Hundreds of readers have accepted this month’s money mission to focus on retirement, and this has confirmed to me that many people are very concerned about said aspect of financial planning. I’m sensing that some of you are becoming desperate about your present financial state of affairs and the bleak future that may be awaiting you.

Whatever your current financial position, I want to reassure you that it is possible for you to design a realistic plan of action that can help you to not only survive during your retirement years, but have a fulfilled life. However, pretending that you don’t have a looming problem is only going to ensure that your worst financial nightmare will become your retirement reality.

Let’s look at some important issues that you should consider in order to make proper preparations for this important time in life.

You can become knowledgeable about retirement

When the subject of retirement is mentioned, you will often hear references to concepts such as inflation, future value of money and projected returns. If you’re like most people, you’ll probably tune out at the thought of doing complicated mathematical calculations. However, don’t think that you need to have an advanced degree in finance to understand the basics of retirement planning.

The key to retirement success is to understand how inflation affects the value of your money. Think back to the 1980s when the Jamaican government bought some new public transport buses. People were so amazed at their expensive price tag that they called them ‘quarter-million’ buses. Today, the only vehicle you can get for J$250,000 is a decades-old used car!

You can’t think in today’s dollars to plan for an event several years in the future. Using a simple calculator such as those found on www.financiallysmart.org, you can project what your current spending would really cost at the time of retirement. You have one objective — to learn how to create several income streams that will allow you to meet all your expenses in the future.

You’re not too young to save for retirement

As I have previously indicated, the calculators will probably indicate that it will be difficult to save enough to fully fund your retirement nest egg, especially if you didn’t start saving aggressively at an early age. The good news is that if you are in your early twenties, you have lots of time on your side to create the retirement lifestyle of your dreams.

Please understand that you cannot afford to waste precious time and money doing frivolous spending in your youth. Learn how to defer instant gratification — you really don’t need to have it all right now. Make sacrifices to put aside as much as you can into your workplace retirement plan or an approved individual retirement account, so that you can have fun as a retiree as well.

While it’s smart to seek assistance in designing your retirement plan, don’t depend solely on experts at a financial institution. Your advisor will help you to invest in the institution’s retirement account, but may not necessarily guide you on other ways to create income. It’s still going to be your responsibility to learn how to create different earning sources that will meet all your needs.

You’re not too old to create retirement wealth

Many persons who have passed the age of 45 often feel intimidated by the technology age and its rapidly evolving gadgets and trends. The reality is that the wonderful new developments that are constantly emerging in the 21st century actually make it easier for persons to create sustainable streams of income at any stage of life.

Gone are the days when you needed to have large amounts of physical resources or financial capital to make money. The Internet has levelled the playing field so that you can have access to millions of people who may be interested in what you have to say or to sell. In fact, online marketing can help you to create wealth from your hobbies and talents.

Years ago, I heard the story of a 90-year-old Australian great-grandmother who was bored with retirement and wanted a way to share her love of quilting with the rest of the world. She received some basic Internet training, set up a website and published an eBook on quilting. Eventually, she was earning over US$1,000 monthly selling her eBooks to thousands of devoted subscribers.

So whether you are young or old, regardless of your financial present or past, you have the ability to create a retirement lifestyle that will be carefree instead of stressful. In upcoming weeks, I will continue to share different methods of making extra money. I hope that you will discover some income-earning ideas which can help you to boost your retirement plans.

Copyright © 2012 Cherryl Hanson Simpson. No reproduction without written consent.

Originally published in The Daily Observer, May 17, 2012

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Cherryl is a money coach and business mentor, and founder of Financially S.M.A.R.T. Services. See more of her work at www.entrepreneursinjamaica.com and www.financiallysmart.org. Contact Cherryl

I vividly remember dealing with a client many years ago at the financial institution where I worked. He was in his late-50s and wanted to put aside some funds for his retirement. Preparing to discuss investment options and strategies for this objective, I asked him how much money he had to start his plan.

He presented me with a cheque for just over J$150,000 (at that time, the equivalent of about US$2,400), and after I asked some pertinent questions, it became clear that this was the sum total of my client’s net worth. He explained that he had worked in the music industry for his entire life and had seen a lot of money pass through his hands, but had never thought about putting aside some of his earnings for the future.

As he continued to relate his sad story of business setbacks and personal challenges with a chronic illness, I realised that he had become despondent and was not really receptive to my ideas to improve his situation. Just before he left, he said, “I wish someone had taught me these things 20 years ago when it could have made a difference.”

My conversation with this client had a tremendous impact on me, as I was saddened at the thought that he would probably die alone and penniless. It also strengthened my resolve to help more people to learn financially smart habits that would prevent them from suffering the same fate as this unfortunate man.

Are you on target for retirement?

Last week we discussed the importance of facing your retirement reality. I know that many readers took on my challenge to get more clarity on what would be required to supply their retirement income needs. Some of you who tried the retirement simulators at www.financiallysmart.org are probably experiencing various degrees of worry or panic about your financial future.

Most people will find, as I did when I used the calculators, that it is very difficult to amass a large enough lump sum to provide sufficient income for over 20 years in retirement. Let’s assume that if you were retired today, you would need J$50,000 per month to cover your bills. You are 20 years away from retirement, and you think that you would live for about 25 years after retiring.

You anticipate an inflation rate of 10 per cent per annum, and estimate that you would receive an average net return of eight per cent every year on your retirement investments. What is the size of the lump sum that you would need to amass in order to meet your required cash outflow when you stop working?

Over J$126 million!

Plan to out-earn inflation

The problem is that inflation will continue to increase your initial J$600,000 income need every year prior to and during retirement. After 20 years, your annual spending requirement would be just over J$4 million. The harsh reality of the inflationary effects on the purchasing power of money is often overlooked, and that’s why many persons struggle to make ends meet in retirement.

Retirement planning involves designing a viable strategy, while you are employed, that will replace your income when you stop working. People often equate planning for retirement with the activity of saving only; but as we illustrated, many persons will find it difficult to put aside enough funds to meet their future needs.

Therefore, you need to create a realistic plan that will supply passive income from various sources that can outperform inflation. You will have to build assets that will generate cash flow over time, which will eventually replace the earnings that you get from physically working. This is the only way that you can hope to achieve your goal of retiring in comfort or style.

Increase your income flow

The key to your retirement success is having enough money flowing in to meet your needs. Building a savings nest egg is one way to create cash flow, but you also have to look at other types of investments. For example, retirees can use rental income from real estate or dividends from stocks, in addition to the interest on their savings accounts.

Another option is to develop a business that will supply you with an income even if you are not working. It doesn’t have to be a large corporation; you just need to create a sustainable business system that will generate cash flow without you. The Internet can provide everyone with various opportunities to earn income passively.

If you are on the brink of retiring from your job and your pension savings will be inadequate, then you may have to accept that you must continue to work for money. However, working beyond retirement can actually be enjoyable, if you look to your hobbies and talents as a means to produce income in a fulfilling way.

Your mission for this month is to learn more about retirement cash flow options. Read up on income generation ideas and try to find simple ways to earn more money part-time right now. Next month’s mission will provide more details about creating passive income streams.

Copyright © 2012 Cherryl Hanson Simpson. No reproduction without written consent.

Originally published in The Daily Observer, May 10, 2012

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Making Ends Meet in Retirement

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Cherryl is a money coach and business mentor, and founder of Financially S.M.A.R.T. Services. See more of her work at www.entrepreneursinjamaica.com and www.financiallysmart.org. Contact Cherryl

There’s an epidemic poised to take over Jamaica that has the potential to devastate the lives of hundreds of thousands of people, and yet there is very little discussion about it in our country. Our airwaves and newspapers are chock-full of opinions on the latest scandal, yet no time or space is being devoted to this looming disaster.

This tragedy will not present itself in the form of a weather calamity that wreaks havoc on our physical infrastructure, nor will it be a medical emergency involving an infectious disease. However, this coming catastrophe will have the potential to bring financial adversity and deprivation on a scale hitherto unseen in our nation.

My apologies on sounding like an angel of doom, but this impending crisis prompts me to be a little melodramatic in my pronouncements. I am not talking about past and pending redundancies due to the stringent economic measures that our government has had to take; nor am I commenting about the burgeoning debt burden that’s eroding our ability to create long-lasting wealth.

These issues are some of the reasons that make financial prosperity an elusive dream for our people. However, the situation that disturbs me at this time is the fact that a vast number of Jamaicans are approaching retirement age with insufficient nest egg savings or non-existent financial cushions to carry them through this crucial change of life.

The reality of retirement

With a younger population looking to find a place in a shrinking job market, older employees will have to make way even if they are still capable of contributing to the workforce. The problem is that many persons who have passed the age of 50 have no clue about how they will replace their working income when they have to leave their jobs.

An even more insidious issue is that many pre-retirees have a mistaken belief that their pensions will be sufficient to cover their financial needs until they die. Although published statistics indicate that Jamaica has a modest inflation rate, a trip to the supermarket or the petrol pump tells us a different story. This harsh reality is felt most by retirees and others on fixed incomes.

Gone are the days when older folks could depend on their children and younger relatives to take care of them in their senior years. Thanks to the tight financial situation all around the world, many people in their thirties and forties are still looking to their parents for financial assistance.

Therefore, it’s your duty to make proper provisions to take care of yourself when you retire.

How much will you need to retire?

The good news is that more Jamaican financial institutions are now offering approved pension plans, and the number of persons saving for retirement has been increasing. The bad news is that the amount that most people are able to put aside for the future is woefully inadequate to realistically meet their future spending requirements.

To get a better picture of how much it will really take to retire, go the financial tools section at www.financiallysmart.org and click on the retirement calculators. One tool will help you to work out the lump sum you would need to supply your required retirement income, and the other will help you to calculate the amount you would need to save every month to reach your target.

A word of warning - the results of your retirement calculations could be harmful to your health; so be careful if you suffer from heart problems! You will find that when you factor in the effects of inflation, it will take a huge amount of monthly savings for you to amass enough money to live out your retirement. It may seem discouraging at first, but don’t despair; there are solutions.

Will you be able to retire?

Several years ago, when I ran my figures into this retirement income simulator, it forcefully hit me that at the rate I was going, I was never going to be able to stop working for money. Not having saved before I was 31 years old, I was so far behind in wealth accumulation that I knew I had to do something different if I hoped to retire one day.

Your money mission for this month is to take a reality check of your own retirement position. If you have a retirement scheme at your workplace, ask for a statement that will project what you may be able to withdraw when you retire. However, note that this projection will only be an estimate; changes in interest rates and the organisation’s financial health may lead to a different reality.

If your job doesn’t have a pension plan, then start investing in an individual retirement account at an approved institution. The online retirement income simulator will help you to determine if you will have a shortfall. Even if your nest egg won’t be enough, it’s better to save a little than nothing at all. Next week we will look at ways to create a realistic retirement plan to cover your savings shortfall.

Copyright © 2012 Cherryl Hanson Simpson. No reproduction without written consent.

Originally published in The Daily Observer, May 3, 2012

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Your Retirement Years: Will You Be Stressed Out or Stress-free?

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Cherryl is a money coach and business mentor, and founder of Financially S.M.A.R.T. Services. See more of her work at www.entrepreneursinjamaica.com and www.financiallysmart.org. Contact Cherryl

1 pack premium hair - J$1,400.00
1 bottle hair glue - J$105.00
1 pack stocking wave cap - J$80.00
1 lesson on how to make money with hair - priceless!

Based on my observation of the variety of hairstyles displayed by many of our stylish women, I had always believed that Jamaica’s hair industry was almost immune to the effects of the general recession. However, it wasn’t until I decided to learn more about the world of hair design that I discovered exactly how lucrative this opportunity could be.

There are many fields of work that cater to people’s hair needs: hairstylists who work at making women look beautiful; barbers who keep men well groomed; manufacturers who create haircare products; teachers who train persons to professionally take care of hair; and even trichologists who treat scalp disorders and restore lost hair.

However, the area of this beauty business that seems to be the most booming in Jamaica is the market for hair. Wigs, hairpieces, extensions and braids all offer women the versatility to change their look and image with minimal effort. Depending on the look you desire, a hairstyle created with false hair can be relatively inexpensive or it can cost several thousands of dollars.

It’s been many years since I’ve experimented with wearing braids during summer vacation, so I wasn’t personally up-to-date with this hair trend. Although I noted that almost half the female population wore hairdos made with store-bought hair, I didn’t really think about the impact that the hair industry could have on our economy.

Say goodbye to bad hair days

I became intrigued with this line of business when I saw a colleague whose appearance had gone from nondescript in the morning to stunning by afternoon, thanks to a new hairstyle. I asked her what she had done to get such a fabulous look in such a short time. To my surprise she revealed that she was wearing a wig that was made by a lady in a nearby community.

‘Change your hairstyle in an instant;’ this seemed like a great marketing campaign for a wig-maker, and an interesting concept to generate part-time income. I decided to find out what was required to make money in this aspect of the hair business. I made an appointment with Laura Munroe, known to her customers as Larry, to learn her techniques of wig-making.

Larry, who operates out of her home in Trench Town, was happy to become my wig-making tutor and gave me a list of the products that I would need to make a wig from scratch. She explained that these items were readily available on the streets downtown, but I decided to check out a major hair superstore to see what they offered.

Upon entering the store, I was amazed at the variety of hair that was available for sale. Synthetic hair for braids, 100% human hair for weaves — kinky, curly and straight; packaged hair pieces came in almost all the colours of the rainbow. Business was brisk, with many persons dropping by to pick up their desired pieces.

Hair comes alive

As I started my wig-making class, Larry explained that she could create a complete wig within 30 minutes. If the customer supplied their own raw material, the cost of her service could range from J$1,800 to J$2,500. Not a bad profit for half-an-hour’s work, I thought, especially if you could attract two or three customers per day.

The first step was to double the two stocking wave caps found in the pack and put them onto the customer’s head. This would form the base for the wig. Then Larry opened up the pack of hair and deftly used a razor blade to separate the hair strips at the top. This, she explained, would allow us to get twice as much hair from one pack.

Larry took one of the hair strips and measured it along the stocking cap to get the appropriate length. She then tore the strip and, with hair glue in hand, quickly placed the adhesive along the top of the hair piece. Within seconds, she applied the strip to the stocking cap and smoothed it into place.

Now it was my turn. I tried to emulate Larry’s example as best as I could, but at first I made a bit of a mess with the hair glue. However, gluing on row after row of hair strips was not that difficult, and eventually I got the hang of it. Creating a wig using this simple technique was actually quite enjoyable, and I was reasonably satisfied with the end product of my lesson.

Normally, making money in the hair business would require you to get some amount of training in a beauty school or as an apprentice in a salon. However, as I discovered, you really only need a little creativity, a keen eye for hair design, and steady hands to create a simple wig that could bring you great profit.

Copyright © 2012 Cherryl Hanson Simpson. No reproduction without written consent.

Originally published in The Daily Observer, April 26, 2012

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Making Money With Personal Services

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Cherryl is a money coach and business mentor, and founder of Financially S.M.A.R.T. Services. See more of her work at www.entrepreneursinjamaica.com and www.financiallysmart.org. Contact Cherryl

“Warning: Do not read this book unless you want to quit your job!”

With such a dramatic introduction to The 4-Hour Workweek, I was instantly hooked. The blurb on the back cover continued, “Whether your dream is escaping the rat race, experiencing high-end world travel, earning a monthly five-figure income with zero management, or just living more and working less, this book is the blueprint.” I mentally placed a check against each of these desires.

As I started reading Timothy Ferriss’s debut Wall Street Journal best-seller, I realised that his cautionary advice was not merely a great marketing plug. The 4-hour Work Week is not a recommended resource for employees who value the perceived security of their jobs. If you really love working for other people, this book may be too disturbing or intimidating for you.

However, if you yearn for personal and financial freedom and are willing to make the necessary sacrifices to get there, then you will find some innovative, slightly insane, but solid instructions on how to create the lifestyle of your dreams. Let’s look at some of the highlights of Ferriss’s thought-provoking recipe for living life on a higher plane.

What’s the D.E.A.L.?

From the outset, Ferriss explains that the strategies he shares are applicable for both overworked employees and entrepreneurs who are trapped by their own businesses. He declares that his principles can help you to “double your income, cut your hours in half, or at least double your vacation time”.

Ferriss’s concept revolves around attaining a designation which he terms the “New Rich” (NR). These are persons who are not prepared to wait until retirement to live out their dreams, but are focused on creating “luxury lifestyles” at any age. The NR do not value money as much as they crave time and mobility, which Ferris describes as the “the currency of the New Rich”.

The route to the NR lifestyle is outlined in a four-step process called the D.E.A.L. The first step is Definition, which explains the rules of the NR and defines relative and absolute wealth. The next phase, Elimination, allows you to instantly free up your time. In Automation, you learn how to create passive income, while Liberation will break the “bonds that confine you to a single location”.

Who are the New Rich?

Ferriss asserts that people who spend all their time working and postpone pleasure until they retire are actually deferring their lives for an uncertain future. The NR decide to go after their life’s priorities and purposes right away. He declares that the goal of waiting to enjoy retirement life is flawed, because it assumes that you dislike what you are doing during the best years of your life.

The NR lifestyle is all about having options. An employee who negotiates to work flexible hours off site can rearrange his schedule to produce the same results in half the time, and spend the remaining hours doing what he chooses. A business owner who outsources her operations and creates online sales channels can decide where and how to devote her energies outside of work.

Ferriss insists that being wealthy and enjoying a wealthy lifestyle are two different things. Someone who works 80 hours per week and earns US$500,000 annually may not be better off than a person who makes a small fraction of that income, but has complete freedom of when, where and how to live. These ‘freedom W’s’ that you control can actually multiply the value of the money you have.

Absolute vs Relative income

To determine your true wealth, you need to assess what you sacrifice in time and freedom in order to earn your income. For the NR, absolute income, which is measured by a dollar figure, is less important than relative income, which takes into consideration both the dollar and time amount. Ferriss provides a worked example of absolute and relative income:

Jane works 80 hours per week and makes US$2,000 per week, while John works 10 hours weekly and earns US$1,000. If they both work 50 weeks annually, Jane takes home $100,000 and John gets $50,000. But who is wealthier in relative income? Jane’s work effort pays her $25 per hour while John makes $100 per hour, so he is relatively four times richer than Jane.

However, Ferriss admits, “Your relative income has to add up to the minimum amount necessary to actualise your goals”. He then gives guidelines that can help you to increase both your absolute and relative income. Ferriss also shares details on how he went from working 80-hour weeks and earning US$40,000 annually, to making US$40,000 monthly with just 4 hours of work effort.

Some of Ferriss’s ideas may seem impractical or impossible for the average person, but don’t be afraid to test your limits. Depending on your appetite for adventure you can apply the suggestions which suit your risk comfort level. As he challenges, “If you try it, you’ll see just how deep the rabbit hole goes, and you won’t ever go back”.

Copyright © 2012 Cherryl Hanson Simpson. No reproduction without written consent.

Originally published in The Daily Observer, April 19, 2012

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Creating Passive Income

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Cherryl is a money coach and business mentor, and founder of Financially S.M.A.R.T. Services. See more of her work at www.entrepreneursinjamaica.com and www.financiallysmart.org. Contact Cherryl

“Rats close down Kingston high school.” This shocking headline continued into a revealing report of how rodents were running rampant at the 100-year-old institution. Despite their best efforts at pest control, the situation had deteriorated to the point where school officials were forced to temporarily suspend classes to effectively eradicate the problem.

As I read the unfortunate story of rats gone wild, my first thoughts were “How are these boys ever going to live this one down?” Knowing the fierce rivalry that exists among secondary schools in Jamaica, I had painful images of the merciless teasing and cruel rat references that were about to be unleashed upon the hapless students.

I thought no more about this incident until recently when I saw a television programme highlighting what the students had done to overcome their situation. Instead of being embarrassed by their rodent visitors, they had embraced them and practically turned them into school mascots. They had even created buttons with cute rat cartoon figures and were proudly wearing them.

Like true warriors, the students used the rat attack as a rallying battle cry to unify and motivate the entire school body. With a picture-perfect ending that could have been written into a screenplay, the students overcame their humiliation and went on to win coveted titles in the academic Schools’ Challenge Quiz and the Boys’ Athletics Championships within the same week.

Don’t be trapped by your circumstances

This story is a wonderful example of the popular saying, “when life gives you lemons, make lemonade.” Negative occurrences don’t have to impede your ability to accomplish your goals; it’s how you respond to these situations that will determine your ultimate success. With the right attitude, you can always find ways to triumph over adversity.

All too often, I hear persons complain about their inability to get ahead financially because of their perceived deficiencies. Common tales of woe include incomplete educational achievements, inadequate job opportunities in their chosen field, or the inability to obtain small business financing. There is always some crippling problem that prevents them from succeeding in life.

Yes, these issues can act as temporary roadblocks along the road to financial success. However, history is full of examples of people who defied the odds and refused to let obstacles stop their progress. Like the rodent-challenged students, be creative and turn your shortcomings into assets; let your problems motivate you to attain new heights instead of allowing them to hold you back.

What can rats teach us about money?

In reflecting on the potentially destructive situation that helped to spur the students to achieve greatness, I realised that rodent behaviour can actually be quite enlightening and educational. While we may normally detest the thought of these pests, let’s open our minds to receive some of the lessons they can teach us about money.

If you have ever been tormented by the scourge of rats in your dwelling place, you would know that they are some of the most resilient and resourceful creatures in the world. I’ve heard many stories of rats that cheekily ate off the tasty treat while carefully avoiding the waiting trap. Whereas the early bird will get the worm, the skilful rat will escape with the bait!

In investing, very often the most profitable opportunities come with relatively high risks. Too many persons choose investments by only looking at the treat - potential gain, and ignore the trap - possibility of loss. To be a successful investor, you need to weigh the risks against the returns and carefully devise strategies to avoid the pitfalls that may be present in an investment.

Make use of all your assets

Studies carried out on rats indicate that while they have poor vision, their other senses are well developed which help them to be acutely aware of their environment. I have realised that their keen sense of smell allows them to know exactly where to find the juiciest fruit on the mango tree even in the darkness of the night!

Rats are also creative in making full use of the things they find in their surroundings. Your home can provide them with crumbs to eat under the dining table, hiding places under cupboards, climbing ladders on chair legs, newspapers to shred for bedding, and base boards for cosy dwelling places. Anything and everything this creature encounters can have a good purpose.

If you’re trying to earn more, whether in your spare time or in starting your own business, be constantly on the lookout for opportunities that abound right under your nose in your community, workplace or school. You need to get proficient in sniffing out people’s needs, and get creative in designing solutions to solve their problems and make profit.

So the next time a rat passes your way, or if you’re currently suffering from your own rodent infestation issues, remember that you can put a positive spin on these creatures. Like the students who were inspired by their unwanted visitors, maybe you can learn something from rats that can help you to accomplish great things!

Copyright © 2012 Cherryl Hanson Simpson. No reproduction without written consent.

Originally published in The Daily Observer, April 12, 2012

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Cherryl is a money coach and business mentor, and founder of Financially S.M.A.R.T. Services. See more of her work at www.entrepreneursinjamaica.com and www.financiallysmart.org. Contact Cherryl

At the beginning of the year, many of us made firm resolutions to make 2012 the best ever. This was going to be the year, we declared, that we finally got our money act together. Reciting our 2012 Money Manifesto pledges, we vowed to make positive changes in 12 areas of our financial life.

If you had made these optimistic declarations to improve your finances, how would you rate your progress three months later? Have you been successful at implementing many of the habits that would allow you to achieve your objectives? Or have you given up on your plans and consoled yourself that next year will be better?

If you’re like most people and have already reneged on your resolutions, don’t despair. Decide to tackle your money problems in the same way you would approach a work or school assignment: assess the issue, research possible solutions, create an action plan and carry out the necessary activities. Make it your mission to work on a specific money goal each month.

What’s your money relationship?

Many people complain that they find it almost impossible to save regularly; so creating a savings habit would be one of their most important money objectives. Why is it usually so hard to save? Some persons admit that they just love to spend money, while others are at a disadvantage because they don’t even earn enough funds to meet their basic needs.

Regardless of the reasons for your inability to save, it will be difficult for you to become financially successful without having a regular saving programme. Persons who neglect to save actually create a financial chemistry that repels wealth instead of attracting it. As soon as money comes into their hands it leaves, and they will find it almost impossible to hold on to it for any length of time.

Saving is the solution to change this unhealthy relationship with money. Apart from the discipline that it encourages, saving helps you to focus on accumulating money instead of just consuming it. The law of attraction states that whatever you focus on will increase in your life; therefore, saving is the force that will allow you to become a virtual magnet for money.

Increase your money magnetism

If a lack of saving is causing you to repel wealth, it’s time to reverse that trend. To effect change in any area of your life, you first need to carry out some activity that will leave a big impression on your subconscious. This high-impact activity must be done very frequently so that it becomes a habit. Finally, you need a support system to encourage you to keep going in the right direction.

As we explained, there are two main problems that prevent most persons from saving. Let’s look at how to deal with the more difficult concern of having insufficient income. If you run out of money to pay your bills, then how can you possibly save anything? The solution that I offer may seem idealistic and may stretch your belief systems, but it has been proven to be very successful.

Persons who are low on funds have a major wealth-creation impediment, as subconsciously they are operating in a state of scarcity. They believe that there isn’t enough money for them, although there really is no shortage of wealth in the world. To change this dynamic they need to see visible proof of money increasing in their lives on a daily basis.

Build a money mound

To create this effect, get a see-through container such as a vase, large jar or even a big Ziploc bag. Every single day, preferably at the same time, put some cash in your money storehouse and make a record of the amount in a book or diary. The value of the money you deposit is not important; if all you can find are 10-cent coins, then they will definitely work.

Focus your attention on the increasing mass of money that you see accumulating in your money jar. Do a running tally of the amount as it grows and express your gratitude every day that your fortunes are improving. Keep doing this process for at least 90 days, but for maximum impact continue for an entire year.

Don’t spend the money that you put aside for this exercise; if your savings overflow the container, simply get a bigger one. At the end of your experiment, transfer the funds to your financial institution. After accumulating money for at least three months you should definitely experience an improvement in your finances.

How is it possible for a mound of money that might not even be worth that much to turn around your relationship with money?

To change your results, you have to first change your beliefs about what you can accomplish in life. Your beliefs determine your thoughts, which control your feelings, which in turn affect your actions, which lead to your results. Take on our money mission for this month and let me know what happens after your 90-day challenge is complete.

Copyright © 2012 Cherryl Hanson Simpson. No reproduction without written consent.

Originally published in The Daily Observer, April 5, 2012

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Stop Making Excuses About Saving

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Cherryl is a money coach and business mentor, and founder of Financially S.M.A.R.T. Services. See more of her work at www.entrepreneursinjamaica.com and www.financiallysmart.org. Contact Cherryl

The question on everyone’s lips nowadays is: “How can I make more money?” Employees who run out of cash right after payday; school leavers or laid-off workers who can’t find a job; retirees who buckle under the pressures of inflation, everyone is looking for extra funds in these tough economic times.

A couple of years ago I wrote a series of articles looking at dozens of different methods of earning money part time. I believe that innovative thinkers and motivated go-getters will always find the ways and means of making money whether times are good or bad. In fact, periods of severe financial crisis will often produce many thriving new enterprises and wealthy business owners.

I have always been fascinated by the interesting things that people do to make money in their spare time. Starting this week, I will take a deeper look at various entrepreneurial exploits, and give you the inside scoop on what it takes to be successful in these endeavours. I hope that our ‘more money’ adventures will encourage you to search for your own ways to create extra income.

Styling in the dirt

This week, we will learn about making money with landscaping. I’m a big fan of the Home and Garden Television Network, and I love to watch the landscape artists transform outdoor spaces. I enjoy being in beautiful gardens, but I’ve never tried my hand at creating one from scratch; so I was definitely looking forward to an opportunity to find out more about this art.

It may seem almost out of place for a lady with impeccably manicured hands to create extra income while digging in the dirt. But Rosemarie Sutherland, my landscaping tutor, is living proof that with her elegant pastel-tinted fingernails, it’s possible to be fashionable while making money in the mud.

Rosemarie has had a love affair with plants all her life. Gardening is in her genes, as her mother had a gifted green thumb and her father was an agricultural instructor. In 2009, she decided to convert her pastime into a potentially profitable landscaping avenue. A real estate agent by profession, Rosemarie wanted not just to sell houses, but to transform them into beautiful homes.

Landscaping 101

The first lesson in my landscaping class involved studying the lay of the land to determine where best to position the plants and trees that Rosemarie had previously selected. With my love for anything artistic, I found this session quite enjoyable. My tutor also gave me tips about the distance that trees should be placed from each other and from the dwelling.

Our design included mini-rock garden clusters, and Rosemarie had acquired some large stones that needed to be moved into position. With surprising ease, she lifted and turned over the rocks along the lawn to create some pleasing formations. Realising that Rosemarie had her ‘rock and roll’ technique down pat, I was only too happy (or was it relieved?) to let her do all the heavy work.

We moved around the potted flowers and shrubs beside the rocks until we were satisfied with the overall look. Next, with machetes in hand, we started digging holes for the plants. At this point, the sun’s heat took its toll on me, so I decided to take a break. My recess became permanent as I took refuge on the verandah and shamelessly watched my tutor finish her work of art.

Are you qualified?

I learned that you either love to do landscaping or loathe it; and I will admit that I definitely did not make the grade in this class. While I can appreciate the beauty of a well-designed garden, I have no desire to get my hands dirty to make it happen. With the physical effort required to dig holes, move stones, lift trees, and roll sod, this means of earning is not for the laid-back person.

Other required attributes are two working green thumbs and the ability to talk persuasively to plants to make them thrive. If you have a history of destroying previously healthy potted plants, then do not consider this money-making venture. An artistic eye is also useful to help you design the layouts that will deliver the perfect curb appeal look.

Another important asset to excel in this field is tolerance for various weather conditions; pelting rain, sweltering heat, blustering winds are all par for the course. In addition, be prepared to get friendly with some of Mother Nature’s least endearing creatures including worms, slugs, lizards, spiders and the odd scorpion or two.

Unlike me, Rosemarie has everything required to excel in landscaping. “Everyone has a talent, you just need to look inside to find your true calling,” she asserts. The gardening aficionado declares that while some people are shy and afraid to promote their skills to earn money, “You need to believe in your gift from God and push out with confidence to create your destiny.”

Rosemarie Sutherland can be contacted at rosemariesbeautifulgardens@gmail.com.

Copyright © 2012 Cherryl Hanson Simpson. No reproduction without written consent.

Originally published in The Daily Observer, March 29, 2012

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Making Money from your Backyard

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Cherryl is a money coach and business mentor, and founder of Financially S.M.A.R.T. Services. See more of her work at www.entrepreneursinjamaica.com and www.financiallysmart.org. Contact Cherryl

Recently I found myself compelled to carry out a major re-organising project in my home. I finally admitted that I had run out of space to keep some important items, so I decided that it was time to take control of my chronic storage issues. With spring in the air, it presented the right opportunity to take on a comprehensive clean-up challenge.

At first, I thought that the simple answer to my dilemma was to purchase a few more containers or another cabinet to house all the stuff that I needed to put away. However, a quick audit of my closets revealed that I already had more than enough storage bins; the real problem was that I was keeping too many things in them that I no longer needed.

I realised that there was only one solution — some of my stuff had to go. As I went through the slightly traumatic process of unpacking, sorting and deciding what to keep or dump, I thought that most of us could probably benefit from a clean-up campaign on our finances. Upon further reflection, I began to see some lessons that spring cleaning can teach us about money success.

Get rid of the past

In clearing up, you may come across items that make you wonder, “Why am I still hanging on to this old stuff?” Similarly, we often hold on to our financial failures and allow them to hinder us from moving forward. The credit cards which we maxed out; the savings accounts which we cleaned out; the investments in which we lost out; we need to learn from our mistakes and let them go.

While you need to release your past disappointments, it’s just as important not to get stuck in reliving your past successes. In The Greatest Salesman in the World, author Og Mandino declares, “Nevermore will I be satisfied with yesterday’s accomplishments, nor will I indulge, anymore, in self-praise for deeds which in reality are too small to even acknowledge.”

Whether your past has been difficult or delightful, be mindful that you have the ability right now to make use of your wealth of experience to accomplish great things. Your best days are ahead of you, so stop looking behind; focus your thoughts and actions on what you need to do in the present, to create the financial future that you desire.

De-clutter your life

Cluttered closets can be very frustrating, because you can never find what you want with ease, and searching for your stuff just wastes your time. Disorganisation, in any arena, brings chaos and confusion and prevents you from seeing your way forward clearly. However, having a cluttered financial life can be more than a petty annoyance; it can actually cost you dearly.

Are you clueless about where and how you spend your money? Do you forget your bill payment dates and constantly have to pay penalties? Have you lost track of your deposit amounts scattered across different financial institutions? These are just some of the ways in which you can become trapped and confused in a disorderly money muddle.

Remove your financial clutter forever by getting your money organised. Create a budget (you can download one at www.financiallysmart.org) and use it to make informed spending choices. Record your bill payments a day or two before they are due in your diary or mobile phone calendar. Seek expert financial advice to create a structured savings and investment plan to achieve your goals.

Prioritise and live simply

The hardest part of spring-cleaning was deciding which items should go and which should remain. My rule of thumb was that if I hadn’t used it for a year, I was highly unlikely to ever need it again. In fact, I decided to make the garbage can my most valuable piece of furniture; no new item would be put in storage if it didn’t have a clear and important purpose.

Too often, we become overwhelmed with our lives because we continue to accumulate more and more unnecessary things. The never-ending pursuit of mindless stuff will only bring discontent and an unquenchable desire to outdo ourselves and other people. When retail therapy beckons, ask yourself: “Do I really need this new pair of shoes? Does my home really need another decoration?”

Consider all the better uses for your money that will bring lasting benefits, such as saving for your goals or donating to worthwhile charities. Choose to spend below your means and live a more simple existence. When you leave space in your life, you actually give yourself enough room to receive new opportunities and blessings that would otherwise have passed you by.

While it’s great to live the good life, sometimes the simple life can bring more long-term satisfaction. Spring-cleaning has inspired me to let simplicity be my new way of being; where less can be more and true wealth is not dependent on all the stuff that I have.

Copyright © 2012 Cherryl Hanson Simpson. No reproduction without written consent.

Originally published in The Daily Observer, March 22, 2012

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Are You Sitting on Your Money?

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Cherryl is a money coach and business mentor, and founder of Financially S.M.A.R.T. Services. See more of her work at www.entrepreneursinjamaica.com and www.financiallysmart.org. Contact Cherryl

Sometime last year, I received an email from a public relations firm in California asking me if I would like to review a book on money that was about to be published. An interesting fact immediately caught my attention — the author, Hill Harper, was one of the stars on the popular television show, CSI:NY.

“Why on earth,” I thought to myself, “would this actor guy be writing a book about money?” Intrigued with the concept, I eagerly awaited my advance copy of Harper’s book, The Wealth Cure: Putting Money in Its Place to find out what new information and insights he could contribute to the arena of personal finance.

When I received the package, a release from the publisher revealed that Harper’s story was produced during a challenging period in his life. After being diagnosed with thyroid cancer, he went on a cross-country train ride to come to terms with his illness. During the trip, he got a deeper understanding about the true meaning of life, and these revelations birthed The Wealth Cure.

Reading the author blurb on the jacket, I was quite impressed to discover that Harper was an established New York Times best-selling author, had acted in major films such as Spike Lee’s He Got Game, and attained two graduate degrees including one from Harvard Law School. But what could this perennial overachiever teach the world about money?

The wealth disease

Harper shares that he had first decided to write about personal finance because many people were struggling with money issues, and he wanted to understand the topic better. Although he admits that most persons would probably like to be “infected with a wealth virus” instead of being cured of a wealth problem, he declares that we have developed an unhealthy relationship with money.

Many people are addicted to the ‘bling’ culture of excess, Harper explains, as they yearn for money and the superficial manifestations of wealth. As a result of this craving, several money problems develop such as today’s epidemic dependence on debt. “We make irrational and often destructive choices because we have given money and its pursuit too much value,” he asserts.

Harper’s initial money book idea took a different turn after his health crisis surfaced. Once he realised that physical challenges and financial problems could both be solved by getting a proper diagnosis, considering different treatment options, selecting the right treatment plan and maintaining well-being to thrive and survive, he formulated the concept of the wealth cure.

Finding your wealth factors

During the long train journey from Los Angeles to Chicago, Harper had plenty of time to deal with his own fears surrounding his illness, and he became very introspective about the real value of wealth. “Cancer, an unwelcome visitor, can quickly remind us that each moment is more valuable than we thought,” he reminisces. “True wealth does not simply mean having money in the bank.”

“So many of us want to be rich by having a lot of money,” Harper declares, “yet there is a much easier way to have true and lasting wealth.” Implementing a wealth cure to be free, fulfilled and happy should be your primary financial goal. He recommends that we create a list of ‘wealth factors’ which are elements of life which provide us with a deep enduring sense of well-being.

First, you need to “define happiness for you and you alone,” and focus on the things that are truly important to you. Factors such as spending time with family and friends, having a meaningful relationship, and gaining recognition at work are some possible examples. If you are able to attain these wealth factors, Harper concludes, then you can attain true wealth with or without money.

A sensitive interpretation of wealth

Harper’s easy conversational style provides important money lessons and inspirational guidance without being preachy or self-righteous. Along his journey, Harper reflects on various aspects of his past and shares stories of his friends’ and travelling companions’ experiences with money. Through it all, he creates a road map highlighting many of the key principles of financial success.

While you’ll get a good overview of the direction you need to take on your own wealth journey, The Wealth Cure is a little short on details about the prescription for success. I suggest that you take notes about the areas that Harper mentions such as budgeting, savings, debt control, goal setting, and investing and follow up with specialist financial advice to create a workable action plan.

I’ll leave you with one of his quotes that is a favourite of mine: “The type of bet that more of us need to make is betting on ourselves. I want you to bet on your dreams. Bet on your goals. Bet on the vision you have for your life. Bet on your passion. When you place those types of bets by putting money toward the pursuit of what is in your heart, it is not only a good bet, it is an investment.”

Copyright © 2012 Cherryl Hanson Simpson. No reproduction without written consent.

Originally published in The Daily Observer, March 15, 2012

Read another article about Having The Right Money Attitudes:

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Cherryl is a money coach and business mentor, and founder of Financially S.M.A.R.T. Services. See more of her work at www.entrepreneursinjamaica.com and www.financiallysmart.org. Contact Cherryl