*AHEM*

Hahaha!!! You like that...

Now you are getting there. Saving only provides the initial capital to get you where you want to go...

That's why knowing where you are headed is so important...

But the thing is to have a plan! That plan might take years to come to fruit but if that is what it takes, that is what it takes.

I am reminded of a story of a lady that worked for us. Her wish was to have her own house.

Her plan was to START - after she was left a small piece of land by a relative she knew it was time to stop dreaming and START.

Each week. Out of her pay cheque she took a few pennies out and brought one block! After a year she had 52 blocks. At the same time her husband was buying pipes, electrical wire, wood etc. Her son, who shined shoes! Put all his earning into the pot. It took ten years or so but she got her house.

She had a plan that everyone in her family supported. "Slow, but steady wins the race" was her motto, that she told me often and it paid off, big time! :)

The average saving account pays between 2.5% & 3.5% not much. At those rate you are barely keeping pace with inflation.
Which is why Ting-um makes a very good point of your dollar actually losing its buying power over time if you put it into these accounts.



Where would you suggest you put your money if not the banks if, you already have a house and rentals. An adequate savings with the credit unions, and real estate loans.

Also, why do banks here (First Carribean) refuse to deduct monies from savings accounts to pay for principal payments on mortages? Do they not want our people to pay their mortgages off sooner?

I tried to get a standing order for the principal payments They said NO. We wanted to pay $100 per month. They told us they we would have to come into the bank to do that!! I think thats BULLCRAP!!

Why would they do that Glenn?

What about fixed accounts....and mutual funds?

Where would you suggest you put your money if not the banks if, you already have a house and rentals. An adequate savings with the credit unions, and real estate loans.
Also, why do banks here (First Carribean) refuse to deduct monies from savings accounts to pay for principal payments on mortages? Do they not want our people to pay their mortgages off sooner?
I tried to get a standing order for the principal payments They said NO. We wanted to pay $100 per month. They told us they we would have to come into the bank to do that!! I think thats BULLCRAP!!
Why would they do that Glenn?

Teachers & Salaried Workers Union have a 4 year CD plan that pays 6% year 1-3, 8% in year 4 (6% + 2% bonus). You will need $650.00 ($500.00 to open account, $100.00 for CU permanent shares & $20.00 for expenses) to start.

You should be able to make additional principle payment. If you're having problems just add the amount to your regular monthly payment or talk with your loan officer about it..

Let me know how things turn out...

Teachers & Salaried Workers Union have a 4 year CD plan that pays 6% year 1-3, 8% in year 4 (6% + 2% bonus). You will need $650.00 ($500.00 to open account, $100.00 for CU permanent shares & $20.00 for expenses) to start.
You should be able to make additional principle payment. If you're having problems just add the amount to your regular monthly payment or talk with your loan officer about it..
Let me know how things turn out...



The loan officer, or as she wants me to call her, 'my personal banker', was the one who told me after I was told by the teller that the bank does not do standing orders for principle payments. Our mortgage payments are automatically deducted, so now every 3 months we go in and pay $300. As you know that is a hassle especially if the bank is full, alot of times we just turn around and go back out.

I am in the Paradise Island Credit Union.

I didn't know Paradise Island has a credit union...lol

How are they?

The loan officer, or as she wants me to call her, 'my personal banker', was the one who told me after I was told by the teller that the bank does not do standing orders for principle payments. Our mortgage payments are automatically deducted, so now every 3 months we go in and pay $300. As you know that is a hassle especially if the bank is full, alot of times we just turn around and go back out.
I am in the Paradise Island Credit Union.

I would take this up with the manager or simply increase the automatic deduction...

Getting better than 3% is the only way to get your money growing. So you should ensure that your money is at least working that hard...

I cannot imagine any ecomony that is corrupt as China's yet they lead the world in trade...Russia, creating countless billionaires.


China has the supply of labor therefore they influence everyone else's demand. And India's moving up right behind them. Russia's creating billionaires because those are former students that return to their country. That is why Business schools can brag about their success. There are several articles in Business Week, Forbes or Bloomberg that tout the successes of American business schools for the Russian economy.

Hahaha!!! You like that...

Yes I do. I'd prefer Bahamians developing the knowledge and skills necessary to move themselves and the economy as a whole forward. I want everyone to save because everyone benefits. Everyone makes more money. Everyone is healthy and retires wealthy. Like they do in Bermuda. Bahamians can only do that if they can generate and adequate source of capital and/or income.

Do they not want our people to pay their mortgages off sooner?


LOL. NO!! They Do not. Its call prepayment risk. Particularly if you have a fixed rate mortgage. Your mortgage was probably bundled and sold and the bank simply acts as an intermediary collecting a fixed percent on your mortgage payment. They take that percent and invest it at the market interest rate. If the market interest goes down, and you give them more money, then they end up investing more money at a lower risk and not earning the return they expected. In other words, the sooner you pay back your loan the more volatile their return will be. So no, they try to discourage prepayments.

It may surprise but the first thing you need to do is forget about saving for the future. You should instead be focus on "creating wealth." This is simply using your time and money to replace the need to continually have to work for a paycheck.

Savings happens to a be critical step in this process. Example a farmer harvest his crops and the first thing he does is set aside a portion of his harvest for replanting, why because he want to be able to duplicate or surpass what he just got, a bountiful harvest.

If he use or sell all of his harvest then he has nothing for planting. (I'm sure you can say buy seeds but ...)

In the same way, what you do with your money is driven by what you want. These would be your goals. Without goals then any use of your money is seen as a worthwhile one.

Goal focus you to use your resources as best as possible recognizing that every dollar spent has the potential of "jeopordizing rather than enhancing your future."

How do you determine what to spend money on, your plan. So you see savings is all about getting what you want. When this concept is truly grasped then you are on your way freeing yourself financially....


i agree,i will look into that thanks.

China has the supply of labor therefore they influence everyone else's demand. And India's moving up right behind them. Russia's creating billionaires because those are former students that return to their country. That is why Business schools can brag about their success. There are several articles in Business Week, Forbes or Bloomberg that tout the successes of American business schools for the Russian economy.

Now you are getting the point. Time (personal development) & Money are the resources that Bahamians need to focus on in order to change what's happening in this country and not hiding behind what the government is or isn't doing.

You are the government. That's why the government is the way it is. You elected them based on your own narrow views and only judge them from your political passion. Which accounts for the result you get.

If you develope yourself so that you are not looking for hand outs and hold the government feet to fire with real issues then results and national development would be different.

It's all about you (we the Bahamian people).

In other words, the sooner you pay back your loan the more volatile their return will be. So no, they try to discourage prepayments.

This maybe so but you are able to change it. Accepting the status quo is not the answer, you've got the power... Now stop being passive.

Now you are getting the point. Time (personal development) & Money are the resources that Bahamians need to focus on in order to change what's happening in this country and not hiding behind what the government is or isn't doing.

You are the government. That's why the government is the way it is. You elected them based on your own narrow views and only judge them from your political passion. Which accounts for the result you get.

If you develope yourself so that you are not looking for hand outs and hold the government feet to fire with real issues then results and national development would be different.

It's all about you (we the Bahamian people).


Are you saying Bahamians asked for incompetence, corruption, and waste??

This maybe so but you are able to change it. Accepting the status quo is not the answer, you've got the power... Now stop being passive.


Didn't say that you should accept the status quo, I was answering the question of why banks don't like prepayments. If you can prepay, then you should. But there are usually penalties that come with it.

Are you saying Bahamians asked for incompetence, corruption, and waste??



Ting,

I sure don't think we asked for it, but I do think we were culpable.



Well even the Dominican Republic is kicking our butts when it comes to economy growth and investment attraction. Why pay a Bahamian $100 to do a mediocre job when you can pay a Dominican half that for good work? We have corrupted out greatest natural resource, our level of customer service.


IMHO companies WOULD pay the $100 if we would improve or level of service. Many have figured out it's not the cheapest labour but the best labour that saves money in the long wrong.


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