Jerrold Johnson, Contributor

Persons who achieve financial success rarely do so by accident. Planning and good budgeting play a critical role in securing financial stability, more so in turbulent times such as these. As such, as you develop your personal investment strategy, you would do well to include the following considerations in your plans:

1 Create and follow a budget to ensure that you are living within your means. This will also assist you in making decisions that have an impact on your finances. For example, before you spontaneously purchase that item calling you by first name, a quick reference to your budget will tell you how you should answer that call.

2 Identify specific goals. Do not be vague. Do your goals include financial independence or a comfortable retirement? Decide exactly what these terms mean for you. Where possible put a dollar figure and a timeline.

3 Find a competent financial advisor. Select someone you can trust, access with ease and speak with comfortably. Your financial advisor can help you to quantify your goals, make reliable projections, and determine the monthly investments you need to make. In short, you will receive sound, specific investment recommendations from a certified professional. Most financial advisors offer free consultations.

4 Use salary deductions or standing orders as a means of investing consistently each month. It may be difficult for the first three months, but you will soon grow accustomed to not having those funds. Discipline is a part of strategy.

5 When making long-term goals, consider investing some of your funds in a foreign currency to minimise the effects of inflation and the devaluation of the dollar.

6 Create an account that can be easily accessed for emergencies. Make small contributions to it monthly until you have at least 3 to 6 months of your income saved. Keep these funds in low-risk investments vehicles only. A saving account would be adequate.

7 Avoid taxable investments. Use tax-free investment accounts, stocks on the Jamaican Stock Exchange and preference shares. Consider the purchase of tax-efficient products like mutual funds in foreign currencies. But ensure you educate yourself on these products before you make your purchases.

Sound investment plan

A very important consideration of any investment strategy is your start time. Well-considered strategy should always be implemented immediately. Good intentions do not add a single dollar of interest on your funds.

A final tip: A sound investment plan is never cast in stone. Review and refine regularly. Don't limit your relationship with your financial advisor to transactions. Take full advantage of his or her recommendations. Success can be within your reach, but first you must have a sensible strategy.

Jerrold Johnson is a Financial Advisor at JN Fund Managers Limited. He may be contacted at Jerrold@jnbs.com.