- Every year, some alluring façade is exhibited in Barbados by scammers selling the promise of “Getting rich quickly” thus captivating the interest of many gullible minds. Talented salesmen urge many to believe that accumulated wealth and riches can be easily acquired. Some are driven by the desires of pure greed or lust whilst few are propelled by benevolent necessity. This article seeks to provide clarity of thought to temper the belief which has blinded many individuals of society. Appealing attractions such as “Wake Up Now,” which swept our shores just a few years ago created the idealistic myth that you can wake up to a brighter financial future just by using their principles of selling unspecified goods. A company structured on the foundation of a pyramid scheme encompassing a network marketing model. Just invite one (1), two (2), three (3) members they say, and you will be well on your way to receiving hundreds or even thousands of dollars because money is best made when it’s easy. One should not be fooled by these faulty business concepts because in the end there is much more to lose than to gain.
Another beautiful creature hidden behind a shadow of the Forex market which has cleverly beguiled many is “IMarketsLive.” The same old pyramid scheme tried to raid our shores again but with a much more attractive product. Persons were welcomed to join in on a “trading platform” which allowed them to make identical trades as the Wall Street Whales. Unfortunately, many fell victim to this false prophet as well, but the pain will be much more excruciating. One should be purged of the belief that money is given away freely in these forms. If one truly desires to make a change in their financial position and start the process of creating wealth, your habits and practices must be aligned with that desire. Here are 6 simple money habits which I believe everyone should be aware of:
1. Budgeting your money monthly; This is basically setting out a plan which creates a sense of control over how your money is spent. Consider this a tracking mechanism which can save you the grief of overspending and being too much in debt. Simple ways to start this process is to download a budgeting mobile app or for those who are more skilled in Microsoft Office, you can customize an excel sheet to include all inflows and outflows.
2. Setting specific money goals; Everyone dreams of that ideal financial position that they would like to be in, so just write it down on a piece of paper and outline the steps which must be taken in order to turn that dream into a reality. There is an old saying that “every cent count”, so no matter how small the amount you save that is one step closer to reaching your financial goals. Remember all that is stated starts with you knowing the destination before any plans could be put in place to get there.
3. Automated Investment Transfers; Sounds complex but its simple, this is where you set up an investment plan either with a Commercial Bank, Credit Union, Insurance company or any other financial institution and every month you allow for your funds to be automatically taken from your account. The best way to imagine these benefits is by thinking of it like money that never touches the hand but is going towards a worthy cause which will be rewarded to you sometime in the near future. I consider this method as setting a pattern of thinking which does not allow you to fall into the temptation of spending money unwisely.
4. Create multiple revenue streams; Essentially, think outside your mundane 9:00 – 17:00 work schedule and formulate a plan to generate additional income. If you have a technical skill see how it can be beneficial to a person, group or organization. You may have other skills which can be better used consulting businesses within a specific field, find out how you can contribute to society in your spare time and it may end up being very rewarding.
5. Prioritize high interest debt; As an experienced banker I can say that one of the main binds which hinder individuals from reaching their financial goals is the debt trap. High credit is an issue that many fall victim to, facilities such as a line of credit from financial institutions, acquiring items through hire purchase or having many credit cards can expose a person to exorbitant fees and high interest rates. Debt financing is not a problem once it is for the purpose of acquiring assets which can be beneficial and add to your net worth over time. Make an effort today to service the debt which accumulates high interest.
6. Finally, stop watching other people; As Barbadians would say, “mind ya own business”. Believe it or not, this problem can most certainly get anyone trapped in financial distress. It is rooted upon the belief that material things which others seemingly enjoy would somehow make life better for you and create happiness. I’m here to tell you that this is a sad misconception and the reality is that it can make you very poor. Build some budgetary constraints nothing too harsh, only spend on the things you truly enjoy which is not necessarily what someone else may have. After all what is life without a little entertainment and relaxation.