On a quest to save

QUESTION:

I am a reader of your articles in The Sunday Gleaner, and having read and found them interesting and informative, I am now asking for personal advice.

I am 22 years old and I recently started working, but I'm having serious issues with a committed saving plans. What organisations/investments could I join in order to start sorting out my future?

Also, is it a wise idea for me to take out life insurance which is valued at J$2 million at this age? Would buying stocks or shares in a profitable company be a wise idea? Is home ownership possible at my age?

I would be very appreciative if you could assist me as I want to live a better life and be able to assist my parents.

I earn J$70,000 per month after tax: travelling $10,000; lunch J$4,000; and miscellaneous J$20,000.

Thanks in advance for a reply.

- Patrice

PFA: I am encouraged by your mature approach to financial matters at your age. Your questions suggest that you are interested in having a diversified portfolio. This is sensible.

You will need additional guidance to what I will offer in this column. I suggest you read financial publications and follow financial programmes in the media. Take advantage of the services offered by financial institutions.

Don't be shy about having a one-to-one discussion with their staff. But be warned that each institution ultimately wants to sell its own products.

Make your decision only after making a careful comparison of what each is offering and after satisfying yourself that the product is suitable to your needs.

Good sources of information

The Internet and the Yellow Pages are good sources of information on a wide range of financial institutions and their products and services. It is also useful to speak to knowledgeable persons you know and trust for guidance. The final decision ultimately, however, is yours.

To get into the savings habit, make a credible budget with savings as your first expense item. You could make savings a set percentage of your income. Be clear about what you want to do with