The year is almost over and what a year it has been for the Caribbean! As I write this one of the Caribbean’s strongest economies is in big trouble because of a major downshift in its tourist arrivals. It is even considering devaluation – something that it has always tried to avoid. Other countries have also faced declining tourism numbers, declining sales in overseas markets and in some cases natural disasters that have strained the public purse. Governments are doing what governments do to balance their books – raising taxes and cutting jobs.
So what does that mean for us who are in the middling through generation? It means that we can expect that things may get worse before they get better. If you are on a fixed income this can be devastating as your purchasing power declines and you have no way of supplementing it. If you are close to retirement age pay attention because you may be in for a rude awakening. Another Caribbean country recently concluded a pension reform exercise that means that pension is calculated on the last five years of earnings rather than the last pay check. For some people that pulls down the amount on which their pension is calculated and a lower pension is the unfortunate result. Of course some people will lose their jobs and be forced into earlier than desired retirement.
In this last blog for 2013 I want us to look forward and make some resolutions for ourselves and our loved seniors that will help us through this economic storm: First, the seniors:
1. Resolve to openly talk about finances. Many of our seniors are very proud and don’t want to burden us with their problems. Unfortunately that may mean that they make wrong decisions or do without. It is hard but try to find the courage to ask about their finances and sit with them to discuss their options.
2. Resolve to ask other family members to assist. Many of us have become the defacto caregivers of our older relatives while other family members are happy to leave the responsibility to us. Again, try to find the courage to demand that they assist whether with finances or in practical ways. Read other columns for some strategies that you might use
3. Resolve to spend more time with them. Money is important but time is even more important. Simply spending time with family members can improve their state of well being and health in immeasurable ways. Guess what – lower health care bills! Also, when we spend more time with them it becomes easier to raise those sensitive issues.
4. Resolve to act quickly. The longer we wait to intervene with health or financial concerns the worse they get. Moving money around, selling assets, downsizing and so on can help to resolve financial crises and the earlier the better.
5. Resolve to trust your instincts. We often see little signs of decline, neglect, lack or even abuse and talk ourselves out of believing them. Follow through to test what you think you see and know because our instincts are often correct.
Now it’s our turn:
1. Resolve to save more this year. It will be hard with costs rising but it is critical. If you’re not disciplined, take it off the top through salary deductions. If you don’t have it, you can’t spend it.
2. Resolve to buy less. Many of us have enough stuff now so we can go into cruise control when it comes to clothes, furniture, electronics etc.
3. Resolve to take better care of your finances. Move your money to where it earns the most (safely of course!), consolidate where necessary, buy or sell shares and so on. It’s a good time to sit with a financial advisor and get some professional advice.
4. Resolve to simplify. That may mean a smaller house, selling some things, moving closer to work for example
5. Resolve to be healthier. That means eating right, exercising a few hours a week and reducing stress among other factors. The healthier we are the lower our health care bills will be in the years to come and of course we will be happier!
Happy New Year to your and yours!
middlingthrough 