Category Archives: Money Reflections

Getting Something for Nothing

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Recently, I received an email advising me that an organisation had recovered funds that they believed had been diverted from my account. If I was willing to confirm my bank records, then I could benefit from the restitution of part of the over US$9 million in stolen assets that they claimed to have identified.

My first reaction to the outrageous email was to laugh heartily, as I wished that my net worth could justify my inclusion in their list of wealthy persons with diverted funds. Then, I thought that there had to be many people who would respond to the spurious message, knowing that they really didn’t qualify.

I believe that scam artists continue to create these fraudulent emails because there are lots of people who regularly fall victim to their improbable stories. If criminals had no success in trying to get persons to reveal their banking information, then they would have stopped trying this method a long time ago. Continue reading Getting Something for Nothing →

Honesty Is The Best Money Policy

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“Speak the truth and speak it ever, cost it what it will.
He who hides the wrong he did does the wrong thing still.”
— Children’s memory gem

Many of us adults may have vivid memories of being taught the importance of speaking the truth and being honest at all times, back when we were children. Parents and teachers alike drummed it into us that we should never tell lies, even if we thought that we would be punished for some wrongdoing.

Despite the reinforcement that we received about this critical life lesson, I’m sure that some of us will also remember those times when we ignored the warnings about honesty. The fear of getting into trouble was often too strong to allow us to freely admit to our sins and shortcomings.

There were probably occasions when we thought we had gotten away with telling lies. Perhaps no one saw us break the plate or take the last dumpling off the stove, so we believed that our secret would remain hidden forever. No doubt our shrewd caregivers would have corrected that idea in due course! Continue reading Honesty Is The Best Money Policy →

Money Musings: The Power of Teamwork

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The FIFA 2014 World Cup is in full swing and millions of people across the world are being entertained by the excellent football matches being played. I enjoy watching competitive sport, and have been fascinated by the dominance of smaller football nations over their more established counterparts.

The brilliance of star strikers from teams such as Spain and Portugal has been dulled by the exploits of the not-so-favourite sides like Costa Rica and Chile. I observed that it was often very difficult for the top teams to get the better of a band of players who were performing together like a well-oiled machine.

As I marvelled at this showcase of sporting teamwork, I reflected that we all could benefit from the help of others when we are trying to accomplish our goals. Instead of attempting to advance solely by ourselves, it might be useful to get the assistance of a supportive team in order to achieve our objectives.

Just like a football squad which is made up of players with different responsibilities, you might need to assemble a group of friends and professionals who can help you in various ways to further your goals. Let’s look at some of the possible members who might comprise your personal finance team. Continue reading Money Musings: The Power of Teamwork →

Money Lessons From Mom

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On Sunday May 11, millions of people around the world celebrate Mother’s Day, when they pay homage to their maternal parents. The memories of a great mother can last beyond her lifetime; and if you are lucky enough to still have your mom around, ensure that you treat her extra special on this day.

I have been blessed with the inspiring presence of my mother for over 40 years, and she has been very influential in my personal and professional development to this day. As a woman who achieved many accolades in her chosen field, I have always aspired to emulate her success.

In hindsight, I realise that my mother has always been an excellent financial role model, demonstrating many of the smart money practices that bring financial security. Unfortunately, as a young person, I ignored her examples and advice, which caused me to make many poor choices with money. Continue reading Money Lessons From Mom →

Money Musings: The Sanctity of Savings

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Jamaican Finance Minister Dr. Peter Phillips recently announced new taxation measures that would affect all persons who utilise our banking sector. Dr. Phillips revealed that withdrawals from deposit-taking institutions would be subject to a graduated tax system.

All forms of withdrawals, including those done inside branch offices, point-of-sale transactions using debit cards, issuing cheques, and getting cash from ATMs would be affected. Electronic transactions would also be taxed, except transfers made by persons between accounts at the same institution.

The finance minister indicated that withdrawals of less than J$1m would be taxed at 0.1 per cent of the value, which would mean that persons would pay $1 for every $1,000 taken from their accounts. The percentage tax would decrease on a tiered system for larger sums of money withdrawn.

Although the tax is to be applied to the financial institutions, it stands to reason that the final effect of this withdrawal levy would be felt by the account holders themselves. Predictably, the pronouncement has sparked much negative feedback from various sources across the nation. Continue reading Money Musings: The Sanctity of Savings →

Money Musings: You Can Never Be Too Rich to Fail

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Recently, there was a news report that a ticket bought in California had won the sixth highest lottery jackpot in the United States, earning approximately US$425 million in the process. The Powerball winner would net just over half that figure if he or she opted to take home a lump sum.

It would be easy to think that this sudden windfall of money would make the recipient financially secure for life. However, there are myriad stories of other big lottery winners who squandered their riches in record time and had little to show for their good fortune after a few years.

Many people believe that if they could earn a large enough sum of money, whether through lady luck or in their regular job or business income, then they would never have to worry about money again. Once their cash inflow is significant, they think that they can live their dream lives forever. Continue reading Money Musings: You Can Never Be Too Rich to Fail →

Money Musings: What You Don’t Know Can Hurt You Financially

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I recently read a report about an entrepreneur who was being sued for non-compliance to a business contract. Apparently the deal contained specific delivery terms for the product that was being sold, and the business owner failed to provide the goods within the agreed time.

This time delay resulted in the customer losing a lucrative partnership, and the negligent business owner was taken to court to obtain damages. The defendant admitted that he was not aware of the time stipulation, and declared that he would not have signed the contract if had he known about it.

What the business owner didn’t know ended up costing him a significant sum, as he was deemed liable to pay for his customer’s losses. This case made me think that there are many occasions in which we can suffer financially because of what we don’t know. Continue reading Money Musings: What You Don’t Know Can Hurt You Financially →

Money Musings: It’s Hard to Be Lean in Jamaica

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Efficiency is a success strategy that should be used to guide all your activities, whether you are seeking to accomplish personal, work, business or financial goals. In everyday terms, efficiency is the ability to effectively complete a task with the minimum amount of effort or time.

In business, efficiency is critical to the bottom-line; as you should aim to use the lowest amount of inputs, such as money, raw material, labour or machine time, to produce the maximum level of output possible. Efficiency helps you to reduce wastage and realise more profit from your efforts.

Last week, we looked at the concept of ‘lean’ production which was pioneered by Japanese auto maker, Toyota. This process of manufacturing focuses on eliminating wasteful and redundant procedures and ensuring the optimal use of resources to maximise output and profitability. Continue reading Money Musings: It’s Hard to Be Lean in Jamaica →

Financial Freedom at Last!

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On August 1, our nation commemorated another Emancipation Day; a time when Jamaicans can reflect on the challenging periods in our country’s history and give thanks that the practice of human slavery was abolished. Personal freedom is a right that we should never take for granted.

According to Dictionary.com, ’emancipate’ means to free from bondage, restraint or influence. A person who has been held back by a restrictive system, physical impediment or an inhibiting force will be emancipated when the thing that prevents him from moving freely is eliminated.

While we can celebrate the fact that our citizens are no longer bound by the organised structure of slavery, the reality is that many persons are still shackled by the chains of financial bondage. Their money problems hinder them from living their desired lifestyles and accomplishing their goals. Continue reading Financial Freedom at Last! →

Is Your Financial Life a Circus?

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Recently, thousands of Jamaicans got the opportunity to experience a variety of circus performers in action at Circus in the City held in Kingston. Energetic acrobats, daring stuntmen, amusing clowns and a mesmerising magician were some of the acts which were present at the event.

As I watched the performers entertain the audience with their skilful feats, I recognised that there were certain similarities between the circus activities and the many challenges people face with money. Here are some of the ways in which your financial world could be likened to a circus:

JUGGLING OBJECTS

Juggling is the art of manipulating several objects at once with your hands. The circus juggler uses extreme dexterity to toss several balls, clubs, rings or other props into the air, without letting the items touch the ground. It is one of the oldest forms of entertainment practised throughout the ages. Continue reading Is Your Financial Life a Circus? →