Spring 2013

This article is the first in a two part series about getting out of debt (part one) and staying out of debt (part two).

Until a few months ago, I used to think I would be in debt forever. I am only 29 years old, but with my student loan, car loan, mortgage and credit cards, I’ve acquired a significant amount of debt. As a PEBA staff member, I’ve learned enough about retirement planning to know I don’t want the burden of retiring with unmanageable debt. So, I resolved to start tackling my debts. To achieve my goal, I had to answer the following five questions.

1. How much money am I spending monthly?

In the past, I’ve created a budget but because I didn’t know how much money I needed to cover my expenses I never stuck to it. This time, I tracked my spending for a month by keeping my receipts. Then I used

my receipts to calculate how much I spent on things like entertainment, gas, groceries, etc.

2. How can I spend less?

Once I knew where I was spending my money, I found three areas where I could reduce my spending. This was the most challenging part for me, but I vowed to stick to my budget. I allowed myself $50 a month for clothes shopping and resolved not to spend more than that. As a home owner, I chose to put-off any home renovations and focused on home maintenance. Whenever possible, I did the work myself instead of hiring a contractor. Another big change I made was choosing to cook instead of going out to eat. I found it helpful to create a weekly meal plan before going grocery shopping to ensure I had the necessary ingredients on hand. I found these savings tips and many more get-out-of-debt tricks on www.debtfreeforever.ca

3. Can I make more money?

I have a full-time job that pays reasonably well, but unfortunately it’s not enough.

So I got a part-time job at a coffee shop three nights a week. I’ll be the first to admit it’s not how I prefer to spend my evenings, but it’s what I need to do, if I’m serious about getting out of debt. I also sold some stuff like the elliptical machine that’s been collecting dust in my basement, the expensive patio furniture I can only sit on for four months of the year, and the china I never use.

Ways to rein in your debtSpring 2015

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MEPP Matters keeps over 23,000 members up-to-date on Plan news and benefits.

This newsletter provides general information about MEPP and its operation. It does not replace or supersede the legislation governing the Plan.

Email: mepp@peba.gov.sk.ca

Phone: Toll-free 1-877-506-6377

In Regina 306-787-2684

Fax: 306-787-0244

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REGINA SK S4P 4W3

Web: www.peba.gov.sk.ca

We got a makeoverMEPP launched a new website this February! Significant changes were made to align our website with the Government of Saskatchewan. The website was also designed to offer an improved user experience for those accessing the site via mobile devices. Because some pages have been relocated, you may need to update the bookmarks within your internet browser. If you have any questions or issues accessing the website, please notify us.

Check-out our new look at www.peba.gov.sk.ca/pensions/MEPP/home.html

New workshop - Your Pension. Your Future.We’ve listened to you and are excited to be offering a NEW half-day workshop aimed at MEPP members who are in their twenties or thirties - at no cost! By attending, you’ll be empowered to take ownership of your financial future and you’ll understand the importance of having a personal financial game plan. As well, you’ll recognize the value of your pension plan as part of your total compensation. Interested in attending an upcoming presentation? Visit the MEPP website for upcoming dates and to register for “Your Pension. Your Future.” If none are listed for your area, contact MEPP and we’ll let you know when a session is scheduled in your area.

Oopsy daisyThe last MEPP Matters had an article titled, “79% of Canadians expect to delay retirement,” which talked about transferring service from a former pension plan into MEPP. What the article didn’t explain, is the cost associated with transferring years of service.

To transfer service from a different plan, you must actually purchase the service in MEPP. The cost to purchase service is determined on an actuarial reserve basis. This means we calculate how much it costs in today’s dollars to purchase that period of service based on MEPP’s plan provisions. We apologize for any confusion the article may have caused. Please call us if you have questions about purchasing service.

4. Which debt should I tackle first?

The number crunchers of the world would insist I pay off the debt with the highest interest rate first, but that’s not what I did. To try building some momentum, I tackled the smallest debt first. It worked! After I paid off the first debt I was motivated to tackle the next debt.

5. What do I do if there’s an emergency?

Before I started paying off my debts, I saved my money until I had enough for a small emergency fund of about $1000. I have this money tucked away so

I can pay cash, instead of using credit, if something unexpected happens.

Even though I’m only four months into my get-out-of-debt resolution, I feel like I’ve made some lasting changes. It’s been challenging, but at the same time, I am much more aware of how my choices today affect my financial future. Thanks for joining me on my journey. I look forward to touching base with you in the fall when I’ll share my plans for staying out of debt.

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Member Consultation ResultsA report from the 2014 Member Consultations is now available on the MEPP website. On behalf of the MEPP Commission, we would like to thank all the members who participated.