Citizens for Responsible Lending citizensforresponsiblelending

Citizens for Responsible LendingCitizens for Responsible Lendingwww.citizensforresponsiblelending.orgwww.citizensforresponsiblelending.org

How to become my own lender

Citizens for Responsible Citizens for Responsible LendingLending

What I’ve learned so far:

Credit works for me

Credit works against me.

Credit is available in many forms from lots of

different places.

Credit is appealing because of my generally

optimistic nature.

Credit is like Warfarin. A little thins my blood and

can save my life. But just a little too much can kill

me.

How to become my own How to become my own lenderlender

Build my checking account

and savings account balances

slowly and steadily.

How to become my own How to become my own lenderlenderExample 1Example 1

When a need for credit arises, withdraw

from checking and savings to make the

purchase …

then make extra payments back to the

checking and savings accounts until the

balance is restored.


“My mind will bring me the things I am thinking over a long period of time.”

-- Paraphrased from Yoda, Star Wars

This is a very powerful way to achieve my goal.

I am my own Lender

Think it, along with all the other things, until I believe it.

In order to achieve success

I must act like I have already

achieved success.

----------------------------------

I will start acting like

I am my own Lender now.


“Pay myself first” method

Each time I receive a paycheck, the first thing

I will do is make a deposit to my checking and

savings accounts.


Receipt method

Starting right now, save receipts for ALL purchases.

Create a receipt for non-receipted purchases from

things like vending machines or hot dog carts. Make

sure to include tips.

Put all of the receipts in a box or large envelope.

How to become my own How to become my own lenderlenderReceipt method Receipt method

At the end of a week, or two weeks, or a month sort

the receipts into categories like food, car expense,

and household supplies and add up each category.

At the beginning don’t use a lot of detailed

categories. That will come naturally later.

How to become my own How to become my own lenderlenderReceipt method Receipt method

Reviewing receipts helps me identify what I spend

money on now and determine if I want to stop

spending money on some things and redirect that

money to my checking and savings accounts instead.

I suspect what the totals of my receipts will show but

there may me some things that surprise me.

When I see it on paper I will deal with it – not before.


Eureka , I have taken

the most important step

to becoming my own lender!


Receipt method for children

After I have established my receipt program, I will show it and explain it to my

children and have them save and create receipts for things they buy with their

allowance and other income.

When they become teenagers a lot of arguments over money will be eliminated.

If they become their own lenders by junior high, think of how much interest and

credit fees they will probably not pay over their lifetime.

Quite a legacy to pass on, wouldn’t you say?


How product marketing affects my

spending

Am I buying things off the end caps and aisle

displays because they catch my eye and

would be neat to have but I would not have

thought of buying unless they were

displayed so attractively?


How marketing of credit directs my spending

“Apply for our credit card today and get 10% off your

purchase.”

“You can get it today when you apply for our credit card

and make 5 easy payments.”

Instead, apply for the card to get the deal today and when

the bill comes, pay it and cut up the card. Smart, huh?


Spending less by paying cash instead of using credit or

debit cards

I need to become aware of how I use credit cards.

Am I buying things I might not buy if I were paying cash?

If I am using cash, am I more likely to shop around

for a lower price?

When I use credit am I more likely to pay the first price?


Spending less by planning ahead

Create wish lists for everyone in the home.

Buy things on sale, in season or before and in larger, cheaper

quantities

Buy things for birthdays, graduation, and Christmas ahead of

time on sale.

Buy only gifts that people really want.

Have a shopping list in plain sight so everyone in the home can

add the things they want. I am the final authority on what gets

purchased.

◦ Reminds me of things I might have forgotten

◦ May suggest options that might be less costly


Never leave for a shopping trip without a well thought

out shopping list, one with a general range of how

much will be spent.

◦ The spending limit will reduce the chance of impulse purchases.

◦ The list will eliminate extra trips to shop.

◦ The list will save travel time and expense by having a route

established before leaving home.


Healthy living habits

Healthy living habits are a way to grow checking and savings

account balances.

Keep it simple. You don’t need to eliminate a habit, just cut

back and redirect the money you would have spent on things

like cigarettes, junk food, and fast food to your savings and

checking accounts.

How to become my own How to become my own lenderlenderHealthy living habitsHealthy living habits Replacing 20 minutes of watching TV by going for a brisk walk

not only helps my heart from the exercise but also reduces the

chance of eating one snack and reduces seeing 10 minutes of

TV ads. Taking my significant other or my children with me on

the walk increases the benefit twofold.

Parking my car at the far end of the parking lot not only

increases the exercise I get but will also have the benefit of

reducing the urge to buy stuff I have to lug a lot further to the

car.

Replacing an hour of TV or internet surfing with making a meal

is a lot healthier for my family. Having my significant other or

my children help prepare the meal adds to the benefit.


Quick Success Quick Success

Probably not going to happen.

Life seldom goes as planned so I can’t be

discouraged if progress seems to take longer

than I wanted.


Why bother doing this?

Citizens for Responsible Citizens for Responsible Lending Lending Goal Goal

Throughout time, families have suffered misery directly and

indirectly as a result of irresponsible lending practices.

Many governments have attempted to prevent irresponsible

lending practices and have proven, over and over that

regulations, policies and laws do not work.

The only effective way to eliminate the misery caused by

irresponsible lending practices is for me to force my lender

to be responsible.

To do this I must maintain checking account and savings

account balances, growing slowly and steadily, that result in

me becoming my own lender.

Citizens for Responsible Citizens for Responsible LendingLending ResourcesResources Eating healthy adds to savings and checking accounts.

Good Food, Great Medicine by Mea Hassell and Miles Hassell, M.D.

$30 + $7 shipping www.goodfoodgreatmedicine.com

Budgeting builds savings and checking accounts.

The Total Money Makeover Financial Peace Revisited

by Dave Ramsey www.daveramsey.com

Citizens for Responsible Citizens for Responsible LendingLending RecapRecap

Build checking and savings balances slowly and steadily

Use checking and savings balances to replace credit

Pay myself first program

Receipt program to become aware of what I buy

Using cash/check instead of credit or debit card

Use wish lists to get more satisfaction for less money

Use a shopping list to save time, mileage and money

Healthy living habits are as important as healthy spending habits

No quick success, but long-term goals met will be more life changing

Why bother doing this? To prevent the misery caused by irresponsible lending

practices

Use resources to increase your knowledge

I am my own Lender

Documents

Citizens for Responsible Lending citizensforresponsiblelending