Economizer not Economist

Luxury spenders thought to be immune to economic maelstroms are feeling the pinch. Both Neiman Marcus and Saks Fifth Avenue have been caught with their sales down, oh the embarrassment. Bernard Madoff, investor to the stars, has been arrested and charged with a $50 billion Ponzi scheme.

And the winner for best retail store in an economic downturn goes to Wal-Mart. The AFL-CIO won't like this, given their as yet unsuccessful efforts to unionize the most shopped chain store in America. Wal-Mart has just announced that they will be selling the Apple iPhone. How long will it be before the A-list starts showing up for bargains?

Given the amazing shift in zeitgeist, I have decided to dedicate a column or two to those of you in the Federal workplace that might appreciate a little practical economic advice; the sort of advice that economists don't ever give you.

Though I am not an economist, I am an economizer. And it is my hope that my own financial break-through will help others with money management.

Start by opening an online checking account. It has helped me to budget more effectively. I can list in detail my outstanding monthly debts and then estimate the amount I will have to make payments. At first I was concerned about security, but in checking with my bank I found that the same protections that cover printed checks cover my online account too in the event of fraud. And the online account is free.

The money is drawn down from the account on the day that I designate, which makes planning much easier. In some cases, the transfer is done by wire, requiring no check writing at all. In payments where checks are written, the bank writes and mails them for me. It's very easy, practical and costs less than writing and mailing out payments.

Speaking of paying bills, I have found that when paying credit card balances, it is beneficial to calculate my entire card debt and monitor it from month to month. It is surprisingly easy to continue spending and never measure your level of debt.

Starting in January, calculate your unsecured credit card debt each month. Don't deduct the payment that you are about to send. Do this monthly to make sure that you are actually paying off the amount of debt that you owe, not just moving it from card to card.

If you are just making minimum payments and there is not enough to pay all the bills, perhaps you should start working a second job. Think of an entrepreneurial business that the entire family can operate. If you love animals, consider pet-sitting on the weekend or in the evening. Or become one of the millions of people who are selling items on eBay. You can also set up a booth at the local flea-market one day a month or locate a local auction house that will sell your items to the highest bidder. You unload junk from your basement, and put cash in your pocket with very little time invested.

There are many jobs that don't require too much time which can be fun projects. Best of all they kick back funds to pay the bills.

Knowing that I never make it past the third tip, I rest my case. Now go forth and spend no more, or at least find a way to pay for it.

If you have tips that you would like to pass along, I will be happy to share them with other readers.

Jane Norris is a former fed and current host of the Federal Drive. You can reach her at jnorris@federalnewsradio.com