Leaving A Legacy of Independence

I am so happy to see my country Barbados arrive at a major milestone, celebrating Fifty Years of Independence!

Though I have only lived to see thirty-three years of Barbados’ development, I have learnt and understood that in order to move this nation forward, you must have vision. This means the same for your personal development, that of your family and those who you lead.

Early in my twenties I lacked vision. In 2005, I signed my first employment contract which guaranteed me a salary at the end of the month. I was exhilarated of course, because I could now earn a living for myself. I thought I had finally achieved a level of financial independence; or so I thought. Those of you who have heard me speak, I often refer to the concept of financial leadership. I will explain how this revolutionised my finances.

You see, I was seriously bankrupt in my understanding of money. Yes, I got paid, but I lacked the maturity to manage it.  As I grew in my understanding, I realised that the money was not my issue. It was my behaviour. I thought I needed more, but I had to behave better with my money. Financial leadership is the ability to give your money PURPOSE and DIRECTION. It meant at the tender age, I had to kick against the grain and make decisions that could positively affect my future financially.

It meant I had to grow up on that day I opened my laptop and started budgeting my money. I didn’t like to be disciplined. It was absolutely not my favourite thing to do, but soon this painful habit became one that I cherished greatly.

Often times, it is easier to look at the present and not take a peek into the future, especially in financial planning.

Do you know, that if you don’t set aside money for spending later, you are stealing money from yourself in the future?

Let that sink in for a minute.

Could you confidently say you are actively planning for future generations to come?

This isn’t meant to condemn you, but to cause you to think very carefully about the financial decisions you make.

You might be saying, “I am knee deep in debt.”

You might be saying, “I have experienced a job loss.”

You might be saying, “I have made too many mistakes with my money. How could I possibly think about my financial future and that of future generations?”

You could start over with my thoughts on leaving a legacy of independence:

1. Understand leaving a legacy is not only about leaving money: You can breathe now. You are not entirely responsible for your next generations’s financial future. Giving your next generation the tools and knowledge to creating a healthy, financial future is part of leaving a legacy.
2. Embrace and encourage individuality: The truth is, everyone of us is wired differently. If you want proof, we all have unique fingerprints and will not walk the same financial path. Not everyone will earn money being a doctor or a lawyer (and I mean no disrespect to the profession), but we all were born with abilities which could earn ourselves a living.
3. Refocus your goals: Is it the financial path of someone else you are walking on or desiring to walk on, or are you embarking on your unique financial journey? Unfair comparison kills our financial momentum I am afraid to say. If you are trying to build your life based on the perceived benefits from someone else’s path, you will be unhappy. Find out what you want to achieve for yourself and your family.
4. Have the future in sharp focus: Transform your financial landscape by the way you think about and view money. See money as a tool. It is not a item you throw away haphazardly. Make wise use of it by investing in yourself for healthy returns. For example, your education, investments, businesses. Developing the habit of investing could transform your financial world, for the benefit of yourself and the generation that will come after you.

Happy Independence

Melinda Belle is the visionary and founder of Astrape (As-strap-pay) Finance, the caring, knowledgeable, trustworthy, financial company guiding you to financial stability and prosperity through education, sound planning and advice. Melinda sees her role as that of an architect and is committed to the shaping of financial landscapes of businesses. She also crosses over to the personal side of finance, teaching families and individuals to manage their money and create wealth.

EMAIL her at: melinda@astrapefinance.com

LIKE her Facebook Page:www.facebook.com/AstrapeFinance

FOLLOW her on Instagram: moneymatterswithmelinda

FOLLOW her on Twitter:www.twitter.com/MelindaLBelle

 

 

Tax Season is Here

It’s April and that means tax season for those of us who are sole traders (self-employed) or employees of a company. This usually means that everyone is busy number crunching, tallying and trying to find as many tax deductibles as possible to ensure a tax refund position.

Changes to tax deductibles

When filing for the 2015 income tax year, Barbadians will find that being in a tax refund position is more difficult to achieve. This is as a result of the changes made to what individuals can claim as an income tax deductible. During his budgetary proposal, the Minister of Finance, Rt. Hon. Christopher Snickler stated that individuals can no longer claim the following as income tax deductibles:

• Home allowance which was previously a maximum of $10,000 and
• Planning and savings for retirement savings plan which was previously a maximum of $10,000

The Minister also lowered the income tax rates to 33.5% and 16% in the upper band.

Tax deductibles

With all the changes that have been made here is a list of the allowances which are still available and should be considered when filing:

• Personal allowance – $25,000 (non-pensioners), $40,000 (pensioners)
• Spousal allowance – $3,000
• Child allowance – $1,000
• Contributions to trade unions and statutory associations
• Donations to charities including the church
• Energy audit retrofits.
• The foreign currency earnings allowance and the foreign tax credit

It should be noted that with the removal of taxable deductions, despite the lowering of the tax rates that both individuals and self-employed persons can expect that their taxable income will increase which will impact the amount of taxes to be paid or refund to be claim for the 2015 income tax year

Rashida Parasram is a freelance accountant and business consultant with MPR Consulting and a business blogger with Feed the Passion. She has a passion for seeing small businesses thrive. She is a member of the Association of Chartered Certified Accountants as well as the Institute of Charactered Accountants of Barbados. She has gained over 10 years experience in the fields of audit and business advisory with the accounting firms of KPMG and Ernst &Young.

Email: rashida.parasram@mprconsulting.solutions

 

 

Introduction of Lampy the Lighthouse

Who is Lampy the Lighthouse?

Lampy the Lighthouse is our family friendly mascot!

 

Who created Lampy the Lighthouse?

He is the creation of the Founder Melinda Belle at Astrape Finance. She saw a need to engage children in early education, in particular, financial education. She strongly believes children are never too young to learn about money.This belief led to the development of the first of an educational series, “Lampy the Lighthouse: Earning & Spending”. In this colouring book, Lampy carries children through a fun and interesting colouring adventure to  encourage them take an active role in managing their money. There is a child friendly budget designed to give them a jump start in becoming savvy money managers.

To obtain a colouring book, be part of the official launch set to take place on March 5th from 3 p.m. to 5 p.m. at the Artsplash Centre in Hastings, Christ Church. In the first hour speeches will be given, followed by the book signing and learning and play time for your children.

It’s a FREE family event for the entire Family!

 

 

 

50 Practical Money Tips for 2016

It’s the new year and we thought it fit to share with you some practical money tips to see you through 2016:

1. Use the envelope system to budget your money. Simply place money into labelled envelopes and stick to using the amount allocated to each envelope.
2. Give yourself a goal to accomplish within a year.
3. Make sure your money goals are SMART. Specific, measurable, attainable, realistic and time-bound.
4. Pay more than the minimum balance due on your credit card. It will reduce your balance at a faster rate.
5. Switch to using an online debit card. You only pay the purchase price. Unlike a credit card you pay the purchase price plus interest.
6. Save in advance for annual expenses (e.g. home insurance). This will place less strain on your budget when the payment is due.
7. Walk and do calisthenics instead of taking out expensive gym members that you may not use.
8. Make bulk purchases. Purchase regularly used non-perishable items in bulk. They are cheaper per unit when purchased in bulk (e.g. pampers, tuna)
9. Support local farmers, farmer’s markets and co-ops by purchasing vegetables at affordable prices.
10. Play board games and have conversations with family, instead of going out to movies and watching television for hours on end.
11. Eat several small meals during the day and avoid overeating in large portions. Portion control is key.
12. Ensure your car’s tire pressure is appropriate, so as to maximise gas mileage.
13. Ensure you service your car at the prescribed dates as to not incur expensive mechanic bills due to lack of maintenance.
14. Iron several items of clothing in one go, instead of one item at a time over several instances.
15. Always wash full loads of laundry.
16. Men, invest in clippers and other hair care equipment to reduce your times spent at an expensive barber.
17. Ladies, be sure to challenge yourself to mix and match your existing wardrobe instead of buying new clothes for every occasion.
18. Listen out and take advantage of clearance sales and other in store bargains.
19. Choose what you food you want before you open the refrigerator.
20. Hone your existing skills and passions. Who knows, they may earn extra income.
21. Do not neglect to invest in yourself. You are your greatest secret weapon.
22. Create a will to provide for your family and to avoid expensive probate fees.
23. Keep your mobile plan to the bare minimum. Ensure your minutes and data plan reflect your actual usage.
24. Wherever possible, switch off data and keep calls to the minimum, while roaming overseas with your mobile.
25. Resist the urge to keep up with the “joneses” by purchasing the latest phone. The phone you currently have, may well suffice for all your communication needs.
26. For readers, invest in a e-reader like amazon kindle and download the thousands of free e-books available online.
27. Dust off your library cards and rejoin the public library.
28. Check out garage sales and used books stores for cheap, entertaining and educational books.
29. Have an expert help you prepare your tax return as to help you take advantage of all available deductions.
30. Be sure to pay your taxes on time to avoid penalties.
31. Use the available space in your garden to plant cash crops.
32. Plant trees that bear fruit in their season.
33. Instead of expensive fertilisers, be sure to compost your kitchen scraps and grass cuttings.
34. Carry a minimal amount cash when travelling for security purposes.
35. Advise your card company of your travel plans in advance.
36. Take advantage of your carry-ons and personal item space, instead of incurring expensive extra baggage fees.
37. Be sure to weigh your checked luggage, before you arrive at the airport.
38. Take advantage of duty free shopping areas, but beware of overspending.
39. Wholesale is better than retail when shopping for school supplies.
40. Collaborate with fellow parents to buy school supplies in bulk at cheaper rates.
41. Take a quick inventory of what you do have before shopping for new stationery. You maybe able to use or reuse existing items.
42. Shop around for the best rates of return for mutual funds.
43. Invest in several places. Do not place all of your eggs in one basket.
44. Where possible, avoid borrowing to invest. This practice does not take risk into account.
45. Keep abreast of financial news and trends but do not become overwhelmed by the ups and downs of the market.
46. Think long-term rather than short-term for best results in investing.
47. Practice the art of giving, it opens the heart to receive.
48. A little with content is great gain. Be content with what you have, while striving to accomplish your goals.
49. Look out for needs in your community and seek to fill them where possible. This may be the beginning of a lucrative business.
50. Seek the help of a competent finance professional to make sense of your current financial position and plan and track your future financial path.

Melinda Belle is the visionary and founder of Astrape (As-strap-pay) Finance, the caring, knowledgeable, trustworthy, financial company guiding you to financial stability and prosperity through education, sound planning and advice. Melinda sees her role as that of an architect and is committed to the shaping of financial landscapes of businesses. She also crosses over to the personal side of finance, teaching families and individuals to manage their money and create wealth.

EMAIL her at: melinda@astrapefinance.com

FOLLOW her on Twitter:www.twitter.com/MelindaLBelle

LIKE her Facebook Page:www.facebook.com/AstrapeFinance

 

Mind Your Budget

Let’s monitor our budgets very closely this holiday season. Whilst being in the midst of the Christmas hustle and bustle, let’s be mindful of this:

Financial leadership

You have been paid earlier than your normal pay date. What do you do? Do you spend like there’s no tomorrow? Or do you make a plan?

Might I humbly recommend you make a plan?

This is not meant to stop you from having your fun this period. After all, it is the season to be merry. But this is said so you could maintain composure along your financial course.

If there is ever a time to be responsible with your money, it is TODAY.

Budgeting is not some out dated form of practice. It is a lifesaver. Take it from someone who was a habitual spender. If your life is out of focus financially speaking, it may be time to implement financial leadership. It’s not too late!

Financial leadership means giving your money purpose and direction. You simply have a vision of where you want to be and you allocate money so you could reach your destination. So, if you have responsibilities to meet in January after Christmas has come and gone, you want to ensure there is money there to meet those commitments.

Financial pressures

Financial pressures, also known as societal pressures, tend to set a precedence for one’s spending.

Spending to be liked

I would like to address this topic as someone who needed to be liked at some point in their life. Spending money on people who do not necessarily like or care about you is not worth it. It doesn’t make sense enriching their lives for you to end up poorer. No need for you to be a people pleaser. Those people from whom you are seeking approval, need to be minimized from or cut out of your life.

Peer pressure

Children are not the only ones who experience peer pressure, us adults do at some points in our lives as well.  If you do have not have the money to do what others are pressuring you to do, don’t do it. If someone is encouraging you to get a credit card to make up for the money you don’t have, don’t do it! You will not be paying for the purchase price, but you will be paying for the purchase price plus interest. And if you are not able to pay the full amount due after your numerous purchases in one payment, you will be tempted to make minimum payments only. Which in turn will keep you in a debt hole.

Comparison

You think your life is awful because you don’t have the things your heart desires. And someone else seems happier because they have what you don’t have. May I suggest you stop right there? Not only does comparing yourself unfavourably to others place you in a defeated mental state, but it makes a breeding ground for jealousy. Then you despise the individual for what they have and think not so healthy thoughts about them. Combat this by looking around you. You have your loved ones. You have a place to live. You have food in the fridge. You still have a job and means for travel. Even if you use public transportation, you have the funds to pay bus fare. Make this Christmas memorable by being thankful for what you have. And think on this. You are definitely further than you where you were at the beginning of 2015.

Mind your budget and your business and choose to have a Merry Money Christmas.

Melinda Belle is the visionary and founder of Astrape (As-strap-pay) Finance, the caring, knowledgeable, trustworthy, financial company guiding you to financial stability and prosperity through education, sound planning and advice. Melinda sees her role as that of an architect and is committed to the shaping of financial landscapes of businesses. She also crosses over to the personal side of finance, teaching families and individuals to manage their money and create wealth.

EMAIL her at: melinda@astrapefinance.com

FOLLOW her on Twitter:www.twitter.com/MelindaLBelle

LIKE her Facebook Page:www.facebook.com/AstrapeFinance

Financial Independence

Financial independence: the act of creating and maintaining a sustainable living

Entrepreneurship

I remember when I decided to dive into entrepreneurship. I left a full time job for no guarantee of a pay cheque. What was I thinking?

After sharing with a couple of people of my move, I heard the following:

1. Make sure you have contingencies in place (didn’t have any)
2. Are you sure about doing this in this current economy? (no time like the present I thought to myself)

From a little girl growing up I knew I wanted a company of my own. I always saw myself as a manager.

The transition from employee to business owner was a challenging one. I had to have a vision and think of ways to make money. The opportunities did not fall into my lap. I had to create them. It wasn’t easy at first, but I soon learned if I wanted to see money going on the business bank account, I had to go get it.

Well almost four years in operation and another business later, I am happy I made that transition.

Financial independence means to me fulfilling my unique calling. Doing what I love and what I was designed to do. And to fulfill my potential. I am sure there are many more ideas to be unearthed.

Financially Independent Generation

What about the next generation? Shouldn’t we be inspiring them to be financially independent?

Some children fall through the cracks of our educational system due to a perceived “lack” of their intelligence. They are basically ignored and left there without of sense of who they are.

These children are just as brilliant as any child who enters school from the age of 4. It may be the school system is not adequately equipped to readily recognise their unique gifts.

While it is important for every child to have that solid foundation, the ability to read, write and perform mathematical functions, the ability to be financially independent should be ingrained in their impressionable minds.

From learning to budget, children can develop the ability to generate several sources of income. They would not be despondent that they don’t fit in the educational system, but they would have the ability to create ideas and make money with the natural abilities they are born with.

Multiple Streams of Income

It is honourable to find employment within an organisation. I am in no way disregarding those who chose to work for an employer. It is a definite way to earn a salary and to develop professionally. Remember, entrepreneurship is not designed nor meant for everyone to dive into.

However, did you consider should your job be taken from you, what would you have to fall back on?

Or do you consider the money you have, could be used to generate multiple streams of income for your household?

We are currently facing times of uncertainty and take it from me as someone who has experienced three job losses in my family, you need to have more than one  source of income.

I am not encouraging you to quit your full time job, I am encouraging you to start a side business. It could be hair braiding, blogging, writing a book or even raising chickens. It amazes me how the mothers of old were able to maintain a household with close to ten mouths to feed. These women were women of many trades and they made their money stretch.

Having skills does not make you less intelligent, it makes you more profitable.

It may be a sure way for you to get out of debt and generate wealth.

Financial Planning

I would like to speak to financial planning in the midst of the economic challenges we are facing as a nation.

While it may not be conducive at present to save for retirement, find other vehicles for deferred current consumption, that is setting aside money for spending later. You do not want to be left wanting in your old age. It would not be a pleasant experience to have to be dependent on someone. Ensure your financial independence in the long term. The longer you wait to prepare for retirement, the more expensive it will be to achieve that goal. Those of you in your twenties, this is prime time. Do not allow the removal of tax incentives for Registered Retirement Savings Plans (RRSP’s), as happened in Barbados earlier this year, to deter you or set you back from saving for those later years. Plan now!

I would like to take this opportunity to wish everyone a Happy Financial Independence from all of us at Astrape Finance.

Melinda Belle is the visionary and founder of Astrape (As-strap-pay) Finance, the caring, knowledgeable, trustworthy, financial company guiding you to financial stability and prosperity through education, sound planning and advice. Melinda sees her role as that of an architect and is committed to the shaping of financial landscapes of businesses. She also crosses over to the personal side of finance, teaching families and individuals to manage their money and create wealth.

EMAIL her at: melinda@astrapefinance.com

FOLLOW her on Twitter:www.twitter.com/MelindaLBelle

LIKE her Facebook Page:www.facebook.com/AstrapeFinance

Tips to Plan a Successful Client Meeting

As a business owner client meetings are an essential part of my business. Not only do I meet with potential clients, which is extremely exciting because of the opportunities that exist to build new relationships but I also meet regularly with my exiting clients to ensure that their needs are addressed and to continue to be an advisor of choice.

But what does it take to make a client meeting successful? Here are my best tips for planning client meetings:

1. Prepare, prepare, prepare

I cannot emphasise this enough. Preparation is key to any successful meeting. In preparing for a meeting you need to ensure that you know:

• why you are having the meeting;
• where and at what time the meeting is at;
• how to you intend to address the matters to be discussed; and
• who are meeting participants.

2. Have an agenda

Always set an agenda for your meeting. By setting an agenda it ensures that the most important matters are addressed and provides a point of reference for everyone in attendance. I have also noticed that agendas have improved my productivity because I can easily identify what needs to be done next and by whom.

If you are responsible for hosting a meeting, I suggest that you send the agenda to all the meeting participants at least 2 days before the start of the meeting. This provides an opportunity for those attending to adequately prepare.

3. Do your due diligence

The process of reaching and understanding a potential client or the matters to be discussed at a meeting should never be ignored.

When I conduct due diligence on a potential client I try to understand as much possible about their business – products, services, locations, management. For my clients, the purpose of my due diligence is to provide solutions to their existing and potential problems.

4. Look the part

Always ensure that your look is professional but also keep in mind your audience. Having a good understanding of your client’s corporate image and environment goes a long way in guiding your professional appearance.

With these tips, plan your next client meeting successfully.

Rashida Parasram is a freelance accountant and business consultant with a passion for seeing small businesses thrive. She is a member of the Association of Chartered Certified Accountants as well as the Institute of Charactered Accountants of Barbados. She has gained over 10 years experience in the fields of audit and business advisory with the accounting firms of KPMG and Ernst &Young.

Email: consultmpr@gmail.com

How to spend less on fashion without feeling like you are depriving yourself – not just about sales

Let’s start with a few principles that I had to embrace in order to get to the point where I could decrease my spending on fashion and style.

Less is Indeed more.

Even with my wardrobe at its largest, at any one time I always gravitated to a core of no more than 12 outfits per occasion.

I kid you not that for work I rotate about 8 out fits for my workplace. Now, as far as I’m concerned each of these outfits is the bomb, but it’s still only 8 outfits!  This also happens for casual events, formal events, etc.

So no matter how much clothing I had, I was never inspired to wear all of it routinely. I just stuck to my favourites.

Realising that less is more – taught me about my personal style and what not to buy

For work, my personal style has evolved into a love for work dresses with small details that stand out.  For example, a structured black dress with an exposed zip in the back, a high waist turquoise dress with a satin covered waist line, and so on and so forth.

Because I could definitively see what I liked, I stopped buying too much of other types of clothing that I would never wear, like pants.  I can probably count the number of times I’ve worn pants to work on one hand. In general, I keep a very limited amount of separates like skirts and shirts, that have to be absolutely stand out for me to purchase them.

The Trash one Replace one rule

I try not to buy any new clothing until I have trashed the same amount of clothing.  It keeps my clothing collection in check, and within a manageable number.

It also helps remind me that I have more than enough, so there is no need to spend on clothing that I might never wear!

I make a wish list.

I’m a chronic list maker. Keeping lists of my fashion wants keeps me from succumbing to impulse shopping by keeping me focused.

It also gives me time to think about whether I really need new clothing. More often than not the answer is no and I get to keep my money in my pocket.

I shop used and I swap

I know wearing used clothing isn’t high on the list of things to do for everyone. However I’ve gotten to try new styles of clothing that I might have otherwise never spent money or would have wasted too much money on through swapping with similarly sized friends.

At some point or the other most of us are ready to give our wardrobe a purge. Why not link up with friends, and trade clothing. Just like shopping, each swap won’t be successful, but unlike shopping, swapping is free!

I do it a little less often these days because I’m trying to downsize at the moment, but swaps are definitely at the top of my list of things to do when looking for clothing and keeping my money in my pocket.

Cost per wear

There is one area in which I’m not likely to go the cheaper route when it comes to cost of clothing. If the item is going to be one where I can calculate the cost per wear as less than one dollar, I will prepare myself to spend a little more.

A good example is my work clothing and shoes. I own work shoes on the higher priced side of what I would consider spending on any piece of clothing and this is because I need them to be comfortable, and to last a significant amount of time.  So because I wear these shoes approximately 47 weeks in the year 5 days a week, I definitely am willing to spend a little more on them. The upside to this is that when I calculate how much they ‘owe’ me over the 2-3 year span that they last, it generally works out to cents.  In comparison cheaper priced, more poorly made shoes would need to be replaced much sooner and equate to a much higher spend.

In general I’m trying to move toward towards a more minimalist life in every aspect and luckily that fits in to more conservative money management practices.  I know this seems as if it would be counter intuitive for a fashion and beauty blogger, but believe me, it has served me well in recent times.

What are your tips on how to keep your fashion spend in check?

Kim Roberts is an accounting professional, currently in the field of international development finance. She is a
makeup lover, ACCA qualified and committed to all things Caribbean especially Soca music. You can find out more about her love of makeup athttp://bajanbeautyblogger.com/ where combines her love of makeup with a need to write opinion based pieces.

Trust the Planning Process

So you’ve made the decision to take the plunge to start your own business. Congratulations! I’m very excited for you. But after coming up with your big idea, what do you to do next? I am sure the question has crossed your mind several times.

The journey of entrepreneurship has no hard or fast rules however those who are successful followed and trusted a simple process of planning. This process ultimately turns your business idea into a viable business. Any plan or strategy should should include the following key areas:

• Business definition
  • define the problem you will solve
  • identify who you will sell to
  • define how you will make your product or service
  • define how you will reach your intended market

• Industry analysis
  • identify trends affecting your industry
  • define your main competitors
  • define how will you compete in the industry

• Market analysis
  • define who you will serve
  • define the characteristics of your customers including habits and lifestyle

• Financials
  • determine how much you will need to start your business
  • determine what your projected sales will be
  • identify where you will obtain capital and funds for your business

• Product pricing
  • determine whether your products/services will be sold at a premium or discount price
  • identify typical prices charged in the market by your competitors

• Networking
  • identify the trade associations you will join

So your next step should be to prepare a business plan. I strongly suggest that you take the time and trust the planning process because it will help you to better understand, test and defend your business idea. More importantly this process increases your likelihood of running a successful  business.

Rashida Parasram is a freelance accountant and business consultant with a passion for seeing small businesses thrive. She is a member of the Association of Chartered Certified Accountants as well as the Institute of Chartered Accountants of Barbados. She has gained over 10 years’ experience in the fields of audit and business advisory with the accounting firms of KPMG and Ernst &Young.

Email: consultmpr@gmail.com

What Steps Can I Take to Protect My Money?

When you’ve worked hard to accumulate money and other assets, you become extremely protective of what you have. People protect their assets in different ways, but the end goal is usually the same – to keep assets safe from the many risks that exist. Protecting your money can be as simple as educating yourself about the threats that exist and being knowledgeable about what you can do, or as complex as seeking professional advice from legal or finance professionals. The truth is that everyone is vulnerable to these risks and protecting one’s money should be a priority that requires some advanced thought and action.

TYPES OF RISKS

There are several risks which exist that can threaten assets or the value of assets. Most people’s assets consist of cash, property and investments. From a banking perspective, these assets are susceptible to financial risks which include market risk, credit risk and liquidity risk. A market risk arises if there are movements in the prices of a financial instruments like interest rates. Credit risk is the risk of a borrower defaulting on its obligations. Liquidity risk refers to the risks that arises when there are difficulties in selling or buying assets.

Fraud is another type of risk which we are faced with. There are thousands of scams which aim to get your assets from you under false pretenses. Everyone is vulnerable to fraud, which exists in various aspects of our lives. Theft comes in many forms and is not just limited to someone running up to you and stealing your purse or wallet. Theft can be as simple as someone stealing a dollar from your bank account, or even a more elaborate method such as a Ponzi scheme.

Unfortunately, fraud is always evolving and scammers always find new tactics to get at your money. Some of the more popular ways used to commit fraud and theft are identity theft, internet scams (via emails and websites that use false scenarios to solicit funds from victims), lottery scams, communications from fraudsters (telephone calls and letters), get rich quick investment seminars and through friends and family.

Damage and destruction are risks that can destroy one’s assets. These can come in the form of natural disasters such as storms, flooding and landslides; negligence by failing to maintain the asset or malicious acts which consist of damage or destruction which are done on purpose. Property, vehicles and boats are the assets which are most often affected by these events.

HOW TO PROTECT YOUR MONEY

So, what are the some of the methods that can be used to protect one’s money? The easiest thing that you can do is to simply keep track of your finances. This includes monitoring your expenses and savings by keeping an eye on your spending habits and bank accounts. A simple excel spreadsheet can be used to create a simple budget in which you can record what you’ve spent money on. You can also check your bank accounts online at any time via internet or mobile banking. This gives you the convenience to access your account so that you can check account balances or perform transactions.

Keeping your personal information and financial documents safe is another way to protect your money. Fraudsters can use your name and an identification number, bank account number or social security number to steal your identity and your money. Do not give out your personal information to anyone. Your financial institution will never ask you for your personal information over the telephone or via email, and you should never volunteer to give out this information.

Another step that you can take to protect your money is to make copies of your financial documents and keep them in a safe place. Where possible, keep cheque books, bank account documents, passports, credit cards and debit cards in a safe place. Older adults should confide in a trusted family member who has their best interests at heart, about where these items are kept, in case of an emergency.

Insurance is a popular tool that can be used to protect assets in the event of a catastrophe. There are different types of insurance policies, but the more popular types which are designed for assets are home insurance, car insurance and home contents insurance. The policies are designed to reimburse you for the assets which have been destroyed. Although there is a cost attached to insurance, knowing that you are protected can be comforting.

Before you make any big financial decisions, make sure that you read and understand the contracts before signing and ask questions.  Even though it might seem unimportant, too long to read or the initial terms might seem inviting, that contract will define the relationship that you have with the product or service provider. Ask questions if you are not sure about something or if you need more information.

We all have to be responsible for the decisions that we make when it comes to protecting our money. Sometimes being vigilant and making smart decisions are the only types of protection needed. If you are faced with a situation and your gut tells you that it’s not right, chances are it might not be. If you need help or advice, consult with a trusted family member, friend or professional advisor. If you, or someone you know is a victim of fraud, theft or any financial crime, please contact the Royal Barbados Police Force or Crime Stoppers Barbados.

Bio: Dannielle Brathwaite is a banking and project management professional, who possesses a Diploma in Accounting and Business, a Bachelor of Science degree in Economics and Management and a Master of Business Administration. In her spare time, Dannielle contributes to the Odd Cents and Endless Caribbean blogs, creates surface designs and illustrations and researches project management and international business issues in the Caribbean.