Articles
-
Saving Is Still In Style
February 01 2012
If you have made a determined resolution to improve your finances this year, then our 2012 Money Manifesto will help you to chart the course. Last week we looked at the fundamental principle of budgeting, indicating that it was crucial for you to be aware of all your expenses, plan for your spending needs for an entire year, and make the right choices with your money.
-
Budgeting Is A Must
January 25 2012
Last week we expanded on the concepts in our 2012 Money Manifesto and explained why focusing on your financial education is the most important investment you could make for your future. If you’re searching to find answers to your money problems, I can assure you that you will find the solutions in books, magazines, CDs, DVDs and Internet sites that deal with financial matters.
The first money success principle that you need to learn and apply is budgeting. Our >Money Manifestostates: that >“I will no longer be clueless about what I spend money on, as I will take the time to document all the expenses that I expect to come during the year.
-
Make 2012 Your Best Year Ever
January 18 2012
At the beginning of a new year most people choose to reflect on the past and make resolutions for things they would like to accomplish going forward. However, despite their grand ideas and hopeful wishes, all too often, the days, weeks and months slip by without any progress being made towards actualising their goals.
-
Money Manifesto for 2012
January 11 2012
As many Jamaicans go to the polls today to select the party, people and policies of their choice, I thought that I would create a ‘Money Manifesto’ containing all the financially smart steps that can help you to shape a prosperous future for 2012 and beyond. The 12 points shared below represent the essential areas that you should follow if you wish to become financially successful.
-
Giving Thanks for 2011
January 04 2012
It was the best of times, it was the worst of times; it was the age of wisdom, it was the age of foolishness; … it was the spring of hope, it was the winter of despair; we had everything before us, we had nothing before us.” This quote from the Charles Dickens novel, A Tale of Two Cities eloquently expresses some of the conflicting realities of Jamaica in 2011.
As we approach the end of another year, it might be tempting for us to become cynical about our nation’s growth in the past and potential for the future. Politicians, psychologists, financial analysts, civil society groups and ordinary citizens all have varying opinions about the economic challenges that hinder our progress.
-
The Secret of the Greatest Salesman in the World
December 28 2011
A good book can weave a storyline that arouses all of your senses and emotions. Finely crafted phrases can paint a picture as vivid as a Michelangelo masterpiece; create a dish as appealing as the finest gourmet meal; produce a sound as stirring as a Bob Marley classic; and stimulate an aroma as comforting as the smell of a mother’s perfume.
Read more on The Secret of the Greatest Salesman in the World
-
Financial success may be easier than you think
December 21 2011
Last week’s column which looked at several ways in which we sabotage our financial future by delaying important activities seems to have hit home with many readers. The quote‘procrastination is opportunity’s natural assassin’ certainly rings true when it comes to our finances. Recently, I had yet another occasion to reflect on the dynamic relationship between time and money.
It was late Saturday afternoon when I received information that a family friend was coming to visit for a few days and would be arriving in less than three hours. In full-fledged panic mode, I thought about all the things that needed to be accomplished before I would be comfortable with having a guest stay in my house.
-
The Past and Present Tense of Money
December 14 2011
The start of a new year usually fills our hearts with optimism and hope for a better future. I’ve always been fascinated by this phenomenon - why should this period inspire us to create lofty resolutions and ambitious declarations? Why do we anticipate that the fading old year will usher in bright beginnings?
-
A Stitch In Time
December 07 2011
It ’s amazing how a few minutes’ time delay can make a major difference to an entire day. This realisation struck me on a recent bus trip to the country. The driver of the vehicle turned up about 15 minutes late for work, and in his attempt to make up for lost time, he exceeded the speed limit and was stopped by the highway police.
-
Three Keys to Saving Success
November 30 2011
One of the essential money principles that persons often neglect in challenging economic times is the important act of saving. When there’s not even enough money to pay basic expenses, it’s easy to understand why people will forgo this simple, but fundamental tool of financial success.
-
Four Strategies To Achieve Your Goals
November 23 2011
“If a man wants his dream to come true, he must first wake up.” — Author unknown
Last week we looked at five universal laws that govern the process of goal achievement. The path to achieving your financial goals can become a little easier if you know exactly what is required to move from dream to reality. Let’s look at four things that you need to know in order to attain your objectives:
-
Financial Information Month Pt 2
November 18 2011
You must have adequate financial ratios, you must have debt ratios and anticipate how much return you want from your investments. You must know how to be financially smart, know when to use leveraging, how much...
-
Five Laws of Financial Success
November 09 2011
If you’re trying to achieve a major financial goal, sometimes your journey may seem like a meandering obstacle course with no clear sign of the finish line. Although you try your best to create a better life, it seems that something always happens to throw off your plans.
-
Six questions to ask before you spend
November 02 2011
I recently had a heart-warming conversation with a reader who lives in the inner-city community of Trench Town, in Kingston. I met Nicolini Williams two years ago when he participated in a financial literacy training I was offering to members of the Miracle Club, the youth mentorship arm of the Agency for Inner-city Renewal based in that area.
-
Investing By Owning Shares - Returns and Risks
October 26 2011
Last week we looked at stock investments, explaining that this option provides persons with the opportunity of buying ownership into a company. Let’s now outline the ways in which you can make money by investing in shares, while highlighting some of the possible risks.
-
Investing by owning shares
October 19 2011
As things get tighter economically, more people are eager to find out how they can invest their money to create wealth. They realise that their dreams and goals will be difficult to attain if they depend solely on their job income. Investing can be a ticket to financial freedom for those who are willing to learn and abide by the correct principles.
-
Financial Information Month Newsletter
October 12 2011
Perhaps the trick in becoming wealthy is to understand how to maximize one's return from using other people's money! And it's not that difficult. What one has to do is ...
-
Investing by Lending Money - Returns and Risks
October 12 2011
To be a truly successful investor, it’s important to understand the nature of any investment that you wish to undertake; by knowing how it can increase in value or supply an income, recognising the level of risks that the investment may bring, and ensuring that the investment type is ideally matched with your financial objectives.
-
Investing By Lending Money
October 05 2011
When you work, you are supplying something of value which could be your time, talent or products. In exchange for your efforts, your employer or customers are willing to pay you money. When you invest, you are actually making your money work for you; it’s as if you found a job for your money. The person or entity with which you place your investment pays for the use of your money.
-
The Emotions of Money
September 28 2011
When we want to find out about what it takes to be financially smart, we often focus on the practical aspects of money such as budgeting, saving, investing and planning for our financial goals. It makes sense to think that if we learn and apply all the right financial principles, then we should be well equipped to become successful with money.
-
Making Money With Your Mind
September 21 2011
Jamaican people are very creative, and it never ceases to amaze me how we can effortlessly invent catchy phrases and popular dances in an instant. As the saying goes,‘There’s a new idea born every minute’; and in this country we are constantly coming up with new trends that excite our imagination for a time.
-
Can You Invest By Shopping?
September 14 2011
We have recently been discussing the concept of investing, which involves putting money into a venture with the expectation of making a profit. Whether you invest in financial securities, property or a business, the general idea is that you decide to forgo spending money in the present, in order to secure some benefit in the future.
-
Is it worth the risk to invest?
September 07 2011
Many people dream of enjoying a carefree lifestyle without the stresses of a regular job, and wish that they could find the perfect investment that would allow them to become wealthy. Their desire to be free from the routine of working for a living is often a compelling reason that motivates them to invest their money.
-
The Hidden Costs of Investing
August 31 2011
When many people think about investing, they have one major question in mind, “How much money am I going to make?”, and they usually don’t consider what they may have to give up in order to get their desired profit. However, natural law dictates that in order to receive, you must be willing to sacrifice something in return.
-
This Little Investor Went to the Market
August 24 2011
There are several things to consider if you are thinking about investing. Where do you go to purchase an investment? What are all the available options? How do you know which is the right one? When is the best time to buy or sell an investment? Whom should you trust to give you advice? Why should you even invest your money at all?
-
Investing Is Not Rocket Science
August 17 2011
Many persons think that investments are mega money-making deals that can only be carried out by wealthy individuals such as financier Michael Lee Chin or hotelier Gordon ‘Butch’ Stewart. It’s also commonly believed that investing involves very technical and complex financial transactions that are outside of the understanding of the average person.
-
Is Money Holding You Captive?
August 10 2011
Money is an essential part of our existence, as we need it to acquire the basic necessities and comforts of life. I always encourage persons to be more purposeful in their financial dealings and to constantly look out for opportunities to earn more income. Becoming more focused and productive is a key ingredient to attaining our goals.
-
Getting Started with Investing
August 03 2011
Whenever I examine the topic of investing, I often receive responses from readers who want to learn more about how they can make their money work for them in some type of investment. It seems that while they have a desire to invest, many persons are unable to proceed because they just don’t know where to start.
-
How to become a successful investor
July 27 2011
Last week we looked at several investor personalities which Robert Kiyosaki describes in his best-selling investing book, CASHFLOW Quadrant. While examining the attitudes and actions of different types of investors, he explains that most of them will only achieve minimal success because they lack the financial intelligence required to become wealthy.
-
What type of investor are you?
July 20 2011
Too many people live out their lives without setting financial goals or thinking of ways to get ahead in life. Like the ancient Arabic saying, “He who knows not, and knows not he knows not, is a fool,” they are dangerously unconscious about the importance of creating and carrying out a plan of action to become financially secure and successful.
-
Investment tips from an ancient time
July 13 2011
In today’s technologically driven society, persons looking for advice can readily turn to the Internet to find solutions to almost any problem that they might encounter. When it comes to financial issues, it’s not difficult to search online and quickly find answers to a variety of questions about money.
-
Going Viral with your Dream
July 06 2011
We have recently been looking at the importance of each person creating a vision for his or her personal growth and financial progress. I believe that Jamaica’s future economic development will be dependent on the ability of all of us to take charge of our own destinies, instead of waiting around for someone else to create change.
-
Going The Distance In Achieving Your Dreams
June 30 2011
“Where there is no vision, the people perish” - Proverbs 29:18
Most Jamaicans ardently want our nation to progress towards peace and prosperity. However, many of us don’t realise that for Jamaica to advance, we can’t simply expect others to make it happen; we must each embark upon our own personal journey of growth and development.
-
I Have A Dream
June 22 2011
After writing about some of my concerns for the economic future of this country last week, I was heartened to receive responses from readers who indicated that they too, were anxious to play a part in restoring Jamaica to a prosperous state
-
Waiting in Vain?
June 15 2011
Dearest readers,
Since February 2006 I have been faithfully writing on the subject of personal finance, teaching you about the essentials of managing, multiplying and maintaining your money. It has been my pleasure to share all the money lessons I’ve learnt while searching to find answers to solve my own financial challenges.
-
Business Lessons from the Honey Bee
June 08 2011
I have often admired the diligent work of the honeybee. Just stand in any garden for a few minutes and very soon you will see one or two honeybees foraging for food within the flowers. These insects never seem to get tired of working, so it’s obvious why an industrious person is said to be as‘busy as a bee’.
-
Creating a System for Success
June 01 2011
If you are in business, or have ever attempted operating your own venture, you’ll probably be very aware of the unique challenges that are faced by most small business owners. Running a business can sometimes be a lonely and laborious task, instead of the pleasing and profitable experience that many entrepreneurs dream of.
-
Let’s All Take Action for Business Growth
May 25 2011
The development of successful local businesses should be of concern to all well-thinking Jamaicans, whether or not they have an interest in operating their own ventures. A profitable business community is needed to increase employment levels, provide the government with more tax revenues and spur overall economic progress.
-
Why Do Many Small Businesses Fail?
May 18 2011
I often receive enquiries from persons who are looking for advice on how to be successful in starting and running their own small businesses. I also get feedback from disheartened business owners who have seen their entrepreneurial dreams transformed into financial nightmares.
-
Knowledge is Power in Business
May 11 2011
Sixteenth-century philosopher Sir Francis Bacon is credited with coining the phrase“knowledge is power”. I enthusiastically support his viewpoint, as I believe that the pursuit of knowledge is an important means of personal development. However, acquiring knowledge by itself is not sufficient; the key to real growth is applying what you have learnt to improve your life.
-
Developing Successful Jamaican Businesses
May 04 2011
Many of the financial books that I have read indicate that establishing a business can be a means of increasing your personal wealth. Whereas being frugal and saving consistently may eventually produce a significant nest egg over time, if you wish to fast-track your money growth, then business ownership might be your best route.
-
How to build a business with little time or money
April 27 2011
We have been looking at some of the steps recommended by several financial experts that can help you to increase your wealth and achieve financial security. Robert Kiyosaki, in his insightful book,CASHFLOW Quadrant, advises that owning a business should be an important element in your personal wealth accumulation plans.
Read more on How to build a business with little time or money
-
Create Wealth by Building a Business System
April 20 2011
We have been looking at some key principles of financial success - becoming disciplined about budgeting and saving, being prudent about getting into debt, and setting and achieving smart goals. We have also discussed the importance of creating additional income to meet your basic money needs.
-
Money Lessons from the Mango Tree
April 13 2011
There’s no time quite as enjoyable for the typical Jamaican as mango season. Every sense is stimulated as the sight, smell, feel and taste of a delicious mango will herald an enjoyable experience. Even hearing the words, ‘Would you like a mango?‘ can bring a heady anticipation of coming delights.
It may not be immediately obvious how eating a juicy mango could lead me to reflect about money.
-
Where does your cash flow?
April 06 2011
Are you struggling to find the answer to an important financial question? It is possible to find the solution to practically every money problem if you read extensively, concentrating on material that can educate you about personal financial success.
Over the past weeks, I have introduced you to several books and CDs that have helped me to learn the essential principles of money achievement. Just like physics, accounting or other subjects that you learn in school, money is governed by basic rules that dictate how you should manage, multiply and maintain it in order to attain financial success.
-
Developing Your Millionaire Mindset
March 30 2011
Last week, we introduced a fascinating audio book, Secrets of the Millionaire Mind, in which author T Harv Eker explains how people’s thoughts can actually influence their financial results. This week, we explore some of Eker’s insightful suggestions about how you can create a mindset for wealth.
-
Who Wants to Have a Millionaire Mind?
March 23 2011
Here’s a fantasy scenario: If you had to choose between getting a million dollars in your hand tomorrow, and being given the mind of a millionaire but no money at all, which option would you take? Would you say,‘I’ll take the money!’ or ‘I’ll take the mind’?
There are many benefits to be obtained from having access to a large sum of money; the opportunities for profiting from a sudden influx of wealth should be almost immeasurable. Yet we constantly hear unfortunate stories of persons who have received sudden fortunes, such as lottery winners, and who end up losing all their money in a short time.
-
Procrastinate at your peril
March 16 2011
“Procrastination is opportunity’s natural assassin.” - Victor Kiam
The failure to finish important tasks is one of the major challenges that can stop you from achieving your financial goals. Many persons truly desire to improve their finances, but their dreams fade away because they make little effort to carry them out. Talking about your goals is great, but you have to take action in order to achieve them.
-
Discovering Your Money Blueprint
March 09 2011
I like to encourage people to continuously seek knowledge and information about various topics. Keeping abreast of changing trends is especially crucial in the world of finance, as these can help you to find opportunities to create wealth. When it comes to money, I have found that you can never learn too much about it.
-
Mind Your Own Business
March 02 2011
We have recently been examining some key books that can help you to learn how to achieve a financially rewarding life. Understanding and practising the basic principles of money success are fundamental steps to creating a prosperous future. As Robert Kiyosaki explained in his bestseller, Rich Dad Poor Dad, “If you want to be rich, you need to be financially literate.”
-
Uncovering the Secrets of Money Success
February 23 2011
Ask and it will be given to you; seek and you will find; knock and the door will be opened to you.” - Matthew 7:7, NIV Bible
As a money coach, I interact with many people who are desperately seeking solutions to their financial problems. When you are constantly broke, heavily in debt and unable to find the way to achieve your dreams, it can feel as if you’re lost in a confusing maze without the vital directions to get you out.
-
What do the rich know about money?
February 16 2011
“The main reason people struggle financially is because they have spent years in school but learned nothing about money. The result is that people learn to work for money… but never learn to have money work for them.”
This bold statement on the back cover of Rich Dad Poor Dad was very intriguing. I had heard a lot about Robert Kiyosaki’s bestselling book, which promised to reveal what rich people taught their children about money that poor and middle-class people did not. I was eager to find out if the publicity hype surrounding it was warranted, so it was one of the first books that I read in my search for ways to become financially successful.
-
Earning Extra Money is Essential
February 09 2011
Becoming financially successful involves more than just doing the right things with the money you currently earn. For many persons, the salary they receive from their regular jobs can just barely cover their basic necessities. The reality is that if you want to achieve a healthy financial status, you need to focus on earning extra income
-
What’s stopping your financial success?
February 02 2011
One observation that has both fascinated and frustrated me is that very few people actually attain the financial success that they dream about, while so many people seem to exist without a sense of direction towards achieving any goals.
I have had many opportunities to examine the attitudes and actions of persons who seek my advice about their money problems. Very often, I would give recommendations to two persons in similar situations, yet only one would follow my counsel and achieve success, while the other would continue along a financially destructive pathway.
-
Breaking The Cycle of Debt
January 19 2011
One of the problems with money is that there never seems to be enough of it to buy all the things we want in life. However, the lack of funds doesn’t necessarily stop some of us from getting the things we desire. Thanks to our culture of credit, there are many sources from which we can borrow - bank loans, credit cards, payroll advances, and informal money lenders
-
Make Your Dreams Happen in 2011
December 29 2010
As another year rapidly draws to a close, it’s a perfect time to consider all the triumphs and trials that faced us in 2010. In reviewing the past, let’s celebrate our successes and learn valuable lessons from our mistakes. When we look back in time, sometimes we may find that certain challenging issues keep recurring without us really uncovering or understanding their underlying principles. One important life course that many people believe that they are doomed to fail is ‘Money Success 101′. The key attitudes and actions needed to excel in this class continually seem to elude them.
-
All I Want For Christmas Is…
December 15 2010
Every year during the month of December, many people feel obliged to partake in frenzied preparations for the Christmas period, with party-hopping and present-buying being of utmost importance. It seems that having lots of money to spend is crucial to some for the enjoyment of the season. In fact, many people become depressed at this time if they can’t find the funds to really splurge for the holidays. It’s common to hear frustrated shoppers comment that “No money not running this year, so I won’t be able to have a good Christmas.”
-
More Money-Making Ideas for the Holidays
December 08 2010
For several months, we have been offering dozens of income-generating ideas that can help you to make extra money part-time, or create a satisfying full-time business. I believe that the only solution for our personal and national economic problems is for each one of us to become more enterprising about earning more.
Once you start focusing on increasing your personal productivity, you will eventually develop the ability to see earning opportunities in various situations. Remember, the key is to look out for people’s unfulfilled needs or painful problems, and get creative in finding solutions to address their concerns.
-
Money-Making Ideas for the Holidays
December 01 2010
As the holiday season approaches, many persons will abandon the cautious spending habits they had diligently adhered to throughout the year. Engaging media advertisements, exciting party invitations and enticing Christmas fare are enough temptations to drive even the most frugal consumer into shopping overdrive.
Inevitably, after the spending sprees are over, post-season depression sets in. As January draws nearer, many people frantically wonder how they are going to pay for their holiday excesses and cover their upcoming bills. Year after year, they are filled with remorse about the one month of frenzied shopping which leaves behind eleven months of financial stress.
-
How to break free from financial bondage
November 24 2010
What are some of the signs that indicate that we’re imprisoned in a vicious circle of financial failure? We rely on borrowing to pay for basic necessities; we focus on pointless consumption instead of purposeful conservation; we fail to create action plans to attain long-term goals; we make disastrous investment decisions with money.
-
Are You Living on the Edge?
November 17 2010
As the recent devastating downpours lashed the island of Jamaica, many people who lived close to rivers and gullies were terrified as the torrents tore away at the land beside their dwelling places. Unfortunately, several ill-fated persons watched helplessly as their homes eventually broke apart and tumbled into the raging flood waters.
Tropical Storm Nicole highlighted the fact that even the most placid streams can become destructive floods when weather conditions deteriorate. However, while those who resided near to these out-of-control waterways were living in danger, other persons whose residences were built on more solid ground were relatively unscathed by the natural disaster.
-
Smart Spending for Savvy Shoppers
November 10 2010
Thanks to our challenging economy, the joy of carefree spending has been drastically curtailed for many consumers. Stringent budgets and limited disposable incomes have forced many former fashionistas to turn away from their favourite pastime and focus their spending on the bare necessities of life.
-
Making Money With Personal Services
November 03 2010
As we continue to highlight practical options of generating income to make ends meet or save towards future goals, today we will look at some of the ways to earn from providing personal services. Depending on your background or natural talents, you may find one of the following opportunities ideal for you...
-
Making Money with Animals
October 20 2010
It’s an unfortunate reality that many persons work just to receive a pay cheque, as they find their regular nine-to-five jobs tedious and unfulfilling. Before the industrial revolution ushered in the concept of paid task labour, workers used to get satisfaction from earning from professions that suited their personalities and natural talents.
-
Making Money with Food
October 06 2010
It’s been said that the way to a man’s heart is through his stomach. This saying certainly rings true for not just Jamaican men but women as well, as it is part of our culture to enjoy a good meal. Practically every month a food festival is held somewhere in the country, and people will travel far and wide to partake in the offerings.
With the universal love for eating out, it’s ironic that the restaurant business holds the dubious distinction of having a 90 per cent failure rate. Although researchers debunk this statistic as an urban myth, many persons are still wary of venturing into the food industry because of its varied challenges.
Despite the possible setbacks, there is nothing as satisfying as food preparation for those persons who are naturally talented in this area.
-
Making Money with your Home
September 15 2010
Over the past weeks we have been encouraging persons to get innovative in looking for ways to become more productive. It makes no sense to merely complain about a shortage of money - you have to focus your efforts on creating solutions to earn more. Fortunately, there are dozens of methods of generating income; it’s wise to choose one that best fits your personality and situation.
-
Making Money from Training
September 01 2010
IN these tough economic times, it’s important for us to focus on income possibilities instead of just worrying about our financial problems. If we can envision a more prosperous future and then channel our energies into productive activities, then we will eventually overcome the money challenges that burden us today.
-
Making Money from your Backyard
August 18 2010
Many persons find it challenging to think of practical ideas to earn extra income. The key to making more money is first to identify where people have unmet needs or pressing problems that you can solve for profit. When you are trying to create a part-time source of income, you should always stick to options that fit in with your natural talents or the resources that you already have on hand
-
Multiple Streams of Income
July 28 2010
When it comes to their finances, many people are currently experiencing severe drought conditions. The reservoirs of their bank accounts are running dangerously low, as the constant outflows of money are not being replenished by new inflows of savings. The Jamaican proverb, “Rain a fall, but de dutty tough,” aptly describes the inability of their scattered income showers to nourish their parched budgets.
-
Congrats to Essay Winners
July 26 2010
The Caribbean Regional Technical Assistance Centre congratulates the winners of our Financial Literacy for the Caribbean Essay competition which was held in May 2010.
We wish to thank all participants for their entries. Below is the list of our winners and their essays
-
Talk to Your Children about Money
July 15 2010
At what age is it appropriate to begin to teach kids about money? Is it at the pre-school stage, at the pre-teen or at the teenage stage?
The earlier the better if you ask me. From the time a child is able to count to ten and appreciate nursery rhymes and children’s stories, the time is right to talk about money. Talk about what things cost and the importance of choosing wisely when spending one’s money (choosing needs as opposed to wants) since one would not have all the money to be able to buy everything.
Certainly, the discussion would have to be age-appropriate, so parents should begin with simple concepts for young children and then deepen the conversation as children get older.
-
Media Release: Parents Must Step Up
June 09 2010
PARENTS IN THE CARIBBEAN must begin to teach their children to manage money from an earlier age to increase their chances of becoming financially responsible adults, advises a Caribbean economist.
Therese Turner-Jones, Programme Coordinator of the Caribbean Regional Technical Assistance Centre (CARTAC) made the comments today at the prize giving ceremony for the winners of CARTAC’s inaugural Schools’ Essay competition at the Grande Salle of the Central Bank.
“Parents across the region seem intent on teaching their children about the importance of making money by getting a job or an education. They must also create a balance by teaching their children how to spend wisely, save and invest, and how to delay gratification. They must step up to the plate now and lead by example,” Turner-Jones advised.
-
HOW LIQUID ARE YOU?
June 02 2010
Liquidity is the measure of how quickly you can access cash when you need it without incurring a significant penalty. Note well that the issue is not about zero cost but rather a significant cost. Every decision has a cost even if that cost is the potential income lost if you were to drawdown on your savings i.e. (opportunity cost).
In the region there are many sayings that we would use to indicate a liquidity problem. These include:- “Things tight” or “I’m tight for cash”
- “things brown”
Or, you may refer to an individual as being asset rich, but cash poor. This underscores the point that liquidity is not a measure of one’s net worth but rather of one’s cash flow. You can have valuable assets but still be cash broke. Hence, if you are not liquid you are not financially free.
Let us classify liquid assets into two categories; those that are tangible and those that are intangible. Tangible assets include i.e. cash assets such as money in one’s wallet, savings and chequing accounts as well as near-cash assets which will include short term investments such as Treasury bills. -
How to Work Less and Earn More
May 30 2010
The only way to sustainably earn more in the 24 hours available in a day is to create an income stream that is not dependent on your personal, direct efforts to produce money. Money that you earn without physically working for it is called passive income. Creating a passive earning source will usually require a lot of hard work initially, but the satisfying end result will be a system that continues to earn while you sleep.
-
Increase Your Savings Savvy!
May 21 2010
When Anthony was promoted to records supervisor in a local hospital he treated himself to an SUV, upgraded his wardrobe and partied more.
He deserved it! But over time his disposable income began to shrink. Dejected, he realised he was working harder but had little to show for his raise at each month-end.
Higher income, fewer savings Anthony’s situation is common, notes Elizabeth Austin, Head of the National Financial Literacy Programme (NFLP) of the Central Bank of Trinidad and Tobago: “We launched our programme in response to the observed deterioration of savings ratios among income earners despite a considerable increase in per capita gross domestic product (GDP),. In other words, higher incomes have been matched by little, if any increase in personal savings.”
Austin adds that there has also been a significant increase in personal debt including expensive credit card debt.
-
Are You Tired of Being in Debt?
May 20 2010
“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.
-
Building Wealth
May 10 2010
“Money will command your attention. Allow it a proper place in your life, but deny it a throne. Money means many things, but nothing so much as a yardstick by which our measure will be taken. The need of it, the use of it, the power of it, the love of it will be used by others to define who you are and who your are not..."
Even you may use it to determine how you should perceive yourself. Be careful: Money is also known to be a relentless slave master. If I have learned anything from this balancing act it is the importance of defining your worth in your own terms.”
-Sidney Poitier in Life Beyond Measure:
Letters to My Great-Granddaughter
-
Developing Youth Entrepreneurship
April 30 2010
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.
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.
-
Students to learn about money and win
April 12 2010
STUDENTS IN BARBADOS now have a fun way to learn about managing money and win some at the same time.
The Caribbean Regional Technical Assistance Centre (CARTAC) has launched an essay competition for school students between the ages of nine and 18 at all schools across Barbados including private schools.
-
Steps to a Financially Secure Future
March 30 2010
Rather than waiting around for things to happen in your favor,get financially secure by making things happen. You can be financially secure and avoid going into financial ruin, by planning mindfully. Set aside funds each month for your retirement by starting a retirement fund. Also set aside funds to cover unexpected costs related to house repairs, health emergencies not covered by your insurance plan and other necessities you would have to pay out of pocket.
-
School’s Essay Competition
March 26 2010
STUDENTS IN BARBADOS now have a fun way to learn about money AND win some at the same time!
The Caribbean Regional Technical Assistance Centre (CARTAC) has launched an essay competition for students age 9 - 18 as part of the Financially Fit public education programme.
The topic is: "You receive cash as a birthday gift from your favourite uncle or aunt. But you must use it wisely! Write an essay describing what you'd do with your money and why."
Prizes include bank accounts, laptops, book vouchers, websites and more!
-
Guyana System of National Accounts Report
March 18 2010
A three-year project which began in 2007 to rebase Guyana’s National Accounts from 1988 to 2006 has been completed and compiled in a report entitled “Guyana System of National Accounts.”
The report which benefited from technical support by the Caribbean Regional Technical Assistance Centre (CARTAC), was officially launched at the Pegasus Hotel today by Minister of Finance Dr. Ashni Singh during a seminar for users to understand the scope of the National Accounts. -
Saving and Investment Course
February 24 2010
If you constantly find yourself needing credit to get you to the next payday, you are living beyond your means. Re-evaluate your budget and talk to your banker or someone else who can help you get your finances straight. Unless you pay your credit card bill in full each month, don’t use it for anything you can eat or wear.
-
2010 Action Plan #3: Control Your Income
February 13 2010
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:
-
2010 Action Plan #2: Control Your Debt
February 12 2010
Your child’s tuition is three weeks overdue and you’re dreading another phone call from the school office... . 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.
-
The Dawn of a New Decade
February 08 2010
On January 28, the ECCB Governor, Sir K. Dwight Venner engaged the ECCU public in an interactive discussion on the regional economy in 2009 and prospects for 2010. He noted that in spite of an approximate 7.4% contraction in economic activity in 2009 and the projection of a 2.4% contraction for 2010, the region and people must take charge of the situation and turn things around rather that allowing the projection to become a self-fulfilling prophesy.
-
2010 Action Plan #1: Control Your Spending
February 04 2010
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!
-
Financial Literacy Programme-Trinidad & Tobago
January 29 2010
The National Financial Literacy Programme (NFLP) of Trinidad and Tobago was launched on January 31, 2007.
If the key objectives of the programme were to be summarised in one sentence, it would be:
"to sensitise persons to the importance of making prudent and sensible decisions regarding the use of their money"
We, in Trinidad and Tobago, believe that we have been able to achieve this objective to a considerable degree. In fact, at the launch of our latest publications on October 27, 2009, Governor Ewart Williams indicated that, “There is no doubt that we have come a long way over 36 short months”.
-
Opening Speech of Financial Literacy Project
January 22 2010
CARTAC’s Financially Fit website site has a special Caribbean flair which we hope the viewing and using public will find fresh, exciting as well as educational. It appeals especially to a younger population as we hope to influence their financial knowledge at an early stage. Noting also that a younger Caribbean audience spends relatively more time on electronic media, including the internet, than print, we are targeting facebook users as a special community.
-
Five Little Changes with extraordinary Outcomes
January 20 2010
Money is usually earned monthly or weekly but it is spent daily. That being the case, it is the changes that we make to our daily financial planning that will have the greatest impact on our financial outcomes
Read more on Five Little Changes with extraordinary Outcomes
-
Dare to Save Money Group
January 19 2010
Money is vital to everyday living. We spend years learning how to make it and we spend years making it; therefore, we owe it to ourselves to learn how to manage it.
The Dare to Save Money Group provides another forum for learning how to manage this vital tool that we spend so much of our lives pursuing. -
Take Your Financial Check Up Today!
January 08 2010
In Barbados and the wider Caribbean, we were never taught in any of our formal educational institutions how to prepare for being good stewards of the money we earn. However, we were taught very well what we need to have (a good education!) to earn that money. Well, as the saying goes (with a variation): “Any fool can make (earn) money but it takes a wise man to spend, save and invest it!”
-
Budgeting Your Way to a Happy New Year!
January 04 2010
Melissa’s Christmas was fantastic!
She’d hosted a successful family luncheon and made up gift baskets and delivered them to quietly grateful patients at the local hospital. And she’d eaten and imbibed at a record number of festive parties. Yes, it was the best Christmas… ever!
Christmas is over… now what?
