Let’s look at some old-time Jamaican sayings that can help us to understand the basic principles of sound money management:

“Nuh care how tree big, woodpecker know weh fi do wid it” – Begin with a dream

To be successful at managing your money, you must be clear what you want your money to achieve for you. You are much more likely to buy a house, send your children to college, start your own business, or retire in style, if you focus on your dream and establish an action plan to help you accomplish it.

“De more yuh look, de more yuh see” – Know your current financial picture

Being very clear about your present financial position is a crucial step to attaining your dreams. Many people are afraid to be honest with their finances, and pretend that they are not in difficulties. List all your savings and property, and calculate all outstanding debts. Subtract liabilities from assets to get your financial net worth. Whatever your money situation is now, it can be improved with an appropriate plan of action.

“Wise monkey know which tree fi climb” – Seek expert advice

Seeking assistance from financial advisors will make your planning easier. They will be able to explain all the investing options, and help you to make a workable plan to attain your financial goals.

“Rain a fall but the dutty tuff” – Budget wisely

A major challenge to meeting your financial goals is finding the money to meet everyday expenses and still save for the future. This is why it so important to establish a realistic budget, which will indicate if your compulsory expenses are greater than your earnings, or if you are spending too much on unnecessary items. You will need to either reduce some expenses or find ways to supplement your income.

“Nuh put yuh cap weh yuh caan reach it” – Live within your means

An important financial principle is to spend less than you earn. Many persons go into massive debt by trying to purchase consumer items that they cannot afford. Your budget can help you to establish spending limits for non-essential possessions, which will allow you to concentrate on building your investments.

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“One one coco full basket” – Save Consistently

Making a firm commitment to save specific amounts regularly is the key to building your wealth. Try to put aside at least ten percent of your earnings. Remember that it’s not how much you earn, but how much you can save that makes the difference. Try to make your savings plan automatic by using salary deductions or standing orders.

“Trouble nuh set like rain” – Establish an emergency fund

Your first savings goal should be to establish a ‘rainy day’ account which would act as a financial cushion in the event of any emergency like illness or loss of employment. The target for this account should be to save three to six times your normal monthly expenses.

“Who have dry peas look fi fiyah” – Increase your earnings

In order to attain your financial dreams, sometimes you will just have to earn more income. It’s really up to you to make the special effort to get what you want in life. Your budget will indicate how much more you’ll need to receive in order to meet your financial targets. Be creative in finding ways to make extra money: look for opportunities that may exist right around you, or make use of any special skills you have that may be marketable.

“Doah yuh cyaan stop flyin crow feader from drop, yuh can hinder crow from mek nes pon yuh head top” – Protect your investment plan

Even the best conceived plans can be derailed by an emergency like death or natural disaster. It’s very important to protect your goals. For example, if you’re saving towards your children’s future education, it would be wise to incorporate an insurance plan that will still provide the money even if you’re no longer around.

“Victory nuh cum fram lie dung eena bed” – Start now!

Successful money management requires dedication and discipline, prudence and persistence. If you haven’t started to think about how to make your money work for you, begin today. The longer you wait to establish an action plan towards achieving your financial dreams, the harder it will be to attain them.