1

How To ManageYour Finances

Presenter:Mitchie E. N. NurseFinancial AdvisorSagicor Life Inc.

2

Introduction: Objectives To stimulate interest in managing one’s

finances more efficiently To remove the mystique around the

issue of personal finances To lay the basis for realising positive

growth in one’s finances. Allowing your money to work for you.

ABOUT SAGICOR Established 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.

3

4

Topics of Discussion The Context of MOF (MOF - Management of Finances)

The Concept of MOF The Conditions for MOF The Constraints in MOF The way forward in MOF

5

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-being Money – a store of value to be manage

wisely.

6

The Concept of MOF MOF cannot be left to chance! Consider the three motives for earning

money Buying or transaction motive Saving or precautionary motive Investing or speculative motive

7

The Conditions of MOFMOF is shaped by the following conditions Budget – 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 one’s 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 budget Control credit in its various forms Be open with spouse in all aspects

8

The Constraints of MOF In the Home Economic 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

9

What This Means The prudent management of one’s finances

will ensure that: You’ll be on top of your finances rather than

being overwhelmed by them; You’ll not only makes ends meet but be a

lender rather than a borrower; You’ll model good financial stewardship; and You’ll be self-sufficient in old age.

10

The Way Forward in MOF Get in the habit of budgeting (always have in reserved at lease 6 mths of funds

– in case of misfortune) Precautionary Motive Providing leadership in family finances Seek 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 entrepreneurial Care 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

11

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.

*Annuit ies/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*Crit ical I l lness/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

13

Why Insurance is a Good Idea… Many 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.

15

In Conclusion This 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?