depends on a person's life outlook.

One faithful reader recommended that I continue to visit my children regardless of the cost, and I definitely agree. My children are the most important people in my life plus will be picking out my nursing home, so I want to continue my close relationship with them.

Another reader suggested I am either delusional or have an excellent financial planner. Both may be true. I do have a great financial planner and sometimes I even listen to his advice. I don't like reality so possibly the delusional description is true. But, believe me, my delusional world makes me happy, and I spent too much of my life being unhappy. Trust me, money doesn't make one happy; life may be easier in some ways, but happier? No.

Bottom line is unless I cut out my more expensive luxuries, I am not going to save much money. I'm not cutting out cable because I enjoy my plasma TV and all it offers. I'm not reducing my cell phone plan because it allows me contact with my children and the friends whom I actually enjoy. I am not reducing the temperature of the thermostat when I'm awake and at home because I refuse to be cold. I do reduce it at night when sleeping and when gone. I obsessively turn off the lights, don't run water when brushing my teeth, and don't rush to turn on AC although these are more concessions to the environment than to bills.

I do not live extravagantly, I don't have a lot of debt, and I live in one of the more reasonable cost of living areas in the US. I am a moderately conservative investor, so my retirement fund investments haven't suffered as much as others. Yes, I give more thought to money than I did even a year ago. I have cut back on some little things and do not shop are heartily as I used to but am not kidding myself to think they will make a huge difference. I am going to agree with the other faithful reader who reminded me that I can't take it with me. If I want a latte, then I'm going to have a latte. Life really is too short not to enjoy it. Does that mean I won't enjoy my later years because of my lackadaisical attitude now? Maybe. But, nothing in life is certain.

Needs

What are needs? Besides the basic life needs. Someone I know finished reading Suze Orman's 2009 Action Plan and apparently she gives suggestions on safeguarding your money. From what I understand, one should only purchase "needed" things. This, of course, led me to ask, "What is a need?"

Possibly, one person's need is an other's want.. or vice versa. Does a city dweller need a car if public transportation is available? Does a college student need a personal computer if computers are available at the university? These are possibly bigger needs v. wants.

I understand that having cable TV is a want. Purchasing books rather than getting them from the library is a want (although the book stores would sorely miss my revenue). Having my hair colored at a salon rather than coloring it at home is a want.

Shallow wants/needs are a bit harder to discern. Do I switch from gourmet teas to Lipton if Lipton is cheaper? Do I stop wearing mascara to save money? Do I stop driving 2-4 hours to see my kids because the cost of gas adds up? And do making any of these changes really result in significant savings?

I'm getting twitchy just typing this because I have long held the "my wants are my needs" philosophy. Yes, I've been spoiled. Do I think I need to strongly assess my wants v. needs? Yes, probably so. But, (she whined) it is so hard!!

I struggle with the idea of saving for retirement because I don't know how long I will live. What if the world really does end in 2012 (according to the Mayans), and I've been putting money away for naught. I understand that material things don't buy happiness. But if I'm going to bother with retirement funds I'd like to be able to experience the joy of spending them.

The way I see it, in order to really stick to needs, I must cut out cable, buying books and magazines, buy store coffee rather than gourmet coffee and tea, use only the card supplies I have rather than buying more. I could groom my dog myself, color my own hair, stop getting facials, massages, and pedicures (I don't get them often), not buy new clothes or shoes and use what I have. I would stop buying lattes, expensive eye shadow, candles, plants, and would stop going out to eat. But, would I enjoy my life as much? At age 54 am I to stop doing what I enjoy?

Hard questions for each to answer. I'm trying....I more often fail to say no to wants than I succeed, but I am trying. I'm going to save money by not buying Suze's book but may browse it at B&N. Maybe then I'll have a better grasp of the concept.