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It’s often a one-sided affair; a never-ending battle between current you and future you. Future you whispers shakily about sticking to a budget and planning for retirement, while current you, oblivious, screams “Sale at Holt Renfrew!” We get it. Managing your money isn’t half as fun as spending it. That’s especially true when you don’t have a family to worry about.

“For a married person, there are two of them,” explains Neerajh Mehta, a certified financial planner working in Toronto, “so they consult each other and make plans together. There are a lot of ideas bounced off one another; they’ll be more balanced. And the single person, who has no idea where their life is going, they’ll just spend everything.” But the cheap thrill of laissez-fair spending is, in time, inevitably overpowered by the debt and the ill-preparedness it fosters. Want to turn your finances around before it’s too late? Put away the pocketbook and listen up.

It begins with self-assessment. “The starting point is to prepare a statement of assets & liabilities – what you own and what you owe – and a statement of income and expenses – what money comes in and what goes out,” says Lynne Triffon, f inancial consultant and VP at T.E. Wealth in Vancouver. “How big is your debt in relation to your assets? Do your expenses exceed your income?”

From there, you can weed out the unnecessary expenses. And you’ve really got to scrutinize here, because even the little luxuries can pack a big bite if you indulge on a regular basis. “Spending $4 a day on a café latte is $1,460 per year,” Triffon illustrates. “Drink free office coffee and save the $1,460 toward a dream vacation or a new car.” Of course, no one’s suggesting you go full-on miser. Just identify your goals and create the budget you need to achieve them.

The easiest way to avoid the perils of frivolous spending, our experts agree, is to get into the routine of saving before spending, making immediate deposits into a tax-free savings account (avoid interest-free GICs) upon receiving your paycheck. Moreover, start feeding those RRSPs; if you want to live comfortably in your twilight years and (dare to dream) retire early, you have to evaluate how much money you’ll need per month to continue your current lifestyle and start saving now.

Regarding more immediate concerns, it’s imperative to keep a level head, particularly with the big stuff. Too often, when we spot the perfect house or car, we get excited and start convincing ourselves to buy instead of fully evaluating the impact of the purchase on our way of life, now and in the future. With a house in particular, our experts stress things like strata fees, property taxes and utilities, as well as rising interest rates down the road, must all be taken into account on top of mortgage and down payment.

As a guideline, per the Canadian Bankers’ Association, you shouldn’t spend more than 32% of gross monthly income on housing costs, and no more than 40% on all debts (including housing and car payments) combined.

“We need to balance our wants and needs,” cautions Triffon, “and not dig ourselves into a pit of debt.” To that end, be wary of credit cards. Pay your bills on time to keep your rating up and don’t overspend, because those interest rates will bury you. If you’re already struggling with debt, look into reducing the burden by restructuring. “A lot of people have ten credit cards and they have borrowed from one bank and another bank,” explains Mehta. “Restructuring is basically reducing the number of lenders, so you bring the debt into one place.” As a result, you’re “reducing your expenses and paying less interest by borrowing from the institution that is giving you the best deal.”

When it comes to investing, it starts with research. Use fun, accessible sites like GoldenGirlFinance.ca to learn everything from the basics to the finer points, and consult a professional advisor. Once again, identifying your goals is key: Decide what you want to get, your timeline for getting it and how much you can afford to risk.

In general, Triffon advises, “Never put all your money into one stock, or even a handful. Using mutual funds will give you far greater diversification. Using individual stocks is also fine, but you need significant investment funds before you can get proper diversification.” A good, safe place to start is with your company savings plan, which allows workers to invest communally alongside their employer.

Finally, while life insurance is best left to the wedded, we’re all susceptible to life’s pitfalls. As a result, disability insurance is a wise investment, as is an emergency savings fund that can last you at least three to six months if you find yourself suddenly out of work.

Above all, it’s about responsibility. There are no tricks or templates; you can (and should) apply for tax credits or loans and consult a professional, but in the end, the heavy lifting is all yours. Evaluate your finances, develop a plan and stick to it. Oh, and keep an ear out for future you; she knows what she’s talking about.

BY MATTHEW CURRIE / PUBLISHED IN THE MAY 2011 ISSUE