I HAVE A CONFESSION – I LET MONEY RUN MY LIFE !

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Happy New Year Family. This is my second post for the new year and I thought I would give everyone a piece of advice to help you over the usual January blues- financial recoup. There is a saying : those who do not manage their money will always work for those who do.  Lets admit it – we all overspend during December  for a lot of reasons. Its cyclical. And every January is referred to as Depression January. We need to get back on track. Dr. Andre Haughton, noted economists and lecturer at the UWI has this uncanny way of breaking down  complex issues into everyday down to earth  language. With his permission I have reblogged his piece on how to manage your wealth in 2015. Enjoy.

MONEY MANAGEMENT – Dr. Andre Haughton

MANY PEOPLE encounter extra spending during the Christmas holidays, whether through pampering oneself, general home improvement, buying gifts and providing cash for others, plus various additional spending.

Some people receive Christmas bonuses to cope with the additional spending, while some borrow and or use their savings. In either case, the extra spending will put a dent in pockets, which makes it important to understand how to manage your finances to cope and restore your financial position. Here are 10 tips to help you manage your finances properly for this New Year.

1. Track your monthly spending.

Many people have no idea how much money they spend on food, bills, clothing, entertainment, etc. per month. In order to have a healthy financial position, it is important to first make record of how much you spend on a monthly basis. This will provide an idea of you household’s or business’ cost structure.

2. Develop a budget and stick to it as closely as possible.

After recording your average monthly expenditure, develop a realistic budget based on your important expenses and track to see that you are sticking to your budget closely. Only making allowances for very important unforeseen events, record these unforeseen events (hospital emergency visits, lawsuits etc) to see how they impact you budget throughout the year.

MONEY

3. Develop a marginal propensity to save.

Your marginal propensity to save is the portion of your income that you save on a monthly basis. For example, if you receive $100,000 per month and you budget to spend $80,000 and save $20,000, your marginal propensity to save is 20 per cent. Try to improve on this margin if your budgeted expenditure allows you to do so as time progresses. Your savings are very important, it provides the cushion of cash for rainy days or in the event that you lose your job or someone in your family becomes very ill; always budget for savings.

4. Avoid late fees and charges.

Most companies charge late fees when bills are not paid on time. It is important to avoid these late fees and charges by paying bills on time to the best of your ability. Record your monthly bills and due dates and keep reminders on your phone or elsewhere to make sure you pay bills on time. Late fees encountered every month for the year can add up and prove to be very costly unknowingly.

5. Analyse your debt and credit position.

Always keep check of how much you owe and budget debt repayment in your monthly plans. Remember, if you borrow money from someone, it is not yours. Budget to repay this and try not to borrow from one person to pay another, especially if you are paying large interest on these debts. You will end up paying much more for the same debt over a longer period of time.

6. Monitor credit card debt.

Credit cards can be very useful, especially for shopping online and engaging in cashless spending for security reasons. People increase debt very easy via credit cards. It is important to keep track of your credit card spending and monitor your repayments on a monthly basis. Credit cards are some of the most expensive debts as they charge interest rates per day plus a fee for late payment, try as best as possible to service your credit card bill on a monthly basis to avoid interest rates and late fees.

7. Take advantage of free money.

Some employers offer contribution to match your savings for retirement, if you work for one of these institutions; be sure to pay the maximum amount so that you can receive the maximum contribution from your employers. Also be sure to use any coupons, stubs etc that you receive. This will help to minimise you total expenditure on a monthly basis.

8. Analyse your insurance policy.

Life and health insurance policies may take up a portion of your monthly expenditures for which you might not have the appropriate coverage. Be sure to analyse your insurance policy to reduce payments to a minimum while getting maximum coverage over time.

POVERTY

9. Seek sound financial advice.

With sound financial advice, people and their businesses can improve their financial position and become gradually self-sustainable and profitable. Never be afraid to get professional financial advice and consulting; it will be worth it in the long run.

10. Make rational spending decisions.

Finally, always make sure your choice to spend is rational. A rational choice weighs up the cost and benefit associated with a particular spending. If the benefit associated with a particular spending is greater than the cost, then and only then is the spending rational.

Dr André Haughton is a lecturer in the Department of Economics on the Mona campus of the University of the West Indies. Follow him on twitter @DrAndreHaughton.

THE WORLD’S LONGEST & SADDEST BOOK

THE WORLD'S LONGEST & SADDEST BOOK

New year begins but it is still a continuation
What is new about the new year?
A change in the number
Anyone can do that
A child does that in kindergarten
Great Shit..Nobody Noticed

A world compartmentalized by economies, race, religion, color,
One world but so many nations
Each breathing their own air of justice and human rights
Do we live on one planet , the human planet Or is it just individual interpretations of human existence? Great Shit..Nobody Noticed

This place called Earth we come to know as our dwelling, our birthright Given to us by the Almighty to be fruitful and multiply
We have made it our individual playground
Creating Kings, Queens, Presidents and Chiefs
Wealthy , super wealthy and something called the Middle Class
Created a class of people marginalized and brainwashed to think little of themselves Thinking they are not worth of love, care, affection
The devaluation of man to create value for the wealthy
Man created these experiences
But on whose directives, on whose authority
What gives Man the right to claim land of the Almighty his personal prize Who tells him to carve out races and class To set nations above nations, people above people, First world, second world , third world what about One World?
Great Shit..Nobody Noticed

Wars for land, whose name is written on it?
They fight for wealth race and religion They hang, they maim, they burn , they crucify
Whoever differs from an individual thought is killed or marginalized
The irony of human existence Man Kills to Live One half is obese and another half starving Some allowed to die so others can live Killed or be killed the human theme of life
Great Shit..Nobody Noticed

Man has used his infinite graces
To master the fruits of life
Science, Transportation, Communication
Medical, Social, Musical, Theatrical. Urban
But still these fruits are selectively given and
Grudgingly received
Great Shit..Nobody Noticed

Where is it written that life will be like this
One of contrast, sorrow, fair and joy?
Where is it written that some will live abundantly
And some will die horrifically?
By whose hand was man given the authority
To choose who lives and who dies
Who eat and who doesn’t
Who works and who doesn’t
Who is wealthy and who doesn’t
Which evil force decides the fate of man?
Great Shit..Nobody Noticed

And yet in the silence
In every Man’s heart
There lies a voice that says to him
As rich as you are or as poor as you think are Whether gluttonous or starving
As educated as you are or as stupid as you think you can be
As religious you are or a heretic as you call yourself to be
You will return to where you came
To the world of ethereal souls
Where wealth, poverty, war, commerce
And all the trappings of human existence
Does not exist
A place where in the silence of his own existence
He speaks not, he thinks not
He sings not, he dances not
He worships not, He loves not
Floating in space,
A soul that has No nation, No color
No religion, No wealth
No hate or No feelings
Great Shit..Nobody Noticed.

Paul Tomlinson(c) 2014