Ace McCloud’s Saving Money is a slim volume that’s absolutely jam-packed with good advice on saving money.

McCloud begins by stressing the importance of “investing in yourself,” specifically the need to look after your physical and mental health. Good health practices are essential to “living a longer, happier life.” So, eat well, visit the gym, get lots of sleep and check in with your doctor, we are told.

For mental health, McCloud says yoga and meditation are good bets.

On the money side, McCloud points out the advantages of having a savings account. “First and foremost, your chances of spending that money are much less (in a savings account) than if your money was in a chequing account,” McCloud notes. It’s a good start, but with interest rates currently quite low, other investments – property, stocks, bonds – may provide greater profits.

On the stock front, McCloud says investing in preferred stock “is best for those who don’t get excited by risk taking because the price of the stock doesn’t tend to fluctuate.” You’ll get better interest via bonds than a savings account, and if actually buying a property to rent out is beyond your means, a Real Estate Investment Trust (REIT) can get you into the real estate game with a much smaller entry fee, he notes.

Many of us don’t have money to save due to high levels of debt, writes McCloud. “Many people find themselves in bad credit card debt because credit cards easily bring on feelings of instant gratification,” he explains. So while saving is a great thing, he advises getting rid of “high interest debts as fast as you can” to free up more money to save.

He gives an example indicating that if you make only the minimum payment on a $10,000 credit card balance, “it would take you nearly 30 years to pay it and it would cost you $12,000 just in interest!” By paying just under twice the minimum payment, you can pay it off in two years and save $10,000 in interest. If you have a number of credit cards, the Snowball Method may be a good idea – put extra money on the card with the lowest balance until you pay it off, and then add that money to the next-lowest card, McCloud explains.

Obviously debt is just one factor that restricts savings. The other is overspending. McCloud offers dozens of great ideas on how to save money. Go to the library, he suggests. Put down your electronics and take a walk. Don’t go to malls without spending money. Clip coupons. Shop at thrift stores. Make dining out (or ordering in) for special occasions only.

A nice bit of advice is to “take care of your personal possessions… you can make them last longer, therefore getting more value out of your money.” This advice extends to toys, cars, your house… the whole shebang.

We also like the idea of saving change in a jar.

There’s a handy section on grocery shopping that contains advice like “don’t fill your cart,” buy generic and private label brands, avoid pre-packaged food, and the classic “don’t shop when you’re hungry.”

While the book is intended for a U.S. audience, many of the tax saving tips are relevant for us Canadians. Make charitable donations to get a tax deduction, he writes. If you are moving, keep receipts – you can often claim the expense if you are moving somewhere to get a new job. The cost of having someone prepare your taxes is tax deductible, as are a variety of home office costs if you are self-employed.

He concludes by recommending a family stick to a budget to avoid surprises. This is a fun and straightforward little book that can jump-start your thinking if you are finding that there’s less money left over on payday than there used to be. It’s well worth reading.

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If there’s one thing almost everyone can agree on, it was great to celebrate – in a limited, socially distanced way – the end of the brutal year 2020, when the pandemic slammed the world.

It’s been a particularly frightening year for those of us struggling to save a few bucks for our retirement.

Back in February, when the COVID-19 crisis was beginning to take effect, stock markets dropped sharply, erasing “four years of gains,” reports Maclean’s . The market’s crash was based on fear – “not knowing how severe COVID was going to be in terms of morbidity,” the magazine explains.

In addition to the shocking numbers of deaths and sickness COVID-19 delivered, it also walloped our economy. According to Wealth Professional, quoting Bank of Canada Governor Tiff Macklem, Canada’s economy “is expected to shrink by 5.5 per cent for the whole of 2020, with the initial rebound following the First Wave of the pandemic having eased.”

We all know what he’s talking about here – the First Wave led to lockdowns and business closures, and high unemployment. There was a break in the summer as much of the shuttered economy reopened, but now the Second Wave is causing lockdowns and job losses once again.

The usual safe harbour for savers when the economy (and stock markets) are volatile is in fixed income, investments that pay us interest. However, in order to reboot the economy, the Bank of Canada is planning to keep interest rates low “until 2023,” Macklem states in the Wealth Professional article.

Those “low for long” interest rates mean it is not the best time to buy bonds or guaranteed investment certificates (GICs). Some savers looked to the real estate investment trust (REIT) market to replace the income their fixed income was providing, notes The Motley Fool. While some REITs, notably industrial ones, and those involved with warehousing and data centres did well, “retail and hospitality REITs… had lost 80 per cent of their value at the market’s bottom.” The Motley Fool article wonders how investments in commercial office and retail space will fare in a world where most people are working from home.

Now that 2020 is behind us, there are signs of better days ahead.

The markets in Canada and around the world are now recovering due to late-year news that effective vaccines are nearly ready for distribution.

Dave Randall of Reuters, writing in the Chronicle-Herald, notes that November was “a record-breaking month as the prospect of a vaccine-driven economic recovery next year and further central bank stimulus measures eclipsed immediate concerns about the spiking coronavirus pandemic.”

Let’s review all this. The pandemic hit us hard, sending markets down, throwing people out of work, shrinking the economy. Central banks had to cut interest rates to reduce borrowing costs. That’s great for borrowing but less great for saving. Those looking to replace the interest they weren’t getting had to navigate a market that dropped by 40-50 per cent in the late winter and is recovering, and they had to face the reality that some sectors were doing far better than others.

2021, however, looks like a better year. Market optimism is returning, and once the vaccines start to get distributed around the country, we will (hopefully) start to see a return to more normal times, with no lockdowns and business restrictions.

The point of retirement saving is putting money away for the future, which may be quite soon or decades away. If you’re worried about saving on your own for retirement during these volatile days, you might consider teaming up with the Saskatchewan Pension Plan. With SPP, experts run the money at an extremely low cost. We all have enough to worry about these days – let SPP take the worry of pandemic-era retirement saving off of your plate!

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