Category Archives: Spending

Steps to surviving a tough economy

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Last week we explored some of the financial challenges being faced by many consumers in this tough economy. It seems that everyone, regardless of financial status, is reeling from the effects of the spiraling cost of living and the shrinking value of money.

There are really only two things to do when there isn’t enough money to meet your needs – cut back on spending or earn more money. Let’s take a look at some practical things you can do right now to ease the pressure of these challenging financial times:

Reduce non-essential spending

With this global financial crisis, it’s definitely not the right time to get involved in extravagant spending sprees. It’s smart to be prudent with your money at this time, so don’t spend too much money on non-essential expenses such as entertainment or clothing.

Become more price-conscious

In the past, shoppers could just pick up their favourite brand name items without concern for price; now you must scrutinize prices to ensure you’re getting the best deals. Recently, I noticed that my regular brand of corned beef cost nearly J$70 more than a perfectly good alternative. What’s worse, the cheaper brand found in this supermarket was over J$20 less at another location! Continue reading Steps to surviving a tough economy →

Back to school on a budget

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Back-to-school time is just a few weeks away. Finally children can stop complaining about being bored at home, and parents can breathe a sigh of relief for the needed break. However, this time can also bring financial challenges for many parents who are faced with rising costs and shrinking budgets.

What can parents to do when the prices of everyday necessities are climbing out of reach, their paycheques remain constant, and their kids keep demanding the latest, coolest stuff to go back to school? If you are faced with this dilemma, take at look at the following money-saving tips:

Make a budget

As with all your other spending needs, it’s best to make a budget. Know exactly how much money you can afford to spend on back-to-school and allocate funds accordingly. Plan to spend more money on important items like shoes, but cut back on the cost of disposable supplies such as stationery. Involve your children in this budgeting process, so that they can appreciate why you may not be able to fulfill all their desires for expensive items. Continue reading Back to school on a budget →

Crazy Consumption Case # 3 – Living In The Past

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This week we conclude our series on people afflicted with serious cases of ‘Crazy Consumption.’ They exhibit uncontrollable urges to shop, many times ending up in devastating debt. In desperation, they search for solutions to cure them of their out-of-control spending lifestyle.

Sharon* shares her story of how living in the past has caused her to spend unwisely in the present, leading to a bleak financial future.

Sharon’s Story:

I am a mother of three and I think I’m a spendthrift. I will buy things like groceries and necessities but after that I just spend like money is water. I know I need to slow down because my first child is going to high school now and the second will be going in two years’ time. Right now I’m in debt up to my head top and even though I’m in debt I still take on more.

My take-home pay is about J$14,000 every two weeks. Although the money isn’t much I still end up wasting some of it on things I don’t need. When people come around with things to sell, I can’t resist them. Sometimes I think that I am ‘red eye’; or that I’m buying things to make people think I can afford them, but in reality, I can’t. Please give me some advice on how to monitor my spending better. Continue reading Crazy Consumption Case # 3 – Living In The Past →

Crazy Consumption Case # 2 – Too Much Money To Spend

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In our continuing saga of ‘Crazy Consumption’, we have been focusing on real-life stories of this phenomenon which afflicts consumers who spend without control, sometimes to their financial ruin. The silly spending season is fast approaching, and we hope that our readers’ experiences will help you to resist the Christmas urge to splurge.

This week we examine Richard’s experience in the spending cycle. He has a problem many of us wouldn’t mind dealing with – too much money to spend!

Richard’s Story:

Your article on crazy consumption really hit the mark for me. I’m twenty-seven years old and I’m tired of wasting my money. I live at home with my parents, which helps to keep my expenses down. I do save a portion of my salary, but I realize that most months I will spend J$20-J$30,000 on idle activities and things I don’t even need. Sometimes I splurge on big ticket items, other times I buy a lot of small things that add up. Once I have money in my hand – I have to spend it!

I will be on leave from work during the Christmas period, so I’ll have a lot of free time on my hands. I’m afraid that I’m going to waste my bonus on parties and unnecessary stuff, like I normally do. My major frustration is that I seem to have absolutely no self-discipline to stop spending this way. Please help me to regain control over my money! Continue reading Crazy Consumption Case # 2 – Too Much Money To Spend →

Crazy Consumption Case # 1- Shopaholics Anonymous

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Last week we looked at the phenomenon of ‘Crazy Consumption’ where clueless consumers are overcome with the desire to shop uncontrollably even when they can’t afford it. This out-of-control spending habit devastates the financial vitality of its victims by dumping them in massive debt and rendering them unable to realize their money goals.

We opened up the floor to our readers to get real-life stories from people who are suffering from this dreaded spending disease and are desperate for solutions to get their lives back on track. Our first case is of Marcia* who suffers from a clinical case of Crazy Consumption.

Marcia’s Story:

I’m a forty-something year old professional with a great job and fabulous friends. On paper I may look upwardly mobile and progressive, but the truth is that my financial situation is in shambles. Although I earn a good salary, I have no savings because I have absolutely no control over how I spend my money. For me, shopping is a way to escape reality, as when I shop, I don’t have to think about the personal issues that torment me. My greatest times of weakness are when I am alone with nothing to occupy my time. Then I surf the internet and go crazy buying things online.

I work with an international agency which requires me to travel frequently. On these overseas trips I indulge in binge spending, sometimes without reason. Last time I was away, I went into an expensive department store to buy one gift and walked out with over US$400 worth of perfume for myself. I don’t even like to wear perfume because it affects my allergies. I just don’t know what came over me. Most people might overspend at Christmas, but for me, Christmas is year-round! Continue reading Crazy Consumption Case # 1- Shopaholics Anonymous →

Can You Be Cured of Crazy Consumption?

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The shopper knew she had to move fast. She only had fifteen minutes before her meeting started, but she just had to pick up another storage box from the home decorating store, so she could finish organizing her closets. “Hmmm….” she mused, “I didn’t know they were having a 50% sale. Doesn’t hurt to look at what they have.”

Forty-five minutes later, she staggered out of the store laden with three bulging shopping bags and a bill for J$8,000. The pleasure derived from her half-priced acquisitions disappeared in an instant when she remembered her important meeting and her non-existent spending budget. “What just happened?” she wondered out loud, “How did I end up paying all this money for things I don’t even need?”

If this scenario sounds even remotely familiar, don’t despair about your inability to control your spending habits or think that you’re a financial loser. If you’re breathing and your heart beats, and you don’t live like a miser or hermit, at some point you’ve been stricken with an attack of ‘Crazy Consumption’. Continue reading Can You Be Cured of Crazy Consumption? →

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 →

Tips on Negotiating to Save Money

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“In business, you don’t get what you deserve, you get what you negotiate.” – Chester L. Karrass

Many times when we’re trying to save money we overlook the powerful strategy of negotiating to get a better deal. A business transaction normally involves the consumer asking for the price and agreeing to work with it, or walking away from the deal because the terms are not suitable. We’re often afraid or embarrassed to negotiate to get a more advantageous arrangement.

Last week, I attended an intensive seminar organized by Peak Potentials, which revealed street-smart tactics to help business people get ahead. One of the topics we were trained on was the art of negotiation.

By testing the simple strategies we learnt, in the real business environment around the seminar location, we discovered how easy it was to negotiate and save a lot of money on practically anything. Continue reading Tips on Negotiating to Save Money →

Living Within Your Means

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“Last year I moved out of my parents’ house, and now I’m finding it hard to make ends meet. When I lived with them, all my income went into clothes and entertainment, because I had no bills to pay. Now I constantly have to borrow from my mother, and I have a credit card bill that I don’t know how I’m going to pay off. How can I live within my means?”

Living within your means can mean different things to different people. Some persons think they are doing okay financially if their salary can afford them the credit to buy whatever they desire, and they can meet their debt payments every month. Others are happy if their income can pay for all their necessities, but aren’t too worried if there’s not much left behind for savings.

In reality, living within your means is being able to establish an optimal balance between your income, expenditure and savings to ensure that you can meet your financial objectives without getting trapped in unnecessary debt. In other words ‘your means’ cannot just be about your current spending needs, it has to take into consideration being able to fund your goals for the future.

How can we manage our money to ensure that we can meet our current obligations and still save for the future? Continue reading Living Within Your Means →

Christmas Bills Blues

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“I spent too much money last Christmas on gifts and parties. I had expected a good bonus cheque which never materialized. Now I’m stuck with over J$60,000 in credit card debt, and I don’t have a clue how I’m going to pay it. Help!”

Christmas is a time when even the most disciplined shoppers throw caution to the wind and reward themselves for a year of frugal living. Those who live to shop go into overdrive and buy all the must-have and must-give items without a thought for January.

You learnt the hard way not to count your chickens before they hatch. In order to be a good money manager you must earn a dollar before you plan to spend that dollar, as spending money that you don’t have will only land you in debt.

Before we try to find ways to get you out this debt, let’s look at the true cost of your Christmas spending spree. You admit that you spent too much money. When you look back at the things you acquired, was it worth it?

Do you even know if your gift-giving was truly appreciated?

Continue reading Christmas Bills Blues →