Last week we looked at the key financial principle of paying yourself first, by saving some of the income you earn. Like our Jamaican proverb advises, “Parson christen ‘im pickney fus,” which means that a parson takes care of his child first, so should you prioritise your own financial affairs.
When your income is stretched to the limit taking care of bills and other obligations, it may seem impossible to find an extra dollar to put aside for the future. Recognise that if all your money is spent paying other people, then you really have nothing to show for all of your hard work.
Slow savings – a waste of time?
It may require you to make a big sacrifice to save consistently, and to be disciplined not to deplete your funds unless you have a true emergency situation. However, when you look at the slow progress on your savings growth, you may be tempted to wonder if your sacrifice is pointless. Continue reading Jamaican Style Money Guide – Every Mickle Mek A Muckle
The phrase “a penny for your thoughts” is usually expressed when asking someone to voice an opinion on an issue being discussed, or when trying to discover the ideas which might be occupying the mind of someone lost in deep contemplation.
The earliest recorded use of the idiom is traced back to the 16th century when a United States penny, or one cent, was much more valuable than it is today. Given the current purchasing power of a penny, it might be considered almost disdainful to offer someone a cent for their opinions!
Our falling Jamaican dollar
I recently recalled this old saying when the rate of exchange of the Jamaican dollar to the United States counterpart first traded at about $100 for US$1 in June 2013. Our embattled currency symbol, which now had a value of less than one US penny, had hit a dismal new low. Continue reading A Dollar for Your Thoughts
It ‘s amazing how a few minutes’ time delay can make a major difference to an entire day. This realisation struck me on a recent bus trip to the country. The driver of the vehicle turned up about 15 minutes late for work, and in his attempt to make up for lost time, he exceeded the speed limit and was stopped by the highway police.
The driver ended up delaying his journey by several more minutes and received a traffic ticket to add to his troubles. When we finally reached our destination he admitted to his team member that every time he was a little late he got caught by the police! As I left the bus, I reflected on the fact that lost time can also multiply problems in our financial lives.
One of the biggest financial misconceptions that many of us entertain is the belief that we have all the time in the world to do the right things with our money. When we spend our money frivolously or procrastinate on taking action on our goals, we usually think that we will be just fine if we save later or start working on our plans at another time. Continue reading A Stitch In Time
“I’m 39 years old and I’m trying to save up for the deposit on a house. It seems like time is not on my side, because housing costs are rising much faster than I can save. I really regret not listening to my mother when she encouraged me to save when I was younger.
“I feel discouraged because if I had started saving earlier, I probably would have owned my house by now.”
As the popular saying goes, “Time waits for no man.“ Although it’s never too late to start saving towards your goals, you won’t be able to turn back the hands of time to recreate that nest egg that would have grown with an early savings plan.
Time is probably the most important factor in achieving your financial dreams. Small consistent savings earning a steady interest rate over many years has made many persons wealthy. When we waste time by not investing early, we’re actually losing money.
What are some of the factors that may cause us to put off saving, and lose the advantage of time? Continue reading Time is Money!
I’m 19 years old and I just started working. All I can manage to save at this time is J$500 per month in my credit union. Sometimes I wonder if it’s worth it, as my savings seem to grow so slowly. I feel tempted to just spend this money until I can really afford to save more. What you would advise?”
Congratulations on your decision to start saving some of your income, regardless of how small you think it is. Don’t discount the value of your current savings effort. Remember the Jamaican adage – “Every mickle mek a muckle.”
In financial terms this means that you should be content to save the little you have over time, and eventually you’ll get all the money you need.
Last week we looked at three keys to starting a savings plan and ensuring its success: pay yourself first, save at least 10% of your salary, and use automatic deductions to save consistently.
Once you’ve gotten into the savings groove, how can you make your money really grow faster?
Continue reading How Does Your Money Grow?