Tag Archives: money management

No Regrets

Money & Your Mind, , , , , , , , , ,

Recently, my 25-year-old niece shared with me some of the strategies she was using to secure her financial future. She explained that she had rejected the credit-card consumption culture that was so prevalent in the United States, by only buying things that she could afford.

Saving a good portion of her salary was her main aim, as she wanted to amass a significant down payment before she bought her own home.

Although I was filled with pride as I listened to her reveal her smart money habits, I couldn’t help but reflect on my own financial history, which was quite the opposite. When I was 25, my income was inadequate, my debt was distressing, and my net worth was nonexistent. Continue reading No Regrets →

The True Currency of Christmas

Money Reflections, , , , ,

Christmas is traditionally celebrated as a time to show appreciation to our family, friends and colleagues by exchanging gifts. Stores are usually overrun with frantic shoppers searching for perfect presents that are designed to impress, or inexpensive items that express ‘It’s the thought that counts.”

With the increasing commercialization of Christmas, it’s easy to put a lot of emphasis on money at this time of year. One regular feature that appears in December is the Bank of Jamaica report detailing the amount of currency in circulation; when more money exchanges hands, it’s a sign that the shopping season is in full swing.

With money being promoted as essential to the successful enjoyment of the holidays, it’s not hard to see why so many people get stressed out about it at Christmastime. Employees wait impatiently for their end-of-year bonuses; contractors work harder to finish jobs before Christmas; people descend on remittance agencies in anticipation of receiving money transfers from foreign sources. Continue reading The True Currency of Christmas →

Managing Money After Divorce

Budgeting, , , , , , , ,

After separating from her husband last year, Marilyn has been struggling to pay her bills on time and to keep track of her expenses. During the 21 years she was married, her accountant husband had taken care of all their financial transactions. “I didn’t understand the basics of managing our money,” Marilyn reveals, “I had never even read our bank statement.”

Four years ago, 46-year-old businessman Steven decided to let his ex-wife keep the family home, since she would have custody of their two young children. “I left everything with her and walked out with just my personal possessions.” Today he wonders if he made the right decision as he is finding it difficult to afford to buy another house of his own.

The dissolution of a marriage usually brings upheaval for the former partners, their family members and friends. While attention is given to the emotional and mental effects of divorce, the monetary challenges cannot be ignored as they can leave the family finances in serious disarray.

If you are dealing with divorce, here are some important considerations: Continue reading Managing Money After Divorce →

Inflation and Your Money

Investing, , , , ,

Imagine going to a restaurant to buy a cup of coffee and being told that the price was $5,000. After ordering a second cup, you request a bill and see that the total cost for two cups of coffee was $14,000.

Upon enquiring about the obvious error you were told, “If you want to save money and you want two cups of coffee, you should order them both at the same time.”

You may think that this is just an amusing story. In fact, this was a real-life example of life in Germany after World War I recounted in Adam Smith’s Paper Money, which described the extreme effects of inflation on that country’s economy. Continue reading Inflation and Your Money →

Can Your Past Influence Your Present Money Habits?

Money & Your Mind, , , , ,

“Your article about coping with parents’ money problems made me think about the bad money habits that I picked up from my father. My parents had different attitudes about money – my mother was a saver but my father spent all he had.

“I adored Dad and I wanted to be just like him; so I never saved and gave money away just like he did. I now see where this has hurt me because I have no money. I think people need to be aware of how their parents can influence their attitudes about money.”

Your finances are in serious disarray. You live from one pay cheque to the next. You give thanks for your credit card, as without it you wouldn’t even be able to buy petrol. You know that something is very wrong – you earn enough to save and live comfortably, but somehow financial success seems like an impossible dream.

You decide to get help to fix your money problems. Books, newspaper articles, television shows and Internet websites about money become your obsession. You even get professional financial advice.

Gradually you learn the steps you need to take to turn around your life. You start with a strong intention to do the right things, yet eventually, you go right back to your bad money behaviours. Continue reading Can Your Past Influence Your Present Money Habits? →

Money Lessons from Michael Jackson

Budgeting, , , , ,

Following the sudden passing of pop superstar Michael Jackson, many people around the world are reminiscing about his music and mystique. However, as a financial advisor, I can’t help but focus my attention on Michael Jackson’s finances.

As the stories about his financial situation come to light, it appears that Jackson had serious money problems. Despite a lifetime of achievement, Jackson’s final curtain call revealed foreclosures, failed ventures and financial chaos.

At the end of the day, the ‘King of Pop’ was just another person who suffered the consequences of ignoring the principles of money success.

Continue reading Money Lessons from Michael Jackson →

Wants vs Needs – Can You Have Both?

Budgeting, , , , , , ,

“In these challenging economic times I feel a little guilty when I spend on trivial items. I’m currently saving more than ten per cent of my salary and I have never been careless with my money. Is it financially unwise to buy something just because I want it?”

Financial wisdom normally dictates that people should spend their money acquiring the things they need instead of splurging on things that they want. A need is something that the human body requires for survival, such as food, shelter, and clothing.

In reality, most of the things we spend money on are things we want, not need. But wouldn’t life be boring if we only focused on our basic requirements all the time? Is there any way to get both what we need and what we want? Continue reading Wants vs Needs – Can You Have Both? →

How To Maintain Your Money

Retirement & Estate Planning, Risk Protection, , , , , , , ,

Why do some people achieve long-lasting financial success while others struggle with money for their entire lives? After years of seeking the answer to this mystery, I have discovered that the route to prosperity lies in the knowledge and application of some basic principles that govern money.

We have been examining the three tenets of money success – managing, multiplying and maintaining your money. After making smart use of the money you already have and making determined efforts to earn more, the final key is making plans to preserve your wealth for your lifetime and beyond.

Here are the four essential steps to maintaining your money: Continue reading How To Maintain Your Money →

How To Manage Your Money

Budgeting, , , , , ,

In a recent column entitled “The 3 Ms of Money,” we discussed the principles of financial achievement – managing, multiplying and maintaining your money. Over the coming weeks, we will examine these three pathways to money success in greater detail.

The key to managing your money is knowing what to do with the money that you are already earning, so that you can comfortably pay your bills and work towards attaining your goals. There are four components to successful money management, which, like the ingredients in a recipe, are all essential to producing the perfect end result.

Budget properly

The first step in your journey to financial independence is to learn how to budget properly. A budget is a document that allows you to capture all the things you spend money on, along with your sources of income. The budget must be used as the basis for making all financial decisions. Continue reading How To Manage Your Money →

Needed: A National Financial Literacy Programme

Financial Literacy, , , , ,

“I’m 50 years old and I know I have not always made the best financial decisions. I have a lot of credit card debt and recently lost some money that wasn’t even mine in an alternative investment scheme.

“Now that I’m approaching retirement I realise that I’m in serious trouble, but I really don’t know how to do any better. Is it possible to learn how to manage my money properly?”

Congratulations on your honesty in admitting that you have not been the best steward of your money. However, you shouldn’t feel too discouraged, as most people make money mistakes throughout their lifetime.

Your story is quite familiar to me. For many years I, too, was guilty of making poor financial decisions. In fact, I was probably worse off than you, because I was clueless about the extent of my money problems.

I was fortunate to become employed to a leading financial institution, where for the first time I encountered persons who were money-savvy. I then began a journey to learn what other people knew about moneymaking that I was definitely unaware of. Continue reading Needed: A National Financial Literacy Programme →