Reinvest your raises: Gloria Brown makes it a point to live on the same salary she made in 1992.

FEW PEOPLE CAN SAY THEY ARE LIVING on the same amount of money they were more than a decade ago--and enjoying it. Gloria Brown can. Back in 1992, she was earning $45,000, lived on about $25,000, and saved and invested the rest. Fast-forward to today. Although she now makes around two-thirds more than her former salary, she's still spending like it's 1992.

Brown has worked for nearly 30 years at Sara Lee Corp. The 48-year-old, single Winston-Salem, North Carolina, resident is a poster child for DOFE Principle No. 2: to save and invest 10% to 15% of my after-tax income. Having risen through the ranks into middle management, Brown holds a position as a product development technician, fitting and testing new products in the hosiery division. Not only is she putting 15% of her salary into the company's 401(k) plan (the maximum of $13,000 a year), she also makes regular contributions to a Roth IRA, a brokerage account with Scottrade that she manages herself, and an investment club that she's been a member of for eight years. She also puts money into her checking, savings, and money market accounts. Her penchant for saving has given her a retirement fund of nearly half a million dollars.

For Brown, saving is simple. "I live within my means," she says with a quiet laugh. She also developed a very healthy habit: "Every time I got a raise, I found a place for it, like putting more into my 401(k) or my Roth IRA, so that I didn't spend it."

To her credit, she also isn't someone who wants the latest and greatest of everything, "I don't want a lot. I'm not materialistic, and I don't enjoy shopping," says Brown. "I shop when I need something."

Although she is single, Brown buys in bulk when she shops, and she frequents discounters like T.J. Maxx, Floss, and Marshalls. She watches vigilantly for sales and then makes her move. Another way she lives within her means is by rarely leaving home without her grocery store bonus cards. "Something is always on sale that I want, and this is the one place where I spend the most money."

But even when she spends, Brown has been careful to stay clear of debt. Other than the three-bedroom condo she bought in 1992 for $55,000, she has no debt. She has but one credit card, an American Express, which she likes because she must pay the bill in full each month.

Brown's financial discipline started out as a plan to enable her to stop working at 35. "I thought I would retire early and travel to Europe and beyond," she says. "I had in mind this life where I would go wherever I wanted and do whatever I wanted." While she couldn't retire at 35, Brown is confident that she's on course "to retire quite comfortably by the time 65 rolls around."

Another influence on Brown's saving habits was her uncle, who gave her some good advice when she started working. "He said to tithe, pay my bills, save some, and always have ice cream money. Through the years, I added investing to the list," she says.

She also added something else to the list of things to do with her savings--giving back Her regular tithing and contributions to the United Way through a payroll deduction ensure that some of her earnings are helping good causes. And although she has no children of her own, Brown is making sure her four nieces and four nephews, who range in age from 8 to 30, are well taken care of by designating them beneficiaries of her 401(k).

No doubt, Brown's done well. But her next goal will require a quality-of-life adjustment to her budget. She wants to buy a home, three bedrooms and 2,500 to 3,000 square feet, which she figures will cost her about $200,000, Not surprisingly, she has some money saved for a down payment--she's aiming for $30,000 to $40,000--and she expects to get the rest when she sells her condo, which has a current market value of $77,000. "The reality of having a new home is that for the first time, I will have to increase my monthly obligations. I'll want to buy new furnishings, and there will be maintenance and upkeep costs," she says. "But I'm OK with this. I never really wanted a home before, but it's become important to me now, so that's what I'm going to do."

PRINCIPLE 2

To save and invest 10% to 15% of my after-tax income

Master saver Gloria Brown offers this advice:

* Don't spend your raise. The cornerstone of Brown's saving strategy has been to channel her pay increases into investments. "If nothing else about your circumstances changes yearly, set aside your raise for automatic savings," she says. "What you don't see, you can't spend."

* Treat yourself. Leaning on her uncle's advice. Brown says, "Maintain enough personal income to have ice cream money. It's important to treat yourself. Total denial does not work." She also recommends you buy yourself a birthday present. She's taken her own advice: she purchased her condo in 1992 for her birthday and a bought herself a diamond ring on her 36th birthday.

* Give back. Brown does not believe you should save just to keep all the wealth for yourself. "It's about sharing and giving back," she explains. "Part of my savings philosophy is to save so that I can give; it enhances my commitment."

Declaration Of Financial Empowerment 

From this day forward, I declare my vigilant and lifelong commitment to financial empowerment. I pledge the following:

1] To use homeownership to build wealth 2] To save and invest 10% to 15% of my after-tax income 3] To commit to a program of retirement planning and investing 4] To engage in sound budget, credit, and tax management practices 5] To measure my personal wealth by net worth, not income 6] To be proactive and knowledgeable about investing, money management, and consumer issues 7] To provide access to programs that will educate my children about business and finance 8] To support the creation and growth of profitable, competitive black-owned enterprises 9] To use a portion of my wealth to strengthen my community 10] To ensure that my wealth is passed on to future generations