Here are Some Key Tips to Grow Your Money
As Jamaica, and the rest of the world, observes World Savings Day on October 31, we share a few tips to help you save and grow your money for a secure financial future.
Take the first step to evaluate your financial health by “DOING A THOROUGH REVIEW OF YOUR INCOME AND EXPENSES.” You may find that you are spending too much on unnecessary things and excluding some very important ones.
1 ) Not budgeting? This is a good time to start. There are budgeting tools for all ages based on your level of comfort, these include:
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- Budget Apps
- Envelopes
- Microsoft Excel Sheet
- Pen and Paper
2 ) When you seek a loan from any institution, they usually look at the 5 C’s of Credit.
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- Capacity – your present and future ability to meet your payment obligations
- Capital – your contribution to the business
- Character – your payment history
- Collateral – the assets or instrument that will secure the loan in case of default
- Condition – existing conditions at the time of application
3 ) Take advantage of Social Services! Sign up and make voluntary contributions to NIS (National Insurance Society) and NHT (Nation Housing Trust)
- Ensure you have enough money in retirement, create a Retirement Portfolio consisting of:
- Formal Pension Plan
- Equity linked Insurance Policy
- Real estate
- Equity/Mutual Funds
- NIS
4 ) Insurance protects you and your family against the risks of an uncertain future – It is like a Financial Safety Belt.
5 ) Know your credit score. Get your free annual credit report. Visit a credit bureau today! Try any of these credit bureaus: CRIF Info Bureau Limited, Credit Info Jamaica Limited or Credit Information Service.
6) Credit should be used primarily to improve your financial security. Next time you take a loan, bear that in mind.
- Find ways to keep money in your pocket.
- Take advantage of rewards and discounts
- Practise energy conservation in all its forms
- Plant a backyard garden and cutback on some food purchases