Tag Archives: personal finance

The 3 Ms of Money Gone Caribbean!

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It’s been really exciting seeing the development of the personal finance industry in Jamaica over the last eight years. As I write my memoirs about my past money mistakes and the strategies I used to turn around my financial situation, I remember the days when I felt like a lone voice in the wilderness, talking to people about the importance of proper financial habits.

Ever since I learned that the key to money success was all about knowing, understanding and doing the right things with money, I have been committed to spreading the ‘3 Ms of Money’ message – how to manage, multiply and maintain money.

Today, there are more institutions passing on information about the right money habits for success, although there’s still a lot of work to be done. It’s also encouraging to see the focus on financial literacy education in agencies around the Caribbean. I am actively building my audience in the Caribbean, and I have recently been included as a feature writer on the regional website http://financialliteracycaribbean.com.

I’m looking forward to taking the ‘3 Ms of Money’ all around the Caribbean very soon!

Keep being Financially S.M.A.R.T.

Time is of the Essence!

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One of the realities of our current economic climate is that we are now forced to do more with fewer resources at our disposal. While our income loses value every month, our expenses grow almost exponentially. Layoffs and job work-hour cuts are reducing the size of the workforce, yet employees are being asked to produce more in less time.

As we continue to grapple with the financial challenges that this year will bring, it becomes even more crucial to manage the precious resource of our time. I often comfort my clients by explaining that they can always recreate lost wealth; but I can’t give the same guarantee about time because it’s not a renewable resource.

Many of us approach time as if it were an hourglass that will replenish itself with sand once we turn the instrument upside down. The reality is that once we use up all the seconds, minutes and hours in a day, we will never see them again. Continue reading Time is of the Essence! →

More Money Lessons from the Animal Kingdom

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A few months ago, I discussed the habits of some ordinary animals, noting that they had many positive lessons to teach us about being smart with money. From the lowly ant to the powerful racehorse, these creatures demonstrate determination and dedication in achieving their goals.

For the most part, the members of the animal kingdom are very disciplined and organised with their instinctual activities. However, I have researched some quirky animal behaviours that could be compared with the destructive habits that many us of have with money.

Here are a few actions that we do not want to emulate in our financial lives:

Don’t stick your head in the sand like an ostrich

It has been said that when frightened, ostriches will hide their heads in the sand to escape harm, but scientific study has debunked this saying as a myth. Although the speedy ostrich will first run away from danger, if it cannot move or defend itself, it will lay its head and neck flat on the ground to evade detection. As its upper body is the same colour as the sand in its natural habitat, it could easily be thought that the animal had stuck its head in the ground. Continue reading More Money Lessons from the Animal Kingdom →

Developing Financial Literacy in Jamaica

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Over the past eight years, I have been actively involved in writing, training and coaching on topics relating to financial education. Through interaction with thousands of Jamaicans from all walks of life, I have realised that the number one problem that prevents most people from achieving their financial goals is their lack of understanding of basic money principles.

Financial literacy is defined as the ability of individuals to make appropriate money decisions by learning the principles that relate to the management, growth and preservation of their money. When people are educated about the appropriate actions to take with their money, then they are more likely to save towards their goals, manage their debt, purchase assets such as a home, and make positive contributions to the economic development of the country.

Anecdotal evidence points to an overwhelming demand from Jamaicans for practical information on or about basic financial strategies such as budgeting, debt control, investing options and retirement and estate planning.

Although some financial institutions have been offering public seminars to address some of these issues, their initiatives have been insufficient to meet the country’s requirements. Continue reading Developing Financial Literacy in Jamaica →

2010 Action Plan #3: Control Your Income

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It wouldn’t be hard to predict that it’s going to be more difficult to make money in 2010. Employees and entrepreneurs alike are experiencing a decline in their earning power due to pay reductions, job layoffs, and consumer spending cuts. Investors who had previously benefited from lucrative profits in the money market now have to cope with decreasing returns.

How can you survive when you are not earning enough? Let’s look at some of the typical challenges that people are facing today and offer some possible solutions to these problems:

Situation: Your boss is cutting your work time to four days per week, and you stand to lose 20 per cent of your pay. Continue reading 2010 Action Plan #3: Control Your Income →

2010 Action Plan #2: Control Your Debt

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Your child’s tuition is three weeks overdue and you’re dreading another phone call from the school office. It’s not that you planned to be delinquent, but the front end of your car finally gave way last month, and all your money had to be channelled into emergency repairs. Desperately looking for an answer, you notice a newspaper advertisement for a payroll loan.

Convinced that this may be the answer to your problem, you call the financial company to get more details on the loan. You realise that you can access enough funds to not only pay the outstanding school fee, but to clear off your credit card and repay your cousin the money you borrowed eight months ago. In fact, you decide that you might as well take the opportunity to finally replace your worn living room sofa.

Does this scenario sound painfully familiar? If so, you’re not alone. For many cash-strapped consumers, borrowing money to finance budget shortfalls is standard operating procedure. Continue reading 2010 Action Plan #2: Control Your Debt →

2010 Action Plan #1: Control Your Spending

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In recent times, while speaking to several persons about their money problems, I have detected a growing sense of desperation in their voices. Although many have not yet reached a stage of full-fledged panic, it is obvious that they are very worried about the current financial situation facing Jamaica.

“If I can’t make ends meet now,” a client asked perplexedly, “what’s going to happen to me when the full impact of the tax increases hits?”

I believe that good results can come out of every bad situation. The prevailing economic crisis has forced many of us to recognise that we can no longer be nonchalant or clueless about our financial condition. We have received a monetary wake-up call – it’s now time to take control of our finances!

Over the next three weeks, I will share with you an action plan that will help you to survive in these times, and set yourself on the right track to long-term financial success. Continue reading 2010 Action Plan #1: Control Your Spending →

We Will Rise Again in 2010!

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Most of us welcomed in 2010 with sighs of relief; giving thanks that the challenges of the past year were finally behind us. However, despite offering best wishes to friends and family, we may actually doubt that the aspiration “Have a Prosperous New Year” can be realised over the next 12 months.

Even if we managed to ignore the discussions about Jamaica’s economic crisis during the festive season, reality was abruptly thrust upon us on January 1 when the new tax increases were implemented. As I noted the dramatic jump in petrol prices, it became even more obvious to me that we were in for a financially challenging time this year.

The pragmatists and pessimists are warning us about impending job losses, increasing poverty levels and inevitable social upheavals. At the same time, some business and political leaders are declaring that Jamaica is poised to benefit from myriad opportunities that always abound in periods of crisis. Where does our future really lie? Continue reading We Will Rise Again in 2010! →

No Regrets

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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

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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 →