February Financial Fitness Challenge�Readers Share Recession Lessons

Credit union members�our readers�have a leg up on most consumers when it comes to weathering the 'great recession.' Credit union members have access to top-notch products and services, at fair prices, accompanied by exceptional customer service. And, members benefit because credit unions offer money management information and guidance to help members make the most of their money.

So it follows that credit union members would have good advice to offer about how to cope during tough times. We asked you for examples in 'What's Your Story' and you delivered. Here are a few of your replies.

Financial fast

Pat, from Virginia, writes, "We started a financial fast in January 2010." That's apt, as many of us got into trouble in the first place with a financial binge that lasted for years.

The term reminds me of a friend who will tighten her budget and go on what she calls a "savings binge." Whichever term you use, shutting down frivolous spending, even for a month or two, can help you beef up savings and squash debts.

Pat continues, "We also planned out home projects by doing some work ourselves and hiring others for work we couldn't do. After the month is over, we will see where we need to tweak our future plan."

It's a smart move, too, to re-evaluate as Pat is doing once you get your feet back under you financially. A spending plan is a dynamic tool, not etched in stone.

Round 'em up

Heather writes from Delaware, "Every time I make a purchase I round up to the nearest dollar and record it in my check book. As a result, my husband and I were able to save over $300 in the first three months!"

This is a variation on the daily spare change collection that some families use to build savings. Heather's delight in her success will keep her at it. One of the best reader savings ideas we ever got came from Steve in Oklahoma City. He and his wife use a tactic they call "sweeping the gold dust out of the corners" to build a sizable annual vacation fund.

You can use and adapt these ideas to reach your own savings goals. Heather says, "The cents really do add up, and it is an easy way to save without even thinking about it."

Gold standard

Anna, in California, offers a unique idea and a fresh way to think about money at the same time. She notes, "I had been spending mindlessly and I wanted to get a handle on it. I decided to slow it down; I started writing down what I was spending." Spending without thinking, she discovered that "money had no real value" for her. Her solution was ingenious.

"I got 200 President Zachary Taylor gold dollars. I circulated them during Christmas and told people not to hoard them." Anna made an interesting discovery as a result: "My money was worth something to me. It helps me really honor my money. I think twice about what I want to spend it on. And it is fun to see peoples' eyes light up [when I pay in gold coins]."

Financial Fitness Challenge

The people at your credit union bring you this Web site and other tools to help you optimize your financial resources. In 2010, the Financial Fitness Challenge will continue to look at ways you can make better financial habits no matter what condition the economy is in.

And each month we'll randomly select five winners to receive $50 Visa gift cards; we'll choose each month's winners only from that month's entries, so enter often. Remember to register for the Financial Fitness Challenge.

ST
Susan Tiffany, CCUFC
[email protected]

Published February 9, 2010