Financial Information Month tips # 2

Financial Information month is made possible by the FIM partners in conjunction with the ECCB

PLAN FOR UNCERTAINTY/INSURANCE

Plan for Uncertainty

· Disasters strike without warning. Make financial arrangements to cover the unexpected.

· Protect your loved ones from life uncertainties. Consider an insurance plan.

· Prepare a will so the persons you so desire to benefit from your hard work, will benefit.

· Considering purchasing your home? Put aside come money every month for your down payment.

Insurance Tips

· Review your insurance coverage: Too many people are talked into paying too much for life and disability insurance, whether it is by adding coverage to car loans, buying whole-life insurance policies when term-life makes more sense, or buying life insurance when you have no dependents. On the other hand, it is important that you have enough insurance to protect your dependents and your income in the case of disability or death.

· Get health insurance. You never know when a health emergency may arise which could be extremely expensive without insurance coverage.

SAVINGS

Save and Invest

· Put a little something aside. Saving $20 a month will give you $240.00 in one year, plus interest.

· Our children are the future. Teach them to save by opening savings accounts for your little ones and encouraging them to put aside a portion of their allowances. Take them to the bank periodically to deposit their savings and for the overall experience.

· There are two things that make you money: You at work and your money at work. Work smart and invest wisely.

· Your risk tolerance is one of the key issues to consider when planning your investment strategy. Don’t invest what you cannot afford to lose.

Save on Entertainment and Leisure

· Consider a Staycation! Take time to relax, garden, get Netflix or other applications and check out movies and shows you’ve been meaning to see. Spend time as a tourist in your own country and save on travel, entertainment and accommodation. Tourists spend a lot of money to travel to these beautiful islands, which we often tend to take for granted.

· Take advantage of the free entertainment in your community – parks, exhibits, etc. Go to free concerts and other community activities and save on paid entertainment.

· Exercise at home rather than joining a gym or organize with colleagues and friends to form exercise clubs or groups and go walking, hiking or engage in some other form of physical activity.

Practical Savings Tips

Save on School and Children’s Supplies

· Make use of used text books. Check with friends, relatives and schools for used books that are in good condition. Encourage your children to take good care of their text books which could be passed on to younger siblings.

· Avoid purchasing expensive pencils and crayons. Your children, particularly the younger ones, lose these all the time and you will likely have to replenish the supplies.

· Arrange with friends, family members and colleagues to swap toys, children’s DVDs, books and even clothing instead of constantly purchasing new items for your children.

Conserve and pay less on your utilities

· Get in the habit of turning off all lights and appliances when they are not in use and particularly before leaving your home. Replace all ‘non-reading’ lights with lower wattage light bulbs or possibly the new energy plus bulbs for even more savings over time.

· Check to make sure none of the faucets in your household are leaking or dripping. A slow dripping faucet can accumulate over two gallons per hour.

· When watering the garden, set a schedule and try to water in the early morning hours to help minimize evaporation (between 6am and 8am).

· Avoid taking too many baths and long showers. Hang clothes to dry and use dryers sparingly. Keep the refrigerator door closed when not in use and reduce your electricity bill.

Other Saving Techniques

· Inflate your vehicle tyres to the recommended pressure – inflating your tyres to the recommended pressure specified in your owner’s manual reduces frictions when you drive and therefore saves on fuel.

· Find a simple hairstyle that does not cost too much to take care of on a daily or weekly basis.

· Use credit cards sparingly. Get rid of all but one or two, and pay off the balance each month. You can save hundreds or thousands of dollars a year by avoiding credit card interest charges.

· Review your telephone and cable bills for services you do not use and cancel them. If you subscribe to magazines you rarely get around to reading, cancel the subscription. You could save tens of dollars each month by doing so.

· Save on long distance calls. Make use of emails and free-talk apps such as WhatsApp and other social media platforms to keep in touch with family and friends who live abroad.

· Make use of savings plans where money is automatically deducted from your salary and deposited to a separate account. This makes it easier to forget this amount leaving a pleasant surprise at the end of savings period.

· Make a concerted effort to keep good records. Gather all important financially-related documents to a central location that is equally accessible to you or your partner.