*How To ManageYour FinancesPresenter:Mitchie E. N. NurseFinancial AdvisorSagicor Life Inc.
*Introduction: ObjectivesTo stimulate interest in managing ones finances more efficientlyTo remove the mystique around the issue of personal financesTo lay the basis for realising positive growth in ones finances. Allowing your money to work for you.
ABOUT SAGICOREstablished in 1840 as The Barbados Mutual Life Assurance Society, Sagicor is one of the oldest insurers in the Americas. In November 2002, after 162 years as a mutual company. The Mutual demutualized and became Sagicor Life Inc.Sagicor is a well-established regional financial services company with operations from the United States in the North to Curacao in the South. Sagicor operates 22 offices in 20 countries n the Region and covers all of the major languages including English, French, Spanish and Dutch.The Group offers a wide range of products and services including life and health insurance, annuities and pensions, property and casualty insurance, investment services and card processing services.Total assets of the Group stand at US$4.5 billion and the organization is rated A- (Excellent) by AM Best, the major rating agency for insurers.Sagicor Group provides financial products and services of a high standard at competitive prices, which add value to our customers lives. The Group is expanding the services it offers to a widening customer base on the basis of superior quality and customer service.*
*Topics of DiscussionThe Context of MOF (MOF - Management of Finances)The Concept of MOF The Conditions for MOF The Constraints in MOFThe way forward in MOF
*The Context of MOFThere are basically three types of spenders1. The spendthrift prodigal (reckless). Lk. 15:11-322. The penny pincher/miser/hoarder3. The prudent spender money manager/good steward Accepts the Biblical injunctions in Gen. 3:19 & Prov. 10:4 In the sweat of thy face shall thou eat bread... He becometh poor that dealeth with a slack hand: but the hand of the diligent maketh rich. Committed to family well-beingMoney a store of value to be manage wisely.
*The Concept of MOFMOF cannot be left to chance!Consider the three motives for earning moneyBuying or transaction motiveSaving or precautionary motiveInvesting or speculative motive
*The Conditions of MOFMOF is shaped by the following conditionsBudget Definition: an estimate, often of itemized, of expected income and expense for a given period in the future. A budget is a financial plan to help control spending and manage ones money wisely. Larry Burkett (CFC) Document your spending habits daily. You spend daily, so you should track your spending daily or at least once a week. * Increase your income stream. Reduce your expenses bulk shopping, network with other parents carpooling; shop in the market for vegetables. Use credit card that give you air miles and/or Magna Points to pay bills and pay off the balance with the cash you would normally use to pay those bills.Live within the budgetControl credit in its various formsBe open with spouse in all aspects
*The Constraints of MOFIn the HomeEconomic downturns 1991-93; September 11, 2001; February, 2009 to present.Overheating of the economy which leads to uncontrollable prices runaway inflation, leading to calls to devaluation (Guy. Jam. T&T)Effects of globalisation and trade liberalisation
*What This MeansThe prudent management of ones finances will ensure that:Youll be on top of your finances rather than being overwhelmed by them;Youll not only makes ends meet but be a lender rather than a borrower;Youll model good financial stewardship; andYoull be self-sufficient in old age.
*The Way Forward in MOFGet in the habit of budgeting (always have in reserved at lease 6 mths of funds in case of misfortune) Precautionary MotiveProviding leadership in family financesSeek to save up for a rainy day- consider joining a credit union (WHCCU), acquiring a Life Insurance policy, Pension plan, Personal Accident, Saving/Investment plan, Burial Plan (Peace Assured II).Find alternative ways to supplement your income acquire a skill, desktop publishing etc.Be innovative or entrepreneurialCare your things (car, property, shoes, clothing etc.)Trust God in this area of your life also Phil. 3:19 and Psalm 37:25
BUILDING A PLAN FROM BOTTOM UP*
What is Insurance?None of us can see the future, and every day we face risks from accidents, natural disasters, illness or death, all of which can result in financial loss. Insurance provides a way of protecting yourself and your loved ones from the impact of such loss. It works by transferring the risk of loss to an insurance company for a small fee and depending on the terms of the contract, the insured or beneficiary is compensated in event of a loss.
Lets us give you peace of mind*Life Insurance Policies: Whole Life, Life Paid up at 65, 21st Century, Term Life offers protection and accumulation of funds and can also be used as security. *Annuities/Pension Plans Designed to provide retirement income. Features include premium payment, lump sum deposits, compounding interest and can either be registered or unregistered.*Medical Plan Package designed for self-employed persons, small business owners and those individuals whose employers do not provide group medical. Provides full rage of benefits including dental, vision, hospitalisation, surgery and prescription drugs.*Personal Accident (Income Replacer) In case of an accident that causes disability, this policy will ensure an income in the interim of recovery. *Peace Assured II a whole life plan designed to meet burial expenses. There is no underwriting required to this plan.*Home and Contents Insurance*Motor Insurance*Critical Illness/Life Protector an insurance plan that pays you a lump sum upon diagnosis of a critical illness to address your immediate recovery needs, general financial challenges of to do with what you choose
Why Insurance is a Good IdeaMany people have much to say about insurance some see it as a waste of money, others as a necessary evil. Those who have benefited from insurance will tell you it is a wise decision, one you will not regret in the event that something unforeseen happens, be it an accident or an act of God. It is the difference between having to pay for losses from your own pocket, and being covered by sound insurance. In fact, insurance should be a part of your financial planning, a way of protecting what is important to you.
*In ConclusionThis presentation is intended to whet your appetite to be prudent and forwarded looking in managing your personal finances. I Hope it has done that and you will not let things drift from here on, if you were inclined to do so.Any Questions?