Lolita Bodden highlighting the positives that will result from having a personal budget.

The Department of Community Rehabilitation and Counseling Centre has successfully planned and hosted its first life skill session ‘Personal Budgeting’ held at Brac Reef Beach Resort on Wednesday, 28 May. The presenter of the function was Lolita Bodden from the Cayman Islands Investment Bureau (CIIB).

The purpose of the presentation was to sensitize the public on the importance of financial planning, personal budgeting and the fundamentals of budget preparation. Ms Bodden explained that a personal budget is a finance plan that allocates personal income toward expenses, savings and debt repayment and persons who practice preparing a budget each month are less likely to be in bad debts.

She further explained that the purpose of a budget is to define financial goals and establish a time frame to achieve the same. A budget should also clearly define source of income versus expenses, institute a road map to financial freedom, remove the stress over money issues for regular expense and finally it should provide a blue print for financial safety in the future, she stated.

Participants were encouraged to set aside cash for each expense with regular reviewing of monthly and annual targets while making the necessary adjustments. “It is advisable to set out twelve months budget and roll an extra month continuously; never spend extra cash after allocating funds accordingly based on budget as extra funds can be used in case of emergency or unexpected conjunctures,” Ms Bodden explained.

The presentation sought to enlighten the participants on numerous ways in which they can stay debt free. Persons should stay away from shops unless necessary and should distinguish between needs and wants; persons tend to over spend on unnecessary items when they enter stores. A shopping list is of critical importance when purchasing items and living within an individual’s means is also crucial, were points that were stressed by Ms Bodden during her presentation.

She also emphasized the importance of paying bills on time, especially credit cards. Ms Bodden stressed that one should not try to pay off one card with another as this practice will see the debt recurring. Regular checks on credit card balance should be done and payments made promptly to avoid late charges. In terms of everyday saving, Ms Bodden advised that one should not eat out on a regular basis, should reduce phone usage, consolidate debt, compare shopping outlets and utilize their own skills in performing some functions around the house, as someone’s time is your money.

Pointers were also given on simple but effective ways of curtailing one’s spending and in turn maximize savings. “We should be role models for our children by teaching them the value of money; don’t encourage unreachable goals, and avoid spontaneous gift buying. Never direct your child’s spending but guide them in making positive decisions,” said Ms Bodden.

She reiterated the point that CIIB is committed to providing quality service to eligible individuals without prejudice. Everyone is welcome to walk through the doors or set an appointment to have dialogue with her as it relates to starting a new business or embarking on a path to financial freedom.