Tag Archives: inflation

Making Sense of Saving

May 15, 2015Savingbank account, emergency fund, health insurance, inflation, interest rate, Jamaica, Law of Accumulation, Money Coach, personal financeCHS

I recently overheard two shoppers discussing the high price of groceries at the supermarket. One lamented that she had to discontinue her son’s college savings plan as it was costing her more each month to buy the necessities. “Right now, it just doesn’t make any sense to save,” she complained.

Rising inflation levels and reduced interest rates have definitely curtailed the ability and willingness of many people to save. When they have to make a choice between paying the bills and putting aside money for the future, their current needs will always take precedence.

Some people believe that the money tradition of saving has gone the way of phone booths and floppy disks — an outdated and old-fashioned relic of times gone by. They declare that it is more money-savvy to invest their cash than to leave it languishing in low-interest bank accounts.

Despite the realities of tenuous budgets and unattractive returns on savings, there are many reasons why the practice of saving is still an essential financial habit to adopt. Let’s look at some considerations that will help you to make sense of saving. Continue reading Making Sense of Saving →

Money Resolution #2: Save Regularly

January 16, 2015Savingbank account, inflation, interest rates, Jamaica, Money Coach, personal finance, plan for the future, savings goalCHS

Two weeks of 2015 have swiftly flown by and some people may have already settled back into practising unsupportive financial habits, despite their fervent declarations to do better this year. In fact, there may be few differences between the New Year and all the past years for many persons.

Even if you realise that your resolutions usually fizzle out like wet firecrackers, don’t give up on trying to create a better life. The key to being successful with your goals is to break them down into bite-sized objectives that you honestly believe you can realistically attain over the year.

Last week we discussed a fundamental money goal to accomplish this year — preparing a budget. This will give you a solid base upon which to build your financial future. If you are not currently saving consistently, I encourage you to make it the second objective on your bucket list for 2015. Continue reading Money Resolution #2: Save Regularly →

When Your Budget Goes Awry

June 6, 2014Budgeting, Income Creation, Spendingbudget shortfall, Frugal Living, inflation, Jamaica, make more money, Money Coach, personal finance, spend wisely, target incomeCHS

Caroline looked at the Excel spreadsheet on her computer with increasing dismay. “Just three months ago I was able to balance my budget, but now I’m short again by over J$15,000,” she grumbled to herself. “No matter how hard I try, I just can’t seem to keep up with my expenses.”

She reflected on all the developments that had occurred in her life in the preceding months. Her grandmother, with whom she was raised, had fallen seriously ill. As her only relative, Caroline had taken on the task of caring for her, which had thrown her once tightly controlled budget into disorder.

Having another person in the house meant increased utility costs, and she needed to hire a housekeeper to help with the extra cleaning needs. In addition, she had to buy her grandmother’s costly medicines and pay for her doctors’ appointments without the benefit of health insurance coverage.

Initially, Caroline used her credit card to cover some of the pharmacy bills, but after two months she realised that she was having challenges clearing the card balance. After consolidating several loans over a year ago, she was now desperately worried that she was headed back into debt problems. Continue reading When Your Budget Goes Awry →

Reflections on Retirement

May 18, 2012Retirement & Estate Planningincome stream, inflation, IRA, Jamaica, Money Coach, nest egg, NIS, pension, personal finance, retirement plan, social securityCHS

Hundreds of readers have accepted this month’s money mission to focus on retirement, and this has confirmed to me that many people are very concerned about said aspect of financial planning. I’m sensing that some of you are becoming desperate about your present financial state of affairs and the bleak future that may be awaiting you.

Whatever your current financial position, I want to reassure you that it is possible for you to design a realistic plan of action that can help you to not only survive during your retirement years, but have a fulfilled life. However, pretending that you don’t have a looming problem is only going to ensure that your worst financial nightmare will become your retirement reality.

Let’s look at some important issues that you should consider in order to make proper preparations for this important time in life. Continue reading Reflections on Retirement →

Money Mission: Make A Realistic Retirement Plan

May 11, 2012Retirement & Estate Planningfinancial freedom, inflation, Jamaica, long-term goals, Money Coach, pension plan, personal finance, retirement income, save for the futureCHS

I vividly remember dealing with a client many years ago at the financial institution where I worked. He was in his late-50s and wanted to put aside some funds for his retirement. Preparing to discuss investment options and strategies for this objective, I asked him how much money he had to start his plan.

He presented me with a cheque for just over J$150,000 (at that time, the equivalent of about US$2,400), and after I asked some pertinent questions, it became clear that this was the sum total of my client’s net worth. He explained that he had worked in the music industry for his entire life and had seen a lot of money pass through his hands, but had never thought about putting aside some of his earnings for the future.

As he continued to relate his sad story of business setbacks and personal challenges with a chronic illness, I realised that he had become despondent and was not really receptive to my ideas to improve his situation. Just before he left, he said, “I wish someone had taught me these things 20 years ago when it could have made a difference.” Continue reading Money Mission: Make A Realistic Retirement Plan →

Money Mission: Get Real About Retirement

May 4, 2012Retirement & Estate Planninginflation, Jamaica, Money Coach, pension, personal finance, retirement income, Retirement PlanningCHS

There’s an epidemic poised to take over Jamaica that has the potential to devastate the lives of hundreds of thousands of people, and yet there is very little discussion about it in our country. Our airwaves and newspapers are chock-full of opinions on the latest scandal, yet no time or space is being devoted to this looming disaster.

This tragedy will not present itself in the form of a weather calamity that wreaks havoc on our physical infrastructure, nor will it be a medical emergency involving an infectious disease. However, this coming catastrophe will have the potential to bring financial adversity and deprivation on a scale hitherto unseen in our nation.

My apologies on sounding like an angel of doom, but this impending crisis prompts me to be a little melodramatic in my pronouncements. Continue reading Money Mission: Get Real About Retirement →

Is it Practical To Plan For Retirement?

November 13, 2009Retirement & Estate Planninginflation, Jamaica, Pensions, personal finance, Retirement & Estate Planning, Retirement Planning, Self EmploymentCHS

As it becomes increasingly difficult for many companies to finance workplace pension plans, and more persons join the ranks of the self-employed, the number of Jamaicans who are currently investing towards their retirement years is woefully inadequate.

Studies indicate that private pension arrangements are now covering some 60,000 persons of the approximately 1.3 million people in the labour workforce in Jamaica. This means that only about one out of every 22 persons contributes to a savings plan that will help to replace their income when they can no longer earn a living or choose to stop working.

This is a startling statistic, as it indicates that many persons may not have considered the necessity of planning to create an income for their later years. Continue reading Is it Practical To Plan For Retirement? →

Inflation and Your Money

September 11, 2009InvestingBank of Jamaica, inflation, investment, Jamaica, money management, personal financeCHS

Imagine going to a restaurant to buy a cup of coffee and being told that the price was $5,000. After ordering a second cup, you request a bill and see that the total cost for two cups of coffee was $14,000.

Upon enquiring about the obvious error you were told, “If you want to save money and you want two cups of coffee, you should order them both at the same time.”

You may think that this is just an amusing story. In fact, this was a real-life example of life in Germany after World War I recounted in Adam Smith’s Paper Money, which described the extreme effects of inflation on that country’s economy. Continue reading Inflation and Your Money →

The Secrets to Wealth

March 27, 2009WealthAssets, Entrepreneurs, inflation, Investments, Liabilities, opportunities, Poverty, prosperity, Stocks&BondsCHS

It has been said that only about one per cent of the world’s population ever achieves great wealth. No wonder the 99 per cent majority thinks that there are some hidden secrets to becoming wealthy that rich people won’t divulge!

Recently, First Global Financial Services (FGFS) revealed some of the mysteries to wealth at its Dollars and Sense Money Management seminar. Jason Dear, FGFS Equity Trading manager, explained that the act of wealth creation was not shrouded in secrecy.

Dear explained that making money came with understanding and following simple money principles.

“There are universal rules that govern wealth creation,” he clarified. “To get rich you need to learn and execute these principles.” Dear outlined his top 10 list of ‘secrets’ that could help ordinary people begin a successful journey to wealth: Continue reading The Secrets to Wealth →

Financial challenges in a tough economy

October 17, 2008Goalsfinance, financial crisis, inflation, Jamaica, portfolio, stock market crashCHS

“I am really confused about how to make ends meet in these times. The cost of living is at an all time high, my salary can’t pay all my bills, and the returns on my investments are a joke. I really need some practical advice on how to make some more money to survive.”

If you haven’t already figured it out, we are living in tough economic times. The global financial markets are experiencing a frightening meltdown that’s affecting both multinationals and mom-and-pop stores, small savings accounts and large investment portfolios, consumers and retirees.

Here in Jamaica, the financial heads have admitted the obvious – we’re all going to be impacted by the international monetary woes in one way or the other.

Under normal conditions, making enough money to meet all our needs can be difficult. In this financial landscape it may seem almost impossible. Let’s look at some of the challenges that are currently impacting the standard ways of making money: Continue reading Financial challenges in a tough economy →

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