Dennise Williams, Staff ReporterDear Stretch Your Dollar:
I NEED your help and advice. How can I save money effectively without having to go and withdraw some of the monthly salary deductions?
I am 32 years of age, an administrative assistant for 10 years, unmarried, but living with my boyfriend (he has a child outside the relationship), and I'm not yet a mother. He pays two utility bills, his National Housing Trust (NHT) mortgage, his son's maintenance and his personal stuff e.g., trim, etc.
My monthly basic pay is $49,939.83. Salary deductions are as follows:
Credit union (1) $12,448.71
Bank of Nova Scotia $13,829.53
Victoria Mutual
Building Society $5,300.00
(my personal
account)
Health Ins. $1,455.48
(for both of us)
City Of Kingston $1,000.00
Credit union (2) $800.00
BITU $499.40
NHT $998.00
NHT mortgage $6,500.00
NIS $1,041.67
Education Tax $977.96
Income tax $9,091.29
My personal monthly budget is as follows:
Gas $1,100.00
Utility bill $500.00
Hair $1,400.00
Wholesale $4,700.00
(2 different
wholesales
per month)
Friday events $1,200.00
Church $150.00
Cable $700.00
Doctor $1,500.00
Emergency $1,000.00
Property tax $200.00
Mall $1,500
Lunch + fare $6,500.00
Market $1,000.00
Loans $15,000.00
(total from two
different institutions)
I intend on continuing my studies starting next month, but I need some financial advice. I don't really want the new year to catch me again with so many 'owings'. Could you advice me on a better solution to my financial problems.
Awaiting your response.
Joan Sweet
RECOMMENDATIONS
BY BARITA INVESTMENTS
Considering that you are anxious to continue your studies, we will give guidance along this line. We must point out that we make the following assumptions:
1. Home ownership by way of NHT mortgage
2. Credit Union (1) is loan
(probably to finance mortgage)
3. Credit Union (2) is your
savings
4. No pension
Net pay $49,939.00
Total of
Personal Expenses $36,450.00
NHT Payment $6,500.00
Surplus $6,989.00
Present Savings:
VMBS $5,300.00
COK $1,000.00
CU (2) $800.00
Total Savings: $7,100.00
Make the following adjustments:
Adjust your Friday events to save $600.
Adjust Mall to save $750.
Adjust Lunch to save $1,000.
Total: $2,350.00
Total funds available for
savings/investments: $9,450.00
RECOMMENDATIONS
Start to build your educational fund with a Barita Portfolio Nest Egg account which will ensure that you maintain a disciplined approach towards your savings by way of monthly salary deductions in the amount of $2,350.
At your age, you need money to start working for you and a good mix will be some shares through Barita Investments Limited in, for example, LoJ and NCB which, you hope, will bring you capital gains over time, along with some dividends.
Examine your credit unions and select one, keeping the savings of $1,000 in the institution of your choice.
Use $4,000 of the $5,300
usually saved in VMBS and $800 usually saved in the credit union to purchase $4,800 worth of shares monthly. Buy one or two companies each month to reduce transaction fees.
Your portfolio mix would then be:
Stocks $4,800.00
Nest Egg $2,350.00
COK C.U. $1,000.00
VMBS $1,300.00
Total: $9,450.00
Please note that no pension contribution was mentioned, so the Barita Nest Egg Account will also provide the medium to put aside funds for pension.
The reader must have the loans reviewed and seek some form of debt consolidation to reduce her interest payments.
Delroy A Josephs
Andre Gooden
Information provided by Barita Investment Limited
