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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