Your Money eZine

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One of the best ways to save after leaving a tertiary level institution is to continue living the life of a stu-dent even after being employed. Simply put, this means home cooked meals over fast-food eateries and traditional restaurants. Stick to a budget as if you received money from your parents to last the week/month.

Mario Ahjahorie, a Financial Analyst at Scotia DBG Investments advises that as a rule of thumb, you MUST save at least ten percent (10%) of your gross pay. “Consider investing as much as half your sav-ings in the stock market; empirical evidence has shown that stocks yield higher returns compared to other instruments over the long term,” he adds. “A common error I see some of my friends make is converting the majority of their earnings into United States Currency (USD); don’t convert all Jamaican earnings to USD as it might not be worth it.

“InveStIng ISn’t for the old or the very wealthy. Different strategies will be used by young adults as compared to a retired couple. Being young and therefore having more time in life means that younger people have more time to invest and can

afford to take more risks. If an investment falls through, for example, they have an entire lifetime to recover from their financial losses.

3 hUge errorS to avoId!BorrowIng money for ‘lIfeStyle’ pUr-chaSeS: Borrowing should be for good long-term invest-ments like education, a home, or starting a busi-ness. If you borrow for vacations, eating out and the latest fashion trends; you’ll be spending your hard-earned money paying back the debt plus in-terest in the future and have very little to show for it.

not explorIng all the SavIngS and retIrement planS avaIlaBle to yoU eI-ther throUgh yoUr employer or Inde-pendently:There are many retirement programs available to-day that can benefit every wage earner, especially on a pre-tax basis. Depending on your circum-stances, you may be eligible for any number of tax-deferred retirement programs. These may fall into several categories from group to individual plans, or defined contribution plans. It is important to in-vestigate all your opportunities to determine what options best suit your specific retirement needs. Seek the help of a financial advisor, if necessary to find out what plans might be right for you.

goIng Into SIgnIfIcant deBt for a car:If at all possible, pay cash for a car. Maybe that means you won’t be able to get the exact car you wanted, but remember that a car is not an invest-ment. It depreciates in value from the moment you drive it off the lot. Consider buying a used car. Not only is the price lower, but you could pay less for insurance. Just be sure to have a mechanic you trust check it out first. If you do take out a car loan, make sure you shop carefully for the best deal.

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Advice for 20somethings by a 20something

marIo ahjahorIe, a fInancIal analySt at ScotIa dBg InveStmentS advISeS

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Your Money eZine www.yourmoneyezine.com

Question: I want to apply for my first credit card, but I’m a little afraid of losing control of my spending when I get it. Is there any benefit to owning a credit card? How can I avoid incur-ring unnecessary debt?

Answer: Having a credit card isn’t neces-sarily a bad thing. A credit card is just a tool that can help you manage your cash flow and bill payments; but if used incorrectly it can create big problems. Here are some smart tips to help you to control your credit card:

1. Buy only what you can afford. Your personal budget (go to www.financiallysmartonline.com to download one) can help you to identify expenses that you can pay with a credit card. Don’t charge more on your card than you would have spent if you were using cash.

2. Know how you are going to pay your bill. Don’t use the card unless you’re sure that you already have the money to pay for the expense, or that you’ll have it by the time the credit card bill is due.

3. Manage your credit line. Don’t accumulate several cards and large credit limits. Increasing your credit amounts can tempt you to overspend, so keep your available credit in line with your lifestyle.

4. Note the cut-off date for recording transac-tions. You can extend the payment time for a purchase by buying it after the statement date. If your statement date is the 25th monthly, some-thing bought on the 26th will not appear on the upcoming bill.

5. Avoid high fees and charges. Pay your bill on or before the due date to avoid a late pay-ment penalty. If you’re near to your limit, verify your credit availability to avoid an over-the-limit charge.

6. Never get cash advances. There are no in-terest charges on regular purchases if you pay the bill in full by the due date. With cash advances, interest is immediately calculated from withdrawal until the repayment date.

7. Pay off all your bills in full each month. If you had to use the card as a short-term credit facility, make a plan to pay off that expense within the shortest possible time.

8. Don’t let the card out of your sight. Corrupt persons can use an electronic device called a skimmer to scan your card details and sell your information to other people, or even clone your card.

9. Keep tabs on your transactions. Check your statements to verify all purchases, or use online banking to track the activity. Immediately report any disputed item to the credit card company.

10. Take advantage of incentives. Get credit cards which give you points that can be redeemed for goods and services at participating merchants, frequent flyer miles or cash rebates.

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10 Smart Steps to:Manage Your Credit Cards

provided by: financially S.m.a.r.t. Services

Financially S.M.A.R.T. Services is Ja-maica’s number one source for prac-tical, down-to-earth and independent answers for all questions relating to personal finance. Get more money smart advice at www.financiallysmar-tonline.com. Email [email protected] with comments or questions.

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Your Money eZine www.yourmoneyezine.com

n my first job at a public relations firm, I was required to attend clients’ events and write press releases for the newspapers. I had no particular knowledge about, nor interest in PR; I had only applied for this job because

my best friend had worked there in the summer and had enjoyed it.

I remember my first attempt at writing a press re-lease. My boss, Carmen Tipling, took one look at my effort (which I thought was pretty good) and dryly told me that this was not the way that it should be done. To get your PR items carried in the news-paper, Tipling explained, you had to write like a journalist.

embrace constructive criticism There began my internship into the world of jour-nalistic thinking and writing. Tipling, a veteran in Jamaica’s newspaper business, didn’t spare any

red ink in correcting my work. She drilled me in the principles of good reporting, teaching me many valuable life lessons along the way.

I have vivid memories of the day I handed a release to her, and with a curt nod of the head, she returned it to me without corrections. It ap-peared that my writing had final-ly attained Tipling’s high stan-dards - I felt like I had won an Olympic gold medal!

Although the fields of public rela-tions and journalism didn’t prove to be my calling, today I am very appreciative that I absorbed these early lessons. For many years, my writing skills remained unused, as my career choices didn’t require them.

I t was not until fourteen years later that an opportunity came to com-bine my true passion – helping people to become financially successful – with my dormant journalistic abilities. I decided to write a personal finance

column in one of Jamaica’s national newspapers, to spread my message to many more people than my day job would allow.

new profit from old lessonsThe lessons I had learned have now allowed me to create my own livelihood. My articles have formed the framework for a comprehensive personal fi-nance training business; and have given me end-less sources of additional income.

Years ago, I would never have imagined that Tipling’s writing boot camp could have paved the way for a lucrative, fulfilling career. However, be-cause I embraced those lessons and gathered all I could from the experts, I have been able to see my hard work pay off.

Wherever you are now, whether in a dead-end job or struggling to build your own business, look around for the lessons that life maybe trying to teach you. They may come from a picky supervisor or a demanding bank officer; from a harsh ap-praisal or a disappointing venture. Embrace the education - enlighten yourself and you might just end up earning big time!

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eValuable Life Lessons

by: Cherryl Hanson Simpson

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( (Cherryl is a financial consultant and coach, and founder of Financially S.M.A.R.T. Services. See more of her work at www.financiallysmartonline.com. Email Cherryl at advice@finan-ciallysmartonline. com. Please add this address to your email address book in order to ensure you receive a response.

Your Money eZine www.yourmoneyezine.com

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eZines Limited

Managing DirectorTyrone Wilson

Your Money ReportersAndre’ Burnett

Ryan BlakeKenartur Mitchell Jr.Latoya Hutchinson

ColumnistCherryl Hanson Simpson

Financially S.M.A.R.T Services

Design and Layout Omar Phinn

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