Tag Archives: personal finance

Coping With Your Parents’ Financial Problems

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Steven* was casually reviewing the newspaper’s real estate section when he noticed a familiar address among a long list of properties up for auction. Thinking that there was a mistake in the advertisement, he quickly called his mother to tell her that they had used her house number in error.

It took Steven a while to realise that his 65-year-old mother had not responded to his amusing story.

Within a few minutes, Steven’s mother was sobbing over the phone. She haltingly admitted that she had taken out a loan against her house to get money to place in an alternative investment scheme. When the money-making operation collapsed in 2008, she was forced to deplete her retirement accounts to meet the mortgage payments, which were now four months overdue. Continue reading Coping With Your Parents’ Financial Problems →

Stop Making Excuses about Saving

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As a personal finance advisor, I can only show my clients the cold, hard realities of their financial lives and give them strategies for improvement; but until they are ready to make the necessary changes, I really can’t help them become financially successful.

After learning the secrets of managing, multiplying and maintaining money, it became my mission to pass on the good news to all. At first I was naïve in believing that once people understood how to transform their finances, they would quickly adopt key principles such as budgeting, saving and debt management.

Very soon I realised that it would not be quite that easy to influence some people’s personal finance habits. Even if they recognised that their negative practices would lead to their financial ruin, it was often difficult for them to change bad habits and do things differently.

Some people remain in financial challenges because they are quick to offer reasons why suggested solutions to their problems can’t possibly work. The need to save regularly is an area that is particularly prone to imaginative excuse-making. Here are some common excuses: Continue reading Stop Making Excuses about Saving →

Managing Money in Marriage

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“I am frustrated with the way my husband spends money. Although we agreed that we need to stick to a budget to keep costs under control, he refuses to give up spending money on things like clubs and sporting events. I want to plan for the future, but he seems to be happy living in the present. Please help!”

Studies have shown that disagreements about money are one of the leading causes of marital breakdown. Compromise is perhaps the most important ingredient for a successful union, especially when it comes to financial matters.

But what happens when the two parties in a marriage have vastly different money beliefs and practices? How can they arrive at a workable arrangement when they have opposite money personalities? Continue reading Managing Money in Marriage →

Can Earning More Make You Poorer?

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“I’m really distressed about my financial situation. Although I’m earning twice as much as I did a year ago, now every month I’m broke right after payday, and I’m in serious debt. What am I doing wrong?”

Most people desire to make more money so that they can improve their finances. It seems practical to think that if we get additional income, our money troubles should disappear. So why is it that so many of us retain less money when we earn more?

It’s easy to point to the spiralling cost of living to explain this phenomenon. But should we only put the blame on the tough economy? Can our own spending habits contribute to this earn-more-have-less problem? Continue reading Can Earning More Make You Poorer? →

Smart Real Estate Investing

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In challenging times there are always tremendous opportunities for smart investors to make profit. Despite the fact that we are in the middle of a reported recession, there are several ways to earn good returns from investing in Jamaica.

Right now, money market instruments are yielding attractive interest rates; government global bonds can be bought at low prices; stocks in quality companies are trading way below their true values; and buyers have the upper hand in the real estate market.

While you can get expert guidance on investing in the money market, bonds and stocks from several licensed financial advisors, it’s not so easy to find out how to win in the real estate market. Continue reading Smart Real Estate Investing →

Money Lessons from Michael Jackson

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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 →

Is Network Marketing A Good Business Opportunity?

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Earning additional money has become a necessity for most people in these tough financial times. Gone are the days when persons could feel comfortable with a single source of income – for some people, a nine-to-five job has almost become an endangered species.

As people look for ways to supplement or replace their salaries, one business opportunity has risen to the forefront as a viable option. Network marketing, also called multi-level marketing (MLM), is now being seriously considered by many people as a route to starting their own business.

According to Wikipedia.com, network marketing is a selling strategy that compensates promoters of direct selling companies for product sales they personally generate, and for the sales of others they introduced to the company. By using referrals and word-of-mouth promotion, independent business owners receive compensation for the volume of sales they and their down-line team can generate. Continue reading Is Network Marketing A Good Business Opportunity? →

On Your Mark, Get Set, Goal!

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“The journey of a thousand miles starts with a single step.” – Chinese proverb

The process of achieving your goals, whether personal, career or financial, can sometimes feel like a never-ending journey. In over eight years of coaching people about money, I have discovered that most persons don’t realise that getting what they want out of life is often easier than they think.

In today’s world where instant gratification is a common expectation, many people think that if the desired goal does not appear in their laps within a few months, it means that their objective is an impossible mission. This mistaken belief is the number one reason why people fail to reach their targets and continue to ‘lead lives of quiet desperation’. Continue reading On Your Mark, Get Set, Goal! →

Wants vs Needs – Can You Have Both?

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“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? →

Financial Wellness in the Workplace

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“Employees with money problems are like sharks swimming around the workplace taking bites out of the bottom line.” – E Thomas Garman, Personal Finance Employee Education Foundation

Last week we looked at some poor money habits that can cause you to feel distressed about your finances. These practices include spending more than you earn, not saving for emergencies, depending on credit for consumer purchases, not planning for financial goals and taking unwise investing risks.

Research has shown that people with money problems usually end up being tense, worried and depressed. The Centre for Financial Social Work has stated that “money issues are the greatest stressor in peoples’ lives.” Financial distress can actually lead to insomnia, high blood pressure, migraines and other serious health concerns.

While it’s clear that people’s money challenges impair their personal lives, it may not be that obvious that these troubles can negatively impact the workplace. What happens when financially challenged people go to work? Do they leave their money worries at home? Continue reading Financial Wellness in the Workplace →