From the New York Times:

Citigroup cardholders will then have until the end of January to turn down the higher interest rates. If they decline the rate increase, they will pay down the balances on their accounts under the old pricing terms and will be able to continue to make charges until their credit cards expire.

After that, however, customers will have to reapply for a card or find a different lender.

If you receive your statement online, a separate rate increase letter will be mailed to you. LowCards.com points out that you should pay close attention to your mail because such notices are easy to overlook:

They often come in nondescript white envelopes that are easy to miss and toss before reading. However, if you don't respond, you are stuck with the rate increase.

If you decline the offer, send a letter to your issuer by certified mail.
Keep a copy of the letter for your records.

"Despite Pledge, Citigroup to Raise Credit Card Rates, Blaming ‘Difficult’ Environment" [New York Times]
(Photo: Spencer E Holtaway)

So recently the APR for my Citicard, which I have had for years at the still-crappy yet manageable APR of 10.99% increased to a whopping 16.99%.

Holy cow, you may be thinking. You must be some kind of deadbeat!

Nope! I have never missed a payment on this card. I have kept a substantial balance on it for years, which I'm sure credit card companies like. It seems that Citibank was just randomly screwing me. Of course, I could always refuse to accept the increase—and then close one of my oldest credit lines and hurt my credit report. Nyuh-uh.

I immediately responded by bailing: I transferred a huge chunk of the balance to my Bank of America card, which is no good for purchases as it offers no rewards, but oftentimes has promotional rates on balance transfers. I also called Citi today. It was a marginally successful call, only because I did not get jerked around as much as anticipated.

The customer service rep was a girl named Angel with no marked accent; surprising, being as all of my contact with Citi so far has been with heavily-accented men who try to wheedle me into buying account protection. "But ma'am you may cancel at any time." But I digress.

I was polite yet slightly crazed. I told Angel 16.99% was the most ridiculous APR EVER. I told her that my first credit card that I applied for when I was 18 without any credit history offered me a lower APR than that. I told her I had several cards with lower APRs that hadn't raised them because of some vague "financial market" excuse. I told her I didn't want to use a card that would charge me 16.99%. I have options.

Angel fumbled politely for a bit, and quickly transferred me to her manager, which was a pleasant surprise.

The manager was understanding and also polite. After giving me more vague "financial market" excuses, she said she could review the card and POSSIBLY give me a lower APR. I then got to use my favorite phrase when speaking to customer service (in bold):

"I just don't see how I can continue to use a card that has such a high APR, especially when all of my other card like my Discover card offer me 9.99% or better. I'm sure you understand."

"Oh yes," she said. And she agreed that affective today, my APR would by 11.99. Not back to where it was, still crappy, but sure as hell better than 16.99. I am proud of my response:

"Well, I will accept the 11.99 APR, but I will probably still won't use this card ever again."

Cool like ice!

"Citicard: PremierPass to a high APR" [nicolestanfield.vox.com]

I decided to give it a shot to try to reduce our interest rates. It worked. Thirteen lenders bid on my $3,500 loan request and they reduced my interest rate from 13% to 9.9%. Another note about Prosper loans - they have a fixed interest rate! No more worrying about that interest rate magically increasing.

See, she used her Prosper loan to pay offer her credit card, swapping her interest rate for a lower, locked-in one. This can be a good tactic for the indebted to use, especially since credit card companies have become much more reluctant to reduce interest rates (and, in fact, for some time, many have been boosting interest rates on perfectly good accounts).

Seven Things We Did to Slash Our Finance Charges from $400/month to $0/month [Blogging Away Debt]
Prosper.com [Official Site]
PREVIOUSLY: Make And Take Person To Person Loans With Prosper

We'd love to see Netflix roll out a reminder service, but since that would directly impact their bottom line, we have a feeling it won't be showing up on the official site any time soon.

Here's what the typical data screen looks like, if you're curious:

Holy crap, I kept Michael Clayton for 58 days, and I only watched it once! Maybe I should just cancel Netflix and read more books.

FeedFlix.com

• Plug the Money Leaks! You know what they are. The fees you get when you forget to pay your bills. The overdraft fees you get when you forget how much money is in your checking account. The parking tickets you forgot to pay. Get organized!

  Recommended Reading: 10 Stupid Ways That Smart People Waste Money

• Stuff You Just Can't Afford But Are Telling Yourself You Need. These expenses include fancy cable packages, restaurants, gym memberships, and, yes, your expensive new car.

  Recommended Reading: 5 Expenses You Can't Afford If You Have Credit Card Debt

• Bad Grocery Shopping Decisions. There are two kids of people in the world. Coupon people and the rest of us. They're great for some people, but you don't have to use coupons to save money at the grocery store. And, if you do use coupons, but are looking to save even more money, these tips can help you too.

  Recommended Reading: 7 Ways To Save On Groceries Without Using Coupons

• Out Of Control "Information Age" Spending. The Pew Research Center says that after housing, cable and satellite TV service was most frequently cited as a regular household expense (78%), followed by cell phones (74%) and internet service (65%). By contrast, just four-in-ten adults (42%) say they make a car payment and just one-in-four say they make a school tuition payment. How much you spend on these ubiquitous bills matters. Just one generation ago, Americans never had to worry about a high-speed internet bill. That's why it's important to negotiate the best deal possible.

  Recommended Reading: 10 Things We've Learned From 'Confessions of A Wireless Sales Rep'
  How Joe Saved Hundreds Of Dollars Using Confessions Of A Cellphone Sales Rep
  Threatening To Cancel Comcast Saves Man $238.92 Per Year
  Cut $20 Off Your Cable Bill
  Video Tutorial For Escaping Cellphone Without ETF
  How To Get ATT Naked DSL (Redux)
  Shhh! Let's All Get AT&T's Secret Naked DSL

• Psychological Toxic Sludge. You may not think of this as an expense, but it is. Hang ups about your money, or laziness when it comes to dealing with your money is costing you money. The Pew Research center says that 51% of Americans don't use any kind of budget. Well, why the hell not? You need to take a good hard look at your finances and understand them, so you're not constantly overspending. Don't like budgeting? Get over it. Let it go. Use a very, very simple budget. If you feel like you can't even face the mess that is your finances... you are not alone. Everyone has felt that way about something in their lives. But you'll feel better if you just grab the box of papers, dive in, and get going. No, really. You will.

  Recommended Reading:
  Use Snowball Method Spreadsheet To Pay Off Debts
  The Zero Based Budget
  How To Budget With An Irregular Income
  Lyn's 2-Person Budget Spreadsheet
  Never Budgeted Before? Here's Something You Can Do Right Now
  Consumerist's 9-Step Beginner's Budget

  (Photo: msmail )

12. UNCLEAR ABOUT YOUR FINANCES
Not knowing account balances, monthly expenses, loan interest rates, fees, fines, or contractual obligations.

11. ALWAYS "BORROWING" STUFF
Such as books, pens, or small amounts of money from friends and others, and failing to return them.

10. Poor saving habits
Not planning for taxes, retirement or other not-recurring but predictable items, and then feeling surprised when they come due; a "live for today, don't worry about tomorrow" attitude."

9. SHOP TILL YOU DROP
"Good deals" are literally irresistible; making impulsive purchases; leaving price tags on clothes so they can be returned; not using items you've purchased.

8. HARD TO MAKE BASIC FINANCIAL OBLIGATIONS
or personal ones, and/or an inordinate sense of accomplishment when such obligations are met.

7. BUYING ON CREDIT FEELS DIFFERENT
than when paying cash, a feeling of being in the club, of being accepted, of being grown up.

6. LIVING IN DRAMA ABOUT YOUR DOLLAR
Using one credit card to pay another; bouncing checks; always having a financial crisis to contend with.

5. LIVING ON THE EDGE
Living paycheck to paycheck; taking risks with health and car insurance coverage; writing checks hoping money will appear to cover them.

4. INORDINATELY INHIBITED AND EMBARRASSED
in what should be a normal discussion of money.

3. OVERWORKING OR UNDEREARNING
Working extra hours to earn money to pay creditors; using time inefficiently; taking jobs below your skill and education level.

2. RELUCTANT TO CARE AND VALUE YOURSELF
Living in self-imposed deprivation; denying your basic needs in order to pay your creditors.

1. HOPING THAT A WHITE KNIGHT IS JUST GOING TO SWOOP IN AND SAVE YOUR BROKE ASS
A feeling or hope that someone will take care of you if necessary, so that you won't really get into serious financial trouble, that there will always be someone you can turn to.

How did you do? Remember, these are all a question of degree. If you can say definitely, yes, that's me, to seven or more of these, you could have a serious problem.

Signs of Compulsive Debting [Debtor's Anonymous]

My wife and I are there right now. We opened the minibar last night to put a piece of pizza in there in a pizza box. This morning, there’s a $26.04 charge for food on the bill slid under our door. Why? My wife just called to ask and was told, "If you open the mini bar door, there’s a sensor in there and if you move anything in there... you get billed for it." In our case, we must have jiggled a $20 bottle of wine.

Gregg adds, "Gee...I wonder how many people pay for the wine (or whatever) that they never ate or drank because they simply didn’t look at the bill???" Remember, if you so much as place the hotel's menu binder on top of the minibar, double-check your bill for charges. Double-check anyway because hotels can be sneaky.

(Photo: Getty)

Budget Calculator [CNBC]

(Photo: darkmatter)

Brandon says,

It's really easy...if you have the willpower to put $5s in an envelope. At this rate I'd save about $2,500 a year.

It's a real pain when you buy $4.50 in ice cream and get 3 $5's back from the cashier. Or today when I got $20 cash back and the cashier gave me four $5s instead of a 20. Sometimes I'll also supplement it at the end of a day by removing all bills smaller than $20 from my wallet.

The reality is that there's a good chance I'll blow $12 on lunch one day...so what's wrong with "blowing" it on saving? I wouldn't have missed it if I'd spent it at a restaurant, and I certainly don't miss it being in an envelope or a hard-to-reach savings account.

Prior to it being deposited in ING, I have a special pocket in my wallet where I place folded-up fives. Then I transfer them to an envelope in my safe at home at the end of the day. Once I reach around $50 I deposit it at my bank and order a transfer by ING

With money, the old "out of sight, out of mind" concept works very well. At least for me. And it's such a small amount that most people can do it without noticing it. We blow $5 on parking every day. Putting it in savings instead is easy.

I don't use a whole lot of cash. So if you use more cash, you could end up saving more.

Congrats to Brandon. Have you tried this method? Do you have another unique way of tricking yourself into saving? Let us know in the comments.

PREVIOUSLY: Get Rich By Saving Every $5 Bill

Assuming you've already signed up with Mint or Wesabe, and gotten over the hurdle of providing your bank account login info to a third-party organization, to convert your bank's gobbledeegook into useful Excel data:

MINT
1 Go to transactions
2 Click "Export all transactions" (at the bottom of the page)
3 Open with Excel.exe
4 Highlight just the first column
5 Tools -> Text to columns
6 Delimited -> Next
7 Select comma as delimiter ->Next
8 Select the columns you want to ignore (like purchase category
9 Finish

WESABE
I haven't tried it with Wesabe but here's what their CEO says to do:

1 Click export at the bottom of your transaction list
2 Then you can export an Excel, CSV, OFX or QIF file from any account, tag, or merchant detail page.

Got a better way to do it? Let us know about it the comments.

P.S. USAA, and all banks, please enable .CSV downloads for transaction histories. Not everyone wants to shell out for a proprietary budget making program, especially when they keep making you pay every two years for pointless forced upgrades.

(Photo: Getty)

(Mmm, we'll take another slice of that delicious cynicism pie, please.)

www.cakerental.com

The funds are FDIC-insured and deposited in West Bank, which has been in Des Moines, Iowa since 1893.

If you decide you need the cash and want to stop saving up with SmartyPig, you can close your goal ("break the piggy bank") and withdraw or transfer your money.

If you're looking for something with built-in restrictions and tools that will both help and force you to save up for specific purchase goals, instead of whipping out the plastic, SmartyPig could be worth a shot.

Smarty Pig [Official Site]

The site has been around for a bit, here's a few other people who've written reviews about it worth checking out:

Get Rich Slowly [Get Rich Slowly]
SmartyPig Review: With Less Fees, Are Piggy Banks Back? [My Money Blog]
Social Networking Meets Savings Accounts: SmartyPig Launches this Week [NetBanker]
Some people had trouble with the sign-up, but I was able to clickity-click and get rolling within minutes.

1) It can unconsciously rationalize spending. Some part of your brain is going, "It's ok, I'm saving."

2) Personally, I only use my debit card to withdraw money from the ATM. I don't want my account number getting stolen off some insecure store PIN pad, and paying only in cash encourages wiser spending.

3) If you're going to do this program, at least once a month move the money from the savings to an online savings account. Interest rates at brick and mortar banks are like .0crap, online you can get upwards of 3% right now.

One neat thing is that for the first 3 months, they will match everything you save 100%. After that, 5% of your purchases up to $250.

The deal has been around for a while, we wrote about it in 2005, but a new smarmy ad campaign (the one that goes, "This is America. Do we let the sun just shine or the wind just blow? No, we put them to work.") and recent events, made me think we could revisit it. What do you think? Is this a handy program, or the Diet Coke of savings plans? Leave your thoughts in the comments.

Keep The Change [Bank of America] (Photo: atbartlett)

Some of Harris' suggestions:

• Paste fringe onto old picture frames
• Glue wooden spoons to spraypainted canvas
• Hang scraps of wrapping paper on the wall

Here's another one:

Pick up old vinyl records from the thrift shop - particularly bad or scratchy ones because we don't want to ruin the good ones. For the sake of musical history, I recommend using old Lawrence Welk albums. Spray these in bright colors and attach them to the wall as instant graphic elements.

Elsewhere, she suggests hanging a curtain in place of your headboard, draping sheets over old furniture, and decoupaging, which is a craft technique that you really should need a license to attempt.

Harris seems aware that her ideas are not exactly mainstream:

Don't worry about the design being ugly. Remember all of the abominably ugly design ideas we have fallen for in the past (think flocked velvet wallpaper, cottage cheese ceilings, and avocado green appliances) just because someone with confidence and an accent told us it was “Fabulous, Dahling!” Your abominibly ugly idea just might be the next “in” thing!

So there you have it: if you want to save money but convince your friends that you've gone off your meds permanently, try out some of these decorating ideas. Now excuse us—we have to go finish this toaster cozy we're making out of hamburger meat trays and used shoelaces.

"Cheap Decor Ideas for Your Living Room" [About.com: Budget Decorating]
"Easy Furniture Makeovers - No Hammer Required!" [About.com: Budget Decorating]
(Photo: Getty)

Paper or Plastic? Family Saves With Cash [ABC via Blogging Away Debt]

Just enter your credit cards, their balance, and interest rate. Then enter your required minimum monthly payments and the maximum possible amount you could put towards it, based on your budget. Select which style of repayment you want, such as snowball or highest interest first. The program then spits out an effective payoff strategy. It calculates how much interest and the total you'll end up paying, and how long it will take to escape the shackles of debt.

If you're carrying multiple balances, this is a great tool for getting started on, or optimizing, your personal debt payment plan.

Debt Reduction Snowball Calculator [vertex42] (Thanks to Matt!)

SCREENSHOTS:

3. Cut out investment charges and fees
BusinessWeek notes that "many investors end up paying 2% to 3% off the top each year for investing costs. Lower-cost mutual funds and index funds can slash that bill, savings that compound over several decades of investing."

7. Make sure you don't have too much insurance
Don't have dependents? Cut back on life insurance. Are your auto and home deductibles very low? Look for cheaper coverage with higher deductibles. They also recommend shopping around for new insurance every 2 to 3 years.

13. Lay down the law with your free-spending friends
It's harder to save if you hang out with big spenders. "Some financial planners advise cash-strapped clients to seek out social companions with similar budgets. However, if you're honest about your spending limits, true friends should be willing to adjust their plans by, for example, choosing a less pricey restaurant."

18. Annualize your expenses

"Realizing how much things cost over the course of a year can really help put things in perspective," says Bob Nusbaum of Middle America Planning in Pittsburgh. For example, if you spend $10 for snacks and lunch each weekday, that adds up to $2,500 in a year.

"Let's Get Cheap" [BusinessWeek]
(Photo: Getty)

1) Don't waste money on pre-chopped food.
Pre-chopped or single serving food is expensive! Want to save money? Buy a good knife and some plastic bags.

2) Pay attention to unit pricing.
Just because something is bigger or has a sticker on it that says "special value," doesn't mean it costs less per unit. If you hate doing math, use a calculator!

3) Try store brands. It might be the exact same food you're used to eating.
The no name food you see in stores is often made by the exact same factories that produce the brand name stuff. For example, Walmart "Great Value" peanut butter is really just Peter Pan with a different label. Try the store brands. You might like them.

4) Compare prices in different areas of the store.
Deli meats, cheese and olives may be a better deal than similar products in other areas of the store — or they might not. It pays to walk around and compare, says Consumer Reports.

5) Try other stores.
The grocery store isn't always the cheapest place to buy food. Sometimes drug stores have good deals on things like milk, and liquor is cheaper at warehouse stores. Discount stores like Aldi can have great deals. Farmer's markets are fun and often inexpensive. Be careful not to blow your budget by driving all over the place to save $0.50 on organic turnips, however.

6) Make a list that fits within your budget.
Wandering around the grocery store when your hungry is a terrible idea, particularly if you don't have a set budget or a list of items you need. Take a few moments to plan your trip. You'll be done faster and you'll have saved money.

7) Eliminate waste.
People waste a lot of food. The New York Times says we Americans toss about a quarter of what is available to eat. That's not cool. The Guardian has a list of tips that will help you cut down on the food you waste.

Hate coupons, but love money? Share your coupon-free tips in the comments.

(Photo: flyingember )

(Photo: oohmygeez)

[Mint]

But in this first real slowdown of the wireless age, consumers seem to be saying that home-based telephones are expendable luxuries, like Starbucks lattes or Coach handbags. And it makes sense. Confronted with high inflation, soaring energy costs, and stagnant wages, millions of households are facing choices about which monthly bills to pay and which commitments to maintain. And if it comes down to one or the other, the mobile or the home-based land line, it's clear which is a necessity and which is an option.

It's not just tight budgets, though. Slate speculates that foreclosures are also having an effect, because as people move into rentals or in with relatives, they shut off existing landlines and don't bother reconnecting.

I haven't had a traditional landline since 2002. At first I moved to Vonage, then a DIY SIP setup that I never could get working correctly. Finally I realized it was both cheaper and simpler to just forego a home line entirely.

"Phones Without Homes" [Slate] (Thanks to SpiderJerusalem!)
(Photo: Getty)

JD at Get Rich Slowly also shares his wife's personal money saving trick:

For several years, Kris has been rounding every transaction up to the next dollar in her checkbook. If she spends $49.74 at the grocery store, she enters this in her checkbook as $50. If she spends $33.13 on gas, she enters it as $34. As a result, she saves an average of 50 cents every time she performs a transaction. In 2-1/2 years, Kris saved an extra $500 using this method. That's enough to treat herself to something nice.

There are many different tricks people use to save money — from the very low-tech "saving change in a jar" to the bit more sophisticated "automatic payroll deduction." The key seems to be in finding something that works for the specific individual — something he can stick with over the long haul. As long as the saver remains committed to the trick, almost any method seems destined to succeed.

Do you have any unusual ways you trick yourself into saving money?

Turning $5 into Thousands [Get Rich Slowly]

— FREE MONEY FINANCE

(Photo: bethography)

Sometimes creating self-imposed barriers can be just what we need to curb bad habits. The same person inside us who has the willpower to put the credit card in the freezer is different from the person inside us who doesn't have the willpower to resist picking up the plastic and hitting the shops.

(Photo: Getty)

Envelope System Video Tutorial (Step By Step Guide To Using The Envelope System To Manage Your Cash) [No Credit Needed]

RELATED: Dave Ramsey's Envelope System [Dave Ramsey]

I decided recently that I'm spending too much money and decided to cut back on some discretionary items. Here are a few things I reduced, or changes I've made in my spending habits:

Monthly Reductions
—-—-—-
Took off text message packet from cellphone (I only had added it for a now defunct text/cellphone pic heavy project). Savings: $10/month
Cut piano lessons from weekly to bi-weekly.
Savings: $100/month
Reduced Netflix plan from four-at-a-time to two-at-a-time.
Savings: $13/month
Eating out less, cooking more.
Savings: ~$100/month

One-offs
—-—
Fought harder for Commerce Bank fees than I might have normally.
Savings: $45
Had to replace broken cellphone. Opted for cheap model on eBay instead of getting the same semi-nice one.
Savings: $140
Going to hit up WaMu for their one per year courtesy fee waiver.
Savings: $35

TOTAL
—--
One-time savings total: $215
Monthly savings: $223
Yearly savings: $2,891

Going to hold a tag sale this Sunday as well. Have you adjusted your spending habits lately? What are you doing to save more or spend less money?

(Photo: Getty)

Trent at The Simple Dollar blog has a post about how to say no, especially to charitable requests. One of his readers describes the problem:

I am a sucker for girl scouts selling cookies. I am a sucker for salesman at stores. I am a sucker for my church when they need money for something. I am a sucker for friends and family who need to borrow money. I am a sucker for the Green Party or Green Peace when they call and ask for money all the time. I have heard it called “The Disease to Please” before and I just wanted you to know how much it affects me not only with a lot of stress and anxiety, but also financially.

The solution, advises Trent, is to pre-plan your charitable giving—then if someone isn't on your list, you can truthfully say it's beyond your control. And then slam the door on them.

He points out that while it may be hard for you to say no to people and organizations you agree with, if you pre-plan as he advises, then you have a very compelling reason to turn down the next request that wasn't on your list.

It takes practice, especially for tenderhearted people who aim to please, but by not saying no, you’re actually taking money out of the hands of the things you really care about. Saying yes to the salesman in the store means that you now have less money to spend on stuff you actually need - or on charities you actually care about. Saying yes to the person knocking on your door means you have less money to give to the people you actually care about who need it.

Every time you say “yes” outside of your plan, you let down something you care about even more. Once you really learn that, “no” becomes a much easier thing to say.

"The Sucker Factor: The Cost of Being Unable to Say No - And How to Get Out of It" [The Simple Dollar]
(Photo: Getty Images)

Food's getting too expensive, leaving us with two choices: lose our lead on per capita obesity, or find new ways to save money. We're not the type of nation to give up a first place position on anything, so that leaves us with saving money, and one way to do this is to make your own stuff. We know, it's crazy! Apparently early settlers somehow created their own Cheetos and Frappuccinos, but we're not going to get that primitive. Instead, here's a quick rundown of some interesting Do It Yourself tutorials we found that might give you some ideas on how to cut costs the next time you go grocery shopping.

Make Your Own Baby Food
The process is pretty easy—puree the food and strain it. This post suggests you spoon individual servings into an ice tray, then cover it with plastic wrap and freeze it. "Then, put the frozen blocks of food into a freezer bag." The author doesn't go on to mention thawing out the food, which leaves us with images of her babies sucking toothlessly on foodsicles, but we assume you're supposed to reheat the food when you're ready to use it.

Of course, if you need advice on how to make your own baby, you can head over to our sister site Fleshbot.

Make Your Own Instant Oatmeal
Trent at The Simple Dollar makes his own instant oatmeal packets. Instant oatmeal is a simple recipe, which means even the kitchen-phobic can accomplish this without ruining anything. Trent writes that the initial batch actually comes out to slightly more per serving than prepackaged, if you factor in the purchase of one-time supplies like reusable baggies and salt. Batch #2 is the same price as pre-packaged, and batch #3 is where the real savings kick in.

While this is a great idea, we think you can go one better and forego the plastic bags entirely, which drops the cost per serving immediately. Baggies are good if you have to eat your breakfast in the break room at work, but otherwise the "recipe" is so simple that you can assemble it on the spot each morning in less than 30 seconds. If you follow Trent's advice to grind up some of the oatmeal to make the final product thicker, simply grind up a predetermined amount and keep it in a plastic container.

Make Your Own Ice Cream and Sorbet
Real ice cream requires cooking a custard first, and you'll have to purchase eggs, heavy cream, and milk, which are exactly the sort of ingredients that are going up in price. Since the point is to save money, you're better off buying in-season fruit and trying your hand at sorbets.

This is maybe the funniest/laziest sorbet recipe we can find: freeze a can of fruit, then puree it in a blender with a little liquor. (We're going to try this over the weekend.)

If you're too lazy to puree and blend, go even simpler and just make ice pops.

Make Your Own Hot Dogs
Just kidding.

The Big Question: Is This Really Worth My Time?
If you're asking yourself that, there's a good chance you already know the answer: you probably feel your time is better suited doing something more productive and/or entertaining.

However, Trent the Oatmeal Guy writes that he made his instant oatmeal packets while talking on the phone with his mother. We've discovered family phone calls are the perfect time to multitask with housework and kitchen activities, especially if you have a hands-free headset.

(Photo: Getty Images)

1. Spend less time feeling poor.
Flipping through catalogs and going to the mall will make you feel like you need things, Ms. Gurney notes. Sure, you can afford some of that stuff, but the main message is: Most of this is out of your reach. Instead, do things that offer a sense of well-being. Invite friends over. Walk in the park.

2. Retrain your brain.
Depriving ourselves of current pleasure is nigh impossible if we're not driven by a sense that the future will be more fulfilling, says Ms. Gurney. When you start to feel that "I'm deserving so I'm buying" feeling, visualize a smaller credit-card bill or higher savings-account balance.

3. Look around you.
Are you happy with what your hard-earned dollars bought? If not, shift your spending to those things that bring greater long-term satisfaction, including retirement savings.

4. Choose your extravagances.
Here's mine: I eat out about once a week. An extravagance I do without: Cable television.

5. Assess weaknesses.
"If you were thrifty, how would you look different?" says Gary Buffone, a financial psychologist in Jacksonville, Fla. Identify what you want to change; then shoot for specific targets, such as a six-month hold on buying new tech gadgets.

6. Make trade-offs.
Substitute small, free pleasures for those that cost. Have a movie night at home with friends — you'd be surprised how many people are equally eager to cut costs.

7. Set goals.
Meet weekly with family to discuss the spending plan (don't call it a budget) for the months and years ahead. This may involve tough choices, such as forsaking a family vacation. But think of the guilt-free trip you can take after saving the necessary cash. Good memories last longer, Ms. Gurney notes, when not trammeled by large credit-card bills.

8. Resist your children.
They're going to find it hard to change their expectations. How can you help? Stand firm. The next time they clamor for the latest videogame, remind them of the bigger prize (that family vacation), and tell them their choices here and now are, say, a picnic or a movie rental. Offer options, but don't give in to their push for more consumer goods.

9. Enlist other people.
Many people are reticent to talk about money worries, but almost everyone has them, so open up and tap your allies. Hold a contest with friends to see who can save the most in a month, or agree with your spouse to talk before spending more than $100, Mr. Buffone suggests.

10. Post it.
Remind yourself by putting post-it notes on your wallet, mirror or steering wheel with the mantra of your choosing: "I want to go to Hawaii in January." "I want to pay off credit-card debt."

11. Automate it.
Divert money monthly from your checking account to savings. It will force you to budget, based on what's left in your checking account.

12. Rethink rewards.
What are some of your happiest memories? Those are the true rewards. Next time you're about to buy something because you deserve it, ask yourself whether there isn't something you deserve more, such as time at home cooking with your teenager, or a stroll with your husband or best friend.

If this advice is too effete or ethereal to slow your spendthrift ways, consider these ten tips that can directly impact your monthly bank statement.

Ways to Make Saving a Habit [WSJ]
(Photo: Getty)

10. Got any bank fees? Ask the bank to waive one as a courtesy
Most banks will give you at least one courtesy fee waive per year, but they won't do it unless you ask 'em first.

9. Lower Your APR by threatening to switch to another credit card company
Try saying this: "I think I've been a good customer. I'd like to stay with you, but I really want you to lower the rate on my card. Can you help me?"

8. Use a 0% balance transfer to get a reprieve from credit card interest for a few months
Many credit card companies offer 0% balance transfer deals where you can move your balance from another company's card to theirs, and enjoy 0% APR for a few months. Be careful to read all the rules though, because if you break some of them, you can shoot back up to your old rate or higher. Also the 0% is for a limited time, so mark your calendar and be prepared to shift your funds again.

7. Lower your cable bill by threatening to cancel
Many of our readers have had success with this one. Mention competing offers you've researched and ask for them to give you a reason to stick around.

6. Get your spending under control so you're paying off your credit card in full every month, and avoid paying extra interest
If you carrying a balance and paying finance charges on it, it amounts to an extra tax on everything you purchased. Why should you pay someone for your own money?

5. Pack your own lunch, make your own coffee, cook at home
Eating out is expensive, and those lattes add up. Rediscover the joy of cooking and you'll feel enriched in more ways than just your pocketbook.

4. Adjust your tax withholdings so you're not giving the IRS an interest-free loan
If you get a big ol rebate from the IRS, you may be claiming too few withholdings. I'm sure you know many better things to do with that money throughout the year than the IRS does. Here's how to do it.

3. Take advantage of new low interest rates by refinancing your home to a lower rate
Pay a little less each month and that can add up to several thousands of dollars in savings over the life of the loan.

2. Switch to paying for most things in cash only...
Money hurts more. Pay for things in physical cash and you may find yourself making better purchase decisions.
...And then put all your pocket change in a piggy bank
The piggy bank can now become your Wii fund, or your vacation fund, or your new wardrobe fund. When it gets full, take it to Commerce Bank's Penny Arcade and cash it in for free.

1. Make a budget
Simply monitoring your money forces you to be wiser with how you use it. I consider the personal budget the financial dashboard to making sure I'm master of my money instead of the other way around. Here's a few tools to get you started:

Consumerist's 9-Step Beginner's Budget
An excel sheet I made that does the job rather well, if I may say so myself.
The Zero Based Budget
The idea behind it is that every single dollar you earn will get allocated to a specific category. There is no money sloshing around, you have total mastery over all of your money.
How To Budget With An Irregular Income
Most budgets assume a steady paycheck, but if your income comes in spurts, here's a great way to still keep your bills paid and your money under control.
8 Free Personal Finance Management Programs (And 4 Pay Ones)
A roundup of Consumerist reader's favorite budget tools.

(Photo: Getty)

Other tips are a little more traditional, like have your kid write down everything he spends money on, or save his allowance for a special purchase, or—and this is probably the biggest stumbling block—lead by example:

Parents can help with the basics, but a lot of them also lack financial education, Levine said. She added that where parents can be very helpful is in giving their kids their first lesson about money.
 
There are concerns that parents aren't setting a good example for kids. The national savings rate has declined since 2001.
 
"Today's kids, just like their parents, are coming up in a spending culture," Levine said.
 
The most important thing for a parent is to make sure that their child's first savings experience is a successful one, she said. Too many people try to get their kids to save for things that are too far into the future or too big. For a young child, saving for next year is an eternity, she said. If the goal is intangible, the money will seem lost to the child.

"I don't buy a lot of expensive meat anymore. I buy more vegetables, because they are cheaper." — Fran Allen, 77-year-old part-time factory employee from Romeoville, Illinois. "I buy what is on the list and nothing that isn't on the list." — Patricia Norris, homemaker in Romeoville. "That doesn't cover it.... I went over again ... It's almost impossible to stay on budget." - Barbara Armour, whose family food budget is $350-$400 month, after shopping at a Santa Clarita, Cal. store. "Something has to be done, because these prices are just getting ridiculous." — Karen Stewart, hospital housekeeper from Plainfield, Ill. "I'm making changes just because of how much I'm paying on gas.... I went to a gas station with $100 and came out with nothing." — Jamie Dorgan, homemaker from Joliet, Ill.

Check Out Line: Wal-Mart customers stretch for groceries [Reuters]
(Photo:ShutterCat7)

My first few meals mined the wealth of Jack's staples. I made rice and beans one night, which we zested up with 99-cent canned jalapeños and sofrito (like enchilada sauce, with a slight burned taste); another night we had penne with cream and some pancetta I found in the gourmet section. Another night, after amassing some brown rice and cans of bamboo shoots, water chestnuts and baby corn at Jack's, I bought some Chinese broccoli off-site for a big stir-fry. For dessert each night we turned to the slightly wanton charms of the Little Debbie product line, particularly young Debbie's Oatmeal Creme Pies, whose velvety filling so perfectly captures an imagined marriage between buttercream frosting and Noxzema.
 
Whenever I hit an obstacle—Jack's, like almost all 99-cent stores, has no butter, no good olive oil, no flour, very limited cheese and no fresh vegetables—I either supplemented with Gourmet Garage items, or got busy.
 
What kind of busy? I used frozen broccoli from Jack's to make cream of broccoli soup (pretty good), frozen peas for pea soup (excellent), and a soybean oil-butter blend called Admiration to make soufflé (awful).