The year 2008 will go down in the record books as a time of public and private financial reckoning. Most Americans felt their career, home or securities rocked at the roots, stunning many into repositioning themselves in their relationship with money. Suze Orman called for a plan of action at the beginning of this year and tax time is another opportunity to sharpen your pencil for a reevaluation of your numbers.

Suze Orman’s 2009 Action Plan will guide you in keeping your money safe and sound.

Suze Orman is no stranger to the world of personal finance.  USA Today dubbed her the “one-woman financial advice powerhouse.” Orman is a bestselling author and has had six consecutive titles on the New York Times list, including The Nine Steps to Financial Freedom and The Money Book for the Young, Fabulous, and Broke. Orman is an Emmy-award winner for her PBS programs and a motivational speaker. Her mantra states “People First, Then Money, Then Things.” It’s the financial equivalent of tough love coming from Suze, and she insists that everyone take personal responsibility for the immediate world that is under their control.

Suze Orman began mapping out the financial plan for 2009 at the end of last year. She understood the magnitude of both the situation at hand and the need for tools to deal with the crisis. In her 2009 Action Plan she gives a brief overview of the recent history of the economy and the new reality of 2009. Now is the time to reverse negative financial momentum, and any movement toward recovery will set the framework for the future. Orman presents an action plan for managing credit, real estate and investing. She addresses the importance of protecting yourself and your family, including strategies for paying for college tuition in these uncertain times. Here it is only March, and tax time is the perfect juncture to get a snapshot of your financial numbers and evaluate two critical areas of the Orman plan, spending and saving.

First, with your tax return in hand, take a look at total earnings for the year with all itemized expenses and deductions. Is all income accountable? How much money was spent and on what?  How much money was saved? How much money is owed? According to Orman, paying off credit card debt needs to be everyone’s top priority. Tightening the purse strings is crucial in establishing sound finances and begins with separating wants from needs when spending. Orman believes too many people shop unconsciously and that unconscious spending needs to stop. Once funds are generated by eliminating unnecessary expenses, attention can be given to paying off credit debt and eventually to increasing savings. All interest-accruing debt, with the exception of a mortgage loan, needs to be eliminated. Orman recommends having at least eight months of living expenses in reserve for emergencies and making sure all savings are covered by Federal Deposit Insurance.

Suze Orman is not the only author focusing attention on American wallets. The 1992 publication of Your Money or Your Life by Vicki Robin and Joe Dominguez was re-released for the 21st century. This manual of reordering material priorities by changing relationships with money renders lifestyle wholeness. It is interesting to note that this “old road map” remains relevant today. Like Orman’s call to the end of unconscious spending, Robin and Dominquez call for the end of conspicuous consumption. Additional reading selections that help analyze accumulation syndromes include Buyology by Lindstrom, ENOUGH by Bogle and The Power of Less by Babauta.

The feedback is in and what America has been doing is not working. Before pointing fingers at the politicians, either Republican or Democrat, take a look in the mirror and own up to all individual personal responsibility that has contributed to this mess. Choices can lead to either success or failure, and Suze Orman presents a plan for action to guide successful decision making. Following the Orman 2009 Action Plan does not require any particular skill set, only consciousness, honesty and personal accountability. Some might find her advice conservative; it is certainly timeless in taking personal money management back to the basics. Everyone together, beginning with even the smallest of steps, can start to turn the economy around. Now go sharpen your pencil!

		A veteran of the publishing industry, Sandra Guinness Lupini is a freelance writer.