Chancellor Hall’s ‘Mans’ receive lessons in financial planning
THE ‘MANS’ of the Chancellor Hall Committee at the University of the West Indies, Mona, were recently the recipients of some important life lessons on financial planning provided by the Jamaica National (JN) Group’s Carlton Earl Samuels.
Samuels, who is chief development financing officer at the JN Group, gave the young men several tips to ensure wealth. Here are some of the thoughts he shared:
Invest in your education: It is the most valuable asset you’ll ever have and it can’t be wiped out in a market crash. The job market may change, but with your education, you will be adaptable to change.
Get a profession: Getting a job is important, but what is more important is getting a profession. Someone can always fire you from a job, but they can’t fire you from your profession.
Budget: Don’t spend more than you earn. Before you spend, you must be sure that you have the income to support it. It’s always best to underestimate your income so that you don’t spend more than you’ll earn. Borrowing is important, but you can’t borrow without knowing how you will repay.
Save: Treat a portion of your income as an expense for saving. So, when you earn, pay yourself first by saving or investing a portion of your income.
Diversify your investments: Don’t put your money only in a savings account. Invest in real estate, invest in stocks and on the money market.
Learn how to acquire financial assets: Learn about the processes to access important financial tools, such as a mortgage, so you can fully prepare for what you will need to have before you start the process later in life.
Get life insurance: Similar to insuring assets such as your house and your car, you should insure yourself to mitigate against unforeseen health expenses.
Don’t prioritise depreciating assets: Everyone wants to own a motor vehicle, but a motor vehicle begins to depreciate as soon as you drive it out of the dealership. It’s also an expense to maintain motor vehicles. Don’t place it as a priority unless it’s essential to your job. Instead, invest in assets, such as real estate, that will appreciate in value.
Plan to pay rent for the shortest time possible: Ever man has a house or type of community he wants to live in and you won’t be able to make that kind of purchase at the start of your career. Invest incrementally in real estate, perhaps starting with a one-bedroom. Rent offers you no interest in the property, which is unlike a mortgage. When paying mortgage, the property is not only yours, but it is appreciating in value.
Give back: Look at what social contribution you can make to better your environment and community. An environment in which everyone feels like a stakeholder creates safety and makes it friendly for investment.