Greater Clevelanders learn to save virtually painlessly with free help

Greater Clevelanders learn to save virtually painlessly with free help

May 9, 2004
Cleveland
By Bill Lubinger

Like dieting, making smarter money choices is habitual. A program called Cleveland Saves (www.clevelandsaves.org or 216-781-8090) teaches people how. So far, according to the program, 5,200 "members" have saved more than $3 million since it began offering free consultation through local companies.

As you can see by the following stories, a little goes a long way:

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Victoria Ashley of Beachwood

Ashley is a certified public accountant who works as vice president of finance for the Boys & Girls Club of Cleveland. But as her story proves, even the financially literate can make adjustments that matter.

Approaching her 50th birthday, Ashley hoped to treat herself and her three teenagers to a European vacation.

She started saving two years ago, even before hooking up with Cleveland Saves. But the program stresses goal-setting as a motivator. Inspired, Ashley has turned the vacation wish into a target.

"It kind of made it official for me," she said.

The change: Ashley used to pay her bills and save whatever was left - if there was any extra. Now, she has a slice of her paycheck - $75 every two weeks - automatically deposited into a savings account. She's well on her way toward the $5,000 vacation goal. The family departs for Europe in July.

Sonja Renzenbrink of Parma

Renzenbrink, a secretary for the Council of Economic Opportunities, was always a saver. But a Cleveland Saves presentation at work got her paying even more attention to those daily miscellaneous expenses that seem to empty the wallet so discreetly.

She works in downtown Cleveland and pays to park. The lot across the street costs $1 a day less than she was paying on site, so she switched.

She started putting aside the $5 saved each week. Then the money she saved by bringing cans of pop from home in stead of slipping $1.25 into the vending ma chine at work. Then the money she saved by making her own coffee at work instead of pay ing $1.25 at the food court.

"I was saving $25 to $30 a week, sometimes more," she said. "It was just amazing how that money adds up."

So when she and her husband took a Florida vacation, they had an extra $500 in fun money to spend.

Carmen Cleveland Bey of East Cleveland

Cleveland Bey is a self-employed day-care provider, caterer and hairstylist. She and her husband, Asante, a self-employed financial adviser, have five kids.

Finances were tight. Saving money was a struggle. But Cleveland Saves suggested considering broader shopping options than the obvious. So she does.

Her favorite: On Mondays, she hits thrift stores that promote half-off discounts that day.

When she goes, Cleveland Bey sticks to a budget of $20 to $40.

"And I can get a lot of things for that," she said. "You can find nice name-brand items there."

She also sticks to another rule: Shop without the kids so she can focus on finding deals.

To change your spending habits, start with the simple things, she advised, and make it part of your routine.

"If you don't, you'll slip back into your old ways," she said.

Bonnetta DuBreuil of Cleveland

As human resources manager at Adalet, a Cleveland company that makes explosion-proof electrical enclosures, DuBreuil coordinates the Cleveland Saves program at work and has benefited from the advice.

It caused her to take a closer look at her retirement planning. She was already diligent, but found ways to do even better.

DuBreuil started a Roth IRA, making the full $3,000 annual contribution. Her federal tax reimbursement usually covers the whole amount, and she makes sure it goes right into the retirement account.

She also adjusts her 401(k) contributions at work. Anytime she gets a raise, she increases her contributions by 1 percent. So, if she earns a 4 percent raise, for instance, a quarter of that amount is diverted for retirement.

"If I don't see the money, I don't miss the money," she said.

Denise Sobieski of Cleveland Heights

Her parents were diligent. They opened savings accounts for the kids and stressed the importance of saving. So she learned the lessons early in life. Cleveland Saves took over where Mom and Dad left off.

We live in a society where buying on credit is encouraged. Of course, buying on credit means paying more for what you buy in the end. And it's easy to get caught up in that trap.

Cleveland Saves stressed thinking twice before buying, and thinking even harder before buying on credit.

Now, Sobieski has pretty much cut out using her credit card entirely. If she doesn't have the money to buy, she waits until the next payday when she does.

And she plays the do-I-really-need-this game - even for something so minor as a new CD.

Why? Because she's got bigger plans. She's a renter who wants to buy a house.

Immediate gratification vs.a major, long-term lifestyle improvement? To Sobieski, it's not even in question.

Lubinger is a Plain Dealer features reporter. Contact him at 216-999-5531, This e-mail address is being protected from spambots. You need JavaScript enabled to view it or Simple Solutions, The Plain Dealer, 1801 Superior Ave., Cleveland, Ohio 44114. Please include your name, phone number and city. Your name will not be used without your permission.