Wealth Mindset
Jamell Robinson
Good Morning,
Please see below my latest article.
Best Regards,
Jamell
Wealth Mindset
In every crisis there is an opportunity. While the global pandemic of COVID-19 has placed many of us squarely in survival mode, for others amongst us, it presents an opportunity to prosper in the long run during these uncertain times. The folks I specifically refer to are essential workers, civil servants generally, and persons whose income is not directly impacted by COVID-19. What’s needed is a mindset shift which can certainly take place in the next 28 days of self-isolation.
Several weeks ago, the TCI Banking Association announced that banks will be offering mortgage payment relief and other terms. Some banks are offering up to six months of deferred mortgage payments. Note that before agreeing to any deferrals, be clear - if the interest will have to be paid on the back end, at all, or in the following 12 months when mortgage payments resume.
Here is the opportunity. If we say that the average mortgage payment is at least $1,500, over a 3-6 month period, an individual can save between $4,500-$9,000 which is a great jump start to creating a personal invest fund. Given that it’s hard to adjust one’s lifestyle to be able to save approximately 10% of your income to set aside for investment, this would be a great jump start to the process. Three principals that I recently learnt about wealth generation from the book titled “The Richest Man in Babylon” (See link: https://youtu.be/ehCVLRHOxBY) is as follows:
1. Pay yourself first i.e. save 10% of your income for future investments (5% at a minimum to start);
2. Invest in ventures you have knowledge in or entrust your investments with persons that have knowledge or a track record in the investment you’re entering;
3. Reinvest the profits from your initial investment. If these principals are followed, over time you would have positioned yourself to have your money, making money for you.
Here’s another wrinkle, what if you found 9 other like minded persons and you decided to pool your savings? That would be $45,000-$90,000 available to invest in a short period of time. We do assues already, why not do it with an end game of investment at the end of 12 months? What if the Civil Service Association, used the same premise and launched a CSA Investment fund with say 200 civil servants injecting $900,000-$1.8 Million Dollars and TCIG matching the funds? Sounds like the basis for a credit union to me.
In times of crisis our minds are at its sharpest. With this extended lock down in full effect, all we have on our hands is time. We must utilize that time to come out of this situation better then we went in. Be it as small as creating personally savings for investments or as big as standing up a credit union, in every crisis is an opportunity. It’s just up to us to seize it when it presents itself!
Stay blessed and safe TCI
Jamell Robinson, PNP At Large
