2008 Winners of $50 Visa gift cards

June

Shasta Bruce
Austin, Texas
Member, Members Choice of Central Texas Federal Credit Union

My idea: If you usually use your check card to purchase everyday goods-gas, groceries, dining out-use a credit card instead. Log entries in your checking account like you would normally. Then when your statement is ready, send in the complete payment. You won't accrue any interest on your credit card if you pay the entire balance, and you'll continue to accrue more interest on your cash by having more funds in the credit union.

Donnell Hayes Jr.
Watonga, Okla.
Member, Oklahoma Employees Credit Union

The key for someone to start saving money requires two simple techniques: 1.) discipline, and 2.) more discipline.

Start by saving at least 5% of each paycheck. As your salary increases, don't increase your spending but increase your investing. I started investing 7% of my pay four years ago into a Thrift Savings Plan. Two years ago I began investing 10% of my pay and in less than five years my Thrift Savings Plan has over $20,000.00 accumulated. And the beauty of it all is that I don't miss the money.

Just remember this quote that an old army friend told me years ago. "Spend less than what you make, invest the difference, and watch the magical power of compound interest."

Patricia A. Holland
Sand Springs, Okla.
Member, Oklahoma Employees Credit Union

With budgets tight, and fashion always changing, I have found a way to make things work and be within my budget. I will select one or two good basic pieces of clothing, preferably on sale, for example a good fitting simple dress or suit or something like a good pair of attractive shoes. Then I take the item with me to resale, discount, or even thrift stores, for "change up" articles that change the look of the new item. Spending $2 to $6 for a blouse to go with a suit or a jumper allows for more than one blouse; jewelry for $.50 to $4 means several changes of the "look" for much less than buying accessories at a department store. I get to be fashionably me without spending a large hunk of my budget.

Charles M. Poskas
Florence, Ky.
Member, Cintel Federal Credit Union

I am paid an hourly rate. Every dime is allocated for spending on bills, savings, or our Christmas Club account. There are occasions where I am able to earn overtime or receive compensation for driving my car for business trips. This "bonus" money goes into a special account. My household uses this money for fun weekend trips. I have a friend that used this method to buy a boat. This allows for our monthly budget to be used for "grownup" things like planning for home repairs and living. Anything extra from overtime is a bonus and is used as a reward to the entire family.

Judy Tomer
Ann Arbor, Mich.
Member, MidWest Financial Credit Union

I keep a binder in the kitchen that contains warrantees for all of the major and small appliances purchased, sales receipts, and related instruction booklets. That way things can be easily found; there's no wondering where something may have been filed.

May

Edward Blyden
Owings Mills, Md.
Member, State Employees Credit Union

My wife and I use SECU certificates of deposit to boost our savings. We open up one 12-month CD every month, and we have done this for two years now. So now, we have a CD maturing each month for the next year. In this downturn in the economy, this process helps us safeguard against a job loss but we can earn a higher rate than having the money in our savings account. This way, we always have access to a certain amount of money. In good times, we renew the CDs for another year and keep the streak going.

Alida Drewes
Houston, Texas
Member, Premier America Credit Union

It is a good idea to reward yourself—within your budget. I try to buy one big item every year. This does not affect my budget and gives me something to plan and look forward to getting.

Rob Fox
Saint Paul, Minn.
Member, Postal Credit Union

Instead of clipping coupons and filling out rebate forms I spend my time figuring out how I can get better prices on things like home, auto and health insurance, or better interest rates on my auto and home loans. Sure, these areas are usually rather complicated and we'd all like to be able to just deal with them once and forget about them, but with a little effort one can save a lot of money by doing some comparison shopping every year or so.

For example, I just took an in-depth look at my home and auto insurance policies, and after asking five companies to give me their best rates I switched insurance companies and I am now saving over $1,200.00 per year! That's an extra $100 per month that I can use to combat the rising price of gas, food, and other necessities. As an added bonus to the money I am saving, I am also covered for much more liability that I ever was through the old company! Yes, I had to read some fine print and spend about four hours calling agents, giving them my information and comparing policies, but it is more rewarding to save $100 per month than $.50 on a loaf of bread.

Karen Gibbs
Canyon Lake, Calif.
Member, FAA First Credit Union

Each time you use a credit card for a purchase, write a check to the credit card company and put it in a envelope until the statement arrives. Deduct the check from your balance on the day you write it, even though the statement may not come for a few weeks. When the statement arrives, you are able to pay it in full with the checks written throughout the month. It really makes you stop and think if the purchase is necessary and helps to cut out impulse purchases.

Charla McMillan
Tahlequah, Okla.
Member, American Airlines Federal Credit Union

I save a lot of money by setting aside one day a week to run all of my errands instead of running a few every day. I group errands geographically and map out a course to make a loop around town and backtrack as little as possible. With my list of groceries and other errands made ahead of time, placed in order so I will not drive back and forth, my car already in town after work, and having planned to make an evening of it, I save gas, money, time, and energy.

I have discovered that Monday evening is the least busy time of the week when traffic is the lightest and fewer people are in the stores. I am going to the gas station less often, spending more quality time with my family in the evenings, have more energy to enjoy it, and eating at home more during the rest of the week instead of grabbing something on the run.

April

Steve Barrymore
Oklahoma City, Okla.
Member, Oklahoma Employees Credit Union

Every year we start saving for our next vacation as soon as we return from one. Each month we have a fixed amount transferred out of checking into a money market "vacation account" that receives dividends. My wife and I have an agreement that this account is only to be used for vacation savings.

In addition to our monthly transfer we also agree to deposit any money we receive from Christmas, birthdays, rebate checks, and so on into this account. We keep a couple of little piggy banks that say "vacation savings" on the side. Periodically when we are carrying a little extra cash we will put a $5, $10, or $20 bill into these banks; every couple of months we clean out those banks and deposit the money into our vacation account. We also place all extra change into a jar and every few months deposit it into our vacation account.

To get an even higher yield, as savings build in our vacation account we transfer money out and buy six-month certificates. Often we will have CDs maturing almost every month that we redeposit into our money market vacation account as the date for vacation draws nearer.

The result is that we are able to save a lot more money that otherwise would just be squandered on incidental expenses. We call it "sweeping the gold dust out of the corners." We look forward to vacation every year and, since it is completely paid for before we ever start, it is even more enjoyable.

Bonnie Garrett
Oklahoma City, Okla.
Member, Oklahoma Employees Credit Union

Ask your credit union if you are eligible for a small line of credit to be tied to your checking account. If you ever accidentally overspend your checking account it will pull the balance from your line of credit. Instead of paying hefty non-sufficient fund fees, you'll pay a small amount of interest—and you won't have to worry about your savings being depleted by automatic overdraft transfers.

Beth Kayser
Bakersfield, Calif.
Member, Energy One Federal Credit Union

When we get unexpected money form a bonus or tax return, we pay down debt. Doesn't always have the bling that we look for, but it sure does help through the year when those monthly credit card bills don't come in.

Jo Lindstrom
Charlotte, N.C.
Member, Educational Community Credit Union, Kalamazoo, Mich.

We support our local Goodwill Stores by donating to and purchasing most of our clothing and household items from them. The savings is outstanding, and although it takes quite a bit of time and effort to find things that fit, or matching linens in the right colors, it's worth the savings we achieve of well over an estimated $6,000 annually for a household of four.

We maintain our clothes in good repair, so that when they no longer fit or are wanted/needed, we turn around and sell them at our local consignment store and receive 60% of the selling price if they sell. If they do not sell, we donate them back to Goodwill or the shelter for the homeless here in Charlotte. This, too, takes effort and time to put items back in fine repair (buttons, iron, and so on), but again, well worth the benefit.

Diane Marshall
Tavernier, Fla.
Member, American Airlines Credit Union

Save money—and the earth—by conserving energy and water. Start by contacting your energy utility to perform a free [or available for a low cost in some areas] energy audit. If your utility doesn't offer one, do your own. State and federal environmental offices provide free information on what to look for such as replacing your incandescent light bulbs with the lower-energy compact fluorescent bulbs, turning off the water when you brush your teeth, and keeping your air conditioner and heater filter clean. Follow the recommendations and watch your utility bills go down. Put the money you save each month into your credit union savings account and watch your balance go up.

March

Carol Bayer
Coral Springs, Fla.
Member, American Airlines Credit Union

When my children were young and I had the expense of diapers, wipes, formula and the like, I celebrated their becoming potty trained or moving to solid foods by taking the money allocated to those expenses and increasing my payroll deduction to my credit union savings account by the amount I had been spending on the diapers and formula. It was a painless was to increase my savings.

Janet Homann
Columbus, Ind.
Member, Centra Credit Union

Avoid soft drinks. Choose water instead. This may not only save a family hundreds of dollars a year, but will be so much healthier—potentially saving future medical expenses. And it will keep disposable containers out of our landfills, which also saves everyone by limiting overuse of our landfills.

Cathy McKaige
Flower Mound, Texas
Member, Metroplex Federal Credit Union

For a real free benefit in your long term return on your retirement savings, always contribute the maximum amount to your 401(k) that is matched by your employer. It is amazing to watch your balances grow with the matching dollars and it's like getting an additional holiday bonus.

Dana Ostrenga
Baltimore, Md.
Member, NASA Federal Credit Union

Create a chart for each incoming paycheck and assign which bills that paycheck will go to and an amount designated to go to a savings. Then also project an amount that you would spend for gas, groceries, and entertainment. I charge those expenses to a credit card I insist on paying off every month from my budget, then I also earn the miles for flights to help pay to see family.

Sheila Yancey-Bicknell
North Richland Hills, Texas
Member, American Airlines Federal Credit Union

I get an investment check each month and immediately put it in my credit union savings account. Until I need to spend it for bills and other expenses, I leave it to draw the most interest possible. Then I can transfer only what I need into my checking account to make my payments.

February

Cyndee Bruder
West Bend, Wis.
Member, Glacier Hills Credit Union

Create a monthly budget of income and expenses, then track actual expenses and compare them to the budgeted expense. This is really simple to do in an excel spreadsheet. It can be a real eye opener to show where you are actually spending your money.

If expenses are greater then income, you pretty much have two choices: Reduce expenses or increase income.

Aaron Davis
Tulsa, Okla.
Member, American Airlines Employee Federal Credit Union

Build a home inventory list complete with pictures, cost basis, and resale values. You can use Quicken home inventory or even an MS Word document.

John O'Connor
Westfield, Mass.
Member, MassMutual Federal Credit Union

If you have debt problems you need to change your way of thinking. Are you willing to do the things necessary to help yourself get out of that hole you're in? I'm talking about getting tough with yourself and saying enough is enough. Little things like make your own coffee in the morning, bring in your lunch, [use] basic cable TV, and so on.

Whenever you have change, put it in a jar; every month when that credit card bill comes in put that change towards the bill. It took you some time to get where you are and it may take some time to get out of it—but it can happen if you want it to.

Jamie Reaser
Sinking Spring, Pa.
Member, Riverfront Federal Credit Union

When we pay off a recurring bill such as a car loan, we continue to deduct the same amount of money from our budget each month. We have set ourselves up for payroll deduction in that amount to go into share accounts to save for a new vehicle or pay for unexpected car repairs and insurance.

Andrea Smolen
Laurel, Md.
Member, NASA Credit Union

When I was saving for my first house I needed to halt my excess spending. So I made lists for each shopping trip (i.e., grocery, mall, or Target), but I always went with only enough time to get what was on my list. I would shop on my way to work or right before the store was closing; being hurried, I only got what was on my list and I dealt more in cash, keeping my purchases in line. I still shop only with a list and it keeps my spending in check.

January

Tonya Basnight
Belleville, Mich.
Member, Midwest Financial Credit Union

When you receive your paycheck, whether direct deposited or otherwise, take out the cash you need for things such as groceries, gas, and miscellaneous, per your budget. This cash should be budgeted to last until your next paycheck. When you are out of cash, you are out of cash. You should not go into your credit union account to withdraw any more funds. This teaches you two things:
1) How much you are spending on things outside of bills; and
2) Whether you are overspending.
[Others submitted a variation of this idea; Tonya's entry was the first.]

Reba Brommer
Winona, Minn.
Member, Northern States Employees Credit Union

Log on to your local grocery store's Web site. Some stores offer online only coupons. Print out the weekly online coupons before grocery shopping each week. I saved $71.00 at Festival Foods in 2007 by doing this.

Donna Fitzgerald
West Concord, Minn.
Member, Federated Employees Credit Union

I established credit union savings accounts when our children were born. I have automatic payroll deductions taken out each paycheck and placed in a special account earmarked for each child.

This account comes in very handy when there's a special event or opportunity. For example, we paid for the cost of a school band trip to Chicago out of this account. Another situation, the senior year of high school is very expensive: senior pictures, cap and gown, graduation party--all those important parts. I didn't have to be concerned about where is the money coming from or how will I rearrange the budget to cover this cost.

Margaret M. Isler
Columbia, Md.
Member, Library of Congress Federal Credit Union

Use electronic bill pay. This saves money in stamps, ensures that regular payments, like mortgage, rent, or insurance are always on time (which will improve your credit score and credit rating), and it provides an easily accessible record of payments.

Kim Stewart
Arlington, Texas
Member, American Airlines Federal Credit Union

Most people think about writing a will to protect their financial assets when they pass away but they do not think about getting a power of attorney (POA) and medical power of attorney to help someone take care of their finances when/if they become incapacitated.

No one can pay bills for them without the POA and their credit can be ruined. Another group who needs these items is the children of the baby boomer generation, because the responsibility to take care of their parents will be their job. You do not want to go through the guardianship process if you can avoid it.

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