Very interesting !!!!!!!
So do you have any ideas to help a poor person to save?

Yes I do...
It all start with "your money value system." No matter what information you receive there will be no improvement to your situation until you fully understand how you relate to money.
So the first thing you will have to do is answer some questions:

What is Money?
What does money represent to you?
Are you happy with your use of your money?
Are you ready to make permanent “money concept” changes for you and your family?
Are you ready to start living each day by your new “money concepts”?
Are you ready to defend your “money concept” changes to those who will try to undermine your efforts?

As you can see the first thing that must change is you. When you can answer an unequivocal “Yes!” to the last three questions then you are ready for your next step.So go ahead and write down your answers...
Don't put your answers in this thread...

well i just spent $14 on some food at supervalue, got home and then realized i had left my keys in the car of the person that gave me a ride there, had to walk a couple miles to the pay phone, time as i got back the rats or dogs had already attacked the food .. so had to then get in my jeep and go back and buy more groceries .. basically another $14 worth .. darnit!!! im so vexed now .. was trying to save money by getting the food the same time i had the ride to go do some work .. that didnt happen!! This kind of thing happens way to much lately :(

Oh yeah, had to put gas in the jeep too, i normally just throw in $10 but that only lasts 1 trip out to the store, so I put in $30 this time and see where that takes me :D

Yes I do...
It all start with "your money value system." No matter what information you receive there will be no improvement to your situation until you fully understand how you relate to money.
So the first thing you will have to do is answer some questions:

What is Money?
What does money represent to you?
Are you happy with your use of your money?
Are you ready to make permanent “money concept” changes for you and your family?
Are you ready to start living each day by your new “money concepts”?
Are you ready to defend your “money concept” changes to those who will try to undermine your efforts?

As you can see the first thing that must change is you. When you can answer an unequivocal “Yes!” to the last three questions then you are ready for your next step.So go ahead and write down your answers...
Don't put your answers in this thread...


I will say yes to the last 3 ... where do I start? :)

Timely thread:)

Ok. I did really well w/ saving money in a RBC account...then Christmas, 2 birthdays and 1 mother's day later...lol...I noticed my account was down to only a few hundred. I learnt that my mistake was carrying around my atm card and giving myself the option to withdraw. I have the discipline to save...but no discipline to keep the cash there for longer than 10 months...lol. [Especially when gift-shopping and party/dinners come up...the money goes pouring down the drain.]

So what I decided to do last week was open another account at a different bank, add $300 on that each month and hide the atm card. Then...only add $50 on the old rbc account for emergency times when I'll need the cash to withdraw. Mr. Ferguson...should I just cut up the new atm card? What else do you suggest I do?

Timely thread:)
Ok. I did really well w/ saving money in a RBC account...then Christmas, 2 birthdays and 1 mother's day later...lol...I noticed my account was down to only a few hundred. I learnt that my mistake was carrying around my atm card and giving myself the option to withdraw. I have the discipline to save...but no discipline to keep the cash there for longer than 10 months...lol. [Especially when gift-shopping and party/dinners come up...the money goes pouring down the drain.]
So what I decided to do last week was open another account at a different bank, add $300 on that each month and hide the atm card. Then...only add $50 on the old rbc account for emergency times when I'll need the cash to withdraw. Mr. Ferguson...should I just cut up the new atm card? What else do you suggest I do?


LOL, im the same way, i went through a few thousand in a couple months!!
Though most of that was bills, and then living money as I had no jobs coming in ... anyway I opened another account and dumped some new job money into that, im building it back up to the initial opening balance as I spent some of that on a new fridge, which is just about back to how it was. Meanwhile my other account is almost down to $0 from an opening of around $9,000!!! My goal now is to build that one back up to at least where it should be, basically where it would be if I only paid for the bills, and nothing else - I have a way to go now ;)

I might add, I did have a few months of my jeep loan plus 6 months of rent to pay initially when I opened the first account .. as i had been so broke before that .. plus thats been coming out since then .. which is over 4 months now. Basically I need to put back in at least $3K to make it back up! Then I can start building up the other account from any new savings. Course that first account needs money going in it as the bank takes out my loan every month too.

Anyway, all this to say 2 accounts Could be a little complicated ;)

LOL, im the same way, i went through a few thousand in a couple months!!
Though most of that was bills, and then living money as I had no jobs coming in ... anyway I opened another account and dumped some new job money into that, im building it back up to the initial opening balance as I spent some of that on a new fridge, which is just about back to how it was. Meanwhile my other account is almost down to $0 from an opening of around $9,000!!! My goal now is to build that one back up to at least where it should be, basically where it would be if I only paid for the bills, and nothing else - I have a way to go now ;)

I might add, I did have a few months of my jeep loan plus 6 months of rent to pay initially when I opened the first account .. as i had been so broke before that .. plus thats been coming out since then .. which is over 4 months now. Basically I need to put back in at least $3K to make it back up! Then I can start building up the other account from any new savings. Course that first account needs money going in it as the bank takes out my loan every month too.

Anyway, all this to say 2 accounts Could be a little complicated ;)


Wow! Good luck! For your new account -> Do you have the kind of account where you're not allowed to touch your money aka make random withdrawals? Or do you hide your atm card?

It's almost like at this point...I need to hide the money away...lol. Or have someone keep it for me and tell me "no" when I ask for it...lol. Father's day is coming up. That's more presents and a fancy dinner I have to pay for. So much for saving.:dgi:

Wow! Good luck! For your new account -> Do you have the kind of account where you're not allowed to touch your money aka make random withdrawals? Or do you hide your atm card?
It's almost like at this point...I need to hide the money away...lol. Or have someone keep it for me and tell me "no" when I ask for it...lol. Father's day is coming up. That's more presents and a fancy dinner I have to pay for. So much for saving.:dgi:

No, its a regular savings account.
I have an ATM card even though I never asked for one, I actually keep it on me at all times, just incase of an emergency ;) But I havent used it as yet .. dont think I will ... hopefully! So i have the ATM card from the first account also, which is one I HAVE used more than I would have liked to! I also have an ATM card for another account somewhere else (cant say for legal reasons!) but there is no money in that one ;)

Unfortunately Im not big on the gifts thing, though I do my thing year round, so I hope that makes up for it .. actually whenever these special days arrive, i generally dont remember then until the same day, so then comes 123greetings.com to the rescue .. :D

Timely thread:)
Ok. I did really well w/ saving money in a RBC account...then Christmas, 2 birthdays and 1 mother's day later...lol...I noticed my account was down to only a few hundred. I learnt that my mistake was carrying around my atm card and giving myself the option to withdraw. I have the discipline to save...but no discipline to keep the cash there for longer than 10 months...lol. [Especially when gift-shopping and party/dinners come up...the money goes pouring down the drain.]
So what I decided to do last week was open another account at a different bank, add $300 on that each month and hide the atm card. Then...only add $50 on the old rbc account for emergency times when I'll need the cash to withdraw. Mr. Ferguson...should I just cut up the new atm card? What else do you suggest I do?

Why are you saving money? Do you have a financial plan? Anything done without a clear purpose is short lived. Example, I'm sure if you're saving money to buy christmas gifts or a vacation you will not easily spend that money on other things..

The problem is not the atm card in fact its the one thing you should always have. It's all about you and your use of this most valuable resource.

Money is only a tool and you have to decide how you'd like to use it. I suggest that it be used to create financial independence...(getting out of the rat race and from under the slave masters).

I must say, the Bahamian economy plays a bigger role in the attitudes of Bahamians to save than anything else. The fact is, as inflation grows the less people will save or the lower they value money. If the FNM government and Central bank decided to change fiscal and monetary policy to restrict growth to make it more stable and less volatile, Bahamians will undoubtedly save more.

I must say, the Bahamian economy plays a bigger role in the attitudes of Bahamians to save than anything else. The fact is, as inflation grows the less people will save or the lower they value money. If the FNM government and Central bank decided to change fiscal and monetary policy to restrict growth to make it more stable and less volatile, Bahamians will undoubtedly save more.

Not sure I agree with you on this. Government could provide some incentives to encourage savings but without income tax that's very difficult.

We have to realize that the role of government is to create the enviroment and infrastructure for economic growth not manage your money for you.

You are paid a salary for the work you do and how you choose to spent that money is really your business!

Well, if you look at nations in the EU, Japan, Canada and China - it is true.

I'm not saying that the government should manage my, or anybody else's money, I am saying that the government should create and support an economic environment that promotes growth - as you said similarly. Just as a school should provide the proper learning environment for its students. But, its not up to the teachers to make children smart. However, if the school doesn't provide an environment conducive to learning then its hardly the children's fault that they aren't smart.

We can sit and ask Bahamians all day long why they don't or can't save - no matter how you put it at the end of the day it boils down to the fact that saving is not worth it. If it costs you 26,000 to live comfortably but you only make 20,000 a year - you aren't going to think saving is a great idea. The average Bahamian makes about 21,300 a year, compared to the average person in Bermuda who makes almost 70,000 a year. If you look at the numbers, the higher the country ranks in average income the greater the propensity of its citizens to save and you can see savings by looking at the velocity of money or the number of times a dollar is spent. Or the more money there is the higher prices will be and the less people will save. Or actually, its the reverse, the higher prices are, the less people will save. The reason being is because money is losing its value. If money is losing its value then a dollar today is worth more than a dollar tomorrow. You save money only if a dollar today is worth less than a dollar tomorrow.

Even wealthy people living in a high inflation environment have a lower propensity to save. Instead they invest because every other asset is worth more than money. The velocity of money and quantity of money is controlled by the government. If the government can control those things or its fiscal and monetary policy, then the quantity of money will decrease and the value of money will increase, prices will come down. And Bahamians as an entire society will save.

Your last paragraph creates a question for me.

Does our government sustain a money supply? Like say the US Federal reserve system to sustain the economy?

The money supply is equal to bank reserves held at the central bank plus money in circulation or money in a banks vault and currency. All central banks sustain a money supply. If there's too much money in the economy - for example if inflation is high - then the central bank increases the reserve ratio or the interest rate. If interest rates are higher, then people will save more money. If you can earn 10 percent on a cd or 8 percent owning real estate - which will you pick?? Obviously the cd or savings account. Or, if the government borrows money then they are creating more Bahamian dollars which as stated earlier causes inflation. By the way, savings accounts are not a part of the money supply, they're a part of M2. The Federal reserve has information about the relation of the money supply or M1 to M2 with inflation and savings. Countries with a greater supply of money have higher inflation and lower savings. The reverse is true for countries with a smaller supply of money meaning M1 is lower than M2.

If inflation or the price level goes up then it also becomes too expensive to have as many employees, so there's massive layoffs. The more layoffs there are, the less people will save. Or people have to take lower paying jobs, again, meaning people will save less or not at all.

I'm not saying that the government is solely to blame for people not saving or being fiscally responsible. But the idea is to best serve the Bahamas and all Bahamians rather than a few Bahamians. Only a few Bahamians are not severely influenced by the direction of the Bahamian economy so there's only a few that would employ the discipline to save. Just like if you have a bad school, there may be some good students that you can reach out to. But in order to reach out to all of the students to make them all realize their potential, you have to change almost all of the school.

Well, if you look at nations in the EU, Japan, Canada and China - it is true.
I'm not saying that the government should manage my, or anybody else's money, I am saying that the government should create and support an economic environment that promotes growth - as you said similarly. Just as a school should provide the proper learning environment for its students. But, its not up to the teachers to make children smart. However, if the school doesn't provide an environment conducive to learning then its hardly the children's fault that they aren't smart.
We can sit and ask Bahamians all day long why they don't or can't save - no matter how you put it at the end of the day it boils down to the fact that saving is not worth it. If it costs you 26,000 to live comfortably but you only make 20,000 a year - you aren't going to think saving is a great idea. The average Bahamian makes about 21,300 a year, compared to the average person in Bermuda who makes almost 70,000 a year. If you look at the numbers, the higher the country ranks in average income the greater the propensity of its citizens to save and you can see savings by looking at the velocity of money or the number of times a dollar is spent. Or the more money there is the higher prices will be and the less people will save. Or actually, its the reverse, the higher prices are, the less people will save. The reason being is because money is losing its value. If money is losing its value then a dollar today is worth more than a dollar tomorrow. You save money only if a dollar today is worth less than a dollar tomorrow.
Even wealthy people living in a high inflation environment have a lower propensity to save. Instead they invest because every other asset is worth more than money. The velocity of money and quantity of money is controlled by the government. If the government can control those things or its fiscal and monetary policy, then the quantity of money will decrease and the value of money will increase, prices will come down. And Bahamians as an entire society will save.

I'm not sure china should be there...

While your macro views holds water the micro problem is really consumption and lack of discipline. All driven by the lack of appreciation for the value and power of money.

Scarcity usually promotes savings not the other way around.

There is no suggestion that savings in a bank account is the best way to hold your money but it is fundamental to all other investments. As it allows you to accumulate money...

How you invest it after that depends on your financial objectives...

I agree our economy does have structual problems but we have a much greater problem with our money management.

Your last paragraph creates a question for me.
Does our government sustain a money supply? Like say the US Federal reserve system to sustain the economy?

Yes it does and this information is available to you in the Central Bank's quarterly report. It's not easy reading but valauble information that you should have and available at http://www.centralbankbahamas.com/publications.lasso?cmd=view&id=16025