To Own, or Not To Own?

Home Buying, , , , , , , ,

Purchasing a home is one of the most important spending decisions that people will make in their lifetime. While having a piece of property with your name on the title may be a cherished dream that you would like to achieve, it can also be an intimidating and uncertain financial move to make.

If you are trying to choose between buying your own home and continuing to pay a landlord, you can’t just compare the cost of renting with your expected mortgage payment. Let’s take a look at some of the various factors that you need to consider if you are thinking of taking this big step.

Amount available to invest

Acquiring a property in Jamaica can be a costly affair, so you need to be aware of the full amount of money you will need to spend before you can get your name on the title. Most people aim to secure the deposit of between 10 to 15 per cent, but there are other costs that will be incurred. Continue reading To Own, or Not To Own? →

Maintaining your health

Risk Protection, , , , , , ,

Last week we looked at the connection between wealth and wellness, noting that ill health can jeopardise your finances. Sickness can decrease your work output, deplete your savings and destroy your plans for the future. You need to have good health to pursue great wealth.

Since wealth can be defined as a “plentiful source of a particular desirable thing”, you could say that good health is a form of prosperity in itself. Whether you have an income shortfall or you have significant net worth, you must preserve your health if you want to be truly financially secure.

Very often, persons will explain that a shortage of time and/or money hinders them from pursuing healthy lifestyles. Let’s look at some of the common excuses and outline some strategies that can help you to find the right balance between managing your wealth and maintaining your health. Continue reading Maintaining your health →

Good Health, Great Wealth

Risk Protection, , , , , , , ,

For a few years now, I have been neglecting my health, mainly because I have been working hard to solve my financial problems. This has caused health problems such as fatigue, sleep deprivation and weight gain. How can I achieve financial stability without jeopardising my health? — Reader

In today’s fast-paced society, many of us are faced with the challenge of balancing work, home, school and service responsibilities. Trying to complete all these conflicting tasks can lead some people to over-schedule themselves and ignore the need for rest and relaxation in their daily agendas.

If you are going at a frenetic pace to make ends meet, generate extra funds to pay off debt or save for an important goal, then you may readily find excuses for working too hard. However, if your mantra is ‘no pain – no gain’, you might actually be harming your health and weakening your wealth.

Financial success is not just about having more than enough money to cover your needs and achieve your goals; good health is an integral component of your overall wealth. In fact, your mental, physical and emotional well-being all impact your ability to attain financial wellness. Continue reading Good Health, Great Wealth →

Preserving Your Life

Retirement & Estate Planning, Risk Protection, , , , , , , ,

Last week we discussed the significance of life, pointing out that the amount of income you create and the sum of your possessions are not the only determinants of your true value as a person. The positive impact that you make on the lives of others can be a key indicator of your real worth.

I believe that each person has unlimited potential to achieve great things and make a tremendous difference to the world. However, most people never really tap into their latent abilities and may never discover and accomplish everything that they were intended to do during their lifetime.

Whether you decide to experience your life to its fullest or you’re content to pass your time without fulfilling your life’s purpose, your existence on this earth has a value that needs to be protected. While your life is really priceless, it is possible to put a price tag on the contribution you make to other people. Continue reading Preserving Your Life →

How Much Is Your Life Worth?

Money Reflections, , , , , , , , ,

As we enter the Easter period, many Jamaicans celebrate the important Christian holiday in which they remember the death and resurrection of Jesus Christ. It is a time for reflection on how the sacrifice that was made thousands of years ago still impacts the lives of many persons today.

Although we may not readily list it as one of the assets on our personal balance sheets, the gift of life is priceless. Despite the challenges and difficulties that may discourage us from time to time, it is indeed a rich blessing to be given another day to experience what life has in store for us.

Does income determine your value?

If you wanted to quantify the value of your life, could you put a price tag on your existence? In order to seek a financial settlement in legal cases that involve wrongful deaths, lawyers often try to calculate how much possible income has been lost from the untimely passing of an individual. Continue reading How Much Is Your Life Worth? →

Protecting Your Investments

Investing, , , , , , , , ,

When you invest, you hope that your money will generate an income for you or that it will grow in value and allow you to realise a profit in the future. However, there is a possibility that your desired investing outcome may not materialise; you could instead receive an unfavourable result.

While you happily envision what you stand to gain, before you commit your funds to an investment you also need to consider what you could lose if you were to make the wrong decisions. It’s critical to assess how any adverse outcomes could harm your financial position and negatively affect your goals.

When you put your money to work for you, one of the possibilities is that you could lose some or all of your money if the venture fails. There is also the risk that your investment may not perform as planned, or that you may not get the kind of returns within the time frame that you had anticipated.

Although risk is an inherent part of the investing process, you can still seek to minimise or prevent some of these negative occurrences. Let’s look at some of the strategies that can help you to protect your investments from the risks of loss and unmet objectives. Continue reading Protecting Your Investments →

All That Glitters

Investing, , , , , , , ,

If you are an aficionado of jewellery, there is nothing quite as enticing as seeing artfully crafted golden trinkets, inlaid with precious stones, in a shop window. As the saying goes, “A diamond is a girl’s best friend,” and many women would love to deepen this particular bond of friendship!

In the world of investing, it is also easy to become enthralled by the glitter of an investment that promises to transform your fortunes by making you very wealthy. As you struggle along trying to make ends meet, the thought of being able to live more abundantly can be very appealing indeed.

An unwitting window-shopper is often tempted to pay large sums to acquire a beautiful new piece of gold jewellery. An inexperienced investor, lured with thoughts of getting wealthy from a seemingly attractive investment option, can similarly be enticed into making inappropriate financial decisions.

In The Merchant of Venice, Shakespeare opined, “All that glitters is not gold.” This quote cautions you not to be swayed by external features when determining the worth of a person or an item. The same holds true for many investments, as you need to look beyond the surface to verify their real value. Continue reading All That Glitters →

Managing Your Business Accounts

Business Success, , , , , , , ,

March is tax crunch time for many Jamaican taxpayers, as several annual returns and payments are due within this month. With the increased efforts of the Tax Administration Jamaica (TAJ) to inform persons of the rules and regulations, we all need to be aware of our tax obligations.

Last week we looked at some of the tax considerations for self-employed persons and individuals who earn extra income in addition to their regular salary. If you generate business income, or make money from investments or part-time sources, you may have to report your earnings at this time.

The TAJ recently noted that taxpayers should file the relevant returns for 2014 on or before the extended deadline of March 25 to avoid a $5,000 penalty which may be charged for each month the return is late. For tax assistance, contact the TAJ at 1-888-TAX-HELP or use their website at www.jamaicatax.gov.jm. Continue reading Managing Your Business Accounts →

Dealing With Your Taxes

Business Success, , , , , ,

Tax Administration Jamaica (TAJ) has been very active in informing self-employed persons and business owners about filing tax returns and paying taxes. As the tax deadline date of March 15 approaches, it’s important for these individuals to pay close attention to tax matters relevant to them.

With the stresses of running a business, entrepreneurs may sometimes neglect to follow all the tax requirements, which can be costly if they have to pay penalties and interest from late returns. It is critical for them to seek advice and update themselves on their obligations to the tax authorities.

Self-employed persons, who were formerly employed to an organisation which deducted all their taxes for them, may also be a little uncertain about all the steps required to keep them tax compliant. They, too, have a lot to lose if they fall afoul of the tax administration’s regulations.

If you are self-employed or if you earned money outside of your regular pay cheque during 2014, then you may have to submit some information to Tax Administration Jamaica and pay taxes on your earnings. Let’s take a look at some pertinent tax considerations that will apply to you. Continue reading Dealing With Your Taxes →

Giving Up On Your Goal

Goals, , , , , ,

Kimberly rolled over and looked at her bedside clock with dismay. The jarring alarm had jolted her from a blissful dream and she reluctantly swung her legs onto the floor. It was getting increasingly difficult for her to rise each morning and she longed to stay in bed for one more hour.

Up to two years ago, Kimberly had enjoyed getting up at the crack of dawn. She always anticipated another exciting day at work, and was the first to arrive and the last to leave the law office. Her dedication had won her several awards, as it was obvious to her bosses that she was a rising star.

From she was just eight years old, Kimberly had wanted to become a high-powered, well-paid attorney like the beautiful actress on her favourite television show. Ignoring the frivolities enjoyed by her friends, she had excelled at university and achieved her law degree in record time.

Her routine was disrupted one fateful evening when she was swept off her feet by a charming man with whom she had grudgingly agreed to have dinner at the insistence of her best friend. After six months they were happily married, and before long, the proud parents of a bouncing baby boy. Continue reading Giving Up On Your Goal →