ANOTHER year is almost over and I know I am not the only one wondering where it went. The days went by and so did our salary, for many of us our savings, and unfortunately for a few our jobs also disappeared. Even though Jamaica survived an uneventful hurricane season, many of us will be finishing off this year feeling as if a category 5 Hurricane swept through our finances. All hope is not lost, however. After all, we are Jamaicans and we are built strong to survive. So it is time to put the recovery plan into action.

It is time to get back to the basics before you take another step forward. The first principle of investing is budgeting, so we will start there. Make a list of all your income/revenue streams and expenses.

If your expenses are greater than or equal to your income/revenue, do not panic, there is an easy fix. Carefully examine your expenses, refinancing and consolidation is a good option for loans and credit cards. Dealing with one smaller, more manageable payment over time can significantly reduce your expenses. Even essential expenses such as utilities and food can be reduced. A home cooked meal a few days a week for lunch or breakfast will not only help you save money but will be much healthier. Conservation is sometimes taken for granted and not done consistently; you would be surprised what a difference it can make to turn off the shower, taps and lights when they are not needed. When reducing your expense never stop saving; your savings should be the last expense you look to reduce. However, if you must, you can decrease how much you save until you are in a better financial position, at which time it should be increased.

So you have cut and recut your expenses but still not comfortable with the income-to-expense ratio. Don’t forget that in the midst of disaster stand boundless opportunities.

Another option is to increase your income stream. Do you have a skill or can provide a service that could earn you some extra cash such as baking, sewing, tutoring, accounting? Many of our current successful Jamaican entrepreneurs will tell you they got their start when they needed a way to increase their income, which led to them becoming their own boss.

As the festive season approaches, don’t waiver on the adjustments you have made to your budget in order to face financial freedom in 2010. The slogan for the holiday season is “Tis the season to be jolly” not “Tis the season to be shopping”. It is possible to have a fabulous holiday without breaking the bank and pulling out your hair as you wait for your next pay cheque in January. Holiday bonuses are a great way to help balance the income-to-expense ratio going into the New Year. Place a lump sum in savings or an investment and use the balance to clear loans and do your holiday spending.

Make a budget for your holiday spending separate from your regular budget. Apply the same technique of balancing your income versus expenses. Find inexpensive ways to celebrate and show your family and friends you care. Quality time spent with loved ones is priceless. Plan a potluck with friends and throw in some games; sit back relax and enjoy each other’s company. Corporate parties and other festive events to attend — as a woman, I know the dilemma of my fellow fashionistas, but you can still be fabulous as a recessionista. We all have those pieces of couture we have only worn once that have just been sitting in the back of the closet. Don’t be afraid to mix and match those pieces and show why you are a true fashionista.

Revisiting your budget and making adjustments should be done periodically regardless of your financial position. As in any business or government entity, when in a deficit budget cuts become a necessity to ensure continuity and future prosperity. Revisiting your budget may show a surplus and highlight areas that are being underutilised that can be used for saving and investing, which should always be a top priority. Happy budgeting!!

Natalie Bennett is an Operations Officer with Sterling Asset Management Limited. Sterling provides medium to long term financial advice and instruments in US and other world market currencies to the corporate, individual and institutional investor.

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