Tag Archives: personal finance

Networking for Earning

Income Creation, , , , , , , , , ,

Over the past weeks, we have been examining the age-old question “How can I earn more money?” If you’re seeking an answer to this problem, but you have insufficient time to increase your income, then you may have to change your method of making money.

As discussed, most persons earn a living by pursuing linear income, and have to continually put in work time in order to get paid. Linear income puts a ceiling on your earning ability, as time is a restricted resource. Also, if you have to physically stop working for any time above your vacation or sick leave allowance, your income is negatively affected.

Looking for options, we considered residual income, where you are able to earn continually from some type of work or investment that you carried out once. For example, you can earn residual income on royalties from book or record sales.

We also examined leveraged income, in which you can multiply your total income by utilising the efforts of other people. If you employ others to work in your business, then you make use of this type of income. Continue reading Networking for Earning →

Using OPT to Earn More

Income Creation, , , ,

One of the biggest financial challenges many persons face today is the need to earn more money to make ends meet and achieve their goals. As most people obtain their incomes by selling their time for dollars, their ability to increase their remuneration is severely limited by the number of hours in a day.

Many employees and self-employed persons neglect to pursue earning options from sources that are not wholly dependent on their physical efforts. They believe that work security lies in their own ability to complete a task and receive a payment for it.

In reality, this is not a very secure way of earning, as circumstances such as pay cuts, job loss or illness can derail expected income.

One solution to this problem is to create a passive income source that pays you repeatedly without your continued personal effort. As your earning potential is not completely dependent on your time, it is easier to make more money to supplement your regular pay cheque and channel excess money to invest in long-term goals. Continue reading Using OPT to Earn More →

How to Work Less and Earn More

Income Creation, Retirement & Estate Planning, , , , ,

With some amount of trepidation, you decide that you’re finally going to get a grip on your budget. Armed with months of bills and receipts, you painstakingly recreate an outline of your spending plan for the year. After adding up all your expenses, you’re shocked to see that the total monthly income needed to finance your lifestyle is way in excess of your current earnings.

“That explains why I’m so dependent on my credit cards every month,” you mutter to yourself. “I’ve got to reduce these expenses if I’m ever going to get out of debt.”

Determined to cut back all unnecessary costs from your overblown budget, you examine each expense category for items that you can do without. Unfortunately, your search reveals that you already exist on the basics – any reduction will only lead to deprivation for you and your family.

Frustrated by your budget-trimming attempts, you decide to take a hard look at the income side. “My salary is just not enough,” you admit. “What I need is a way to make some more money.” Continue reading How to Work Less and Earn More →

Are You Tired of Being in Debt?

Debt, , , ,

“It’s the same story every month. I promise myself that I’m going to make a big dent in my credit card bill, yet within two weeks after payday, I’m forced to swipe the card to buy groceries. This month the car required major repairs and I just didn’t have the money to deal with it.

“It took me a long time to pay down $40,000JMD off my debt, but it disappeared in an instant after purchasing car parts. I’m sick and tired of owing this money; I feel like all I do is work hard to pay interest to the bank. When am I ever going to get rid of this debt?”

This heartfelt cry of a client who is stuck in a debt quicksand could easily have been echoed by thousands of concerned consumers who are similarly mired in a vicious cycle of borrowing to survive. Despite their strong desire to pay off their obligations, their financial reality makes it challenging to break free of the chains of debt. Continue reading Are You Tired of Being in Debt? →

Developing Youth Entrepreneurship

Income Creation, , , , , , ,

At a recent economic forum hosted by the Bethel Baptist Church in Kingston, a young man came forward to ask the panel of financial experts for tips on how he could be successful in his new business venture. As he made his passionate plea for guidance, I recalled the challenges of my first entrepreneurial effort at 23 years of age.

With the adventurous spirit and eternal optimism of youth, I enthusiastically pursued my business idea, but after a couple of years, I realised that having an innovative concept was not enough to attain business growth. I didn’t know enough about marketing, sales, product development and strategising; and I remember feeling confused and frustrated as I searched in vain for answers on how to build a sustainable business.

Today, with the lack of employment opportunities in Jamaica, many young people are forced to try to make an income for themselves. However, despite the emergence of several organisations designed to assist business development, thousands of young entrepreneurs still struggle to turn their inspirations into profitable ventures, and a large percentage of them will not be successful in their endeavours. Continue reading Developing Youth Entrepreneurship →

More Money Lessons I Wish I Had Learnt In School

Kids & Money, , , , , , , , , , ,

In nine years of experience in providing personal financial advice, I have trained thousands of persons from all walks of life about the principles of money; I have coached highly paid doctors and lawyers and counselled lower-income workers.

There is one factor that unites the majority of persons who seek my assistance – they are facing financial distress because they are unaware of the basic steps that they should take to successfully manage, multiply and maintain their money.

I can recall the frustration of a professional who earns more money in one month than most Jamaicans will see in a year, as he painstakingly tried to organise his finances to get out of debt. “I can’t believe that I don’t know how to budget,” he sighed, “why didn’t they teach us about this money stuff when we were in school?” Continue reading More Money Lessons I Wish I Had Learnt In School →

Money Lessons I Wish I Had Learnt In School

Kids & Money, , , , ,

Recently, while planning for a trip to a Spanish-speaking country, I realised that I had forgotten all the lessons I had learnt in high school about this foreign language. Although I had passed the subject in external examinations many years ago, I had no recollection of even the basic concepts.

Unfortunately this problem is replicated with many of the subjects that I studied in school from primary up to tertiary levels. Although I may have excelled at them in class, the reality is that I did not practise their principles outside of school, so their content became distant memories.

I know my situation is not an isolated case of ‘school-subject Alzheimer’s’. I have often wondered why our education system focuses on teaching children so many obscure topics, while ignoring some practical areas that are crucial to the development of our students. I believe that more attention needs to be paid to imparting important life skills to help them to cope in the real world. Continue reading Money Lessons I Wish I Had Learnt In School →

Should Children Be Allowed To Earn Money?

Kids & Money, , , , , ,

Upon mention of the words ‘child labour’ many people might envision a harrowing scene straight from a Charles Dickens’ novel; with malnourished children slaving away on an assembly line, producing goods for cruel, predatory adults. The concept of kids working for money has somehow been associated with a denial of childhood rights and forced employment.

Unfortunately in Jamaica, poverty and ignorance has driven too many parents to curtail their children’s education at an early age, turning them out onto the fields, markets and streets to contribute an income to the family home. We have all seen young children in uniform plying their wares, explaining that they needed to collect enough money to go to school the next day.

The question about children working for an income came to the forefront a few months ago around a television commercial featuring youth, obviously not yet in their teens, singing for a cellular telephone company.

A complaint was raised that the advertiser was unethical to use children to promote its product. Eventually, a warning from the Ministry of Labour and Welfare was issued reminding people that children of a certain age should not be employed. Continue reading Should Children Be Allowed To Earn Money? →

Things To Consider Before Starting A Business

Business Success, , , , ,

Unlike her co-workers, Camille* had been ecstatic at the news of the closure of the company she had worked at for nearly 20 years. As she mentally calculated her expected redundancy package, she was delighted that her dream of starting her own catering business could finally become a reality.

As soon as she received her final pay cheque, Camille turned her attention to setting up an upscale eatery that rivalled the bistros found in South Beach, Florida. Awash with cash, she spared no expense in creating the right décor and an enviable menu. Excited at the prospects of her first business venture, Camille opened her doors with a flurry of promotions and pizzazz.

Fifteen months later, Camille is singing a different song. Gone is the optimistic fervour of the newbie entrepreneur; today Camille is burnt-out, broke and begging for someone to buy her out. What went wrong with her grand business idea? Continue reading Things To Consider Before Starting A Business →

Money Milestones

Money & Your Mind, , , ,

Recently, a client asked me if I thought that she had achieved all the appropriate financial targets for her age. Like a concerned parent eagerly checking for the age-specific developmental achievements of a child, she was trying to assess if she had attained the money milestones that would indicate that she was on the right track.

However, just like children who progress at their own pace, each person is unique when it comes to their personal financial development. Some people seem to be born with the right genes for money, getting an early start on wealth creation by being consistent savers and savvy investors. Others appear to be slow learners, remaining deficient with their money skills until their later years.

Despite the disparity in development, there are basic money milestones that can be used as a guide to people’s financial health and well-being. Let’s examine some of the signposts to look for as you move along your financial life journey: Continue reading Money Milestones →