Use your skills to supplement your income
Nina Peters (centre), Business Relationship and Sales Manager, JN Bank, converses with Byron Farquharson (left), Secretary General, Jamaica Teachers’ Association (JTA) and Devon Meeks, North Eastern Regional Secretary, JTA, during at a recent investment seminar organised for teachers in western Jamaica.
Nina Peters, Business Relationship and Sales Manager at JN Bank is advising educators to use their talents and skills to earn extra money, as they seek to find ways to expand their income.
Peters said the reality is that the salaries of the island’s teachers and others in the civil service, particularly the police and nurses, are not comparable to the workload they carry.
“The average entry-level teacher is taking home about $90,000 per month or just a little over a $1 million after taxes annually,” she noted, while addressing educators at a recent investment seminar organised by the Jamaica Teachers' Association (JTA) at the Grandiosa Hotel in St James.
She pointed out that because of this, many are forced to borrow or to find other resourceful ways to make ends meet.
“Borrowing to supplement your income is not a sustainable measure, and it will lead to an uncontrollable habit that will result in very negative outcomes for you in the long term,” she warned.
The JN Bank manager urged teachers to look at ways in which they can expand their income by using their talents and skills to earn more from, for example, engaging in private tutoring to cooking and décor.
“Many of our English teachers could also earn from proofreading for the media and publishing companies, for example; or from writing speeches for persons in the private and public sector who have to engage in public speaking from time to time,” she recommended.
“There are so many ways in which you can earn if you just spend a little more time to think about it,” Peters advised.
Educators in western Jamaica gathered recently at the Grandiosa Hotel in Montego Bay, St James for an investment seminar organised by the Jamaica Teachers’ Association (JTA).
Additionally, Peters urged teachers to start the journey to wealth creation by adopting and vigorously applying the 80/20 rule in the management of their salaries.
The rule calls for people to save 10 per cent of their income; tithe or give 10 per cent to charity; and use the remaining 80 per cent to meet their obligations and other expenses.
“Begin by paying yourself first,” she said. “Set aside your 10 per cent in savings, prior to doing anything else, so that you don't even have to consider using it. Put it into an account to which you have very limited access so that it becomes inconvenient for you to touch those funds,” she advised.
Peters recommended that they consider channelling that 10 per cent into a fixed, long-term savings account, mutual funds, or another form of equity investment at any deposit-taking institution, such as a bank or credit union. She said choosing an instrument that provides maximum returns, such as mutual funds, would be good.
She also encouraged investment in the stock market, which she noted is performing extremely well and could provide excellent returns in the long term.
“Let's say that the opening price is $5 per share, and you would have invested $10,000. On that basis, the value of your stock would then be $50,000. Over time the value of the stock will appreciate; therefore, in about six months or one year, your $5 would become $7, therefore your investment in the stock would be valued at $70,000, and you would have accumulated $20,000 as a gain on your investment,” she explained.
Peters urged teachers to make a habit of budgeting the remaining 80 per cent of their salary.
“To get the most out of your income, you will also need to sharpen your financial eyesight and acumen,” she said, as he encouraged the educators to read more financial literature to raise their consciousness about money management.