Using refund to get new start

If you are having trouble sleeping because you're worrying about money, don't feel as if you are alone in the dark.

Nearly 80 percent of Americans are lying awake at night trying to figure out how to pay their car notes, make the due date on credit cards or keep their homes out of foreclosure. That number is up 16 percent over the December findings, according to a poll of more than 1,400 consumers this month by National Foundation for Credit Counseling,

Here are some other results from the poll:

* 69 percent said that refinancing their home would not help solve their financial problems.

* 59 percent owe more on their home than it's worth.

* 50 percent said they couldn't increase their credit limit when they tried.

What's up with this?

Other reports indicate that people are still spending as if they have money to burn. According to the U.S. Department of Commerce, Americans spend $1.22 for every dollar they earn.

"Most of the populace is addicted to consumption," said Scott Spiker, chief executive of First Command Financial Services, a financial consulting firm in Fort Worth, Texas. "The more and more we spend, the worse it gets. It takes a deliberate effort to break the cycle."

Spiker suggests that people use those tax refunds and stimulus rebate checks they'll get this spring as a first step toward changing poor spending habits.

Instead of immediately spending that money, he suggests really thinking about your long-term financial goals. Then work with a professional financial adviser to formalize those plans.

The idea is that it's harder to splurge on an all-day spa trip when you have made firm plans to save for your child's college education or your early retirement.

Now, you've probably heard this advice before and wondered how to get started. The best way is to get some help.

One place to go is North Carolina Saves, a statewide coalition of nonprofit and corporate and government groups that provides resources to help people save money.

Its Web site, www.northcarolinasaves.org, lists banks that offer free and low-cost savings accounts. It also offers information on saving.

To get additional benefits, you will need to enroll in N.C. Saves' online program. There's no charge, but you have to provide your name, address, e-mail address and personal savings information. The group promises not to share your information.

In return, you can get motivation and support from other savers, a call from a financial coach, free or low-cost financial seminars and a free quarterly newsletter with savings news and tips.

The group says that no amount is too small to start saving. For example, Bankrate, www.bankrate.com, lists online banks that offer up to 4 percent a year. If you save $50 a month from the time your child is born until he or she turns 17, you can earn about $15,000. Bankrate also lists the latest saving rates and compares the different savings accounts offered by banks.

Another helpful resource is the American Bankers Association Education Foundation, www.abaef.com. This is a nonprofit subsidiary of the bankers association that provides financial literacy programs.

If you work with a financial adviser, be sure to do your homework. Many will offer a free first-time consultation. This gives you the opportunity to shop around for the financial planner that you are comfortable working with.

Remember, the sooner you start saving, the quicker you will get to sleep at night.