Is there a way lower income earners can save?

You hear it all the time – “save? How can I possibly save? I’ve got a family to feed.”

Yet without at least some retirement savings, most of us will be largely dependent on the rather modest benefits provided by the Canada Pension Plan (CPP) and Old Age Security (OAS).

So is there anything folks with less income can do to put even a bit away for their future? Save with SPP took a look around to see.

Writing for Yahoo! Finance, Gail Johnson observes that “nearly half of Canadians – 48 per cent – say that lack of income is their biggest obstacle when it comes to saving and investing,” citing an Ipsos Reid poll.

But, she reports, financial experts say lower-income earners can and do save and invest.

“Low income is no excuse for not saving,” Calgary certified financial planner Kevin MacLeod of MoneyAdvisor.ca tells Yahoo! Finance. “I’ve met many individuals and families over the years that have one income, or two low incomes and they saved a large portion of their income; I have met others that have enormous income and nothing left at the end of every month and they live paycheque to paycheque. It’s simply a matter of choice on how you want to live.”

His advice, the article continues, is to make saving automatic.

“Have savings automatically deducted from your paycheque or your bank account on the day you get paid,” MacLeod states in the article.

Other advice provided by the article – sign up for any retirement savings program your workplace offers, as well as “setting a goal with a realistic timeline” to allow yourself to work towards a “concrete dollar amount” of savings.

The Clever Girl Finance blog adds a few more ideas to the mix.

Having a budget, the blog notes, is an important first step.

“It’s a key part of how to save money fast on a low income. And this is simply because having a budget opens your eyes to where your money is going and helps you form a financial plan,” the blog explains.

Getting debt under control is another way to boost savings, the blog tells us.

“Make it a priority to tackle your debt. It will take commitment to erase your debts, but it can lead to an easier life and peace of mind,” the blog continues. “You’ll be able to put the money you were using for credit cards and other debt repayments like student loans, towards your savings.”

Other ideas in the blog include considering moving somewhere cheaper, renting out rooms, and being “more mindful” of what you spend on food.

Let’s wrap up with some thoughts from MoneySense.

Building an emergency fund “for worst-case scenarios such as job loss, unexpected car or home repairs (not renovations), or medical, dental and vet bills” can prevent you from going into debt when these crises arise, the article observes.

Another key concept is frugal living, the article continues.

“Ask yourself, `What does fun truly mean for me?’ It may seem obvious, but when did you last reflect on what brings you genuine joy? Stop wasting money on activities that no longer bring you joy,” MoneySense suggests.

Put together a list of all the things you do like to do, and focus on ones that are cheap or free, or affordable. The rest can be filed under a “splurge” heading and done less often than the others, the article suggests.

All great ideas.

It’s never too late to start saving for retirement, but the earlier you do, the better. If you have a workplace retirement program, be sure to sign up and maximize your contributions. If you don’t have such an option, take a look at the Saskatchewan Pension Plan, open to any Canadian with registered retirement savings plan (RRSP) room.

With SPP, you’re in charge of how much you’ll contribute. You can start small and ramp up over time. SPP will do the hard part – investing your retirement savings dollars in a professionally managed, low-cost pooled fund. Options when you retire include the flexible Variable Benefit, or the security of a monthly annuity payment for life.

Check out SPP today!

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