BUSINESS MONDAY - Barbadians urged to be spend, save wisely

BARBADIANS may have to consider credit unions as the wisest places to save their money and earn interest on it.

Financial Analyst George Straker and author of the book “Money Talks” has suggested this approach, noting that as the situation stands there are not many incentives for having savings accounts at the commercial banks.

He spoke against the background of the increasing cost of living, an absence of pay increases, and the need for persons to engage in budgeting.

Straker, who previously held annual seminars on investing, also gave a shopping list on what people in Barbados ought to be doing to come to grips with the prevailing economic situation while spending less of their money.

“Today, people are finding it more difficult to save and invest,” Straker told Business Monday.

“For example, in 2018 some banks are no longer offering customers interest on their savings – they call it a non-interest bearing account and it also
features a monthly service charge,” according to Straker, who noted that this charge is approximately five dollars for having them to keep your money.

His comments come one week after the head of the Barbados Co-operative and Credit Union League Limited, Anthony Pilgrim, said there continues to be a migration of savers from banks to credit unions, and that it is creating both an opportunity and a challenge to the credit union movement.

However, Straker pointed out that people have become so consumed with loans and repayments that they sometimes renege on savings which mean “we have no cash for emergencies or the rainy day”.

Arguing though that cash is king once an individual does not hold too much of it, the analyst pointed out that most financial professionals have recommended having six to nine months’ cash in an emergency fund.

“In Barbados because of the high cost of living or cost of living high, our cash is purchasing much less, so we have to be very savvy with our hard earned dollars,” Straker remarked .

He suggested that people need to budget more effectively, spend more wisely, and shop around to find places that offer bargains.

“Stop watching your neighbour!” he advised.

“We need to use delayed gratification in some instances, purchase in bulk, consume less, avoid late payments fees, pay off credit cards in full, don’t issue bounced cheques, buy airline tickets in advance, use public transportation, car pool, stop smoking and drinking (alcoholic beverages), and exercise more,” Straker urged.