Citizens for Responsible Lending citizensforresponsiblelending

1. Citizens for Responsible Lendingwww.citizensforresponsiblelending.org How to become my own lender

2. Citizens for Responsible Lending 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.

3. How to become my own lender Build my checking account and savings account balances slowly and steadily.

4. How to become my own lenderExample 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.

5. How to become my own lender “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.

6. I am my own Lender Think it, along with all the other things, until I believe it.

7. 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.

8. How to become my own lender “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.

9. How to become my own lender 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.

10. How to become my own lenderReceipt 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.

11. How to become my own lenderReceipt 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.

12. How to become my own lender Eureka , I have taken the most important step to becoming my own lender!

13. How to become 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?

14. How to become my own lender 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?

15. How to become my own lender 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?

16. How to become my own lender 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?

17. How to become my own lender 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

18. How to become my own lender • 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.

19. How to become my own lender 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.

20. How to become my own lenderHealthy 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.

21. How to become my own lender 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.

22. How to become my own lender Why bother doing this?

23. Citizens for Responsible Lending 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.

24. Citizens for Responsible LendingResources 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 Ramseywww.daveramsey.com

25. Citizens for Responsible LendingRecap • 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

26. I am my own Lender