Making Something out of Nothing - 'How to dodge the Hand-to-Mouth Life'

Hear how you can Make Something Out of Nothing

Q. I have been living from pay cheque to pay cheque. As a matter of fact, I have three credit cards that I use to ensure that I get through each month. Altogether, my credit card debt is $120,000. I earn just about this amount per month. I feel as if I am in a bind with no way out. Please help me. 

Here is Duhaney’s six-step plan to recovery: 

1. The first thing to look at is budgeting. Do a comprehensive budget carefully and stick to it no matter what. You have to decide on needs and wants, and spend on needs only. 

2. Stop using those credit cards. If you continue to use the cards, you will only go deeper into a bind. You don’t need three credit cards. Get rid of two and keep one for emergencies only - let me stress, emergencies only. 

3. Reduce your expenses like telephone bills. Talk is not cheap and Jamaicans love to talk. You also need to reduce your entertainment bill if you have one. You, don’t need to go out or drink so much. Again, Jamaicans have a tendency to party too much. Then look at the cable bill. Do you really need to watch cable? Conserve on electricity and water. You can also do simple things like planning your route before you leave home to conserve on gas and time.

4. Buy what you need on a daily or weekly basis to give you more cash flow for savings. Smaller quantities result in less wastage. Do you really need to buy a case? 

5. Stop shopping at supermarkets for ground provisions. You need to go to the produce market. The prices there are often much less than in the supermarket. 

6. Keep saving no matter how small. Ideally, you should set aside one-five per cent of your monthly income. You need to keep your funds in interest-bearing accounts like the Money Management Account at Capital and Credit Securities Limited. The interest is calculated daily and credited at the end of each month.

- Excerpts of ‘Making Something Out of Nothing’ as published in The Gleaner.