ON THE CHEAP/ Get started today! Some basic tips will help you take

0 Comments | Gazette, The (Colorado Springs), Jul 12, 2003 | by RACHEL SAUER

Saving money is great. It's exciting and rewarding and gives you a nice little buzz. But it implies a pool of ready cash from which you draw reduced amounts.

That's where things get tricky. To save money means you must have some money in the first place, a feat that can be accomplished through a few simple money-managing tactics. These include:

Keep track of every penny you spend.

Get a notebook, use your Palm Pilot - however you want to do it, write down everything you spend. Whether you do this for a week, a month or the rest of your life, tracking your spending is the first step in finding out why you do or don't have money when you need it.

"Most people spend a lot more money than they realize and then, when they have to use money to take care of the essentials, a lot of times they don't have it because they spent it on lunch or went to a movie or whatever," said Richard Peace, a certified financial planner at Advantage Capital Corp.

"From that you can assess where you could make reductions of spending to pursue a particular goal."

Do plastic surgery.

According to various credit-card industry figures, the average American has $7,000-$9,000 in debt on multiple credit cards. Peace advises consolidating credit card debt on one card. Pick a card that will give you bonuses for spending, such as airline miles or cash back. Credit cards aren't bad, he said, just too easy to use.

Don't spend more than you have.

If you have X amount of dollars every month, that's how much you have to spend, not X amount plus your $7,000 credit card limit. This is not only wise money management but takes into account the possibility of unforeseen expenses, such as health care, auto repair and other emergencies.

Create a spending plan.

Just because you want to save money doesn't mean you never get to have fun. You need to plan for it, Peace said. If you want to go out to dinner every night, figure it into your spending plan. If you want to take a vacation, go to the movies, or buy a snowmobile, work that into the plan. Pay for essentials first.

Get over the instant gratification.

Buy things only if you have the money (not the credit-card limit) to pay for them, Peace said. Pull out the plastic only if you have the money to cover the purchase. This means saving for big purchases rather than getting them the minute the thought enters your head.

"I counsel people that you can have whatever you want, but you have to plan for it and be disciplined," he said. "When you put things in perspective like that and make it more realistic, you really challenge your own value systems. You say, 'I'm going to get what I really want, but I'm not going to pay excessively for it.' "

Go into debt only for big things, such as a house, a car or an education.

Think about the future.

Do you plan to send your kids to college, send your parents on a cruise for their 50th anniversary or retire? These things aren't cheap. The earlier you can start saving, the better, Peace said.

Professional cheapskate not stingy with advice

TO OUR READERS: Today, The Gazette launches a new weekly feature column, The Cheapskate. It will run in Saturday's Life section.

In the 11 years since I began publishing the Cheapskate Monthly newsletter, I've received thousands of tips from readers. Without a doubt, the tip submitted most often has been for homemade baby wipes. The tip that gets the most requests for repeat: how to unshrink wool. Today, I want to share with you my all-time favorite tips - so far!

Pay less for a pizza stone.:

Instead of paying $30 or more for a pizza stone, purchase a 12- inch-square, unglazed terra cotta tile from a home improvement store for less than two bucks.

The secret to unshrinking wool.

You can unshrink wool if you don't wait too long. Mix a solution of 1 gallon lukewarm water and 2 tablespoons baby shampoo. Soak the shrunken garment for about 10 minutes. Don't rinse! Just squeeze out excess water and lay on a dry towel. Carefully reshape and stretch back to original size. Dry out of direct sunlight and heat.

Santa Sacks help you save.

Instead of wrapping kids' Christmas gifts, make big Santa sacks from Christmas fabric and grosgrain ribbon. Personalize each sack with the child's name. Santa puts the presents in the sack and ties it shut. Re-use every year. This saves time and lots of paper over the years.

Whip up some baby wipes.

Homemade baby wipes: With a serrated knife, cut one roll of high- quality paper towels to form two short rolls. Remove cardboard centers. Place one roll into a plastic container that has a lid. Create a mixture of 2 cups water, 1 tablespoon baby shampoo and 2 tablespoons baby oil and pour into the container. To use, pull center sheet from roll. Cover tightly between uses.

Bulk spices are a bargain.

Buy spices in bulk from a health food store. You can buy as little or as much as you want and save a bundle. Example: 1 ounce of ground cinnamon in a health food store: 39 cents. The same amount pre- packaged in a small bottle from the grocery store: $2.

White vinegar for whiter dishes.