Growth and jobs | Good money management skills are essential for financial success | News

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Petal James, Head of Retail Sales at JN Bank, advises Jamaicans that earning more does not always translate to wealth or financial success if they are unable to manage their money wisely.

“Money is a vehicle that can take you anywhere, but you must not give up your role as the master. You are the driver. You control the steering wheel,” she said.

She was addressing a recent seminar on retirement and finance organized by the Chaplain Branch of Non-Geographic Formations No. II of the Jamaica Police Force (JCF), which was held at the officers’ club of police in Kingston.

James said the age-old adage, “it’s not how much you earn, it’s how much you save,” remains relevant, especially in today’s economic climate.

“While I can agree that we could all use a pay rise, especially with the recent economic challenges caused by an ongoing pandemic and the conflict in Ukraine, the truth is that more money doesn’t always mean less. problems if you don’t’ I don’t know how to handle it wisely,” she said.

The head of JN Bank pointed out that there are many wealthy people with large debt and very little savings and investments, due to poor financial decisions.

She noted that everyone, whether employed in the public or private sector, has a responsibility to become better fund managers as they aim to achieve greater financial success.

James said there are three basic steps people can take to get the most out of their income each month. These include creating a budget, setting savings goals, and tackling debt.

“When put into practice, these steps can have a big impact not only on your monthly budget, but also on your overall financial future,” she said.

CREATE A BUDGET AND STICK TO IT

It may sound simple, but very few people put it into practice.

James noted that people can look to their budget as a guide to achieving their financial and personal goals. “If you’re struggling to cover all of your expenses each month, a budget can help you avoid overspending. This is because your budget can help you see and understand exactly where your money is going. And if your spending is in line with your personal goals,” she said.

SET SAVINGS GOALS

James pointed out that one of the best savings goals to start with is an emergency fund. “Building up an emergency fund to help cover unexpected expenses, such as sudden medical bills, major home or car repairs, or even job loss, can help you avoid going into debt when life surprises you with a major test,” she said.

She advised people to start by accumulating three months of spending as a goal. “Ideally, you should aim to set aside at least 10% of your salary each month for your emergency fund. And, I recommend you take that out of your paycheck before you spend on anything else. In other words, pay yourself first.

MANAGE YOUR DEBTS

James recommended that for people who are heavily in debt, it is advisable that they work to get this under control before taking on new debt.

“The less debt you have, the easier it will be for you to repay it. It might also be helpful to know what your debt is costing you each month,” she said. “Once you know how much your debt is, you can create a plan that helps you reduce it and eventually pay it off. The earlier you start, the more money you can save. It should be noted that managing your debt and saving go hand in hand,” said the head of JN Bank. She also noted that people should try to tackle their high-interest debt first.

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