Saving is easy. It's not spending that's hard.

Saving is easy if you take advantage of automatic deductions.

I started saving $50 a month through my credit union's automatic savings program when I was 19, and I've (almost) never stopped using these programs. Right now,

• I have 10% of my gross income redirected to my employee savings program. My employer matches 3%. Part of that goes to my RRSP every year.
• I contribute to my employer's pension plan, also an automatic deduction, and it will significantly increase my pension.
• I have a fixed amount taken from my account by ING direct every 2 weeks on payday.

Because this all happens without my doing anything, I've managed to build a good nest egg. Not huge, but it'll see me through retirement.

The spending part I can't get under control.

Some people say paying off debt is a form of savings. Not for me it isn't. I need real income when I retire. No debt is not enough.

I've had my banker go through the numbers, and he confirms that at my current rate, I'll have sufficient income if I have no debt. And I'm nowhere near having no debt.

So, this year, I gave myself as a goal to reduce my debt. I haven't worked out my plan yet, but I have worked out this: I'm starting by not adding to my debt.

No credit card use for me this year and, when I have to (like when I'm buying something online), I'll repay it instantly.

So far, I'm finding this incredibly painful, and it's only been one week!

Hanging out with my 25-year old goddaughter during Xmas made me miss my youthful insouciance. She spends like I do (we're both particularly fond of shoes). But she's different than me: she has no debt!

She had debt problems when she got her first card, and she's determined not to go there again. I had debt problems when I got my first card, and still do.

I think she's better off than me. Getting out of the debt habit at her age is a huge accomplishment, one that I hope to accomplish this year.