You can’t pour from an empty cup

Empty cup

Oct 10, 2022

You can’t pour from an empty cup or vessel, is a phrase that many of us have heard or used at some point in our lives. While the saying tends to be used in relation to our personal and mental well-being, I think it is pertinent to also include this phrase in our financial lives. As market volatility and soaring inflation has affected our day to day lives it gives us an opportunity to reassess our financial health.

Due to current market instability many investors may be inclined to run for the hills and cut their losses. Soaring prices are gradually eroding our budgets and many persons are now turning to their savings accounts to make ends meet. As your savings dwindle and purchasing power shrinks it further highlights that you cannot pour from that empty cup or have only a generic savings account.

Inflation makes it harder for persons to save money as it eats away at traditional savings. With sound financial planning one can navigate these turbulent times. As you maneuver, be mindful of the goals you had set and your financial plan to achieve them. It is an opportune time to sit with a licensed financial advisor and assess how to maximize your returns.

Look at your goals for the short, medium, and long term. Are you constantly pulling from your investments to meet short term objectives? If you find yourself in this position, you may need to diversify your portfolio to find a product that better suits your current financial obligations. When you encash from certain products you run the risk of incurring penalties and diminishing your potential returns.

With any investment portfolio, it is critical to have the right balance. An investor should do nothing in haste or have knee jerk reactions to headlines. Take the time to find the instruments that offer attractive yields that match your risk profile and financial goals. Remember investing over time gives yours funds greater potential to increase in value. Time in the market will always trump timing the market, meaning the longer you invest and are diligent with your investments, the greater the potential that your funds have to grow and recover from setbacks incurred during times of volatility.

A balanced and diverse portfolio should allow you to have the necessary cash flows or income from your investments to ride out current market volatility. It will also allow you to take advantage of opportunities that arise in the market. As always speak to your financial advisor and happy investing!

Christine Rankine is the Manager -Personal Financial Planning at Sterling Asset Management. Sterling provides financial advice and instruments in U.S. dollars and other hard currencies to the corporate, individual and institutional investor. Visit our website at

Feedback: if you wish to have Sterling address your investment questions in upcoming articles, e-mail us at [email protected].

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