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School days are over; you are now in the working world. You are a professional, earning big bucks and finally able to afford at least some of the "prized" possessions you were unable to as a lowly member of the student population. But before you go on that next big spending spree, take a second to stop and realize that you are no longer a child; you are now an adult responsible for your future.
Many young adults suddenly find that they have turned into middle-aged adults with no house of their own, no education plan for their children and no retirement plan for themselves. No one wants to be in this situation. I am sure that most of us start out thinking we will never be in this situation, but the fact is, without careful planning and the exercise of some amount of restraint, that may just be the path you are on.
You may say you are young! Carpe Diem! Seize the day! You want the bling jewellery, the bling clothes, the bling car. In addition, you also have more wholesome desires, you want to have a comfortable home, children whose lives will be enriched, and the ability to retire comfortably at an age that you can still enjoy the freedom that comes with retirement. Not to worry! All these goals are attainable. Determine what your goals are and the time frame within which these goals are to be realized. Now, it's time to BLING!
Prepare a detailed budget. For one month, write down all your expenses. Look at these expenses and categorize them. We sometimes do not realize how much we spend until we see it on paper. This is a great way to determine how much you have been spending, and on what. You may be surprised to find that you are spending up to 25% of your income on entertainment, clothing, etc.
Now that you have your expenses in perspective, determine where you can make cuts without drastically changing your lifestyle. Next, determine how much you can realistically save on a monthly basis.
Having prepared your budget, stick to it. Limit yourself to spending only within the constraints of your budget. Developing good spending habits is an important prerequisite to financial success. By limiting yourself now, you will be able to achieve more important objectives later.
Speak to an investment advisor who can help you refine your budget and structure a portfolio of investments for you, given your goals and time horizon. Those monthly expenses of $7,000 on parties, $8,000 on clothes & shoes, the extra $5000 you opt to pay monthly for that fairly new car rather than the less expensive older model, all add up to $20,000 per month. This amount, if invested in a portfolio of government securities and stock market investments, could grow to J$1 million in 3 years.
Do not resign yourself to being a novice. Do your own research, aim for nirvana - that highest state of knowledge and understanding. Your investment advisor will guide you, but you should also have an appreciation of your options and how they suit your needs. So ask questions and make sure that you are comfortable with the options presented. These options should reflect your profile:
Having put together your portfolio of investments, take comfort in the fact that you are well prepared for the future. Relax and watch it grow. And, should you realize some unexpected gains, go ahead, splurge! BLING!
Few people are fortunate enough to start their careers with their ideal job. We generally complain that our current job is not what we consider to be optimal. The truth is that your ideal job is not waiting out there to be claimed, but instead, created. When you are invited into an organization you are given a space with which you can create that dream job. Only a deliberate decision to utilize this space will foster your happiness, motivation and satisfaction on the job. By adopting this philosophy you inadvertently accept responsibility for giving birth to that which you consider to be the perfect career.
The first suggestion is to acknowledge that you accepted the job. This statement seems to be a self-evident proposition, but all too often persons spend their time complaining about the inadequacies of their jobs. This is very taxing, emotionally and otherwise. The key is to recognize that you have the power of creation. Your next decision should be to act. Commit to reshaping your job and maximizing the opportunity at your disposal.
Exercise your creativity in shaping your present job into your consummate profession. Be proactive and flexible; adding new and exciting tasks to your job description and designing new and innovative ways of doing assigned tasks. Be sure to transfer this newfound creativity to all areas of your life. For example, it might be beneficial to venture outside your traditional means of creating wealth. The diversification of your savings among the many new and exciting forms of investments provides the opportunity to expand your wealth using the same amount of money.
At the least, decide to develop expertise in your current profession. Experience is costly but priceless. The key is to ensure that your tenure at your organization adds value to your core skills, competencies and personal attributes. Another target area is that of your finances. Set a quantifiable wealth target, making sure to include a time span. For each goal you conceive, monitor your actions to ensure that they are consistent with the realization of that goal. Take immediate corrective measures once your actions materially diverge from your commitment.
Although I purport that you make goals, I must also emphasize the need to live these goals today. This requires you to create the systems that will allow you to realize the goals today and re-live these and other realized goals in perpetuity. Find what you need to be now in order to get what/where you want. For example, if you want to be a millionaire by the time you are thirty, then you probably need to be thrifty, prudent and highly disciplined. Placing your goals at too far a distance, without current strategies, promotes procrastination and failure.
Your financial success requires investing which in turn requires savings. The adage 'making your money work for you' should guide your financial decisions. Be sure to consult a trusted financial service provider, one that will formulate an investment strategy capable of meeting your financial needs. At this point in time, the stock market is a prime place for your money. Current rates of return on equities (stocks) far outstrip any other form of investment available on the market. Given the relative composure in Jamaica's economic variables, you really should get on board this money making train. Remember that procrastination is the thief of time so act today.
To recap, decide to create your ideal job, be what you need to be in order to get what you want and set goals including developing expertise, living your future today, saving and investing.
We all want to live in our dream home, send our children to the college of their choice, and retire comfortably so that we can do whatever our hearts desire. The key is knowing how to do it!
No matter what your goals are, you have a wealth of valuable and unbiased financial information right at your fingertips. Learn at your own pace, visit as many times as you like — our Financial Learning Center is your trusted resource for financial information.