JMMB Goal Getter Live Shares 10 Pointers for Building Your Wealth
Building wealth remains a goal for individuals, even in the midst of the novel coronavirus (COVID-19), shared Michelle Sinclair-Doyley, manager, group financial partnership support and financial education, at JMMB, during a recent episode of the JMMB Goal Getter Live online webinar series. She listed three fundamentals principles that persons can use to still achieve this goal, namely: a positive money mindset, a change in your lifestyle and fortifying your finances. The effervescent Sinclair-Doyley addressed the serious issue in a practical way, balanced with humor, as she shared her own journey of moving from financial frustration to financial freedom; with the local and international participants, who joined on the various JMMB Group social media platforms.
The JMMB financial expert gave these 10 pointers to building wealth, which she charged are useful beyond the COVID-19 crisis.
Positive Money Mindset
1. Start where you are
Acknowledging that the current economic environment is raft with uncertainties and that there is even a greater need for persons to manage their expenses, the financial expert encouraged the participants to remain hopeful, sharing that, like other crises, this one too will pass, and so they should not give up on their goals. She, therefore, advised, even with a reduction in disposal income, persons should still put aside some savings or money towards their goals, whether a small or large amount, encouraging them to, “start where you are.”
2. Build your emergency fund
One of the major goals that Michelle underscored at this time is, having an emergency fund, which should cover 3- 6 months of one’s expenses. “(However) you will need money to cover up to 1 year of expenses in your emergency fund,” based on the current economic climate where unemployment rates have been climbing and no vaccine has yet been found, for COVID-19, advised Sinclair –Doyley. The online audience responded in shock at this news, to which Michelle reminded persons that what is key is to start where you are, and remain hopeful.
3. Examine your money mindset
“Manage your money mindset and move mountains,” were the words of advice given by the optimistic financial expert. Through an introspective activity, she implored persons to explore their money mindset, and the pain they faced because of their negative money mindset. Sinclair-Doyley charged persons to instead, “make a conscious decision to change these negative mindsets to positive affirmations.”
Make lifestyle changes in order to grow
4. “Know your what and why, and don’t kill them with the how,” said Michelle, in encouraging persons to uncover their purpose, vision and motivation for their goals. Having a clear sense of this, she explained, will allow individuals to breakdown their goal attainment into manageable and practical steps, and determine the cost to achieve their dreams. By having a laser focus on your dreams, she said, this will propel you to get creative and examine and utilize your talents/skills to make money, so that you can achieve your dreams.
5. Know your secret numbers
The financial expert advised persons to also know their secret numbers – their net worth and how much is their time worth - and use these as a guide to determine spending habits. “When you are going to (make) a purchase, think, is this worth ‘X’ number of hours of my life, or how many days of my labour am I (using to) pay bills and spending money on things that are not adding value to the dream that I said is burning (inside) me.”
6. Minimize how much you spend on liabilities
While not knocking the acquisition of luxury vehicles and other guilty pleasures, Michelle cautioned individuals to minimize spending on liabilities. According to Robert Kiyosaki, author of best-seller – Rich Dad Poor Dad- “a liability is something that takes money out of your pocket.” She added, “We all have our guilty pleasures and so we have to look at how much we spend on these. You can then determine if you will buy it on a discount, secondhand or earn more overtime to afford this purchase. Once you have made an educated choice, then you can know how you will adjust your lifestyle in order to accommodate this other liability that you love…. “
Fortify Your Finances
7. Invest in Fundamentals
Sharing the advice of another financial guru, Warren Buffet, she said, “When others are greedy, be fearful; when others are fearful, be excited.” Now is, therefore, a great time for persons who have at least one year’s worth of expenses in their emergency fund, to look at investing in fundamentals by purchasing assets.
8. Think Long-term in your investment
“When you are buying stocks you are buying companies that you believe are going places, you think they will remain in business, and that this company is going to grow,” was the advice of the financial expert, Sinclair-Doyley. Outlining, persons should ensure they have sufficient financial literacy to not just look at the trends of a company’s stock price, but the trajectory of the company stocks, its fundamentals, financial performance and strategy. Of course, she acknowledged that the stock market may not be suited for everyone, based on their own risk appetite, time horizon and life stage; as such, individuals can explore investing in: real estate; unit trusts; bonds; and other long-term assets.
9. Create a financial plan.
Persons should create a financial plan that is customized to their dreams, and not just follow the pack. This plan can help to better develop an investment criteria that determines which assets to purchase, and keep you focused. In sharing her own early financial mishap, she told persons not to lose hope when they make mistakes, instead, “Don’t lose the lesson in the loss, use it to help you make better financial decisions,” she said.
10. Take care of your loved ones
A part of our financial planning should include taking care of our loved ones, by providing a safety net in times of sickness and death, with insurance. An affordable recommendation shared was the Family Indemnity Plan (FIP).
JMMB Group chief marketing officer and moderator of the webinar, Kerry–Ann Stimpson, highlighted, “The JMMB Goal Getter Live online series underscores JMMB Group’s commitment to being in our clients’ world, with their best interest at heart, and has been welcomed by our clients and online JMMB family”; adding that the objective of the series highlights the premise on which JMMB was co-founded, by the late Joan Duncan and Dr. Noel Lyon, which was to help Jamaicans to achieve their greatness and to give greater access to wealth-building opportunities.