Tag Archives: Jamaica

Are you sitting on your money?

August 8, 2007Goalsdormant account, finance, Jamaica, money marketCHS

Recently, while preparing my living room chairs for re-upholstering, I turned them over to see what stray items might have fallen inside the frames. From the jingling sounds I heard, I realized that several coins had slipped into the lining of the chairs. As I cut away at the fabric and the money fell out, I counted up J$150 that had previously been lost to me. It wasn’t a fortune, but it was enough to buy lunch the next day.

While I was happy for the unexpected small bounty, I reflected that perhaps for several months or years I had sat on this money, which could have been put to better use. It then occurred to me that there have been times when I had figuratively ‘sat on money’ by neglecting to manage my investments effectively or by procrastinating on money making ventures.

In fact, if we take this analogy even further, many of us never see our financial dreams into reality because we are guilty of ‘sitting on our money.’ What are some of the ways in which we sit on money? Continue reading Are you sitting on your money? →

Free Yourself From Financial Fear

August 3, 2007Money & Your Mindfear, finance, Jamaica, Suze OrmanCHS

“Emancipate yourselves from mental slavery, none but ourselves can free our minds.” Bob Marley

This week, as Jamaicans commemorate our emancipation from slavery and the birth of our independent nation, some of us might reflect on what it means to be free. Financial freedom can represent different things to different people, but there is a universal desire in most persons to be free from fear about money. Unfortunately, many of us are in bondage to our financial fears, and have no idea how to emancipate ourselves.

Bestselling author and personal finance guru, Suze Orman, looks at the role that fear plays in denying us the financial success we desire. In her book, The 9 Steps to Financial Freedom, she declares that “Almost all of us have fears or anxieties about money – but we rarely admit them to those around us. We may not admit them to ourselves.“

Orman points out that “because (our fears) are holding us back, preventing us from taking control of our financial lives, looking these fears in the eye is an essential step toward freedom.” Continue reading Free Yourself From Financial Fear →

Money Parables

July 27, 2007Wealthfinance, Jamaica, laws of money, stewardshipCHS

“For to everyone who has, more will be given, and he will have abundance; but from him who does not have, even what he has will be taken away.” Matthew 25 vs. 29

The biblical Parable of the Talents, from which the above quotation is derived, is a simple but meaningful story about a businessman and the workers whom he entrusts to make money for him. The essence of the parable is as follows:

‘A man went on a journey and called his workers and assigned some money to them. One got five talents (a talent was worth more than a thousand dollars), another got two talents and the other got one talent. The money was distributed according to each worker’s ability.

The man with five talents put the money to work and gained five more. Similarly the one with two talents doubled his money. The worker who had received one talent buried it away in the ground. Continue reading Money Parables →

Beware of the Rule of 78s

July 20, 2007Debtfinance, Jamaica, loan, prepayment penaltyCHS

“I purchased a stove using a hire purchase plan over 24 months. I got a lump sum in a partner draw and decided to pay it off early. To my surprise, I had to pay more than I had expected to in order to clear off the loan before the scheduled date.

“I think this was very unfair, in fact, I think I should have been rewarded for paying my loan in full before the due date. Can you explain how this is possible?”

When borrowing money it’s very important for consumers to be very clear about all the terms of their loan contract. As we’ve discussed in previous columns, the method of calculating a loan can make a big difference in the amount of your total interest and the monthly payments due.

What many borrowers are not aware of is that some loans contain prepayment clauses that can end up costing you a pretty penny if you decide to pay up earlier than contracted. Continue reading Beware of the Rule of 78s →

Are you wired for financial success?

July 13, 2007Money & Your Mindfinance, Jamaica, positive affirmation, wealth creationCHS

“One year ago I sold a piece of land and received nearly one million dollars. I decided to fix up my house and invest the rest of the money. I ended up investing in some business ventures that didn’t succeed, and now I’m broke again. I believe that money always multiplies for some people, but not for me, because I always fail when I try to make money.”

Over the years, I have done extensive research on the topic of financial achievement. My quest has been to discover why it is that some people make a lot of money and attain personal success, while the great majority of the world merely struggles to get by financially.

Is it a special gene that some people possess that allows them to be wealthy, or is it left to the goddess of luck to determine who makes it and who doesn’t?

Continue reading Are you wired for financial success? →

Seven Cures for a Lean Purse

July 6, 2007WealthClason, finance, Jamaica, laws of moneyCHS

“Money is plentiful for those who understand the simple laws which govern its acquisition.”- George Clason

One of the best ways to discover the secrets of making money and managing it successfully is to study how wealthy people actually became rich, and how they retain their wealth. Unfortunately, many of us will never have close personal contact with the very rich, in order to learn at their footsteps.

The good news is that some of the world’s wealthiest people have chosen to reveal some of their secrets through books, CDs and training seminars. In future columns, we will examine some of the best wealth and money management advice available in the world, and try to apply it to your life.

No matter what your financial situation is now, it is possible to learn how to make and keep money by following the examples set by those who have been hugely successful.

Continue reading Seven Cures for a Lean Purse →

The Basics of a Budget

June 29, 2007Budgetingemergency account, expenses, finance, JamaicaCHS

“I notice that you always stress the importance of budgeting in your columns, but I can never seem to get around to preparing my household budget. It seems like too much effort to work out all those figures. I really need to get my finances under control, but I’m wondering if there is an easier way to do so without going through the process of doing a budget?”

There’s a very simple and straightforward answer to your question: “No.” No matter what your financial concern is; whether it is getting out of debt, investing your money more efficiently, buying a home, or starting your own business, the very first step to getting to your goal is preparing your spending and earning plan – otherwise known as your budget.

Would a contractor start to build on a piece of land without first obtaining a surveyor’s report to understand what was needed to proceed? Would a doctor operate on a patient before she ran the necessary tests to see what the problem was?

In the same way, you have to be very clear about your current financial picture before you can make the desired improvements to your finances. Continue reading The Basics of a Budget →

Business Planning for the Self Employed

June 22, 2007Business Successbusiness plan, entrepreneur, finance, JamaicaCHS

“I work in the financial industry, but my real love is teaching. However, I don’t want to become a regular teacher because of the low pay. I have some innovative ideas on starting a business in education but I am unsure how to proceed with them. Some of my concepts have never been tried before in Jamaica and I need some assistance in making them into a reality.”

Successful self employment and business ownership are two ideals which most people with unfulfilling nine-to-five jobs dream about. Some wish there was some way to make their hobby or passion make money for them, but never have the courage to give it a try. Others launch out into entrepreneurship with the enthusiasm of the eternally optimistic, thinking that being in love with a business idea is enough for it to be profitable.

The majority of small businesses established in Jamaica generally get started without a plan of action to guide the operations. People tend to think that they already have the skills to succeed, especially if they had gained experience in the business area when they were working for someone else.

The typical excited entrepreneur thinks- “How hard can it be to run a wholesale shop? I just need to buy the goods, price them right and the people will come!”

Continue reading Business Planning for the Self Employed →

Student Loan Lessons

June 15, 2007Debtfinance, Jamaica, late payment penalty, student loanCHS

“Years ago I borrowed J$80,000 from the Students’ Loan Bureau. I had some difficulties paying back the loan as scheduled, but in all I have repaid about J$50,000. I’m trying to make a deal with the Bureau to clear my debt, but I don’t understand why my balance is in excess of J$120,000. There must be something wrong with their calculations!”

The Students’ Loan Bureau provides a revolving loan scheme which has given many persons the opportunity to improve their income earning potential by attaining higher education. However, despite the benefits that thousands have received, there are some persons who complain that the student loan has been more hassle than help to them.

I have heard comments like “I am just working to pay my student loan,” or “I would not encourage anyone to take a student loan.” The negative emotions are usually accompanied by a declaration that they don’t understand how the payments are calculated or why interest for students should be so high.

Even worse, the high level of loan delinquency indicates that some persons are taking advantage of the unsecured credit to get their higher education without feeling an obligation to repay. Continue reading Student Loan Lessons →

What a Difference a Loan Makes

June 8, 2007DebtAPR, finance, Jamaica, reducing balance loanCHS

“I’m a little confused about the difference between loans that are paid back on the reducing balance and loans that say add-on. I’m comparing mortgages from different companies in order to buy a house, and I want to ensure that I get the best deal. Please advise me.”

It’s not an easy task for the average consumer to comprehend how loans are calculated. You could probably call four institutions and ask for the same quote and receive four different repayment amounts, depending on how they compute their loans.

When you are looking at loan options, it’s important to ensure you are comparing apples with apples. The true cost of a loan can include commitment fee charges and insurance costs, which would vary across the companies. Continue reading What a Difference a Loan Makes →

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