Category Archives: Budgeting

Life After Layoffs

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The days and weeks of watching and worrying have finally come to an end. Your worst fears have been realised – your name is on that dreaded layoff list. In an instant, your occupational status has been altered. You have joined the increasing ranks of the unemployed.

Being laid off can be a traumatic experience. Anxiety about the loss of a steady income, coupled with feelings of rejection and unworthiness can send some newly laid off persons into depression and despair. For others, a job is really more than just a bill-paying source, it helps to define them and give them a sense of purpose.

As with any other negative event in life, the way to survive a job loss is to adjust your attitude and adopt a positive outlook. If you allow the circumstances to overcome you, you will not be able to see the opportunities that exist within every challenge. Despite the situation, you must always keep hope alive that better days will come.

If you have recently lost your job or you fear the advent of the unemployment line, here is a seven-step guide to help you to recover from redundancy: Continue reading Life After Layoffs →

Managing Money for College Students

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I’m heading off to university for the first time this September, and I’ll be living on campus. I’ve never left home before and I’ve been accustomed to having my parents buy everything I need. I would like some advice on how to spend my money carefully and stay within my budget.”

College life can bring new-found freedom for most young adults. For perhaps the first time, they can make their own decisions: how long to stay out at night, what type of food they want to eat, what to spend their money on. The problem is- most students have had little experience in managing money, and end up making poor choices when it comes to their finances.

Here are some tips to help you to successfully navigate the tricky financial waters throughout your college years: Continue reading Managing Money for College Students →

Watch Your Cash Flow

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“I work freelance and my income comes in at different times over the month. I’ve done my budget and it shows that my income is more than enough to meet all my expenses. I really try not to spend money carelessly. However, every month I’m always short of funds to meet my obligations, and I end up having to borrow from my family to tide me over. I don’t know what I’m doing wrong. Help!”

At a recent business seminar, I had the privilege of listening to a wealthy Texan businessman, Keith Cunningham reveal some of his secrets of success. Cunningham was one of the ‘rich dad’ mentors of Robert Kiyosaki, bestselling author of Rich Dad, Poor Dad. In his presentation he highlighted the importance of reading and understanding financial statements.

Cunningham pointed out that most people go straight to the profit figure on an income statement, to decide if a business is performing well, but neglect to focus on the cash flow statement. This ‘rich dad’ declared that while the profit and loss statement could be called a theory, cash flow was the reality.

“Profits do not sustain a business, for it can live for years without a profit,” he said, “but it will fail if there is no cash.”

Continue reading Watch Your Cash Flow →

A Budget for all Seasons

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“I find it really difficult to make a proper budget. Each month I write down all my expected bills, but somehow I seem to spend more than I had planned. Some unexpected expense always appears and throws off my planning. Please help me to figure out how to do a budget that actually works! “

Budgeting can sometimes feel like an unrewarding exercise. It can be time-consuming to record all the planned expenses, as well as depressing to see how much money you’ll need to spend written in black and white. It’s even more frustrating when you do all that hard work and your budget doesn’t match what you actually end up spending!

Congrats on making the effort to organize your finances with a budget. Many people don’t bother to budget because of some of the reasons above. They are also reluctant to plan for their needs and goals, displaying a wishful attitude that things will all work out for the best eventually.

Whether you earn J$20,000 per month or take home J$200,000, making a plan for your expenses is absolutely essential to manage your money properly. Continue reading A Budget for all Seasons →

Save Now for Back to School

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“Sending my son back to school this month has been really hard. His father, who usually pays for school fees and books, recently lost his job and had nothing to contribute. I’ve had to borrow from friends to pay the fees, and most of the books have not been bought yet. How can I prevent this from happening again next year?”

School is in and many parents are still reeling from the effects of back-to-school expenses. Some may feel that September comes around too quickly, as they are never quite financially ready to meet the major expenses that this month brings.

Some people rely on using ‘partner’ plans or borrowing from credit unions to meet the September back-to-school costs. However, these strategies might not be enough to take care of the regular monthly and term expenses that will arise throughout the school year. Continue reading Save Now for Back to School →

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 →