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.

Falling into a money trap

Like the African natives who were lured into traps set by slave traders centuries ago, some people get dragged into financial bondage because they are unaware of the dangerous consequences of some of the uninformed decisions they make about money.

If you fail to keep track of your monthly spending, make impulsive purchases on non-essential items, or ignore the fact that your income is insufficient for your needs, eventually you will find that you are unable to pay for important expenses that will crop up throughout the year.

When you’re short of cash for your bills, you might be tempted to use credit cards or borrow from friends and financial institutions. Very soon, you will become mired in a quicksand of debt, as you have to borrow continually to cover your budget shortfall and repay multiple loans.

The misery of financial bondage

Slavery is a dreadful affront to the human spirit; we all have an inherent desire to be free to control our destinies. In the past, slaves toiled against their will to build their masters’ fortunes, and today many persons are forced to work to enrich other persons’ coffers instead of their own.

If every dollar of your pay cheque goes towards your expenses, you cannot save to create assets for yourself. If you constantly borrow to acquire the things you want, your loan interest payments represent your potential wealth that you have handed over to financial institutions.

When you work long hours in a job that cannot provide you with an income commensurate with your true value, or if you use your spare time unproductively, you are also in bondage. You have been stripped of your most precious asset — time — which should be utilised to build your financial future.

Fighting for your financial freedom

Some of our forefathers paid the ultimate price to obtain their freedom from slavery, as they preferred to die rather than remain in chains forever. Breaking free of any form of bondage requires extreme sacrifice and the willingness to do whatever is necessary to succeed.

You may have to endure money bondage for the rest of your life if you believe that there really is nothing you can do to change your situation. To be released from the crippling effects of financial enslavement, you have to be prepared to fight fiercely until you gain your full freedom.

You first need to be honest about your money problems; don’t let pride get in the way of your search for solutions to your woes.You also have to lose your dependency on the instruments of your financial oppression, such as excessive debt and your acceptance of inadequate earnings.

The route to financial liberty

Another way in which slaves tried to break out of bondage was to run away from the plantations and seek refuge in Jamaica’s hilly interior. Financial freedom fighters also have to devise a practical plan of action that will permanently remove them from the source of their problems.

To design your escape route, you need to identify the root cause of your financial bondage. It could be due to insufficient income, careless consumption, or imprudent investments. Then, you must implement recovery strategies that will eliminate these issues and replace them with smarter money habits.

You will definitely need to prepare a realistic budget and stick to it, use cash to make purchases instead of utilising credit, and make better choices with your disposable income. Also, make it your goal to learn how to earn additional income and invest wisely to improve your standard of living.

It may be difficult to accomplish your freedom mission on your own, as you will need expert guidance to plan the right getaway route. You can receive advice from money books and CDs, researching financial resource websites, or by seeking professional help from an advisor.

Copyright © 2013 Cherryl Hanson Simpson. No reproduction without written consent.

Originally published in The Daily Observer, August 1, 2013

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Cherryl is a money coach and business mentor, and founder of Financially S.M.A.R.T. Services. See more of her work at www.entrepreneursinjamaica.com and www.financiallysmart.org. Contact Cherryl