Sandra Pierce came to the show to talk about saving. We all know about it, we all know it's just as good for us as eating our vegetables and getting exercise. We also know we should make it a priority, yet most of us are dismal savers!

Watch this segment in Episode 120.

We weren't always this way. Back in the 1980s we were really good at saving. Most of us put away 20% (1/5 of our disposable income), however by the end of 2008, most Canadians only managed to save less than 2%.

Why We Don't Save: We are just not hard-wired to save! Most of us are passive savers, relying on our homes and stock portfolios to increase in value. Studies have shown that when we see something we want to buy, the pleasure centre in our brain fires up. And when we buy that item, we release a feel-good chemical called dopamine! So, the shopping instinct is actually one of life's powerful forces!

Benefits of Saving: Eliminate your credit card debt! Studies show that people who save are happier and have more peace of mind than those who don't. Plus, if you have a nest egg you have the power to walk away from a bad job or a bad relationship.

Saving Goals: Work towards building an emergency fund. If you don't have an emergency fund set aside you risk getting stuck in the cycle of debt, debt and more debt.

Tips For Saving

1. Go big or go home - Start with big changes; not small ones. For example, if you're a person who uses credit and debit cards all of the time, leave them at home for a month and use cash.
2. Don't do it alone - This is the most important step. Form a money group and share experiences as you take control of your finances. Competition can motivate you to save.
   
3. Visualize - If you visualize your saving goals, the more likely you are to achieve them. The more emotional attachment you can have to your long-term goals, the easier it will be to say no to short-term thrills such as a new pair of shoes.
   
4. Pay yourself first - Determine how much you can afford to put away, and then determine how much you want to save annually. For example, have your employer deduct an amount from every paycheck towards your RRSP or Canada Savings bonds.