Tag Archives: finance

Self-Employed Start-Up Steps

Business Success, , , ,

Every year, more and more people join the ranks of the self-employed in Jamaica. Some seek this route in desperation as they can’t find a regular job, while for others it’s the fulfillment of a long-held dream. Whatever the reason that motivates you to become your own boss, it’s important to start out the right way.

There are some initial requirements that must be carried out to ensure that you’re operating in accordance with Jamaican laws. Let’s take a look at some of the legal steps involved in becoming self-employed:

1.   Register at the Companies Office of Jamaica

It’s actually illegal to operate a business without first registering the name with the Companies Office of Jamaica (COJ). Any individual or firm with an established business place involved in the trading of goods has to be registered, and if you’re providing a service using a name other than your given name, you must register that name.

Sole proprietors apply with a BN1 form, while two or more operators fill out a BN2 partnership form. To complete your application, you will need to bring your Tax Registration Number (TRN), a valid photo identification card, and proof of address such as a utility bill with your name and location. Continue reading Self-Employed Start-Up Steps →

Back to school on a budget

Spending, , ,

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 →

Getting out of business debt

Business Success, , ,

“I’m desperately seeking a way to turn around my business. I’ve run up a lot of debt in trying to promote a new product, but sales are not coming in fast enough to cover my repayments.

“I am confident that I’m about to make a breakthrough as more customers are accepting my product, but I don’t know how I’m going to survive until that happens. I can’t give up now, as generating income from the business is the only way I can hope to get out of my debt. What can I do?”

The above quote tells the real-life scenario of a determined entrepreneur, who despite all her financial challenges continues to follow her business dream. She has a vision to revolutionize her industry with new technology, but like many young business owners, has underestimated what it would take to succeed.

Faced with escalating debt, she is anxious about her future and desperate to find solutions. Continue reading Getting out of business debt →

Has Your ‘Alternative’ Income Disappeared?

Investing, , ,

“I’m very financially stressed now. Last year I really wanted to change both my job and my lifestyle, so I put money in three high-interest investments. I calculated that the returns would be enough to pay my bills and give me extra money to start my own business. However, these investments have stopped paying interest for awhile and I don’t know how I’m going to survive.”

There’s a wave of worry and depression that’s affecting many investors today. Everywhere you go – your salon, your church, your office, or your gym – you can share in sorrowful stories of lost riches and ruined finances.

And just when you think you’ve heard it all, someone comes by with an even more devastating tale of great wealth that has disappeared in an instant.

In recent years, Jamaica has been a haven for high-yielding ‘alternative’ investments. Persons who previously had to settle for less than five per cent annual interest on foreign currency bank accounts, were thrilled at the chance to jump on the ten-per-cent-per-month train.

Finally, it seemed that average investors would be able to make their money work hard for them, so that they could quickly achieve their financial dreams.

Continue reading Has Your ‘Alternative’ Income Disappeared? →

How to succeed at any goal

Goals, Money & Your Mind, , , ,

Are you having difficulty achieving your financial goals? Do you desperately want to buy a house of your own, spend a nice vacation in an all-inclusive, or earn enough to stop living off credit cards? Are life’s challenges intervening to make your desires seem like impossible fantasies?

Sometimes our goals are elusive because we’re not taking all the steps needed to attain them. Get back on track to achieving your objectives by following this four-step system:

The Dream Process

“We’ve got to have a dream if we are going to make a dream come true.” –  Denis Waitley

The first step in improving your current financial picture is to envision yourself in a better situation. To start the dream process, become child-like in your thoughts and dream big. Visualise yourself living out your dream – see what’s around you, hear the sounds and smell the scents, taste and feel the experience.

Get to the root of your dream and ask yourself what emotional need it satisfies for you. Your desire for your own home might really be a need for security; a new car might bring the self-confidence you crave. Then use that strong need to bolster your determination that the dream must one day come true. Use visual reminders to help you continuing focusing on your dream. Continue reading How to succeed at any goal →

Get Ready to Retire!

Retirement & Estate Planning, , , ,

“I’m going to retire after working for over 40 years and I’m feeling a little anxious about the future. The way how prices are rising now, I wonder if I’ll be able to survive on my pension. I don’t have any children and I worry what will happen to me if I run out of money.”

Retirement is a big lifestyle change that can bring some amount of anxiety about your financial future. To reduce your apprehension, you have to learn how to assess your spending needs and to calculate if your planned income will be enough to meet them.

If you’re approaching retirement, here are some key considerations that will help you to be fully financially prepared:

How much money will you need to spend each month?

It’s very important to know exactly how much money you’ll need to meet your expenses during retirement. Spend some time to create a realistic budget of your expected income and expenses. Writing these figures down will let you identify if you’ll have enough money to pay your bills, and it will help you to make decisions about how to distribute the money you have. Continue reading Get Ready to Retire! →

Can we gain from rising oil prices?

Investing, , ,

“Every day the cost of living is increasing, thanks to the continuing rise in oil prices. The last straw for me was the big jump in my electricity bill. I don’t know how I’m going to survive these higher prices when my pay is not going up. What can I do to fight rising costs?”

Unfortunately it seems that there is no end in sight to the rapid rise in the price of oil. In July last year, the price of oil was just about US$70 per barrel, and current prices have blown past the US$145 per barrel mark. There have even been discussions suggesting that oil prices are heading to an unbelievable US$200 per barrel.

The rise in oil costs is negatively affecting consumers in many ways. One obvious instance is painful petrol prices. I’m secretly wondering if the gas station price boards can actually display prices over J$100 per litre!

Then there are the electricity bills that are getting higher than many of our other expenses combined. All industries which use oil as inputs such as tyre and paint manufacturers, and businesses that rely on high-priced petrol and electricity to produce and distribute goods are forced to increase the costs of their products.

What exactly is driving the dramatic increase in oil prices that’s causing this decrease in our standard of living?

Continue reading Can we gain from rising oil prices? →

Beware of Internet Money Scams

Income Creation, , ,

The Internet is a wonderful resource that can provide a wealth of information and bring tremendous opportunity to make money. It allows people to have an audience of millions and provides entrepreneurs with potential customers at a relatively small cost.

However, sometimes it’s difficult to determine if the information on the Internet is genuine or accurate. The Internet can also be used by scam artists to make themselves wealthy by taking advantage of the gullible.

Here are some of the common ways that people lose money by trying to make money on the Internet: Continue reading Beware of Internet Money Scams →

Are Women Getting Better at Making Money?

Wealth, , , ,

Traditionally, the only way that women could end up becoming very wealthy was to find a husband with money. Many girls grew up hearing that they had to marry well if they wanted to experience the good life.

If a girl was born lucky, she might get rich by becoming the heir to her father’s fortune. In fact, the ten wealthiest women on the Forbes 2008 billionaire list all inherited their massive wealth from male relatives.

The famed ‘glass ceiling,’ that invisible barrier to women’s upward mobility in business and politics, has historically ensured that ambitious women could only earn a comfortable living from their own labour, but not access the vast wealth available to their male counterparts.

Women shouldn’t lay the blame for their financial inequality solely at the feet at men, however. Lois P. Frankel, PH.D., author of Nice Girls Don’t Get Rich: 75 Avoidable Mistakes Women Make With Money, declares that girls are generally socialized to be nurturing and supportive, while the more assertive qualities needed for financial advancement are usually discouraged.

Frankel examines some of the common mistakes that women make which prevent them from becoming wealthy. Here are three errors that can hold women back financially: Continue reading Are Women Getting Better at Making Money? →

New Options for Small Business Financing

Business Success, , , , , , ,

“I need to get a loan to expand my small restaurant. However, many of the micro financing options charge interest rates that would kill my business. Regular banks ask for collateral that I don’t have. No one wants to sign as a guarantor for my loan. I’m getting very frustrated, because I know that if I got financing, my business would really take off. What can I do?”

The universal answer facing small business owners in search of financing is “No Collateral, No Deal.” If you’re an entrepreneur with a viable business idea or an expansion plan, at some point you’ve probably faced the challenges of raising capital without collateral.

There is an increased business-friendly focus in most of the commercial banks. With more people going the route of self-employment, it makes sense for financial institutions to pay closer attention to the development of the Micro, Small and Medium Enterprise (MSME) sector.

Small business can eventually bring big business in the long run.

Continue reading New Options for Small Business Financing →