I’ve always had issues with the word save whose dictionary definition includes “To spend less by (save 25 percent).” You see, I’ve always thought that advertisers were just being clever when they tell you that you can “save big money” by buying their products. In fact, “you can’t save money at a sale” is one of my go-to soundbites. Thankfully, a recent article in Self magazine taught me how you actually can save money at a sale. From the November issue:

Make your virtual savings real
If you buy a $100 jacket on sale at 50 percent off and pay $50, have you saved $50? Of course not. (But you already knew that, didn’t you?) Yet many people succumb to the notion that “a bargain ain’t a bargain unless you buy it,” as if the savings from a discount were as tangible as money spent, says Peter Tufano, Ph.D., professor of financial management at Harvard Business School in Boston. To make your savings concrete, jot down the amount of the discount—$25 off your new Flip cam, for instance—then transfer that money directly into your savings account. This time, you’ve truly saved $25.

I wish I had thought of that! (Actually, that is how I feel every time I read the work of MP Dunleavey.)

I read a lot of magazine articles about money saving tips, but this tip stood out for a number of reasons:

-You’ll think before you buy. It seems as though things look better when they’re on sale. A dress you would never consider for $100 might look very attractive at $30. (70% off seems to be my breaking point—I lose all perspective!) With this new savings strategy, you are still committing to $100, so you’re likely to view things more realistically.

-You’re rewarded twice. Getting a great deal on something you love can be rewarding, but the comfort of knowing that you have something set aside for emergencies is valuable too. By stashing your savings, you’ll get the best of both worlds.

-The New Year will be off to a great start. There is a sale for every occasion and the upcoming holiday season is no exception. By making your virtual savings real, shoppers won’t be able to help saving. If you have trouble sticking to your stashing, try imagining how great it will be to start the New Year with savings instead of debt.

Speaking of debt, I should mention that this savings strategy only works if you’ve got the money to spend and save. As a general rule, charges should not be put on a credit card unless the balance can be paid in full when the monthly statement comes in. Remember, financing purchases—even if they’re on sale—is rarely a bargain.

When faced with a financial crisis, it is tempting to look to your long-term savings to ease the immediate burden. However, the solution might be worse than the problem. Tapping your retirement money early could tarnish your “golden years.” In addition to causing stress, cashing your retirement plan early is costly.

If you withdraw money from your 401k, you will likely have to pay tax plus a 10 percent penalty on any money withdrawn. This total tax bill will probably come to about 37 percent of the money you withdraw. Even your credit card companies don’t charge an interest rate that high. As an example, if you withdraw $10,000, you will probably only realize around $6,300.

Borrowing money from your 401k account can also be a risky move. Long-term plan loans usually charge the prime interest rate plus one or two percentage points. In fact, it could cost you more than the stated rate. Say you borrow from your plan at 7 percent but the cash you pull out has been earning 9 percent in the stock market. You are losing out on the additional earnings and future compounding on these lost earnings. Another potential problem is that if you quit or lose your job, your loan may be due immediately. This would be at a time you are least be able to pay back the loan.

Before you put your financial future at risk, consider the following alternatives.

-Borrow from yourself. While cashing your IRA is not desirable, you might be able to take a short-term loan with no penalties. The only requirement is that you pay back the entire amount borrowed within 60 days.

-Take a good look around you. Most likely, there are many things in and around your home that you could sell for cash. Also, if you have the room, consider taking on a boarder.

-Seek employment. Secure a temporary job to help you through this set-back; even if it is not in your field of expertise.

-Use all available resources. Research all sources of cash. For example, you may have a life insurance policy with a cash value. Collect on monies lent to family and friends.

Finally, if you must access your retirement funds, consult with an accountant about your rights and responsibilities. The IRS does recognize some legitimate reasons for hardship withdrawals. The person applying for a hardship withdrawal must show an “immediate and heavy financial need” and have no other source of cash.

Of course, the earlier you start saving the better. However, I believe that some periods of life are better suited for saving than are others. The Crucial Decade it is not based on your age, but the age of your children (if you don’t have children, you are probably better rested than I am and this blog post probably won’t mean much to you).

A 2007 report by the US Department of Agriculture claims that the amount of money it takes to raise a child from birth to age 17 doesn’t fluctuate much per year. They estimate that families earning between $45,800 and $77,100 annually will spend $11,000 to $12,000 per year until age 17 for a total of $204,060. I am sure this type of information plays an important role in determining child support and foster care payments. However, as a practical family budgeter, I don’t believe that a child’s 13th year is as costly as his or her 3rd.

As all parents know, babies are expensive. Medical bills, childcare costs, time off work and baby supplies all add up. This is especially true if one spouse decides to leave their job to care for the children. Older children are also costly. Cars, college, and weddings are some of the larger ticket items you can look forward to. And this is assuming they don’t move back in with you!

Fortunately, I have discovered that there is a period of time between where the childcare costs end and the college tuition begins (even the costs of sports playing, electronic loving tweens can’t compete with those big ticket items). This is your big chance! According to the National Association of Child Care Resource and Referral Agencies, parents of school-age children pay up to $8,600 a year for part-time care. When this ends or at least diminishes, start saving the amount you were paying in childcare into a savings account to prepare for retirement or the tuition that is looming on the horizon.

Don’t let this Crucial Decade pass you by or you’ll find yourself playing catch-up in your golden years.