In Focus

Life Lessons

Recently Chick Cheryl touched on a subject most of us know all too well. Credit Card debt. She explained to you the benefits of clearing up that debt so you can get on with your life and your investment future. Now I want to tell you why it's so darned important to get started building that nest egg. Below are a couple of examples of people who wish they'd done things differently. people I know personally who are very much like you and me. (Names and various other tidbits have been changed to protect their anonymity.) One of them might even be me, who knows? Or your Aunt Bernice, or your best friend Anita... you'll just have to read on and find out.

Couple Number One
A terrific couple who came from a small town and humble beginnings. She ran a daycare program out of her home with five kids attending, he worked flipping burgers at Arnold's up the street. Her parents helped out with their mortgage, and his parents were both deceased. Eventually he moved up to Steam Table at Ponderosa and put himself through culinary school at night with student loans. Money was scarce, until he landed the ultimate job: Head Chef at La Francaise, a French restaurant in a big city. They packed up their U-haul and headed out of town. Suddenly, money wasn't an issue anymore. They had three kids, bought new cars, a house, a riding lawnmower, and every stereo component known to man. One day the owner of the restaurant told the husband he was closing down. Not enough frog-leg eaters to keep them afloat. No job and $200,000 in debt; the couple was shocked at how deep they'd gotten. To anyone on the outside, this was a young, middle-class family who seemed to have it all. Reality was quite the contrary. Look around you. Know anyone like that?

Couple Number Two
She drops out of college after her first year to marry her high school sweetheart. He becomes incredibly successful in an up-and-coming dot-com company. They move to Silicon Valley and they lead a very elite lifestyle. From country clubs to yachts, these two have it all. Or so they think. The company goes under, he's up to his eyeballs in debt and leaves the country to pursue other, younger, interests, and "find" himself. She is left alone to start over. Yuck.

These examples are not all that uncommon. And these people come from all walks of life. My husband Kevin and I met a retired hockey player who was at one time the top-paid player in that profession. When his career ended, he realized he had spent more than he had earned or saved. He actually ended up living on the streets. An old friend found him and helped him get back on his feet. At that moment he vowed not to let other professional athletes go through what he did. He started a company to counsel these young kids. Yeah, the players can make a boatload of money. but for how long? One injury-ridden season could leave you begging for jobs, before you have really even "made" it. Some of these guys get stars in their eyes and spend, spend, spend. The result can be catastrophic.

Since the Chicks got together I have really opened my eyes to the importance of building a nest egg for my family. In fact, at times I am obsessed with it. I find myself looking for every possible way to save money. From buying those few "staple" outfits that I can mix and match to discovering the deliciousness of kids' clothing at Target, I am doing a pretty good job. I used to grocery shop and throw whatever I wanted into the cart. Now I check the price of almost everything. Again, certain things I can't give up (like Star-Kist Tuna), but there is simply nothing wrong with cereal that comes in a bag instead of a box!

Start with baby steps. Take a look at ways you can cut your spending. Eat in more often. Pack a lunch for work. Find other ways to satisfy your shopping urges -- discover TJ Maxx and Lowe's! Walk a little more; drive a little less. Wait for that movie to come out on video. Turn off your lights and your air conditioner at night. Get a cell phone with free long distance calling and stop using your home phone! NEVER use your phone card to call home; try buying a card with minutes on it. Did you realize that your phone card charges at least 25 cents per minute? Give your child a big hug instead of that $10 stuffed toy that they'll throw up on and forget about the next day. Okay, maybe that's pushing it. But you're probably getting the picture.

Lately on the Ask the Chicks message boards there have been endless questions about how to get started with little or no money. Well, New Chicks, this is it. First, get rid of that credit card debt and start taking all the little baby steps necessary to curb your spending and accumulate some cash. You won't believe the self-satisfaction you will feel from this alone. Once you have accomplished this, start a club and you'll see that even the slightest monthly contribution can grow into something wonderful.

Go on now, Chicks, spread your wings.