September 10, 2003
The Sun-Sentinel
by Humberto Cruz

Jill Cubberley of Yucaipa, Calif., saves money by never using hot water, only warm, when needed in her washing machine.

"Except for towels and sheets, I always use cold wash/cold rinse," she said. She also cuts the wash cycle short, from the normal 18 minutes to no more than 12. "These small changes over time save on your hot water needs and utility bills," she said.

Cubberley's energy-conserving habits also netted her a $50 face-value Series EE U.S. savings bond (which is worth $25 at the time it is issued). The savings bond is a prize given to people whose savings tips are chosen for publication in American Saver, a quarterly newsletter from the not-for-profit Consumer Federation of America.

Here is another winning tip, from Kathy Lusher, of Slidell, La.: "Every time I get any type of raise I put all or part of it toward a savings bond. It really builds up fast."

And one from Dana Finch, of Austell, Ga.: "I purchase the Sunday newspaper and get the money back by clipping coupons from it. Don't like to clip coupons? Then have your son or daughter clip them for you and give them half the savings. Not only does this allow them to see how you save, it allows them to make money to save as well."

If you think these little saving ideas don't amount to much, take it from the people from the Consumer Federation and from me: An extra dollar here and quarter there, over time, can add up to substantial savings.

And this is the point I want to emphasize in today's column -- you don't have to make a lot of money to be able to save some, and build your nest egg over time.

"The research on this topic is very clear that there are `savers' and there are `spenders' in every income group," said Stephen Brobeck, executive director of the Consumer Federation. "A large majority of even low-income families can save."

But saving "does involve some small sacrifices and /or more careful attention to one's spending," Brobeck said. "Almost anyone who makes up a list of their weekly expenditures can find something they can do without."

Eileen Ciance of Wilton, N.Y., another savings bond winner, found she could do without calling in an order for pizza every Friday night. She saves $8 a week, or $416 a year, by making her own pizza with bread dough, bottled pizza sauce and her favorite toppings.

What if you don't make pizza or are having trouble finding where to cut back? Then automate the process as much as possible, financial planners recommend.

"The easiest way to save is to do so automatically, either at work or through home ownership," Brobeck said.

At work, you can have a portion of your paycheck automatically deposited into an employer-sponsored retirement account. "If you don't see it, you don't miss it," Brobeck said of the money you contribute. I've seen it happen: Somehow, your expenditures adjust to match your take-home pay.

Here is another way to save. If you own a home, every time you make the monthly mortgage payment you are building up equity in your home.

"Most people don't understand their mortgage payment is a savings method," Brobeck said. "For many moderate- and low-income people, their largest asset is the equity in their homes."

These savings ideas for low- and moderate-income families are an integral part of "American Saves," a grassroots federation project supported by the Ford Foundation.

The project began in Cleveland in 2001 and has since expanded to other areas, including Kansas City, Mo., Indianapolis, Charlotte, N.C. and Gadsden County in Florida. Groups in northern Wisconsin, Milwaukee, Philadelphia, Phoenix and Seattle are also organizing campaigns.

"The goal of the campaign is to convince all Americans that they can build wealth [at least a six-figure nest egg] and to assist them in doing so," Brobeck said. To become a recognized "American Saver" see more details at www.americasaves.org. All you have to do is agree to work toward a savings goal of as little as $10 a month.

As part of the campaign, the federation publishes the quarterly American Saver newsletter. People from all areas can contribute tips and try to win the $50 U.S. savings bond.

If you think you have a winning idea, send it to American Saver, c/o Consumer Federation of America Foundation, P.O. Box 12099, Washington, DC 20005-0999, or e-mail it to information@americasaves.org.