Resolutions are common at the start of each New Year. These resolutions run the gamut from the lofty goals of home ownership or buying a motor car to the relatively smaller but equally important goals of improving one’s personal, social and business relationships or to taking steps towards a healthier lifestyle. But just as these goals are important, so is the goal of improving our individual financial position; and what better time to work on this than at the start of the New Year.
There are several ways in which the goal of financial strength may be achieved and one of the most tried, tested and proven ways has been that of saving.
In times past, saving meant hiding a little something under the mattress or in the undergarments drawer… but saving has evolved and words such as investment have taken its place. Today, there exists myriad financial institutions offering a combination of wealth creation solutions. High-yield solutions such as bonds and stocks, and equity and money market instruments are available for those of us with high-risk appetites.
For those who are timid or unwilling to take the big risks, saving in foreign exchange currency or investing in insurance/investment solutions are excellent options.
Approached for her view, 25 year-old *Melissa, a single female who now works temporarily in a Government agency says that her saving habits have helped her significantly over the years. Unfortunately, having been unable to secure permanent employment has caused her savings to be depleted. “I’ve had opportunities where I have saved money but then I have to live as well,” she said.
Stories such as Melissa’s are familiar; however, despite such difficulties financial experts advise that saving for the future, regardless of current economic conditions and no matter how small, is more critical now than ever.
Andrew O’Conner, Personal Portfolio Advisor at the Jamaica Money Market Brokers (JMMB) notes that the first and most important step in achieving investment goals is to start by creating a financial plan. “A financial plan is similar to a road map; guides you along your path while clearly stating objectives, timelines and measures for success,” he stated.
He also encourages the selection of appropriate investments which will position savers to achieve their goals. “When making investment options, it is important that the investment corresponds with your risk appetite, time horizon and liquidity needs.” The goal at this point, he contends, is to ensure that the investment option chosen provides positive results.
Another central factor in achieving your savings goals is budgeting. While there are no formal statistics on the number of persons who track their spending against a monthly budget, it has been proven that persons who complete a budget and stick to it are better able to maximize their savings effort over time. According to O’Conner, budgeting assists with organizing our finances by identifying excesses and unnecessary spending. “It creates a framework with which we can gain control of our financial situations,” he continued.
Critical to achieving those financial goals are identifying and seizing opportunities. Commenting on the current economic conditions, O’Conner stated that regardless of how gloomy the economy may appear, there are and will always be opportunities to invest. “We recommend having a balanced portfolio which will put you in a better position to take advantage of the opportunities as they arise.” He also remarked on the importance of timing and seeking the advice of a qualified financial advisor.
O’Conner finally recommends that savers exercise discipline once the savings plan has been put in place. “By focusing on your goal and envisioning your achievement, it will help you to keep on track and be less tempted to stray from the plan,” he concluded. We hope these tips will help you to make wiser decisions so that this year will be better for you financially: Happy New Year.
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Resolutions are common at the start of each New Year. These resolutions run the gamut from the lofty goals of home ownership or buying a motor car to the relatively smaller but equally important goals of improving one’s personal, social and business relationships or to taking steps towards a healthier lifestyle. But just as these goals are important, so is the goal of improving our individual financial position; and what better time to work on this than at the start of the New Year.
There are several ways in which the goal of financial strength may be achieved and one of the most tried, tested and proven ways has been that of saving.
In times past, saving meant hiding a little something under the mattress or in the undergarments drawer… but saving has evolved and words such as investment have taken its place. Today, there exists myriad financial institutions offering a combination of wealth creation solutions. High-yield solutions such as bonds and stocks, and equity and money market instruments are available for those of us with high-risk appetites.
For those who are timid or unwilling to take the big risks, saving in foreign exchange currency or investing in insurance/investment solutions are excellent options.
Approached for her view, 25 year-old *Melissa, a single female who now works temporarily in a Government agency says that her saving habits have helped her significantly over the years. Unfortunately, having been unable to secure permanent employment has caused her savings to be depleted. “I’ve had opportunities where I have saved money but then I have to live as well,” she said.
Stories such as Melissa’s are familiar; however, despite such difficulties financial experts advise that saving for the future, regardless of current economic conditions and no matter how small, is more critical now than ever.
Andrew O’Conner, Personal Portfolio Advisor at the Jamaica Money Market Brokers (JMMB) notes that the first and most important step in achieving investment goals is to start by creating a financial plan. “A financial plan is similar to a road map; guides you along your path while clearly stating objectives, timelines and measures for success,” he stated.
He also encourages the selection of appropriate investments which will position savers to achieve their goals. “When making investment options, it is important that the investment corresponds with your risk appetite, time horizon and liquidity needs.” The goal at this point, he contends, is to ensure that the investment option chosen provides positive results.
Another central factor in achieving your savings goals is budgeting. While there are no formal statistics on the number of persons who track their spending against a monthly budget, it has been proven that persons who complete a budget and stick to it are better able to maximize their savings effort over time. According to O’Conner, budgeting assists with organizing our finances by identifying excesses and unnecessary spending. “It creates a framework with which we can gain control of our financial situations,” he continued.
Critical to achieving those financial goals are identifying and seizing opportunities. Commenting on the current economic conditions, O’Conner stated that regardless of how gloomy the economy may appear, there are and will always be opportunities to invest. “We recommend having a balanced portfolio which will put you in a better position to take advantage of the opportunities as they arise.” He also remarked on the importance of timing and seeking the advice of a qualified financial advisor.
O’Conner finally recommends that savers exercise discipline once the savings plan has been put in place. “By focusing on your goal and envisioning your achievement, it will help you to keep on track and be less tempted to stray from the plan,” he concluded. We hope these tips will help you to make wiser decisions so that this year will be better for you financially: Happy New Year.
Share this post: