Savings Race Financial Education Packet - Wright-Patt Credit Union

hours before making a purchase will help you avoid shopping hangover. Remember,getting slapped with the bill later is a real buzz kill.4. Leave the credit cards at homeSpending surveys have found that people spend between 12 percent and 50 percent morewhen using a credit card versus cash. To see how much money you'll save by ditching thecards, Ruby Payne, an educator, researcher and author of "A Framework forUnderstanding Poverty," among other titles, recommends leaving your credit card athome. Then every time you don't make a purchase that you normally would have used acredit card for, note the amount. At the end of the month, tally your "potential" purchasesto see how much you've saved; then pat yourself on the back for your virtuousness andshift that money to emergency savings.5. Plan ahead, budget for funAll work and no play is no way for anyone to live, so be realistic when planning yourspending. To make your savings strategy work, you'll need to budget for fun. This willhelp keep you from going overboard when the fun-itch strikes.Setting aside 10 percent of your discretionary income for fun is Epperson's rule. That wayyou know how much money you have to play with. Plan ahead to stretch your dollarsbecause, she warns, "When the money's not there, you don't have the fun."6. Make things interest-ingDraw down no-interest checking accounts and move the money into high-interestsavings. If you can't figure out where to cut back your expenses, this is a good place tolook for extra money, says Epperson. "Most Americans keep too much money inchecking accounts that earn zero percent interest. That money's just wasting time."7. Learn to save short-term splurgesOne trick that Bedda D'Angelo, a Certified Financial Planner out of Raleigh, N.C.,recommends, is deferring the latte splurge until you've saved up enough for a massage.This way you're retraining yourself away from giving into immediate gratification andinto saving for your real desires. "It's still pleasure," she says, "but now you're saving forlarger things."8. Reward yourselfAllow yourself little extra perks for reaching savings goals. Taking a vacation withoutplastic is one reward-worthy goal, D'Angelo suggests. "Pretty soon you're going to say 'Ireally like it. I feel so secure with this buffer. I really like having money in the bank,'" shesays.Rewards sweeten the medicine, retraining you to take the smart but tough steps that willensure your financial future. And the cost of the perks is outweighed by new moneysavinghabits.9. Remove the temptation