Ready to learn more ways to earn more money?  Then watch this episode of #FinanciallyFocused to learn from our panel of experts in how to stretch that dollar!!!!  Watch the video below or enjoy our transcript below.  And one of the best ways to immediately earn money is to get paid while shopping online.  Register for Ebates today!

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Read the transcript below:

Dennise Williams (DW) 00:31 : Welcome to Financially Focused, I’m your host Dennise Williams. The number one rule of personal finance is to spend less than you earn, so if you want to get ahead financially it’s important to save where you can. But if you really want to improve your finances, focus at the end of rule number one, which is what you earn- you need to make more money.
We have our panel of investment experts to share ways you can learn how to make money to improve your finances. Joining us are Dino Hinds of MFS Group, welcome, Deno.

Dino Hinds (DH) 01:03 : Thank you, Dennise.

DW 01:04 : Representing the Billionaires of Jamaica. We have Denise Marshall- Miller, Investment Manager, welcome, Denise, and you’re representing the working supermoms.

Denise Marshall-Miller (DMM) 01:15 : Oh, yes. Thank you, Dennise.

DW 01:19 : And Robert Taylor, Business Consultant and Attorney at Law. Robert, you are the guy that everybody in the business community comes to to solve their problems, yes?

Robert Taylor (RT) 01:28 : Not the case, absolutely not the case.

DW 01:32 : Welcome, panel. Do you agree that there are opportunities to make money everywhere? Shouldn’t everybody in Jamaica be laughing all the way to the bank? You do it every day, Dino.

DH 01:50 : Yes, there are opportunities to make money, you just have to go out and explore and educate yourself.

DW 01:56 : Robert, what do you say about having the mindset to look for opportunities?

RT 02:02 : Dennise, the keyword is ‘mindset’. I think the first thing anyone needs who is embarking on an entrepreneurial path is the mindset. Once the mindset is in place, then there needs to be execution, and that, I think, is the bug bearer of most persons in their pursuit of wealth.

DW 02:22 : Denise, do you feel that it is only a certain type of person or is it all levels of experience? Somebody just coming out of high school, or somebody in their 80s, are there limits on looking for opportunity?

DMM 02:37 : Dennise, there are absolutely no limits. There are opportunities abound. Whatever level you are at, there is somebody that is below your level that wants to aspire to your level or to create that experience that you have. It’s just for you to have that eye to seize the opportunity- to see that there is a need and I need to go and seize that opportunity, and as my colleagues said, you just need to have the right mindset.

DW 03:09 : Dino, some of us are very stuck at nine to five and we don’t see the opportunities, what do you say about that?

DH 03:16 : It’s a matter of having an appetite for risk. Having a nine to five job does not preclude you from taking on other opportunities to invest your money.

DW 03:32 : But I’m afraid.

DH 03:32 : So that’s why I started off by saying the appetite for risk is important because to be an entrepreneur you really have to be willing to take risks. That’s the first step, actually having that appetite, and the willingness to develop whatever ideas come by, and to be able to explore and see what are the options out there in order to increase your wealth.

DW 04:00 : Robert, we’ve thrown out the word entrepreneurship, risk, mindest, but I just want a little extra money, what about the idea of passive income because I don’t really want to start a business, what do you say about that, Robert?

RT 04:16 : As Dino just said, you can be in your nine to five and have additional income.

DW 04:22 : Give me an example. I want to be safe, so what can I do extra?

RT 04:27 : I think the first thing you need to recognize is that risk and return are inversely related, and if you want to make some additional money you must be able to open up and expose yourself to some level of risk. Maybe what some people need first is a period of resocialization. We live in a society where the traditional viewpoint has been, for many, getting that job, getting that nine to five, working in the traditional professions, and we benchmark success on the basis of those legacy professions. Someone thinking that way needs to retrain the process.

DW 05:11 : Maybe hang out with different people.

RT 05:12 : Hang out with different people, identify a business mentor, maybe read biographies of successful persons, and understand that there is a process, and there is a formula, and a bit of luck. And maybe with all those things combined, a path of success can be achieved.

DW 05:36 : Stocks and Bonds. What do you say to someone who wants to diversify their income like that?

DH 05:43 : Stocks and Bonds are good asset classes to add to your portfolio, but of course, you have to do research.

DW 05:50 : But I want quick money, easy money.

DH 05:52 : There is no quick money. Any investment will take time for you to realize your returns. The higher the returns is the higher the risks you’ll be taking on. So, if you want a quick return, you must have an appetite to take on a lot of risks. In terms of stocks, that is an asset class that will give you good returns in long run. Younger investors’ portfolios should be more skewed towards stocks, while a more mature investor should have a portfolio that’s more skewed towards fixed income investments.

DW 06:31 : But I need a licensed advisor to direct me.

DH 06:34 : You will always need a licensed advisor. It’s also important that you educate yourself so you can have a very good conversation with your advisor to get the best out of them.

DW 06:44 : So you expect me to read?

DH 06:45 : Yes.

DW 06:46 : Just like that, yes?

DH 06:48 : Yes. there’s no explanation, you need to learn. You don’t have to be an expert. You’re not going to be a licensed advisor, but whatever subject matter you’re going to get involved with, and you’re going to put your money in, you should have some idea about that subject area.

DW 07:06 : Denise, we’re back to the easy money. What about IPOs- Initial Public Offerings, I could just take out every dollar I have in the bank, borrow against my house, buy the stock and it’s going to double, triple, quadruple my money, yes?

DMM 07:19 : No. While we’re on the topic of passive investment or income, just for the benefit of our viewers, it’s really an investment that gives you that stream of cash flow that doesn’t require a lot of work on your part.

DW 07:36 : That’s right, I want easy money.

DMM 07:38 : As Dino said, you can have this portfolio of stocks, which are diversified with the assistance of your investment advisor to put that portfolio together, and these stocks will give you dividends, which are the cash flow that is coming into you, and it’s the same for the bonds. However, in any decision you’re going to make in terms of what to invest in, you absolutely can’t just dive in just like that. So, I don’t expect you to go and take all the money that you need or to go and mortgage your house. There are opportunities there. There are IPOs- Initial Public Offerings, and history has shown in Jamaica that there have been some successful ones. But at the same time, stocks have an element of risk. They don’t only go in one direction, which is up, they can go down as well. So, you don’t want to be putting your house money fully into the stock market. You have to have a portion of your income that you invest.

DW 08:44 : Robert, again, I’m back to the easy money. How about becoming a silent partner in a business, is that easy money now?

RT 08:53 : What I would do, Dennise, is perhaps remind you and remind our viewers about the period coming up to 2008 with easy money. So, if I remind you of the debacle of the Cash Plus, and the [inaudible 09:06].

DW 09:07 : Ten percent a month.

RT 09:08 : I think we should understand that there’s no free lunch, money has to be earned. There’s a process of education as both Dino and Denise have spoken about and so you don’t need to be an expert but you need to understand basic terms, nomenclature, understand what you’re putting your money into. I think that’s a basic precept in investing.

DW 09:31 : If I want the safety and security of my nine to five, and I’m afraid that stocks and bonds go up and down, wouldn’t investing in a business run by somebody else be a great option?

RT 09:47 : That’s an option, and that’s what you’re actually doing when you’re investing in the stock market. You’re investing in companies, most times, blue-chip companies that have governance, procedures in place, they produce financial statements, they have boards of directors.

DW 10:04 : I can’t call Don Webbie of Grace Kennedy when I feel like it, but I can call a small business person if I put my money there, right?

RT 10:13 : There are merits to both approaches. Certainly, with an investment in a Grace Kennedy, you have the confidence and legacy of a company that has been in business and proven itself financially to be less of a need and inclination to call the CEO or Chairman, but certainly, you can attend the annual general meetings and feel questions. The downside, as well, to having the intimacy with a small owner, is it can be very disruptive. Again, relationships are also hard to manage, and if you’re investing in a small business then it’s also important to know who you’re investing with, understand their business model, have some sense that there is a sound business model, and there is some principal protection. So, it’s not just about getting a return, but also about preserving the money that you have invested.

DW 11:07 : Could each of you give me one example of you seeing a successful way of someone taking their money and making more money with it. Dino, one example you’ve seen in your business life.

DH 11:21 : An area that is doing quite well right now is the private equity field.

DW 11:27 : What is private equity?

DH 11:28 : Private equity is investing in businesses that are at a particular level that you’re looking to, more or less, reap some reward from further down the line when you either look to sell that business to give your investors a return, or to list the company on the stock market and the investors will get that return. That has been a market that has done well internationally and it has now taken off in Jamaica. Private equity is a way to get good returns on your money. There are risks involved, of course, but it’s a market space that I think has a lot of potential in Jamaica.

DW 12:11 : Denise, an example.

DMM 12:12 : For smaller type investors, especially those who don’t have a huge lump sum, I’d recommend the stock market. Looking at stocks with good valuation, good prospects for growth, have that conversation and buy into these stocks. I think the stock market is an excellent area, both the IPOs and companies that are already listed on the stock exchange because what a lot of persons don’t know is that when an IPO is coming out, which is perceived to be good, you have a lot of investors that are cashing in on existing stocks to go in, and those prices go down, and that’s an opportunity for you to step in.

DW 12:51 : It’s like shoe sales.

DMM 12:53 : And remember you can buy a minimum of 100 units of stock on the stock exchange, so I really think small investors should consider the stock exchange.

DW 13:01 : Robert, an example.

RT 13:03 : I would reiterate what both Denise and Dino have said. For me, what worked when I was in college, was dollar cost averaging. What I did, each month I took a sum of US$50 at the time and I purchased stock. I chose a particular group of stocks that were perceived to be undervalued and I invested over time. If the stock price fell, I could buy more. If the stock price went up while I bought less, I would average out my investment over time. As Dino mentioned, the younger you are is the more you want to take risks because the probability and likelihood of experiencing high capital gains, and the shocks that can be withstood if those gains are not made are more easily recovered the younger you are. So, as a young person with limited resources, that’s what worked for me, that’s how I would advise my children, and how I would advise any young person who is looking to steadily build and also grow their experience because investment is an exercise in experience.

DW 14:20 : We take a break here, and when we return, we continue to look at ways for your money to make money with money.