We all want to be great managers of our money. And the road to great money management must be paved with good intentions. But the “shiny objects” of life distract us from running a tight fiscal ship, so we mostly see a lot more money going out than staying in. Debts mount and the piggy bank remains defiantly empty.

So what are the experts doing that we aren’t? Save with SPP scoured the web to try and find out.

From the Real Simple blog, money management tips include paying bills on time – even tiny bills – and using cheaper, lower-fee online banks.

Time magazine stresses the importance of patience and discipline. “Don’t make major money-related decisions in a hurry or at a time of great emotional stress, such as when the stock markets tank or soon after a loved one has died,” Time advises. Take time to breathe, the magazine suggests.

At the Titan’s Lair blogspot a key bit of advice is “knowing where your money goes.” With a budget, you know where every dollar is going, and that knowledge gives you the power to make savings, the blog advises. Budgeting, the blog adds, helps you stay out of debt and the related pitfalls of high fees and compound interest. As well, it will leave room for retirement saving. “Saving now and managing your money correctly will definitely benefit you in the long run,” the blog advises.

Noted financial guru Suze Orman, quoted on the Mint.com blog, says a key tactic is to “take a hard look” at finances, and to avoid making excuses for what’s not going right. It is important, she notes, to separate what people want from what they need. That will “cut the fat” out of their financial problems, the article states.

So to recap all this advice – don’t let unpaid bills pile up. Pay attention to fees. Take your time with major money decisions. Be aware of where every nickel of your money is going, and cut the fat where you can. Be realistic and separate needs from wants.

Following this more self-disciplined approach will help you tackle any debt you may be carrying, and will free up money for retirement savings. And as we all know, a great way to build those savings is by signing up for the Saskatchewan Pension Plan. Your money will grow, the fees are low, the track record is impressive, and there are many ways to turn your savings into a lifetime income stream.

Written by Martin Biefer

Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. After a 35-year career as a reporter, editor and pension communicator, Martin is enjoying life as a freelance writer. He’s a mediocre golfer, hopeful darts player and beginner line dancer who enjoys classic rock and sports, especially football. He and his wife Laura live with their Sheltie, Duncan, and their cat, Toobins. You can follow him on Twitter – his handle is @AveryKerr22

One of the key pieces of advice financial writers offer readers is to fund and maintain an emergency fund to help you survive job loss, unexpected house repairs and other major expenses you haven’t budgeted for.

The Simple Dollar’s Trent Hamm lists 20 reasons why you need an emergency fund. Some situations that I hadn’t thought of until I read this blog are:

• Your identity is stolen, locking you out of your credit cards and primary bank accounts.
• You have a domestic crisis and have to move out of your home.
• A relative or friend passes away suddenly in a different part of the country.
• You get your dream job but it means a steep drop in pay.

Sean Cooper’s recent blog The Joys of Home Ownership: Replacing My Dishwasher illustrates precisely the kind of situation where an emergency fund is so valuable. Cooper rents the first floor of his house and lives in the basement apartment. A relatively innocuous email from his tenants in December notified him that the dishwasher was leaking. This problem snowballed into $2,000 of expenses for plumbing, other home repairs and a new dishwasher. Luckily he had cash on hand in his emergency account.

Debra Pangetsu on MyMoneyCoach offers 7 Steps to Saving Money in an Emergency Fund. For example, she suggests:

•  Breaking your savings goal into smaller steps,
• Open a separate account,
• Automating deposits into your emergency account, and
• Using the emergency savings only in an emergency.

How much do you need to save? Two cents blogger Kristin Wong says that experts don’t always agree. Money guru Dave Ramsey believes you should save for three to six months of living expenses in a liquid high yield savings account. Andrew, founder of Living Rich Cheaply agrees you should probably keep some money in a safe place, such as a savings account but he thinks six months of living expenses is a bit excessive. He would prefer to have more of his money invested in a mix of stocks and bonds. Nevertheless Suze Orman recommends eight months of basic costs because it usually takes that long to find another job if you are unemployed.

What’s an emergency? Ramsey says there are three questions to ask before you use your emergency fund. Is it unexpected? Is it necessary? Is it urgent? Money Under 30’s Choncé Maddox also says you should consider whether there is a better way to pay for the expenses and if the benefit of using the money outweighs the cost.

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Written by Sheryl Smolkin
	Sheryl Smolkin LLB., LLM is a retired pension lawyer and President of Sheryl Smolkin & Associates Ltd. For over a decade, she has enjoyed a successful encore career as a freelance writer specializing in retirement, employee benefits and workplace issues. Sheryl and her husband Joel are empty-nesters, residing in Toronto with their cockapoo Rufus.