Tag Archives: finance

Christmas Bills Blues

Spending, , , ,

“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 →

Steps To Achieving Your Money Goals

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“I wrote my usual resolutions at the start of the year to make some improvements to my finances, but already I’ve slipped back into some bad habits like buying unnecessary items at the supermarket. It’s one thing to make the resolutions, but how do you actually carry them out successfully?”

The challenge with resolutions is that they are often in direct opposition to your normal behaviour pattern. To achieve your new goals, you will have to break the old, comfortable habits that have prevented your progress, and create new routines for success.

Many times it is very difficult for people to change their lifestyle, even if they know it’s bad for them. As they say, ‘old habits die hard.’

Continue reading Steps To Achieving Your Money Goals →

How Much Risk Is Right For You?

Investing, Risk Protection, , ,

“After reading your column last week on being less fearful about investing, I think I need to take more risks with my money. Everything I have is in a savings account earning very little interest and I want to try something else that can make more. How do I go about figuring out how much to risk?”

I got many interesting responses to last week’s topic on fear and investing. Some people were willing to jump headfirst into riskier investment options, as they were tired of earning minimal returns. Others were still terrified about the thought of losing money, but readily admitted that they were not satisfied with how their money was growing in basic savings accounts.

Two reasons why people invest their money are to increase the original sum invested, or to create a source of regular income. Risk is simply the chance that the outcome of your investment will be less than expected. This can include losing some, or all of the initial principal, or not getting the return you had hoped for. Continue reading How Much Risk Is Right For You? →

Don’t Let Fear Hold You Back From Investing

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“Some of my friends were talking recently about how they made some good profits in the stock market recently. However, it was my understanding that if you invest in stocks you can lose your money.

“I really have worked hard for my money and I don’t want to get involved in anything where I could lose any of it. I’m wondering if there’s something I’ m missing by being afraid of investing in stocks.”

I can relate very well to your fear of investing in anything that could lose money. Many years ago, when I had just started working in an investment brokerage, I had to do an exercise to invest some money in stocks and money market accounts.

I didn’t know anything about the stock market at the time, and I remember saying to myself “Why would anyone want to put money into an investment that could lose money?“ I reluctantly placed twenty percent of my available funds (the minimum allowed) into the stock market, and prepared for the worst. Continue reading Don’t Let Fear Hold You Back From Investing →

Debit and Credit Card Security

Spending, , ,

“There’s a lot of talk going around about debit and credit card fraud. How can I safely use my cards without worrying about losing my money in one of these scams?”

Last week we compared some of the features of debit and credit cards. Both cards provide a convenient alternative to paper money, and remove the risk of shopping with cash. However, the fact that these cards provide electronic access points to your money can present an even bigger security challenge for card users.

Developments in technology can sometimes be both beneficial and detrimental.  Scam artists and thieves have the capability to use hi-tech methods to get information from your cards that can allow them to steal your money. Let’s look at three major ways that these scams can be carried out: Continue reading Debit and Credit Card Security →

Debit vs Credit Cards

Spending, , ,

“I’m scared of all the reports I hear of shoppers being robbed and I want to reduce the risk of buying things with cash. I’m trying to decide between getting a debit card and credit card, but I’m not sure which one would suit my needs better . What advice can you give me?”

Using cash to make purchases can bring major security risks, especially at this time of year. Using cheques instead can be one option, but many merchants won’t accept them. Increasingly, many consumers seeking the convenience and safety missing from ‘paper’ money, are switching to ‘plastic’ money in the form of debit and credit cards.

Whose money is it?

Although they both provide consumers with a convenient payment method, debit and credit cards have big differences. The most important distinction between the two is whose money is being used to carry out the transaction. Continue reading Debit vs Credit Cards →

Control Your Christmas Spending

Spending, , ,

“Last year I really overspent on Christmas gifts. In fact, I’m probably still paying for some of them now, as I have a large credit card balance that I’m trying to pay down. I really don’t want this to happen again this year, but I feel that once I hit the plazas, I’ll lose control. Please help me to curb my Christmas spending!”

With only about 18 shopping days left to Christmas day, the seasonal spending frenzy is about to get into high gear. Sometimes reasoning and control will fly out the door, as we get caught up in the hype fed to us by the retailers.

After all, this is the time of the year when many shop owners make more money than the rest of the year combined!

While we do want to support a vibrant economy, we can’t afford to lose sight of all our financial goals, or worse, incur massive debt. Here are some tips that will help you to control the urge to splurge this Christmas: Continue reading Control Your Christmas Spending →

Qualifying for a Mortgage

Home Buying, , , ,

“I’m desperate to buy a home as I’m tired of having to deal with landlords. I have some money saved up for the deposit and I’m going to go to a mortgage company for a loan. I’m a little confused as to the process involved in getting a mortgage. What can I expect from the process?”

Congratulations on making a move towards owning your own home. Having a deposit amount in hand is only the first step in achieving home ownership. The determining factor between getting your home and continuing to pay rent is- will you be able to get a mortgage?

Going to a mortgage interview can be a nerve-racking experience. You’ve finally found a place that you really want, you’ve agreed to pay your deposit to the vendor, and now you face the people who will decide whether or not you can qualify for the loan you need to close the deal. This can definitely rank high on the list of life’s most stressful experiences! Continue reading Qualifying for a Mortgage →

Create Your Own Income

Income Creation, , ,

“I left college a year ago, and I still can’t find a job suitable for my qualifications. I’m really getting frustrated now, as I desperately need to reduce my student loan. I’m trying to think of other ways to make money, but it seems so hard to find a profitable business opportunity. Any ideas on how I can create my own income?”

When we think of earning an income, we generally consider finding employment with an established company, where we hope to get a good salary and great benefits. In fact, from an early age, most of our parents had drilled into our heads, “work hard at school and get good grades, so that you can get a nice job.”

For others, income generating takes a different path. Some, who are blessed with an entrepreneurial spirit, will immediately set out to create their own income, in turn providing jobs for many others. Then there are some people, like you, who are forced out of necessity to find other ways to earn money when the traditional job is not forthcoming.

Whatever the road you may travel to earning your own income, the rules are basically the same. There are three main ways to successfully create sustainable income: Continue reading Create Your Own Income →