The IMF and You

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When the International Monetary Fund (IMF) finally confirmed in February that a US$1.27-billion loan for Jamaica had been approved, it put to rest several months of speculation about the agency’s return to our country. Although there have been several debates in the media about the impact that the IMF agreement may have on our economy, many people are still not very clear about what these policies will mean to them.

Recently, the Jamaica Co-operative Credit Union League (JCCUL) hosted a public forum in St Ann, where topical financial issues were discussed. Denise Garfield, JCCUL’s corporate planner, delivered an insightful presentation outlining the role of the IMF and what the agreement will signify for Jamaica.

What is the IMF?

Garfield demystified the IMF by explaining that it was an organisation made up of 186 member countries, which have the ability to borrow from the fund when necessary. The purpose of the IMF, Garfield noted, was to foster global growth and economic stability by providing policy advice and financing to members facing financial difficulties. Continue reading The IMF and You →

Should Children Be Allowed To Earn Money?

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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? →

Is This The Right Time To Start A Business?

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“I’ve been thinking about starting my own business, but I’m nervous about the current economic climate. Is it advisable to begin a business in the middle of a recession? Are there any industries that might be less vulnerable at this time?”

It’s understandable for people to disbelieve the financial pundits who declare that crises can bring tremendous possibilities for new businesses. Prospective entrepreneurs might think, “Easier said than done,” as they are encouraged to look for business opportunities that have been created by the recession.

With consumers cutting back on spending, large corporations laying off workers and governments facing economic hardships, how can it be feasible for a small operation to navigate these turbulent times and create a solid foundation for success? Continue reading Is This The Right Time To Start A Business? →

Things To Consider Before Starting A Business

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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 →

Is Self-Employment Right for You?

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In today’s economy, the concept of self-employment is becoming increasingly popular. Some persons desire to become their own bosses in order to give birth to business ideas that they always dreamed about. Others are forced to create their own incomes, as the contracting job market does not provide many options.

Unfortunately, the road to successful self-employment is littered with many casualties along the way, with people who have seen their entrepreneurial dreams transform into financial nightmares. Whether self-employment is your choice or you have no alternatives, it’s important to first consider if you are ideally suited to the rigours of this lifestyle.

Let’s look at some of the key factors that can help you to decide if self-employment is right for you: Continue reading Is Self-Employment Right for You? →

Money Milestones

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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 →

The 3 Ms of Money Gone Caribbean!

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It’s been really exciting seeing the development of the personal finance industry in Jamaica over the last eight years. As I write my memoirs about my past money mistakes and the strategies I used to turn around my financial situation, I remember the days when I felt like a lone voice in the wilderness, talking to people about the importance of proper financial habits.

Ever since I learned that the key to money success was all about knowing, understanding and doing the right things with money, I have been committed to spreading the ‘3 Ms of Money’ message – how to manage, multiply and maintain money.

Today, there are more institutions passing on information about the right money habits for success, although there’s still a lot of work to be done. It’s also encouraging to see the focus on financial literacy education in agencies around the Caribbean. I am actively building my audience in the Caribbean, and I have recently been included as a feature writer on the regional website http://financialliteracycaribbean.com.

I’m looking forward to taking the ‘3 Ms of Money’ all around the Caribbean very soon!

Keep being Financially S.M.A.R.T.

Time is of the Essence!

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One of the realities of our current economic climate is that we are now forced to do more with fewer resources at our disposal. While our income loses value every month, our expenses grow almost exponentially. Layoffs and job work-hour cuts are reducing the size of the workforce, yet employees are being asked to produce more in less time.

As we continue to grapple with the financial challenges that this year will bring, it becomes even more crucial to manage the precious resource of our time. I often comfort my clients by explaining that they can always recreate lost wealth; but I can’t give the same guarantee about time because it’s not a renewable resource.

Many of us approach time as if it were an hourglass that will replenish itself with sand once we turn the instrument upside down. The reality is that once we use up all the seconds, minutes and hours in a day, we will never see them again. Continue reading Time is of the Essence! →

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 →

Developing Financial Literacy in Jamaica

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Over the past eight years, I have been actively involved in writing, training and coaching on topics relating to financial education. Through interaction with thousands of Jamaicans from all walks of life, I have realised that the number one problem that prevents most people from achieving their financial goals is their lack of understanding of basic money principles.

Financial literacy is defined as the ability of individuals to make appropriate money decisions by learning the principles that relate to the management, growth and preservation of their money. When people are educated about the appropriate actions to take with their money, then they are more likely to save towards their goals, manage their debt, purchase assets such as a home, and make positive contributions to the economic development of the country.

Anecdotal evidence points to an overwhelming demand from Jamaicans for practical information on or about basic financial strategies such as budgeting, debt control, investing options and retirement and estate planning.

Although some financial institutions have been offering public seminars to address some of these issues, their initiatives have been insufficient to meet the country’s requirements. Continue reading Developing Financial Literacy in Jamaica →