Tag Archives: budget

Do You Have Financial A.D.D.?

Financial Literacy, , , , , , ,

Recently, a client remarked that he thought he was suffering from financial ADD. Attention Deficit Disorder (ADD) is a medical condition that is normally associated with children and adults who exhibit inappropriate levels of impulsivity, inattention, lack of focus and sometimes hyperactivity.

His rationale for making this diagnosis was his track record of starting small enterprises upon a whim, with minimal success. He also reported that he usually became distracted by what appeared to be ‘hot’ new opportunities, at the expense of the business venture in which he was already involved.

While I initially laughed at his declaration, I reflected on the concept of financial ADD and realised that when it came to their money affairs, many people could really be suffering from symptoms similar to the real disorder. Let’s look at some ways in which financial ADD could be affecting your life. Continue reading Do You Have Financial A.D.D.? →

Business Owners, Watch Your Cash Flow!

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Ambitious entrepreneurs will have the desire to achieve financial success by operating a business. However, the process of accomplishing this lofty objective is not a simple one. There are so many dynamics that need to be in place before running a business can lead to lasting wealth.

Statistics show that there is a high failure rate for new enterprises, and those that make it past the five-year mark may still find it difficult to attain and maintain profitability. Entrepreneurs have to be skilled in certain technical and theoretical disciplines in order to properly manage their businesses.

One of the critical skills that are often ignored or under-appreciated by many business persons is the ability to carry out fundamental accounting tasks. Some entrepreneurs believe that once they are experts in their fields of endeavour or they are good at doing sales, their businesses will flourish. Continue reading Business Owners, Watch Your Cash Flow! →

Personal Budgeting for Business Owners

Budgeting, Business Success, , , , , , ,

Most business owners and self-employed persons spend long hours making plans for, and carrying out the activities required to run their enterprises. It takes a labour of love to develop a successful small business, very often at the expense of the owner’s recreation and rest time.

Dedicated entrepreneurs will pour their hearts and souls into their businesses, hoping to build an entity that will help them to attain personal and financial freedom. Sadly, many start-up enterprises will not survive past their second anniversary, as there is a high failure rate for this group.

Not a get-rich-quick scheme

It takes more than having a great idea and determination to succeed in business, as it’s vital to pay attention to financial details such as costs, cash flow and profit margins. Many entrepreneurs also neglect to take their personal spending needs into consideration when operating their businesses. Continue reading Personal Budgeting for Business Owners →

The Stress-free Way to Pay Your Taxes

Business Success, , , , , , , ,

It’s tax time in Jamaica, and many business owners and self-employed persons are putting things in place to fulfill their annual tax obligations. March 15 is the deadline for these persons to file several tax returns and remit payments to Tax Administration Jamaica (TAJ).

For those who follow proper accounting practices in their business operations, this annual tax period may not bring on too much anxiety. Once business people keep their records up to date with simple bookkeeping systems, giving the Government its due should not be an problem.

However, for the large number of entrepreneurs who fail to utilise basic accounting procedures, tax time will definitely present a major headache. The last thing business owners need is the threat of having the tax authorities investigating their operations! Continue reading The Stress-free Way to Pay Your Taxes →

Money Musings: You Can Never Be Too Rich to Fail

Money Reflections, , , , , , ,

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 →

Five Things You Need to Know About Borrowing

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It’s important for you to be well informed about various issues that can affect your money. When it comes to your finances, ignorance can be very expensive. Borrowing money comes with a cost, and there are many considerations that you need to think about before you take on debt.

Why do you want to borrow?

Prior to making any borrowing decisions, you need to be honest about the reasons why you think you need a loan in the first place. Do you choose to buy consumer items on credit just because you want to get them right away, or are you using loans to help you meet your monthly bills?

It’s best to avoid borrowing to satisfy immediate gratification desires or support budget shortfalls. In the first case, you will make unnecessary interest payments because you lacked the discipline to save for what you want, while the second reason will throw you into a never-ending cycle of debt. Continue reading Five Things You Need to Know About Borrowing →

A Long and Lasting Financial Love

Budgeting, , , , , , ,

Love is in the air, as many people become preoccupied with romantic thoughts when Valentine’s Day approaches. While love connections may be foremost on our minds at this time, we can also consider another important relationship that we all should enjoy – the one with our money.

A personal relationship requires understanding, respect and dedication to survive the test of time. Similarly, you need to develop a healthy rapport with your money if you wish to be financially successful. Let’s look at some tips that will help you to have a long and lasting money relationship. Continue reading A Long and Lasting Financial Love →

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

Money Reflections, , , , , ,

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 →

Continuous Improvement is Key to Money Success

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It’s incredible that an entire month in 2014 is almost finished! The swift passing of time reinforces how important it is to stop procrastinating and get focused on your goals. Before you know it, this year will be over and you might be no closer to accomplishing all your optimistic resolutions.

If you want 2014 to be different from other unfulfilled years, you need to stop writing long wish lists and start working on realising your dreams. As we have been discussing over the past weeks, your aim must be to become efficient in actualising your personal, professional and financial objectives.

We have recently shared a lot of information about how lean production, a manufacturing system developed by Toyota, can help you to improve your finances. With its focus on eliminating wasteful practices, the lean way of life can be very instrumental in helping you achieve your goals. Continue reading Continuous Improvement is Key to Money Success →

Getting The Most Out Of Your Money

Budgeting, Spending, , , , , , , ,

We have been discussing the concept of lean production and how its principles of efficient use of resources can be applied to your finances. Lean refers to a system of manufacturing which was pioneered by auto makers Toyota, which has helped to make the company very profitable.

One of the components of lean production is the elimination of wasteful practices in the process of creating a product or service for sale. There’s a lot to be gained from adopting the lean philosophy in your personal, professional and financial life, if you want to be successful with your own goals.

Last week we looked at getting lean with your most precious resource — your time — by becoming more productive at work, getting the most out of your commuting time, using technology to improve your output, and making the right choices when spending your time to generate an income. Continue reading Getting The Most Out Of Your Money →