Building an emergency fund essential, experts say

These days, with so much uncertainty swirling around the economy, inflation, and trade, experts suggest that socking away money in an emergency fund may be a wise move.

Save with SPP took a look at what the experts are saying about emergency funds.

The Winnipeg Free Press calls emergency funds “an absolutely crucial part of any financial plan, regardless of the life stage or situation.”

“For people who already have high-interest-rate debt, having an emergency fund can help guard against resorting to additional high-cost financing in a pinch. It also helps you defray unexpected expenses without needing to raid your retirement accounts,” the newspaper reports.

“Finally, the big reason to have an emergency fund is to cover your basic costs in case of job loss,” the Free Press adds.

The paper suggests that your minimum target savings amount for an emergency fund should be three times your basic living expenses – that’s “housing costs, utilities, food expenses, servicing debt, insurance and taxes.”

You can subtract any savings you already have from that minimum target and then begin adding savings to make up the gap, the Free Press notes.

The folks at MoneySense set out some of the advantages of having an emergency fund.

A fund, the publication reports, can be put into use when you face:

• “Urgent major repairs (not renovations) to your home or car.”
• “Unexpected medical expenses not covered by universal health care or insurance.”
• “Lack of income due to job loss.”

“Just like the name implies, an emergency fund is meant for emergencies. Unexpected events happen in life: the car breaks down, the fridge stops working or you get laid off during a recession. Without an emergency fund to help cover your expenses, you could end up paying bills with a credit card, relying on payday loans or heavily using your secured or unsecured line of credit,” reports MoneySense.

Having to go that route means your emergency is costing you an additional 19.99 per cent (if paid via credit card) or an eye-popping 442 per cent if paid via payday loan, the publication warns.

Forbes magazine notes that your savings target will be larger if there are more people in your household than just you. Base your monthly expense number not only on your expenses, but all the expenses you cover for everyone under your roof, the magazine suggests.

Finding money to divert to your emergency fund may be as simple as trimming the “non-essentials” you spend money on, such as “clothing, entertainment, and dining out.”

“Go through the list of things you normally spend money on that aren’t actual needs and consider what you can reduce or eliminate,” the magazine suggests. If that doesn’t work, you may need to aim for a higher income.

“Consider ways you can make more money each month. This may include taking on extra hours at work, getting a part-time job or starting a side hustle. Even selling things around the house you no longer need can help. The more money you can bring in, the more you can add to your emergency savings,” Forbes advises.

Forbes concludes by suggesting four steps to help build your emergency savings:

• Make savings automatic – make an automatic deposit to your savings account every pay day.
• Save “windfalls,” like tax returns, rebates and “other unexpected financial windfalls.”
• Use “cash back” apps or cards and direct the money to savings.
• If you are getting tax refunds every year, considering reducing the tax withheld from your pay and adding the difference to your emergency fund.

Writing for GoBankingRates, Caitlyn Moorhead suggests a few more saving ideas for boosting the balance in your emergency fund.

Find a chequing account that also pays interest, and move the interest received to your emergency fund, she writes. Cut back on your cable package and bank the savings, she continues. Be a stickler about sticking to your grocery list, she advises, and develop a meal plan that is based on weekly grocery sales. Bank the extra money.

In fact, you consider your emergency fund to be a bill, she writes. Huh?

“When it comes to financial planning, it’s a lot easier to part with the money you put in savings when you take on the mindset that it’s just another bill. Instead of looking at saving as an optional move, think of it as a mandatory expense like paying rent or your phone bill. That way when unexpected expenses arise, you already have it covered,” she concludes.

We’ll add a few we used when building up our savings. Lottery ticket winnings can be banked. When you roll up your change, you can deposit it in your account. And when you get a payout from your dental or vision insurance, you can pop that into savings.

The same tactics listed in these articles can be used – perhaps once you have built up that emergency fund – to save for retirement. And a great vehicle to speed along that savings journey is the Saskatchewan Pension Plan. You provide the savings, SPP provides the investment expertise, and will grow your hard-earned loonies in their low-cost, professionally managed pooled fund. When it’s time to retire your choices include a lifetime monthly annuity payment or the more flexible Variable Benefit.

Check out SPP today!

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We frequently write, in this space, about good ideas to help boost your long-term retirement savings.

But what about the opposite – bad retirement decisions that can hurt or hinder your efforts? Using the theory that we often learn the most from making mistakes, Save with SPP scoured the Interweb to drum up some bad retirement ideas to avoid.

Let’s start with the Money.ca website, where Michelle Robertson discusses a half-dozen common retirement planning mistakes Canadians too frequently make.

The first, she explains, is “not having a plan.”

“Driving to retirement with no plan is like a trip to a mystery location with no map. You have no idea where you will end up,” she warns. “A plan shows if you’re investing enough to be ready at your desired retirement age. The more time and clarity you have, the easier it is to reach your goals,” she continues.

And for those who think their house will provide the retirement income they need, she suggests that “you can’t eat your house in retirement.”

“People see their house as an investment. They expect to use its equity in retirement. But, you can’t access your home’s equity if you live in it without borrowing your equity from the bank (for the second time),” she writes.

A third, classic mistake Robertson warns us about is to “take too much debt into retirement.”

“Debt is debilitating at any stage of life, but especially in retirement. It will quickly erode your retirement income,” she explains.

In an article published by GoBankingRates, Yaël Bizouati-Kennedy provides a few more bad ideas to watch out for.

First mistake, the article notes, is “starting your savings journey late.” The article quotes money and financial coach Adeola Monofi as saying “by starting early, you can leverage the power of compounding interest and allow your investments to grow significantly over time. Make it a priority to start saving for retirement as soon as possible, even if it means making small contributions initially.”

Another red flag is underestimating retirement expenses, the article continues. Healthcare costs can rise when you’re older, the article notes, as can the cost of housing, travel, hobbies and other leisure activities.

A third mistake is thinking that Canada Pension Plan (CPP) and Old Age Security (OAS) benefits will be enough to fund your retirement, the article notes.

“While programs like the CPP and OAS provide valuable income, they may not cover all your retirement needs,” Monofi is quoted as stating in the article. She tells GoBankingRates that these government benefits should be augmented by personal savings in “registered retirement savings plans (RRSPs), tax-free savings accounts (TFSAs), real estate, permanent life insurance and other investment vehicles suitable for your circumstances.”

Last word goes to Canadian Essence, who list, in an article by Ash Kaushik, some of the worst advice people can be given about retirement.

“Invest in only safe options, like bonds,” is one such piece of advice, the article reports.

“Bonds are risk-free, but if you’re obsessed with them – it’s counterproductive. Retiree funds have to keep up with inflation and a well-diversified portfolio comprising stocks can deliver higher long-term returns. Don’t play it too safe and you’ll fall short on your financial expectations,” the article warns.

Another bad bit of advice, the article continues, is that idea that if you haven’t saved enough, “you can always work longer if you’re not ready.”

“You shouldn’t rely on working longer to save money. Unexpected illness, unemployment or a caregiver need can lead to you retiring before you have any choice,” the article cautions.

“Retirement will be just like your vacation,” is our final bit of bad advice presented in the article.

“Retirement sounds simple enough, like a one-week vacation but it’s often not. Even all the free time feels a little unenjoyable if you don’t plan how to remain active, productive and be on track. So, don’t be surprised if you’re expecting a vacation-like lifestyle, but haven’t considered how you’ll spend your time or how you’ll cope with changes in your daily routine,” the article tells us.

Having left full-time work more than 10 years ago, this writer can attest to the truth of the “retirement is like a vacation” comment. It’s more like it is always the weekend, which is still good but a little different than being on a trip.

If you haven’t got going on your retirement savings yet, and don’t belong to any sort of retirement savings plan through your work, there’s an option out there for you that is worth considering – the Saskatchewan Pension Plan. SPP is an open, voluntary defined contribution pension plan that any Canadian can join.

You decide how much you want to save, and SPP does the rest, investing your savings dollars in a low-cost, professionally managed pooled fund. At retirement, among your options are a lifetime monthly annuity payment or the more flexible Variable Benefit.

Check out SPP today!

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If you’re looking for a low-cost, effective way to improve your mental and physical health, the answer may be no farther away than a good pair of walking shoes.

Save with SPP decided to take a stroll through the Interweb to see what is being said about this reliable old form of exercise and transportation.

“Medical experts agree that walking is an easy way to improve physical and mental health, bolster fitness and prevent disease. While it’s not the only sort of exercise people should do, it’s a great first step toward a healthy life,” reports the CBC.

Walking, the broadcaster reports, “can help meet national recommendations that adults get at least 2½ hours of moderate-intensity physical activity every week. This helps lowers the risk of heart disease, high blood pressure, dementia, depression and many types of cancer.”

As well, the CBC continues, walking “also improves blood sugar levels, is good for bone health and can help you lose weight and sleep better.”

Some first-hand testimony on the benefits of walking can be found in a recent article in Readers Digest Canada.

Nancy Duguay, a 39-year-old nurse from New Brunswick, was trying to kick her smoking habit when “an idea struck her – walking instead of smoking,” the magazine reports.

She hiked to the top of nearby Sugarloaf Mountain, “in just my regular sneakers, a pair of shorts, and a T-shirt,” she tells Readers Digest Canada.

“I just felt so good,” Duguay states in the article. “My natural endorphins kicked in, and the craving was gone.”

“Almost every day since, she has gone for a walk—and the habit has changed her life. Not only did she quit smoking, but her resting heart rate dropped from 80 beats per minute to 60. The ritual has given her a lot more, as well: stress relief, mental-health management, and a sense of community,” the article reports.

“There’s a psychological and physical need to do it now,” she tells the magazine. “I want to keep healthy and keep moving.”

Some other findings from Readers Digest Canada:

• 150 minutes of walking per week “can reduce the risk of most chronic diseases by 20 to 50 per cent.”
• A brisk, 20-minute daily walk “is linked to a lower risk of seven types of cancer.”

The VeryWell Health blog lists a few more advantages of getting the running shoes on.

It burns calories, the blog notes – around 133 calories in 30 minutes for a person weighing 155 pounds.

It “helps strengthen the heart by improving the heart rate and improving circulation, which can lower blood pressure,” the article continues.

Walking can lower cholesterol levels and is great for easing joint pain. “Walking is one of the most important things you can do if you have joint pain or arthritis because it helps strengthen the bones and keeps joints flexible,” the article notes.

Finally, the article concludes, there is a strong link between brisk walking and longer life expectancy.

These are all very good points. We find we walk more in the summer, when the dog trails are clear of snow and ice, but we still get the pups out nearly every day in the winter. So, for sure see if you can build a little more walking into your day.

It can be difficult to save on your own for your retirement if you lack a workplace retirement program of some kind. That’s where the Saskatchewan Pension Plan can come in very handy. SPP is open to any Canadian with available registered retirement savings plan room. You can contribute any amount up to your annual RRSP limit, and you can transfer in funds from any other RRSPs you may have.

Once your savings dollars find their way to SPP, they will be professionally invested in a low-cost pooled fund. Your savings will grow as you continue to work and contribute, and when it’s time to retire, your options include receiving a lifetime monthly annuity payment or the more flexible Variable Benefit.

Check out SPP today!

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It’s a tough landscape for saving out there. Higher costs for housing, groceries, fuel, and life in general make it very hard to squeeze out a few bucks to earmark for your post-work future.

However, having been the brother of a very frugal sister, Save with SPP has seen what a little tightfistedness on the spending side can do for one’s piggy bank. Let’s take a look at some frugality tips from the experts.

The Little House Living blog offers up some “frugality outside the box” ideas.

One is to “meal plan for an entire month.” With this idea, you’d not be eating out at restaurants, and would know what to shop for at the grocery store.

Another radical idea – “get rid of the cell phone and go with landline.”

“So few of us truly NEED a cell phone, we’ve just become spoiled to the idea we do. Also, extreme? Get rid of the TV and thus the streaming needs. With all that, do you need internet,” the blog asks.

Wow. That’s extreme frugality!

A final one from this blog that we’ve not seen before is “shop the perimeter of the store… it literally cuts grocerying in half.”

The A Dime Saved blog features some tips that “people laugh at, but actually work to save money.”

The blog suggests making your own condiments. “You’d be surprised at how easy—and cost-effective—it is to whip up your own condiments. Salad dressings, flavored vinegars, or even your own ketchup—once you get the hang of it, you’ll never want to buy those pricey store versions again,” the blog notes. We recall our grandma in New Brunswick making her own mayo, among other things.

What about cutting your own hair, asks the blog.

“For some, the idea of cutting their own hair is terrifying, but with a little practice and the help of online tutorials, you can easily save on salon visits. A trim here and there can make a huge difference, and you might just find you’ve got a hidden talent for it. Worst case? You save money,” the blog explains.

Finally, a more familiar one – grabbing a few toiletries when you stay at a hotel.

“From soaps to toilet paper to tea bags, those small items are already factored into your hotel bill. Why not take advantage of them? It’s one less thing you have to buy when you get home,” the blog concludes.

Finally, GoBankingRates provides a few tips for retirees.

First, the blog suggests, review your streaming subscriptions and cut back. “If you take a close look at your monthly bills, you might be surprised to see how many recurring charges you rack up every month,” the blog warns. There are cheaper and even free streaming options out there, the blog adds.

“Comparison shop,” the blog advises. “Nearly any product or service you’re interested in is likely offered by a number of different vendors, so you can pick and choose the combination of price, service and quality that works best for you.”

As well, retirees who are also empty nesters should consider moving to a smaller house, or an apartment.

“Frugal living tips can go a long way toward saving for retirement or living your best life once in retirement,” the article concludes.

If you are able to squeeze some savings out of your monthly spending, then for sure retirement saving is a good place to direct those loonies to. If you are saving on your own for retirement, take a good look at the Saskatchewan Pension Plan. SPP takes the hassle out of retirement saving by making it simple – you contribute however much you want, and SPP invests it in a low-cost, professionally managed pooled investment fund. At retirement, your options include collecting a lifetime monthly annuity, or the more flexible Variable Benefit.

Check out SPP today!

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You continually read stories, or watch TV interviews, about people who are 100-plus, sharp as a tack mentally, and still living life to the best.

What are they doing that the rest of us aren’t? Save with SPP decided to take a look-see.

The Mental Floss blog offers up 100 pieces of advice from folks who are 100 years old or more.

“Don’t look at the calendar,” begins one tip. “Just keep celebrating every day.”

“Travel while you’re young and able,” suggests another. “Don’t worry about the money, just make it work. Experience is more valuable than money will ever be.”

A third tip – “most times, things will figure themselves out.” Another tip is simply “forgive.”

And this bit of advice – “have a pet. Life gets lonely sometimes. Pets are a reminder of how we’re all living things.”

The Life Extension blog serves up a few more ideas.

“Eat meals with loved ones,” the blog advises. “The important ingredient here is the people, not the food.”

A second suggestion, also a simple one, is to “laugh… laughter nourishes your soul. It brings levity into your day and helps lower stress levels, crucial to healthy aging.”

Learning new things, the blog continues, will “keep your mind sharp and your soul happy for the long run. When you start a new hobby, master your chess game, learn a new language, or stir up a new recipe, it opens your world to different experiences, increasing your joy, widening your social circle, and improving your quality of life.”

A final thought from this blog is to “live in the moment.”

“Studies suggest that adults who practice mindfulness tend to experience less stress, pessimism, and regret as they age. Practicing present-moment awareness is a wonderful way to stay grounded and focused on the life you’re living now, so you can make the most of every moment—from daily tasks to big events,” the blog adds.

An article from People magazine provides us with some additional insights.

Lucia DeClerck, 105 when interviewed, suggests “prayer, prayer, prayer. One step at a time. No junk food.”

Arlena Labon of Ohio, who was 108 when interviewed, advises us to “love one another” and “treat one another good.”

On the scientific side, People quotes Don Buettner, who has studied the so-called “Blue Zones” where people seem to live the longest, sees activity and diet as important. According to his research, the article says, citizens of Sardinia currently live the longest and “are mostly shepherds – a job that requires a lot of physical activity.” As well, Buettner notes in the article, they tend to “eat a plant-based diet, as eating meat is considered a luxury. Still, most of the people in Sardinia still enjoy a glass or two of red wine with dinner.”

We don’t know today if a long, long life is in the cards for us. But more and more of us are living longer lives. That makes another tip worth mentioning – be sure to save for your retirement, as it might last as long, or longer, than the time you spent working.

A great saving partner is the Saskatchewan Pension Plan. The plan is open to individuals or groups – SPP can serve as your organization’s pension plan. SPP will carefully invest your retirement savings dollars in a professionally managed, low-cost, pooled fund. At retirement, your options include the security of a lifetime monthly annuity payment, or the more flexible Variable Benefit.

Check out SPP today!

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Let’s face it – it’s not easy to go through the checkout line at the grocery store these days without having a sharp intake of breath when it’s time to pay. There seems to be less and less money left over after the bills are paid.

Is this impacting Canadians’ ability/desire to support charities? Save with SPP decided to do a little digging.

According to The Financial Post, citing research from the Fraser Institute, Canadians are “turning more stingy” when it comes to charity.

“The number of taxpayers who gave to charitable causes dropped to 17.7 per cent in 2021 — a 20-year low, according to the Fraser Institute’s annual report measuring generosity in Canada,” the newspaper reports. “Charitable giving hit a high in 2004, with 25.4 per cent of tax filers making donations, but gifts to charity have dropped each year since. Twenty-three per cent of taxpayers gave to charity in 2011.”

Not only are fewer people making donations, but those who do are giving less, the article adds.

“People are also donating less money, the study said, with the total amount given dropping to 0.55 per cent of income in 2021 from 0.58 per cent in 2001,” the article continues. Jake Fuss of the Fraser Institute, a co-author of the report, tells the newspaper “the data shows Canadians are consistently less charitable every year, which means charities face greater challenges to secure resources to help those in need.”

CanadaHelps, an organization that assists charities in gathering charitable donations, also sees a downward trend in charitable giving.

The organization’s Giving Report provides a couple of reasons why people are donating less these days. First, the group says, Canadians aren’t joining as many groups as they once did and are volunteering less.

“Canadians are increasingly disconnected, and their social networks have shrunk; this correlates with lower rates of giving. From 2013 to 2022, the number of Canadians with six or more close friends has declined by 40 per cent (from 37 per cent to 22 per cent), and those who feel a very strong sense of belonging to their community have dropped by 12 percentage points. More than 80 per cent (84 per cent) of those with many close friends donate, while just over half (53 per cent) of those with very few close friends donate,” an article on the CanadaHelps website explains.

Similarly, CanadaHelps sees a disconnect between causes we all say we value, and the actual cha-ching coming out of our pockets in the form of donations. An example is the environment, the group says.

“Only 1.5 per cent of donations made through CanadaHelps are directed to environmental charities, despite 32 per cent of Canadians saying climate change or protecting the environment is a top cause for them, and almost half (48 per cent) of Canadians expressing anxiety about climate change on at least somewhat of a regular basis,” the group charges.

So, at a time when “more than half of charities are unable to meet current levels of demand,” fewer of us are donating. The CanadaHelps article concludes by noting that “one in five Canadians was using charitable services to meet essential needs in 2023.”

As an example, reports the CBC, Toronto’s Daily Bread Food Bank saw about 55,000 client visits each month before the pandemic. Since then, the monthly client visits have nearly tripled to 130,000 visits per month. Donations, on the other hand, have not tripled, the article says.

If there’s a takeaway here, it is that times are tough for everyone but are even worse for those of us just scraping by. Consider making more charitable donations – bump up any you might be making, or start doing some, perhaps via automatic withdrawals from your bank account. Alternatively, volunteer some of your time. Every dollar and hour of donated time will help.

Have you got a retirement savings plan in place? If not, take a look at the Saskatchewan Pension Plan, a voluntary defined contribution pension plan open to any Canadian with registered retirement savings plan room. With SPP, you decide how much money to contribute, and we do the rest. Your precious retirement savings dollars are investing in a professionally managed, pooled, low-cost fund. They’ll grow while you work, and when work is done, your retirement income options include getting lifetime monthly annuity payments, or the flexibility of our Variable Benefit option.

Check out SPP today!

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We’ve read a ton of books on retirement/saving for retirement/living in retirement, and there’s one common thread that runs through all of them – the need to have a budget (and to stick to it).

Save with SPP decided to search for easy ways to get a budget in place, for those of us who either don’t currently budget or have given up due to fears it will be too complex and difficult.

At the Money Canada blog, writer Sandy Vong advises that if “you consistently look at your bank balance and wonder where the money goes then it’s time to take charge of your funds – and that starts with making a budget.”

“The good news is that it doesn’t have to be scary or time-consuming. But having a budget is critical. A budget gives you a big picture of your spending and saving habits and it’s a great way to take charge of your finances,” writes Vong.

Vong’s budget plan involves five steps – understanding and rating your values, setting your financial goals, tracking income and expenses, creating a budget and then regularly reviewing it.

The “value” idea is a bit unique.

“Values are those intangible measures of a good life. For instance, good health may be a value, as it a fulfilling career, or a place to call home. By starting with your values, you’re able to understand what value you are helping to support when you spend or save your money,” Vong explains.

The budgeting part itself, Vong notes, is fairly simple – track every expense and all of your income.

“Tracking your income and expenses is a simple exercise that takes a few minutes every day, but will quickly show you what your lifestyle is like and what areas you are spending the most on,” Vong notes.

“You can keep track of your income and expenses by using a note-taking app like Evernote.

However, there are more sophisticated budgeting apps such as YNAB (You Need A Budget). Whenever you go to purchase an item, whether online or in-store, record the date, the name of the store and the amount you spent. This way, you will have a full summary of where your money comes in and where it goes out at the end of the month,” Vong concludes.

There are other budgeting strategies.

Writing for GoBankingRates, Caitlin Moorhead explains the 75/15/10 budgeting approach.

“The 75/15/10 rule is a simple way to budget and allocate your paycheck. This is when you divert 75 per cent of your income to needs such as everyday expenses, 15 per cent to long-term investing and 10 per cent for short-term savings. It’s all about creating a balanced and practical plan for your money,” she writes.

She sees the 15 per cent as going for your future.  “By putting 15 per cent of your income into investments like stocks or real estate, you’re not just saving — you’re growing your wealth,” she explains. The 10 per cent should be used to build up an emergency fund that can cover up to six months of expenses, she concludes.

Another, somewhat similar approach is the “50/30/20 method,” reports Linda Howard of The Daily Record.

In this approach, she explains, 50 per cent of your money is earmarked for “essential spending such as bills and food shopping,” with 30 per cent going to fun “non-essentials, such as eating out and style and beauty,” and the last 20 per cent going into savings.

The great Gail Vaz-Oxlade has long proposed a “cash jar/envelope” budgeting system, covered via the Smart Canucks blog.

According to the blog, Vaz-Oxlade’s approach “recommends that of your total income, 35 per cent goes to housing, 15 per cent to transportation, 25 per cent on `life’ (everything from groceries, pets, kids etc.), 15 per cent to debt and 10 per cent to savings.”

As we all remember from her many TV shows, she encouraged people to actually set aside cash for each category in jars or envelopes. If there’s no money left in the jar, you need to wait until the next month.

You can figure out your own budget approach, but the chief idea is to spend less than what you earn. To do that you need to see what you are making and know what your bills add up to.

If you are developing a budget, be sure to put some money away for long-term savings, such as retirement. If you don’t have a retirement program at your workplace, consider the Saskatchewan Pension Plan as your savings partner. Open to any Canadian with registered retirement savings plan room SPP is like an RRSP that has, when you retire, built in options to turn savings into income. You can, for example, convert your account balance into a monthly lifetime annuity payment. Or you can select the more flexible Variable Benefit.

Check out SPP today!

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A new year – 2025 – is upon us. Traditionally, it’s a time for making resolutions – maybe to hit the gym more often, to finally quit smoking, and so on.

Save with SPP, often with money on the mind, took a look around to see what sort of resolutions people are considering making when it comes to saving money.

The folks at the GoBankingRates blog have a few ideas; the first is to bump up your retirement savings by one per cent.

“One simple way to improve your long-term finances with minimal effort is to bump up your retirement plan contributions in small increments,” the blog explains. Let’s say you are earning $50,000 and contributing five per cent towards a retirement savings account. In Canada, that could be a registered retirement savings plan (RRSP), Tax Free Savings Account (TFSA), a Saskatchewan Pension Plan (SPP account) or any other savings vehicle where you control how much goes in.

Bumping that up by just one per cent means “you’ll be kicking in an extra $41.67 per month,” the blog explains. “That’s a money-saving resolution you could easily keep,” the blog continues.

Other ideas in this article include starting an emergency fund and the golden rule of “eat all the food in your house” to avoid food waste.

“Having an emergency fund is essential for keeping yourself out of debt when you face unexpected expenses,” the blog advises. Start small – maybe put away $100 a month. “Within a year, you’ll have $1,200…. enough to cover most short-term emergencies you’ll face.”

“If you want to save money… simply check your refrigerator every day for what you have and what might be going bad soon and eat that instead of picking up something new from the grocery store or a restaurant,” the blog advises. This “eat all the food in your house” rule is one our mother used to swear by; we would “use up” the food in the fridge before going out to buy more groceries, avoiding waste.

The Positively Frugal blog over in the UK offers up a few more ideas.

Getting out of debt is the blog’s number one resolution.

“Without a doubt, one of the absolute best financial goals to make this year is to get rid of your debt once and for all! I am a huge proponent of being debt free — not only is it good for your finances, but it’s good for your psyche,” the blog tells us.

“This year, challenge yourself to lose the burden of some of your debt. If you want to take it up a notch and brave the task of setting one of the best long-term financial goals, set a resolution to become completely debt free,” the blog advises.

Other suggestions – in the New Year, start paying off your credit cards in full each month (if you haven’t already begun doing this). “The amount you will save in interest and fees can add up to a nice little pile of cash, which can be used to kick start a savings account,” the blog suggests.

Another money-saving resolution offered up by the blog is to try and eat out less.

“If there is one area where most people can shape up their finances, it’s on the amount they spend eating out,” the blog notes. “You don’t have to completely eliminate eating out, but you can make a money resolution this year to spend less on the meals you eat at restaurants,” the blog adds.

Finally, the gang at Nerdwallet provide us with a few retirement-related savings resolutions.

First, the blog recommends, you should set a “goal retirement age.”

Figuring out when you want to retire will help you to estimate how much money you’ll need to have saved up by the time that day rolls around,” the blog tells us.

“Let’s say you’re 30 years old now and you want to retire by age 65. That gives you 35 years in which to save. So how much money will you need to retire at age 65,” the blog continues.

“A common rule of thumb is to aim to save at least 70 per cent of your annual pre-retirement income. Then, multiply this number by 25. Why? Because another rule of thumb says it’s a good idea to plan for 25 years of life after retirement — perhaps more if you retire early. Finally, you’ll want to subtract any pension income you plan to receive,” the blog states.

The blog also suggests that you automate your retirement savings.

“Once your (retirement saving) plan’s in place and accounts picked out, your next step should be to automate contributions. This ‘set it and forget it’ way to save ensures you’re constantly putting money towards your retirement plan with no little effort required on your part. It’s perfect for those who might be forgetful or be tempted to spend extra funds if they’re not allocated immediately,” the blog advises.

“Automating contributions to your retirement accounts should be easy, with financial institutions allowing you to set it up online. You can choose how much you want to contribute and at what frequency,” the blog adds.

Final word from Nerdwallet is to get started – today!

“It’s never too early to start thinking about retirement. The sooner you start, the more time you’ll have to save, and maximize those savings through registered plans, investments and tax-free accounts,” the blog concludes.

One savings tip we will add is one learned from one of the books reviewed for writing this blog. Let’s say you look at your existing budget, and find there is no room to save anything. The book suggested taking one per cent of your take-home pay off the top and putting it into savings, then managing the bills. Once you’ve managed that for a while, bump it up to two per cent, and so on. This one worked for us back when we were still grappling with a mortgage and debt.

The Saskatchewan Pension Plan is a defined contribution pension plan open to any Canadian with available RRSP room. Like an RRSP, your contributions to SPP are tax-deductible. SPP takes your savings and invests them in a low-cost, professionally managed pooled fund. At retirement, SPP members can choose among such options as a monthly lifetime annuity payment or the more flexible Variable Benefit.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

“The man from the bank was very nice,” said Grandma over the phone one Monday evening. “He said he just wanted to run a security check, so I ran and got my card.”

Oh no, we thought. We were quickly able to contact the bank to verify that all was OK with her account. She hadn’t been able to see all the numbers (she’s 92) and began to think something was up when the “bank man” started yelling at her.

When we got her on the phone with her actual bank, they reassured her that the bank would never make a “security check” call like that; it was a scam.

Save with SPP took a look around to see what other scams are out there that we – particularly the older and more vulnerable among us – should watch out for.

According to the Toronto.com website, “Canadians have lost a staggering $447 million through various scams and fraud through the first nine months of 2024.”

Of that total, the article continues, $228 million was lost in “investment fraud alone from January to September of 2024.”

An investment scam, the article notes, occurs when “the scammer may try to get you to buy digital currencies, stocks, bonds, or real estate, or to invest in a business directly,” the Competition Bureau Canada states in the article.

“Fraudsters often use social media, dating apps, online ads or websites telling investors to act now while promising high returns,” the article adds.

The Globe and Mail notes that $45 million has been lost “to phone-initiated fraud” like Grandma experienced. That figure “captures only a fraction of the suspected financial carnage,” the Globe notes. “The Canadian Anti-Fraud Centre estimates that a mere five to 10 per cent of victims actually report” the fraud.

In addition to investment scams and phone fraud, the Asterisk blog warns about “social media scams” which often consist of “false advertisements… that promise job opportunities, discounted merchandise, or free trials.” Clicking on these could lead to “identity theft and stolen passwords,” the blog warns.

Another category is called “spear fishing,” Asterisk reports. “Be aware of texts and email messages, which appear to be from a legitimate source, that say someone is trying to access your account. Never respond to the text or email, and do not click on any links.”

These messages may purport to be from someone you do business with – the bank, the post office, Amazon, or the government.

“The golden rule is that if you’re unsure, don’t click. Opening a fraudulent link can potentially infect your device or compromise your data. Instead, reach out to the government agency directly by looking up their official contact information,” the blog advises. “If you’re concerned about these messages, especially if they are ongoing, call your financial institution directly to find out if they’re trying to get in touch with you.”

Another category is employment scams, Asterisk continues.

For example, the blog reports, “Instagram direct messages that claim someone received your resume through a job posting site and is interested in hiring you. It is common for scammers to ask for personal details, financial information and even pretend to send you an advance ‘digital payment.’ However, after you deposit the money, you’ll get a call from your financial institution that the cheque was counterfeit,” the blog warns.

Similar scams involve “car wrapping,” being hired as a “financial agent” to help process invoices or offers for you to be a mystery shopper or personal assistant, the blog cautions.

We’ve all heard (and friends have experienced) the “grandparent scam,” where someone calls saying it is your grandson and that he needs bail money quick to get out of jail. Or the Canada Revenue Scam where a recorded voice says you are about to be arrested for tax evasion unless you contact a random number first. Artificial Intelligence can make any scam sound plausible.

The takeaway is to be skeptical about the reality of any unsolicited call. It costs you nothing to hang up – it might cost you plenty to stay on the line. As our parents used to say, “if it sounds too good to be true, it probably isn’t true.”

Are you among the millions of Canadians who does not have a retirement program through work? There’s a handy resource you should be aware of – the Saskatchewan Pension Plan. SPP is an open, voluntary defined contribution plan that any Canadian with available registered retirement savings plan room can join.

Sign up and start contributing, and SPP will do all the rest, investing your savings in a professionally managed, low fee pooled fund. At retirement, you’ll have options, including the possibility of a lifetime monthly annuity payment or the more flexible Variable Benefit.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Decades ago, a colleague – during a chat about retirement – told us that her in-laws felt that the best retirement decision they ever made was to leave work as soon as they could, at age 55.

They had enjoyed a very long retirement and did all the things they wanted to – and they looked back at it all fondly now that they were in their 80s.

Save with SPP decided to look around to see what other people think are the best, or most important, retirement decisions they can make.

The Motley Fool blog offers up a few key decisions.

One is to “make retirement a priority,” because “the sooner you decide to make retirement a priority, the more time `the force’ (the power of compounding) will work in your favour,” the blog tells us.

Another decision is to “explore your core pursuits,” the blog advises. “The happiest retirees report entering retirement with an average of 3.61 `core pursuits.’ Unhappy retirees have less than two,” the blog notes.

A related idea is to set retirement goals, the blog states.

“Something as simple as writing down three goals for your first year in retirement can work wonders in giving your time structure, purpose, and meaning. Of course, these goals will change over time — the important thing is devoting time to exploring them and following through,” the blog concludes.

The folks at Forbes offer up a few more.

Your health, the publication suggests, should be a top consideration.

“`Good health’ is the factor often cited by retirees as a top reason for happiness in retirement,” the publication notes. “As you’re considering the `when to retire’ question, you’ll want to find a way to balance your health goals with your financial goals, since money worries can be a significant cause of stress, which can in turn negatively affect your health. This can be another reason to consider working part time for a while—you’ll get more time to achieve your health goals while also improving your finances.”

The publication also suggests that delaying your retirement date may qualify you for larger retirement benefits.

Finally, the Kiplinger team brings up some important decisions on retirement you don’t want to get wrong.

Don’t “relocate on a whim,” the article advises. “Too many folks have trudged off willy-nilly to what they thought was a dream destination only to find that it’s more akin to a nightmare,” the article adds. Consider renting in your new, desired location before you decide to buy there, the article adds.

Don’t “not plan” to retire. Huh? Kiplinger says that 55 per cent of U.S. workers plan to work “after they retire,” meaning, essentially, continuing to work indefinitely. “That plan could backfire,” warns Kiplinger.

Changes in your health, or that of a spouse, could mean you’ll be retired before you planned to be. “Assume the worst and save early and often. Only 34 per cent of baby boomers surveyed by Transamerica have a backup plan to replace retirement income if unable to continue working,” the article adds.

Finally, Kiplinger cites “putting off saving for retirement” as a related, bad decision. Surveys found this was the biggest regret amongst U.S. boomers.

“The good news for investors (in their 40s and 50s) is that they may still have enough time to change their savings behavior and achieve their goals, but they will need to take action quickly and be extremely disciplined about their savings,” states Ajay Kaisth of KAI Advisors in New Jersey in the Kiplinger article.

If there is a single takeaway from all this, it’s the idea of planning. You will almost certainly reach a point in life when you are no longer working or able to work. If you thought about this long ago and saved, or joined a retirement program at work, you will have more options than if you didn’t.

If you don’t have a workplace pension plan or retirement program, the Saskatchewan Pension Plan may be just the ticket for you. SPP is open to any Canadian with available RRSP room. You make tax-deductible contributions to SPP at any rate you wish – and you can transfer funds into SPP from other RRSPs. Once your savings are entrusted to SPP, we will invest them in a low-cost, professionally managed pooled fund. At retirement, your choices include income for life via an SPP annuity, or the more flexible Variable Benefit.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!