In 2017, Cardi B proudly announced “I make money moves”, and the participants of the first Pass the Mic discussion dubbed “Millennial Money Moves” can now say the same! The August 24, 2019 event was packed, as panelists Mrs. Melinda Belle from Astrape Finance Inc., Mr. Michael Millar of Sagicor Asset Management Inc. and Mr. Carlos Depeiza from Fortress Fund Managers, passed on their knowledge, personal experiences and insider tips to an eager audience, moderated by Rotaractor Crystal Waithe.
Our heartfelt thanks go out to all three panelists for donating their time and expertise to the club. Thank you to our ever-capable Club Trainer, Crystal Waithe for being an excellent moderator. This venture would not have been possible without our Partners in Service, Barbados Light & Power Co. Ltd., Caribbean ARI Inc – Runway Duty Free, Heavenly Catering and Panagraphix Inc.. Finally, a huge thank you to the participants!
Here are 10 quick tips from our panelists:
- Pay yourself first! Aim to save at least 10% of your income. Start somewhere; the plan can always be revisited later. Do not touch this money!!
- Track spending, even small purchases, to be able to identify income drains and make changes. Tracking apps can be very useful to easily track spending and identify trends.
- Control impulse spending. Identify want vs need, and save towards the “wants” separately.
- Pay a little more than the minimum payment towards debts. Even if it is $20, additional payments shorten the repayment time and decreases the interest paid.
- Diversify income streams including stocks, mutual funds, business investment, side hustle etc. You don’t need a ton of money to start. Mrs. Belle started stock investment with just $100!
- Make credit cards work for you. Rewards cards can be useful, but only if you have the discipline to repay promptly to avoid the 20-25% interest. If not, debit cards are more advisable.
- Avoid “loans for consumption” such as loans for back to school, vacations etc. as you may find yourself paying back the loan long after the usefulness of said items have passed.
- Make a retirement plan now! It has been shown that neither group pension plans nor NIS pensions are adequate for day-to-day living of our current seniors, furthermore when we consider the inflation 40-50 years from now. Investing in retirement plans is integral for comfort in our golden years.
- Don’t use bank savings accounts for strictly savings; little to no interest rates and bank fees make it unprofitable. Keep some liquidated funds for day-to-day life and emergencies, but the bulk of the savings would be better used in investments.
- Finally, read, read, read! Before jumping into any investment, make sure to do research on the monetary instrument, the company, trends, etc.