What I Learned at the MyTwoCents Financial Education Seminar

I attended the MyTwoCents Financial Education Seminar on October 25-26, 2025 at Sam Lord's Castle. As someone building Banking in BIM, I wanted to understand the Barbados financial sector better and see what financial educators are sharing with professionals looking to optimize their finances.

Nikita Gibson led most of the sessions, covering everything from mortgage strategies to relationship finances. Some of what she shared was new to me. Some confirmed what I suspected about how financial institutions operate here.

Disclaimer: These are my notes and observations from the seminar. This isn't financial advice—just sharing what I learned. Always consult with qualified financial professionals for your specific situation.

Here's what I found useful.

The 6 Accounts Strategy

Nikita recommends organizing your money across at least 6 different accounts—emergency funds, investments, day-to-day spending, and specialized savings accounts. I didn't capture the complete list, but the principle makes sense: separate your money by purpose.

The challenge is finding the right products for each account. Banks don't advertise their premium savings accounts prominently. Credit unions offer rates from 0.5% to over 2% on certain accounts, but you have to know they exist. That's where comparison matters.

Getting Better Mortgage Rates: Nikita's Approach

Nikita shared her own mortgage story and her proactive approach. She calls her financial institution every year to ask about current rates and follows financial institutions on social media to catch promotions they're offering new customers. When she sees better rates being advertised, she asks if she—as an on-time payer—can get those promotional rates too. This approach got her rate reduced from 5.5% to 4.5%, and later to 3.7%. Instead of lowering her monthly payment, she kept paying the same amount she was already paying.

Here's how the math works: Say you have a $400,000 mortgage at 5.5%. Your monthly payment would be around $2,271. After a year of on-time payments, you see your financial institution advertising 4.5% to new customers and you ask for the same rate.

At that point, at the 5.5% rate, about $1,809 of your payment goes to interest and $462 to principal. When you renegotiate to 4.5% but keep paying $2,271, the interest drops to $1,480, so now $791 goes to principal—an extra $329 attacking your loan balance each month.

By directing those interest savings to the principal, she eliminated 7 years from her mortgage in just 8 years of payments.

Her approach was straightforward: don't reduce your payment when you negotiate a better rate. Keep paying the same amount and more of it goes to principal.

What Might Be Negotiable

Nikita mentioned that attorney fees on mortgages aren't required by law—they're just standard practice. The suggestion was that you could potentially negotiate them away.

The same might apply to certain transaction fees. The point made was that when banks need business (during economic downturns), more items become negotiable. The key is knowing what other institutions charge and understanding what's actually required versus what's just customary.

One caution mentioned: Barbados is a small market. Approach negotiations reasonably to avoid damaging relationships.

Building Out of Pocket vs Getting a Mortgage

Kelly Johnally, a homeownership and renovation expert, challenged the common approach of building "out of pocket." The math doesn't work in your favor:

Building out of pocket:

• Takes 8+ years
• Material costs change constantly
• Personal loans for materials: 12-18% interest

Getting a mortgage:

• Move in within 6-12 months
• Locked prices
• Mortgage rates: 4-6% interest

Building "out of pocket" often costs more once you factor in personal loans, inflation, and the years you're not building equity.

She recommended borrowing less than you qualify for. If you qualify for $4,000/month, borrow at $3,000/month. That buffer handles material price increases and modifications.

She also advised getting a contractor who's at least an engineer, has a business bank account, and whose full name you know.

Contract Work and Mortgage Approval

This came up during the homeownership discussion when someone asked "for a friend" about difficulty getting mortgage approval as a contractor. (The laughter in the room suggested we all knew it wasn't actually for a friend.)

Panelist Kristin Turton, an estate planner, explained this as a risk management issue from the bank's perspective. Banks view contract work as less stable than permanent employment, even when the contractor's income is substantial.

Interestingly, someone mentioned that even lawyers—who are typically self-employed—face similar difficulties getting approved for loans despite their professional status and earning potential.

The challenge seems particularly relevant as government increasingly offers contract positions rather than permanent roles.

Debt Consolidation Warnings

Nikita Gibson warned about debt consolidation. Lower monthly payments sound helpful, but extending the term means paying significantly more in total interest.

Here's a realistic scenario:

Before consolidation:

• $1,000 credit card at 24%: ~$50/month (pays off in 2 years)
• $3,000 line of credit at 12%: ~$140/month (pays off in 2 years)
• Need $15,000 home improvement loan at 10%: ~$300/month (pays off in 5.3 years)
• Total: ~$490/month across three payments
• Longest payoff: 5.3 years

After consolidation:

• Everything rolled into one $19,000 loan at 14% over 7 years
• Single payment: $356/month
• Payoff: 7 years
• Savings: $134/month

Sounds great—lower payment, one bill instead of three. But here's the trap: you're extending debt that would've been cleared in 2 years into a 7-year loan. Those small debts keep accumulating interest for 5 extra years, significantly increasing the total cost.

The lesson: always calculate total cost and timeline, not just monthly payment convenience.

Finances in Relationships

Sunday's session covered money and relationships. Nikita Gibson showed a chart indicating that roughly 40% of divorces in Barbados involve financial issues.

Her recommended structure:

• Separate accounts for salaries
• Joint checking for bills only
• Fair contribution split (e.g., percentage of net income, or pool and split equally)

Key relationship models discussed:

• Financial Dominance - one partner controls everything (creates resentment)
• Financial Independence - both maintain awareness (builds equality)

(There were other models discussed, but these are the two I captured in my notes.)

For high-earning couples, she mentioned forming a company and paying yourselves below the 28.75% personal income tax threshold to take advantage of the 5.5% corporate tax rate (available for companies with gross yearly income under $2 million BBD).

She also noted that financial abuse is recognized under Barbados' Domestic Violence Act. Victims can get Protection Orders with financial relief clauses.

Why I Added AffinityPlus to Banking in BIM

I met the AffinityPlus team at the networking session. They sent me their product details:

• SMART Accumulator: tiered rates up to 2.15%
• Term Deposits: 2.25% to 2.75%
• Retirement Savings: tiered rates up to 2.25%

These rates are better than most bank savings accounts. But unless you're already a member or specifically ask, you wouldn't know these products exist.

I've added them to Banking in BIM so people can compare.

Main Takeaway

The recurring theme throughout the seminar was that financial institutions don't advertise information that works against their interests. Attorney fees, specialized accounts, negotiable fees—none of this is prominently displayed.

Nikita Gibson's key advice: come prepared with knowledge before negotiating with any financial institution. According to her, even loan officers may not be aware of all negotiable items. If you know what might be negotiable, you can ask the right questions.

Banking in BIM aims to provide that foundational information—rates, fees, and product details in one place—so you can make more informed decisions and know what questions to ask.