The sisters who save: Patricia and Regenia Washington prove that pooling financial resources pays big dividends. (Black Wealth Initiative).

PATRICIA WASHINGTON AND HER SISTER REGENIA HAVE fond childhood memories of trips to the bank with their mother. In their hometown of Marshall, Texas, those weekly trips taught the sisters a lesson about saving money that has lasted a lifetime.

"It was normal for us to make the trek to the bank and put money in our savings accounts," says Patricia. Getting into the habit of saving early would pay off for the sisters years later.

Patricia, 42 is a clinical expert in oncology at the pharmaceutical company Amgen Inc., where she works with doctors ,and nurses on advancing cancer drugs. She joined Amgen a year ago after getting a doctorate degree in nursing. Regenia, 28, who has a master's degree in nursing, is a hepatology specialist for the pharmaceutical company Roche. The two sisters were able to obtain their degrees and increase their earning potential after deciding to move in together in 1994. They wanted to share living expenses while continuing to work and attend school. The decision allowed Patricia to map out a financial strategy to forgo student loans as she pursued her doctorate from the University of Texas Health Science Center at Houston. "I planned everything down to the penny, putting the tuition, the dorm, and even the cost of putting my things in storage on paper," Patricia says. "Then I used all My savings and my retirement fund to go back to school"

After Patricia graduated in 1999, it was Regenia's turn Living with her older sister allowed Regenia to get her master's at Texas Woman's University in 2000 with less financial strain.

"We shared the costs of rent, food, and just about everything else," says Regenia, who was able to pay off $28,000 in student loans less than two years later by working overtime and using $10,000 from her savings. "There is no way I could have saved money and paid off my loans if I were living by myself," she says.

Now that sisters have completed their education, they are planning for the future. Following DOFE principle No. 1: to save and invest 10% to 15% of my after-tax income, both sisters put 5% to 10% of their paychecks into stock options and saving plans. And they've also exercised DOFE principle No. 5: to engage in sound budget, credit, and tax management practices. Since their jobs provide them with new cars every two years and pay most of the insurance and gasoline costs, they've placed money they would've spent on those expenses into savings as well. That paved the way for Patricia to purchase a home, allowing the sisters to stop leasing their town house for $950 a month. She bought a 3,600-square-foot house in a Houston suburb for $155,000 and Regenia contributes a moderate amount toward the mortgage and other costs.

The Washington sisters' frugal ways also allowed them to help out a family in need. After one of Regenia's cancer patients died in May 2001, leaving for small children, the sisters gained power of attorney and custody for two of the children, Jerilyn, 6, and Sydney, 5. The grandparents took in the other two children. "She was such a nice lady," Regenia says of her patient. "She had cancer of the pallet the back of the mouth, and nasal area Her husband had left her, and before she died she said, `Help my babies.'

"Financially, the girls are not a drain on us," Regenia says. "Their grandparents provide them with clothes and toys and have set up a college fund for them." In December the sisters extended their generosity further Rachel, a 17-year-old member who attends Houston Community College. "Our grocery bill is higher," says Regenia, "but our lifestyles haven't really changed that much.

To achieve their financial goals and position themselves to help others. Patricia and Regenia followed these rules:

MAKE SAVING A PRIORITY

The Washington sisters stress that learning to save and invest early was the key to their financial success. The lessons their mother taught them about money guide their lives, and they plan to pass those lessons on to Jerilyn and Sydney. The Washington sisters have already set up accounts for the children, and they take them to the bank just like their own mother did years ago. "Learning the importance of saving money and making it work for you is crucial. We want to expose the girls to the concept," says Patricia.

PAY OFF LOANS AND PAY CASH

By paying off her loans, Regenia saved thousands of dollars in interest that she would have paid had she spread out the payments over several years. To do so, she worked overtime on weekends.

The Washington sisters also believe in paying cash for items when they are able. They buy all their Christmas gifts and most household items in cash. They also limit their credit card use.

LIVE BELOW YOUR MEANS

The Washington sisters believe in bargains. They buy groceries in bulk and choose store brands instead of the more popular brands. They also save by shopping for clothing and home accessories over the Internet.

To cut down on expenses further, the sisters now eat at home more, especially since Jerilyn and Sydney came to live with them.

Declaration Of Financial Empowerment

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

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

2 To be a proactive and informed investor

3 To be a disciplined and knowledgeable consumer

4 To measure my personal wealth by net worth, not income

5 To engage in sound budget, credit, and tax management practices

6 To teach business and financial principles to my children

7 To use a portion of my personal wealth to strengthen my community

8 To support the creation and growth of profitable, competitive, black-owned enterprises

9 To maximize my earning power through a commitment to career development, technological literacy, and professional excellence

10 To ensure that my wealth is passed on to future generations