Tag Archives: money management

Financial Mistakes

Financial Literacy, , , , , , , ,

“Success does not consist in never making mistakes, but in never making the same one a second time.” — George Bernard Shaw

UNLIKE most school systems, life doesn’t give you homework and examinations to determine how well you have learned the skills you need to succeed. In the real world, you can often gauge your progress in accomplishing your goals by the type of results that you are currently experiencing.

When it comes to money, there are many mistakes that can prevent you from enjoying the financial life that you desire. If you keep making the wrong choices, you will only continue to feel frustrated with the state of your finances. Let’s look at some of the common missteps that can derail your financial security. Continue reading Financial Mistakes →

A Makeover For Your Money

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I like to watch television shows that present dramatic transformations in people’s lives. Whether the participants receive a home renovation, a wardrobe revolution or a personal renewal, it is very satisfying to observe the positive changes that take effect. It is also heartening to see that even the worst situations can often be resolved once the right treatments are applied.

If you have a problem with your vision, then a visit to the optometrist and the right eyeglass prescription will usually allow you to see clearly again. Similarly, if your financial future looks fuzzy, then you probably need to get the right remedy from a ‘money doctor.’ The Total Money Makeover by Dave Ramsey is definitely one book that can provide you with a cure for your money concerns.

Financial disasters can be fixed

If you are having challenges with money, I recommend that you read this book. It is interspersed with inspiring stories of persons who were facing severe financial crises and were saved by applying the Total Money Makeover plan. You might be encouraged to know that there are solutions for people with money problems that are even worse than yours. Continue reading A Makeover For Your Money →

The Hidden Costs of Investing

Investing, Risk Protection, , , , , , ,

When many people think about investing, they have one major question in mind, “How much money am I going to make?”, and they usually don’t consider what they may have to give up in order to get their desired profit. However, natural law dictates that in order to receive, you must be willing to sacrifice something in return.

If you want to create wealth from investing, you will have to make some compromises in order to achieve your objectives. You’re not going to be blessed with wealth from this source without paying a price for it.

While it may be relatively simple to determine the direct expenses that can accompany an investment transaction, there are some hidden costs which may not be that obvious. Let’s look at some of the areas in which you must be willing to give and take in order to get the best from investing. Continue reading The Hidden Costs of Investing →

Money Lessons I Wish I Had Learnt In School

Kids & Money, , , , ,

Recently, while planning for a trip to a Spanish-speaking country, I realised that I had forgotten all the lessons I had learnt in high school about this foreign language. Although I had passed the subject in external examinations many years ago, I had no recollection of even the basic concepts.

Unfortunately this problem is replicated with many of the subjects that I studied in school from primary up to tertiary levels. Although I may have excelled at them in class, the reality is that I did not practise their principles outside of school, so their content became distant memories.

I know my situation is not an isolated case of ‘school-subject Alzheimer’s’. I have often wondered why our education system focuses on teaching children so many obscure topics, while ignoring some practical areas that are crucial to the development of our students. I believe that more attention needs to be paid to imparting important life skills to help them to cope in the real world. Continue reading Money Lessons I Wish I Had Learnt In School →

Should Children Be Allowed To Earn Money?

Kids & Money, , , , , ,

Upon mention of the words ‘child labour’ many people might envision a harrowing scene straight from a Charles Dickens’ novel; with malnourished children slaving away on an assembly line, producing goods for cruel, predatory adults. The concept of kids working for money has somehow been associated with a denial of childhood rights and forced employment.

Unfortunately in Jamaica, poverty and ignorance has driven too many parents to curtail their children’s education at an early age, turning them out onto the fields, markets and streets to contribute an income to the family home. We have all seen young children in uniform plying their wares, explaining that they needed to collect enough money to go to school the next day.

The question about children working for an income came to the forefront a few months ago around a television commercial featuring youth, obviously not yet in their teens, singing for a cellular telephone company.

A complaint was raised that the advertiser was unethical to use children to promote its product. Eventually, a warning from the Ministry of Labour and Welfare was issued reminding people that children of a certain age should not be employed. Continue reading Should Children Be Allowed To Earn Money? →

Things To Consider Before Starting A Business

Business Success, , , , ,

Unlike her co-workers, Camille* had been ecstatic at the news of the closure of the company she had worked at for nearly 20 years. As she mentally calculated her expected redundancy package, she was delighted that her dream of starting her own catering business could finally become a reality.

As soon as she received her final pay cheque, Camille turned her attention to setting up an upscale eatery that rivalled the bistros found in South Beach, Florida. Awash with cash, she spared no expense in creating the right décor and an enviable menu. Excited at the prospects of her first business venture, Camille opened her doors with a flurry of promotions and pizzazz.

Fifteen months later, Camille is singing a different song. Gone is the optimistic fervour of the newbie entrepreneur; today Camille is burnt-out, broke and begging for someone to buy her out. What went wrong with her grand business idea? Continue reading Things To Consider Before Starting A Business →

Money Milestones

Money & Your Mind, , , ,

Recently, a client asked me if I thought that she had achieved all the appropriate financial targets for her age. Like a concerned parent eagerly checking for the age-specific developmental achievements of a child, she was trying to assess if she had attained the money milestones that would indicate that she was on the right track.

However, just like children who progress at their own pace, each person is unique when it comes to their personal financial development. Some people seem to be born with the right genes for money, getting an early start on wealth creation by being consistent savers and savvy investors. Others appear to be slow learners, remaining deficient with their money skills until their later years.

Despite the disparity in development, there are basic money milestones that can be used as a guide to people’s financial health and well-being. Let’s examine some of the signposts to look for as you move along your financial life journey: Continue reading Money Milestones →

More Money Lessons from the Animal Kingdom

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A few months ago, I discussed the habits of some ordinary animals, noting that they had many positive lessons to teach us about being smart with money. From the lowly ant to the powerful racehorse, these creatures demonstrate determination and dedication in achieving their goals.

For the most part, the members of the animal kingdom are very disciplined and organised with their instinctual activities. However, I have researched some quirky animal behaviours that could be compared with the destructive habits that many us of have with money.

Here are a few actions that we do not want to emulate in our financial lives:

Don’t stick your head in the sand like an ostrich

It has been said that when frightened, ostriches will hide their heads in the sand to escape harm, but scientific study has debunked this saying as a myth. Although the speedy ostrich will first run away from danger, if it cannot move or defend itself, it will lay its head and neck flat on the ground to evade detection. As its upper body is the same colour as the sand in its natural habitat, it could easily be thought that the animal had stuck its head in the ground. Continue reading More Money Lessons from the Animal Kingdom →

2010 Action Plan #3: Control Your Income

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It wouldn’t be hard to predict that it’s going to be more difficult to make money in 2010. Employees and entrepreneurs alike are experiencing a decline in their earning power due to pay reductions, job layoffs, and consumer spending cuts. Investors who had previously benefited from lucrative profits in the money market now have to cope with decreasing returns.

How can you survive when you are not earning enough? Let’s look at some of the typical challenges that people are facing today and offer some possible solutions to these problems:

Situation: Your boss is cutting your work time to four days per week, and you stand to lose 20 per cent of your pay. Continue reading 2010 Action Plan #3: Control Your Income →

2010 Action Plan #1: Control Your Spending

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In recent times, while speaking to several persons about their money problems, I have detected a growing sense of desperation in their voices. Although many have not yet reached a stage of full-fledged panic, it is obvious that they are very worried about the current financial situation facing Jamaica.

“If I can’t make ends meet now,” a client asked perplexedly, “what’s going to happen to me when the full impact of the tax increases hits?”

I believe that good results can come out of every bad situation. The prevailing economic crisis has forced many of us to recognise that we can no longer be nonchalant or clueless about our financial condition. We have received a monetary wake-up call – it’s now time to take control of our finances!

Over the next three weeks, I will share with you an action plan that will help you to survive in these times, and set yourself on the right track to long-term financial success. Continue reading 2010 Action Plan #1: Control Your Spending →