Rainy Day Savings

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“I’ve just found out that my company is going to be laying off some workers next month, and I think that I might be one of the unlucky ones. If they let me go, my redundancy payment would be very small and I’m worried that it won’t be able to last for long.

“The only money I have is saved is in an insurance policy, which I don’t want to touch. What can I do if I get laid off?”

As we say in Jamaica, ‘trouble nuh set like rain’. Sometimes problems don’t come with clear warning signs like dark clouds before a heavy rainstorm. While I hope that your fears are unfounded, it highlights a need for a savings plan to give you cash in the event of any emergency.

Financial experts say that you should put aside money to cover three to six months’ living expenses in case of a medical emergency or job loss.

Continue reading Rainy Day Savings →

Debt Distress

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“I am engaged to be married to a great guy. Problem is, he doesn’t know that I’m up to my ears in debt. I was made redundant two years ago, and I had to max out three credit cards and take out two credit union loans to survive.

“Now that I’m working, my salary can barely pay the minimum required to pay off these debts. I’m too ashamed to tell my fiancé, as he may think I’m not financially stable and reconsider our wedding.”

Don’t be so hard on yourself. Being without a job for an extended period can send practically anyone into debt overdrive. Give thanks that you’re back into the world of a steady paycheck!

However, your past financial woes are not going to disappear by pretending that they never existed.

Continue reading Debt Distress →

Planning for Education

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“I have three children ages 4, 8 and 11.  I’m worried that I have not been saving any money towards sending them to university. Right now it’s sometimes hard to find the school fees and money for extra activities, but I don’t want them to have to struggle to afford university.

“What can I do with my limited budget?”

The high cost of raising children is a reality that is never going to get easier. Sometimes it’s not that the money isn’t there to pay the school fees, but that parents didn’t start saving early enough to take care of the costs.

The saying “If you fail to plan, you plan to fail“ is really applicable in this case. I think that sometimes we look at the word ‘plan‘ as a bad four-letter word. We live from day to day without a clue for the future, hoping that some happy coincidence will provide us with what we need to survive.

It’s one thing to adopt this attitude when we’re only thinking of ourselves, but when children come into the picture, we owe it to them to plan for their future. Continue reading Planning for Education →

Budget Wise

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“I read last week’s column about budgeting and I’ve decided to  give it a try, one more time.  My problem isn’t making a budget,  it’s sticking to it.  I can’t seem to get my good intentions off the  page and into the real world.  As soon as I’m depressed or tempted to spend I give up.  How can bring the budget to life?”

Last week we looked at budgeting as the foundation to building a solid financial future. Unless you have an unlimited source of income, (if you do, please let me in on that secret!) you’re not going to achieve all your big financial goals without taking control over your income and expenses.

When you live without a clue as to how your money is spent, you cannot plan from one month to the next. Little expenses come as big surprises. The budget is the blueprint that shows you exactly what costs to expect, and helps you to know beforehand if your income will be enough to cover them. Continue reading Budget Wise →

Budget Blues

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“All the financial advice I read says that setting a budget is important. Every month I try to make a realistic budget, but it just doesn’t work. The figures never seem to match what I end up spending. I’m frustrated with budgeting and ready to give up. Am I doing something wrong?”

Relax. You’re not alone in your budget blues. Most people start budgeting with lots of promise, but within two weeks their plans get dumped like yesterday’s newspaper. As month-end approaches, they desperately await the next paycheck, sadly resolving once again to set their finances right. Then they get paid and the cycle continues.

Why bother with budgeting? Why not just spend as you go and hope for the best? Who really wants to have their lives dictated by the figures on a piece of paper, anyway?

This thinking is fine if you’re only living for today, but if you’ve ever dreamed about financial security and freedom from worrying about money, then a proper budget is the key that will open that door for you. Continue reading Budget Blues →

Fighting the Urge to Splurge

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“I know I can save much more than I do right now, but I can’t seem to stop shopping. Most weekends I’ll go on the plazas just to look around, but by the end of the day I’ve spent thousand of dollars on things I really don’t need. How can I stop this unnecessary spending?”

Let’s face it: shopping is fun. It’s hard to match the adrenalin rush that comes when you see a SALE sign on the window of your favourite store, and it’s easy to become addicted to the emotional high that comes from buying something new.

However, if you admit that you’re wasting money on things you don’t need, then your shopping is out of control. One of the keys to achieving financial freedom is being able to have power over how and where you spend your money.

Every dollar spent on consumer items is a dollar taken away from building your wealth. Continue reading Fighting the Urge to Splurge →