Suze Orman and financial advice for 2009

I like Suze Orman- she is straightforward, no nonsense finance professional who has made a living out of advising ordinary people (on her show on CNBC) on how to manage their money and their finances. I have read her books and find them practical and very user friendly. So, when I saw a slim volume from her talking about action planning for 2009, I bought it and was able to read it last night.

Here are the three key highlights of what she has to say-
One- 2009 would be the year to invest in the stock market. The prices are low and the payback for someone willing to stay there for the long haul will be massive. Staying out of the market would be a catastrophic mistake.
Second- Strike the word "deserve" from the conversation this year. What you desire is irrelevant, what you actually afford is all that counts. ( I like how straight she is in whatever she professes).
Third- Reduce or eliminate credit card debt; if you do not have more than 10% down payment on a house, do not buy!
She even comes up with a simple pledge that challenges the readers to a) not spend money for a day, b) use credit card for a week and c) not eat in a restaurant for a month. Her point- little things are the ones that eventually add up.
She also explains why the crisis took place and what was behind the collapse in a lucid manner to the layman without using any of the jargon typically seen in financial journals or magazines. Her clarity and ability to cut to the heart of the matter is what makes her one of the 100 most influential people in the world, from a recent Time poll.

Lest I appear to be too much of a fan, let me say one thing. Over the last year, she has gone very moralistic and tries to give psychological advice along with financial advice. She should just stick with the financials. She is no Dr. Phil (not that I am a huge fan of that guy but at least he has some credentials in that respect). She should realize her key strength is finance for the layman, everything else is secondary.

Bottomline- it looks like 2009 is going to be tighter belts and more rational expectations. We will hopefully to surprised by the power of the rebound! On that happy note, to everyone, Happy New Year and keep reading...